QDYN’s holdings “are selected based on expected dividend payment and fundamental factors such as profitability, solid management, and reliable cash flow,” according to FlexShares.
Here is the tale of the tape: Treasury yields have surged this year, that is a known fact. That has not stopped the Vanguard High Yield Dividend ETF (NYSEArca: VYM) from gaining 29.9%. QDYN, however, has gained 33.4%, rendering the 27-basis point difference in expenses in favor of VYM a moot point.
FlexShares Quality Dividend Dynamic Index Fund