That choice would have represented lost opportunity cost because QDF is up 23.1% over the past two years while VIG is up a still admirable 19.4% over that period.
QDF emphasizes the quality factor, of which a company’s ability to generate free cash and dividend growth and stability are integral tenants. QDF tries to reflect the performance of the Northern Trust Quality Dividend Index, which holds high-quality income-oriented U.S. companies with a targeted overall beta similar to the Northern Trust 1250 Index. QDF’s quality emphasis implies a safer payout and more room for potential dividend growth. [Newer Dividend ETFs Offer Opportunity]
“While an ETF may look the same as its brethren on the surface, a deeper examination can reveal how very different it actually is. Decisions about which products to use or not use could have lasting impacts on the performance of an investment portfolio and ultimately impact the ability of the investment portfolio to meet an investor’s financial objectives,” adds FlexShares.
FlexShares Quality Dividend Index Fund
