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This fund provides investors with an opportunity to invest in U.S. equities, focusing on companies that demonstrate both robust financial health and reduced price fluctuations. Its core objective is to closely track the overall performance, including both capital growth and income generation, of the Northern Trust Quality Low Volatility Index, prior to the impact of any management fees or operational costs.
Is QLV's expense ratio expensive, average, or a steal for its category?
Pro reveals the verdict on a 5-tier spectrum calibrated against ICI 2025 industry averages, with strategy-aware bands so the comparison is meaningful.
The FlexShares US Quality Low Volatility Index Fund ETF has a passive strategy bringing together quality and low volatility factors. QLV's portfolio has high quality, a 0.65 weighted average 24-month beta, and a value tilt, which should help the ETF to keep the downside capture below 80%. However, QLV does not have GARP characteristics appealing enough, plus low beta is a detractor from upside capture, so its outperformance versus IVV in 2026 and beyond is unlikely.
The FlexShares US Quality Low Volatility ETF integrates quality screens with low volatility, aiming to mitigate risks that pure low-volatility ETFs may miss. QLV selects stocks based on management efficiency, profitability, and cash flows, reducing exposure to unprofitable names that can slip into price-based strategies. QLV carries notable concentration risk, with over 17% in its top three positions—Microsoft, Nvidia, and Apple — and 28% in the IT sector.
FlexShares US Quality Low Volatility Index Fund ETF aims to maximize quality and minimize volatility in a portfolio of about 120 stocks. Volatility reduction is effective at the expense of return: QLV has underperformed a benchmark by almost 3% in annualized return. QLV beats most of its largest competitors in the low-volatility category, but it lags a number of quality-focused ETFs.
Hello, VettaFi Voices! Whenever I read about the economy in 2023, the one word that comes up repeatedly in various forms is “uncertain.
Advisors have lots of smart beta ETFs worthy of consideration. Most of them focus on a single fundamental approach or factor like dividends, low volatility, quality, or value.