FlexShares Quality Dividend ETF Volatility

QDEF ETF  USD 85.15  0.61  0.72%   
FlexShares Quality's volatility page measures how much the ETF price has swung and what risk that implies for holders. It carries a 0.82 long-term beta, meaning it tends to be less volatile than the market as a whole. The ETF shows very low price volatility over the last 3 months.

Sharpe Ratio = 0.0797

Leading ReturnsTop Quartile
Strong
Moderate
Modest
CashQDEFModerateElevatedHigh
Below Benchmark
For FlexShares Quality Dividend, recent data highlights a Market Risk Adjusted Performance of 0.1%, a Risk of 0.76, and a Risk Adjusted Performance of 0.1%. Moving average data positions the ETF near 6% of its recent return envelope.
Key indicators related to FlexShares Quality's volatility include:
90 Days Market Risk
Chance Of Distress
90 Days Economic Sensitivity

Key risk metrics for FlexShares Quality (3 Months):

 Beta
0.72
 Alpha
0.05
 Risk
0.76
 Sharpe Ratio
0.08
 Expected Return
0.06

Moving together with FlexShares ETF

  0.94VTV Vanguard Value IndexPairCorr
  0.96VYM Vanguard High DividendPairCorr
  0.94DGRO iShares Core DividendPairCorr
  0.97SPYV SPDR Portfolio SAMPPPairCorr
  0.97IUSV iShares Core SAMPPPairCorr
  0.94FNDX Schwab Fundamental LargePairCorr
  0.81VLUE iShares MSCI USA Low VolatilityPairCorr
  0.67RMM RiverNorth ManagedPairCorr
  0.9DRGN Themes China GenerativePairCorr
  0.86PAYM TrueShares SAMPPPairCorr
  0.73RMMZ RiverNorth ManagedPairCorr
  0.83BA BoeingPairCorr
  0.81MSFT MicrosoftPairCorr
  0.75BAC Bank of AmericaPairCorr
  0.77JPM JPMorgan ChasePairCorr

Moving Against FlexShares ETF

  0.8XOM Exxon Mobil CorpPairCorr
  0.58WNTR YieldMax MSTR ShortPairCorr
  0.58VZ Verizon CommunicationsPairCorr
  0.43PFE Pfizer IncPairCorr

Sensitivity To Market

The beta coefficient of 0.72 for FlexShares Quality Dividend measures how its returns respond to broader market changes. In regression terms, beta captures the slope between asset returns and index returns. Historical volatility is currently near 0.76%. This analysis separates observed movement from interpretation for FlexShares Quality Dividend. Standard deviation (0.75%) and downside deviation (0.72%) describe the range without implying direction. ETF volatility often reflects both the underlying basket and the trading layer. Premium/discount to NAV is often expressed as (Price − NAV) / NAV × 100 when NAV is available. Spread stability also shapes short-term movement.
Current 90-day FlexShares Quality correlation with market (Dow Jones Industrial)
α0.05   β0.72
3 Months Beta |FlexShares Quality Demand Trend
Current 90-day FlexShares Quality correlation with market (Dow Jones Industrial)

Downside Risk

FlexShares standard deviation over the selected horizon reflects the magnitude of daily price swings relative to the historical average. A rising standard deviation for FlexShares over successive periods signals increasing price uncertainty.
Standard Deviation
    
  0.76  
Understanding the asymmetry between upside and downside risk is critical for FlexShares Quality analysis. Total price dispersion includes upside, while downside deviation captures only loss risk in FlexShares Quality's returns. For FlexShares Quality Dividend, recent data highlights a Downside Deviation of 0.72, a Downside Variance of 0.51, and a Maximum Drawdown of 3.81.

ETF Volatility Analysis

Volatility is a statistical measure of the dispersion of FlexShares Quality ETF returns over a given period of time. Volatility measures how much FlexShares Quality's ETF price deviates from its average over a period.
Transformation
This analysis covers sixty-one data points across the selected time horizon. The Average Price transformation calculates the mean of FlexShares Quality's open, high, low, and close for each trading period. By incorporating all four price components equally, it provides a balanced representation of each period's trading activity. Compared to using the closing price alone, the average price reduces the influence of end-of-day positioning and can serve as a smoother input for other technical indicators.

Projected Return Density Against Market

Given a 90-day horizon, FlexShares Quality has a beta of 0.7193 indicating as returns on the market go up, FlexShares Quality's average returns tend to increase less than the benchmark. However, during a bear market, the loss from holding FlexShares Quality Dividend tends to be smaller as well.
FlexShares Quality carries exposure to broad market movements as well as company or sector-specific developments. While portfolio diversification can reduce asset-level risk, systematic volatility cannot be avoided. Standard deviation and beta quantify this exposure. For FlexShares Quality Dividend, recent data highlights a Downside Deviation of 0.72, a Mean Deviation of 0.55, and a Semi Deviation of 0.64.
FlexShares Quality Dividend has an alpha of 0.0534, implying that it can generate a 0.0534 percent excess return over Dow Jones Industrial after adjusting for the inherent market risk (beta).
   Predicted Return Distribution   
       Density  
FlexShares Quality's volatility is typically evaluated with standard deviation and beta. Standard deviation reflects how far FlexShares Quality's returns usually move from the mean over the selected horizon.

What Drives FlexShares Quality's Price Volatility?

Holdings and Allocation

Exposure changes, asset reallocation, or index methodology updates in the Large Value category can alter FlexShares Quality's day-to-day volatility profile.

Political and Economic Environment

Broad market tone, policy uncertainty, and recession or expansion signals shape volatility conditions for FlexShares Quality.

FlexShares Quality's Fund-Specific Factors

Unexpected fund flow surges, tracking deviation, or liquidity changes can drive outsized moves in FlexShares Quality's price.

ETF Risk Measures

Given a 90-day horizon, the coefficient of variation of FlexShares Quality is 1254.05. The daily returns are distributed with a variance of 0.57 and standard deviation of 0.76. The mean deviation of FlexShares Quality Dividend is currently at 0.55. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.97
α
Alpha over Dow Jones
0.05
β
Beta against Dow Jones0.72
σ
Overall volatility
0.76
Ir
Information ratio 0.08

ETF Return Volatility

Volatility for FlexShares Quality quantifies the day-to-day dispersion of ETF returns around their historical average. The Exchange Traded Fund carries 0.756% return volatility across the 90-day horizon. As a benchmark, Dow Jones Industrial reported 0.9671% volatility on return distribution over a 90-day investment horizon.
 Performance 
       Timeline  

Related Correlations Analysis


FlexShares Quality Constituents Risk-Adjusted Indicators

Headline performance for FlexShares ETF may not fully reflect how the business compares across its competitive set. Peer-relative risk metrics add context on drawdown behavior, consistency, and return quality. These indicators are quantitative in nature and measure volatility and risk-adjusted expected returns across different positions.

Risk Metrics, Assumptions & Methodology

Volatility regime analysis for FlexShares Quality identifies whether the fund is currently in a high, low, or transitioning dispersion state. Regime transitions often precede directional moves, making volatility shifts a useful timing signal.

FlexShares Quality Dividend data is compiled from fund disclosures and market reference feeds and standardized for comparability. Volatility and downside metrics are estimated from historical return dispersion.

Editorial review and methodology oversight provided by: Rifka Kats, Member of Macroaxis Editorial Board

Volatility Profile Summary

Recent data suggests that FlexShares Quality Dividend is less volatile than Dow Jones Industrial by approximately 1.28x over the selected horizon. This differential reflects the relative dispersion of returns and frames how each asset responds to broader market conditions. Observed price behavior indicates modest directional movement within the current volatility regime. Across the current 90-day horizon, that places the security below 6% of the broader equity and portfolio universe on a pure volatility basis. This positioning reflects relative dispersion compared to peers rather than extreme instability.

FlexShares Quality Dividend with characteristics aligned to broad market upside participation. This short-horizon analysis focuses on what the latest move may imply for immediate market context. It is intended to separate routine noise from more speculative bursts in price action. a moderate upward price movement. Return distributions derived from historical modeling outline a range of potential outcomes over the selected 90-day horizon. View FlexShares Quality probability analysis.

Minimal diversification benefit
Across the chosen horizon, FlexShares Quality and Dow Jones show a correlation of 0.93 and fall into the Minimal diversification benefit bucket. Lower overlap tends to improve diversification, while higher overlap means both positions carry similar risk.

Additional Risk Indicators

Risk analysis around FlexShares Quality Dividend gains depth when secondary indicators confirm, refine, or challenge the basic volatility picture. This is most informative when assessing whether the current opportunity is being compensated with reasonable risk.

FlexShares Quality Suggested Diversification Pairs

A paired position built around FlexShares Quality Dividend reduces directional market exposure while expressing a relative-value view. The advantage is that adverse movement in one leg may be partly offset by the other when correlation and thesis alignment hold.
Risk reduction through pair trading is real but has limits - not every type of exposure can be offset by a second leg. FlexShares Quality's exposure to overall market risk stays intact regardless of pairing. The value of a second leg lies in reducing FlexShares Quality's idiosyncratic risk - the part that comes from company-level events rather than macro conditions.

More Resources for FlexShares ETF Analysis

Market price and NAV offer complementary views of FlexShares Quality - the first driven by trading activity, the second by underlying asset values.
Price and NAV for FlexShares Quality are related but not identical, and they can diverge during volatile periods. The actual FlexShares Quality transaction price is determined by real-time order flow on the exchange.