IDV VS QDF
4 min read
By Ron Koren, ETF Insider

IDV VS QDF

Exchange-Traded Funds (ETFs) have redefined the landscape of modern investing, providing investors with efficient ways to diversify their portfolios across different sectors and asset classes. In this article, we will conduct an in-depth comparison between two prominent ETFs: IDV (iShares International Select Dividend ETF) and QDF (FlexShares Quality Dividend Index Fund). We'll delve into a range of key aspects, including ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methods, and exposure.

IDV Vs QDF: Overview

IDV and QDF stand as two distinct ETFs that cater to investors seeking dividend-focused exposure. While both funds target dividend-paying stocks, they approach this objective from slightly different angles. IDV aims to capture dividends from international companies outside the United States, offering investors exposure to global dividend streams. QDF, on the other hand, emphasizes quality dividend-paying stocks within the U.S. market. Understanding the nuances of their strategies is essential for investors seeking dividend income with varying geographical preferences.

IDV Vs QDF: Sectors and Top Holdings

The sectors and top holdings of IDV and QDF are indicative of their respective investment philosophies. IDV, with its international focus, includes a diverse array of sectors such as financials, energy, consumer goods, and utilities. Some of its top holdings might include companies like Enbridge Inc., Novartis AG, and Royal Dutch Shell PLC. QDF, on the other hand, emphasizes quality dividend stocks within the U.S., potentially including names like Johnson & Johnson, Microsoft, and Procter & Gamble. Evaluating the sectors and holdings of each ETF helps investors align their portfolios with their geographical and sector preferences.

IDV  overlap IDV VS QDFIDV overlap IDV VS QDF

IDV Vs QDF: Capitalization and Investment Strategy

The capitalization and investment strategy of these ETFs are essential factors to consider when making investment decisions. IDV's asset under management (AUM) reflects its popularity among investors looking for international dividend exposure. Its strategy revolves around selecting dividend-paying companies from various global markets. QDF focuses on U.S. companies with a history of consistent dividend payments and strong fundamental characteristics. Evaluating the differences in capitalization and strategy aids investors in assessing the potential risks and rewards associated with these funds.

IDV Vs QDF: Tracking and Exposure

IDV and QDF employ distinct methods to track and provide exposure to dividend-paying stocks. IDV tracks an index of international companies that meet specific dividend criteria. This tracking method allows investors to gain exposure to diverse markets and currencies. QDF, on the other hand, tracks a U.S.-focused index of quality dividend-paying stocks. The differing tracking methods and exposures result in unique risk and return profiles. Investors should carefully evaluate their investment objectives and risk tolerance to determine which ETF aligns with their goals.

Conclusion

In the world of ETF investing, IDV and QDF offer investors opportunities to harness dividend income from varying geographical and sector perspectives. For those looking to gain a deeper understanding of the intricacies, correlations, overlaps, and other insights within these ETFs, ETF Insider provides a comprehensive tool to facilitate exploration. With a user-friendly app, ETF Insider empowers investors with detailed information about these financial instruments and more.

Disclaimer: This article is intended for informational purposes only and does not provide any form of investment advisory services. It's essential to conduct thorough research and consult with a qualified financial professional before making any investment decisions.

Sources:
Bloomberg
Morningstar
ETF issuer websites
Financial news sources

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FAQ

  • Why is IDV better than QDF?

    IDV may be considered better than QDF for some investors due to its specific focus, offering diversification.

  • Does QDF beat IDV?

    QDF's performance relative to IDV will vary over time, depending on market conditions.

  • Should I invest in IDV or QDF?

    The choice between IDV and QDF should align with your investment goals, risk tolerance, and desired exposure.

  • Are IDV and QDF good investments?

    Both IDV and QDF can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between IDV and QDF?

    The correlation between IDV and QDF can vary over time, reflecting differences in performance.