FlexShares Quality Dividend Defensive Index Fund (QDEF) Valuation

NYSE Arca: QDEFP/E, earnings yield and other ratios of the holdings combined.

QDEF valuation today

Holdings combined · company data as of Oct 26, 2026

P/E (TTM): 21.4
Forward P/E: 16.0
Price / sales: 2.69
Price / book: 4.49
EV / EBITDA: 13.4
Earnings yield: 4.67%
Dividend yield: 1.89%
Return on equity: 21.0%
Net margin: 12.6%
Beta: 0.92

QDEF valuation vs other stock ETFs

P/E (TTM)Forward P/E

QDEF valuation compared with other stock ETFs
ETF	P/E	Fwd P/E	P/S	P/B	Div. yield	ROE	Net margin	Loss-makers
QDEF	21.4	16.0	2.69	4.49	1.89%	21.0%	12.6%	2.7%
SPY	25.9	19.9	3.67	5.47	1.08%	21.1%	14.2%	1.9%
QQQ	34.2	23.4	5.93	9.27	0.58%	27.1%	17.4%	6.9%
DIA	20.9	18.4	3.16	5.52	1.55%	26.4%	15.1%	0.0%
VTI	28.2	19.4	3.31	5.00	1.07%	17.7%	11.8%	4.6%
IWM	n/m	13.9	1.25	2.03	1.38%	−1.7%	−1.0%	28.1%

Same method for every fund. n/m = not meaningful (combined trailing earnings below zero or close to it). Loss-makers = weight of holdings with negative trailing earnings.

QDEF valuation by sector

P/E (TTM)Forward P/E

QDEF valuation by sector
Sector	Weight	P/E	Fwd P/E	P/S	P/B	Div. yield	ROE
Technology	34.5%	27.1	21.3	7.02	11.39	0.80%	42.0%
Healthcare	11.5%	32.6	16.2	2.07	7.39	1.86%	22.7%
Financial Services	9.5%	13.7	11.8	2.38	2.00	2.51%	14.6%
Communication Services	7.0%	16.6	16.4	3.63	4.40	1.01%	26.6%
Consumer Defensive	7.0%	147.1	15.5	2.66	4.18	3.84%	2.8%
Industrials	6.6%	23.9	20.7	2.08	11.51	1.53%	48.2%
Consumer Cyclical	6.4%	16.3	12.8	1.37	7.12	2.40%	43.8%
Energy	6.1%	11.9	9.4	1.08	1.97	2.28%	16.6%
Real Estate	4.0%	17.4	19.8	6.75	2.20	5.43%	12.6%
Utilities	3.4%	11.9	12.2	1.72	1.74	3.93%	14.6%
Basic Materials	3.0%	22.1	12.7	1.69	2.51	2.10%	11.4%

QDEF earnings yield vs bond yields

QDEF earnings yield (forward)

6.23%

QDEF earnings yield (trailing)

4.67%

QDEF dividend yield

1.89%

Bond market yield (AGG)

5.33%

T-bill yield (BIL)

3.91%

Earnings yield = earnings ÷ price (1 ÷ P/E). The gap to bond yields is a rough gauge of the extra return stocks are priced to deliver.

How QDEF weight splits by P/E

Share of the covered weight in companies with a trailing P/E in each range.

QDEF largest holdings: valuation

QDEF largest holdings valuation
Symbol	Company	Weight	P/E	Fwd P/E	P/S	Div. yield	Share of earnings
AAPL	Apple Inc.	9.23%	39.4	35.2	10.7	0.31%	5.09%
NVDA	NVIDIA Corporation	6.56%	27.1	24.9	17.1	0.47%	5.27%
MSFT	Microsoft Corporation	4.53%	29.5	25.1	11.8	0.74%	3.34%
JNJ	Johnson & Johnson	2.92%	38.8	21.0	6.2	2.10%	1.64%
AVGO	Broadcom Inc.	2.47%	43.3	19.4	17.6	0.79%	1.24%
PM	Philip Morris International Inc.	2.20%	29.5	20.9	7.5	3.12%	1.62%
GOOGL	Alphabet Inc.	2.10%	17.1	22.8	9.3	0.26%	2.68%
LLY	Eli Lilly and Company	2.10%	42.2	24.4	14.1	0.55%	1.08%
JPM	JPMorgan Chase & Co.	2.08%	14.2	13.5	4.7	1.94%	3.18%
GOOG	Alphabet Inc.	1.73%	16.9	21.8	9.2	0.26%	2.23%
KLAC	KLA Corporation	1.38%	45.3	34.8	15.9	0.56%	0.66%
META	Meta Platforms, Inc.	1.37%	26.7	22.1	7.9	0.30%	1.12%
MU	Micron Technology, Inc.	1.30%	11.8	7.0	7.5	0.07%	2.38%
GILD	Gilead Sciences, Inc.	1.25%	—	15.6	6.4	2.10%	−0.46%
QCOM	QUALCOMM Incorporated	1.20%	19.9	19.6	4.2	2.14%	1.31%
ABBV	AbbVie Inc.	1.18%	80.6	16.4	7.8	2.42%	0.32%
TJX	The TJX Companies, Inc.	1.07%	27.3	24.9	2.6	1.30%	0.85%
LRCX	Lam Research Corporation	1.07%	45.8	33.7	14.2	0.50%	0.51%
CSCO	Cisco Systems, Inc.	1.05%	32.2	19.8	6.7	1.56%	0.71%
PG	The Procter & Gamble Company	1.05%	24.1	21.2	4.3	2.73%	0.95%
MO	Altria Group, Inc.	0.89%	15.8	11.9	6.1	5.91%	1.23%
ADP	Automatic Data Processing, Inc.	0.88%	26.4	22.0	5.2	2.35%	0.72%
LMT	Lockheed Martin Corporation	0.87%	20.3	16.2	1.7	2.61%	0.93%
BMY	Bristol-Myers Squibb Company	0.85%	13.2	9.4	2.5	4.22%	1.41%
VLO	Valero Energy Corporation	0.83%	18.5	10.2	1.0	1.08%	0.98%

Share of earnings = the holding's part of the fund's combined trailing profit. Green: earns more than its weight; orange: less. Symbol links go to each company's key metrics.

About QDEF valuation

Adding up its 151 holdings with company data, QDEF trades at 21.4 times trailing earnings and 16.0 times analysts' forward estimates, with a price-to-book ratio of 4.49 and a dividend yield of 1.89%. Its earnings yield of 4.67% is 0.65 percentage points below the 5.33% yield to maturity of the U.S. bond market (AGG).

The ten largest holdings are 35.9% of the fund and earn 27.4% of its combined profit. By sector, Consumer Defensive is the most expensive at 147.1 times earnings and Energy the cheapest at 11.9. Companies that lost money over the past year are 2.7% of the covered weight.

How these figures are calculated. Each ratio treats the fund as one company: the earnings, sales and book value of every holding are added up in proportion to its weight and divided into the fund's price. In practice that is a weighted harmonic mean, so a single stock with a very high P/E cannot distort the result, and loss-making companies reduce the fund's earnings instead of being dropped. Covers 99.4% of the fund's weight (U.S.-listed stocks with company data); company figures as of October 26, 2026.

QDEF valuation FAQ

What is the P/E ratio of QDEF?

Based on its holdings, QDEF has a trailing P/E of 21.4 and a forward P/E of 16.0 (earnings of all covered holdings combined in proportion to their weights, as of October 26, 2026).

What is the earnings yield of QDEF?

The trailing earnings yield is 4.67% (1 ÷ P/E) and the forward earnings yield 6.23%. For comparison the U.S. bond market (AGG) yields 5.33% to maturity and T-bills about 3.91%.

Is QDEF more expensive than the S&P 500?

QDEF trades at 21.4 times trailing earnings versus 25.9 for the S&P 500 (SPY); on forward estimates the figures are 16.0 and 19.9.

What is the price-to-book ratio of QDEF?

The holdings of QDEF trade at 4.49 times book value, with a combined return on equity of 21.0%.

Which sector in QDEF has the highest P/E?

Consumer Defensive has the highest P/E at 147.1 and Energy the lowest at 11.9.