QLVD: FLEXSHARES DEVELOPED MARKETS EX-US QUALITY LOW VOLATILITY INDEX FUND
ETF Education Report: QLVD
What this ETF is trying to do
The FLEXSHARES DEVELOPED MARKETS EX-US QUALITY LOW VOLATILITY INDEX FUND (Ticker: QLVD) is an exchange-traded fund (ETF). Based on its name, it focuses on "quality" companies in developed markets outside of the United States. It also looks for "low volatility," which generally means companies that may have steadier price movements.
What the numbers show
When looking at an ETF, it is important to know the difference between price return and total return. Price return only tracks how much the share price changed. Total return includes both the price change and any cash distributions (dividends) paid out.
Here is what the data shows for QLVD:
• Year-to-Date (YTD): The price return is approximately 3.54%, while the total return is approximately 5.95%.
• One-Year: The price return was approximately 5.07%, while the total return was approximately 8.46%.
• Three-Year: The price return was approximately 36.32%, while the total return was approximately 49.43%.
To see how the price has changed, we can look at the current price of $32.94 compared to an estimated price from roughly one year ago, which was approximately $31.35.
Top Holdings
This ETF holds 197 different assets. Because the list provided is partial, these are only the largest holdings:
• Novartis AG (3.87%)
• Royal Bank of Canada (3.71%)
• ASML Holding NV (2.42%)
• Unilever PLC (2.24%)
• DBS Group Holdings Ltd (2.12%)
• Canadian Imperial Bank of Commerce (1.73%)
• Iberdrola SA (1.59%)
• Nestle SA (1.53%)
• Sanofi SA (1.53%)
• Shell PLC (1.50%)
Income and distribution explanation
Some investors look for ETFs that pay out cash. The distribution yield for QLVD is approximately 3.14%. This number describes the cash distributions relative to the ETF's price. Over the last 12 months, there were 4 payouts, which usually happen quarterly. While these payments provide cash income, they are not the same as total return.
NAV erosion explanation
"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly. StockValueFinder uses an erosion-risk score to measure this risk. For QLVD, the erosion score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this fund.
Pros
• The fund has shown positive price returns and total returns over the one-year and three-year periods.
• It provides a steady distribution yield.
Cons
• As with all ETFs, the value of your investment can change based on market movements.
Beginner takeaway
When studying QLVD, remember that the total return is higher than the price return because it includes cash distributions. Always look at both numbers to see how much value an ETF has actually created over time.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | NOVARTIS AG REGISTERED SHARES | n/a | 3.87% |
| 2 | ROYAL BANK OF CANADA | n/a | 3.71% |
| 3 | ASML HOLDING NV | n/a | 2.42% |
| 4 | UNILEVER PLC | n/a | 2.24% |
| 5 | DBS GROUP HOLDINGS LTD | n/a | 2.12% |
| 6 | CANADIAN IMPERIAL BANK OF COMMERCE | n/a | 1.73% |
| 7 | IBERDROLA SA | n/a | 1.59% |
| 8 | NESTLE SA | n/a | 1.53% |
| 9 | SANOFI SA | n/a | 1.53% |
| 10 | SHELL PLC | n/a | 1.50% |