A Defensive ETF With Compensation

Defensive does not mean boring or excessive interest rate risk with QDEF. Consumer staples, utilities and telecom names combine for just 20% of the ETF’s weight. That does not mean investors make a significant yield as QDEF’s trailing 12-month yield of almost 2.5% is still slightly above the yield on 10-year Treasurys. Plus, QDEF’s beta is just 0.83.

Apparently, investors like QDEF’s story. When we highlighted the fund in September, it had $72.7 million in assets under management. That number has since swelled to $192.7 million.

FlexShares Quality Dividend Defensive Index Fund

Tom Lydon’s clients own shares of Apple and Microsoft.