FlexShares US Quality Large Cap Index Fund (QLC) Valuation
QLC valuation today
Holdings combined · company data as of Oct 26, 2026- P/E (TTM)
- 21.4 trailing earnings
- Forward P/E
- 15.5 analyst estimates
- Price / sales
- 2.10
- Price / book
- 4.06
- EV / EBITDA
- 13.8
- Earnings yield
- 4.67% inverse of P/E
- Dividend yield
- 1.43% of the holdings
- Return on equity
- 19.0% combined
- Net margin
- 9.8% combined
- Beta
- 1.12 weighted, vs S&P 500
QLC valuation vs other stock ETFs
| ETF | P/E | Fwd P/E | P/S | P/B | Div. yield | ROE | Net margin | Loss-makers |
|---|---|---|---|---|---|---|---|---|
| QLC | 21.4 | 15.5 | 2.10 | 4.06 | 1.43% | 19.0% | 9.8% | 3.4% |
| 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.
QLC valuation by sector
| Sector | Weight | P/E | Fwd P/E | P/S | P/B | Div. yield | ROE |
|---|---|---|---|---|---|---|---|
| Technology | 35.3% | 26.6 | 20.2 | 7.27 | 11.53 | 0.60% | 43.3% |
| Financial Services | 12.6% | 12.6 | 12.0 | 2.93 | 1.79 | 2.01% | 14.2% |
| Healthcare | 11.2% | 35.3 | 14.8 | 0.91 | 4.11 | 1.63% | 11.6% |
| Communication Services | 11.1% | 16.4 | 17.0 | 3.80 | 4.63 | 0.76% | 28.2% |
| Consumer Cyclical | 7.9% | 28.5 | 14.2 | 1.19 | 4.73 | 1.22% | 16.6% |
| Industrials | 5.6% | 23.8 | 18.5 | 1.84 | 7.36 | 1.94% | 30.9% |
| Energy | 4.1% | 15.2 | 8.7 | 1.06 | 2.79 | 1.52% | 18.3% |
| Consumer Defensive | 3.9% | 36.8 | 13.2 | 0.79 | 2.68 | 4.00% | 7.3% |
| Basic Materials | 2.8% | 31.8 | 11.8 | 1.17 | 2.15 | 2.60% | 6.8% |
| Utilities | 2.4% | 13.1 | 13.3 | 1.88 | 1.53 | 4.06% | 11.7% |
| Real Estate | 1.7% | 13.1 | 15.5 | 4.16 | 2.04 | 4.87% | 15.5% |
QLC earnings yield vs bond yields
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 QLC weight splits by P/E
Share of the covered weight in companies with a trailing P/E in each range.
QLC largest holdings: valuation
| Symbol | Company | Weight | P/E | Fwd P/E | P/S | Div. yield | Share of earnings |
|---|---|---|---|---|---|---|---|
| NVDA | NVIDIA Corporation | 7.33% | 27.1 | 24.9 | 17.1 | 0.47% | 5.89% |
| AAPL | Apple Inc. | 5.96% | 39.4 | 35.2 | 10.7 | 0.31% | 3.29% |
| MSFT | Microsoft Corporation | 4.08% | 29.5 | 25.1 | 11.8 | 0.74% | 3.01% |
| GOOGL | Alphabet Inc. | 3.90% | 17.1 | 22.8 | 9.3 | 0.26% | 4.96% |
| GOOG | Alphabet Inc. | 3.31% | 16.9 | 21.8 | 9.2 | 0.26% | 4.26% |
| AMZN | Amazon.com, Inc. | 2.55% | 20.1 | 23.6 | 3.5 | — | 2.75% |
| AVGO | Broadcom Inc. | 2.52% | 43.3 | 19.4 | 17.6 | 0.79% | 1.27% |
| JNJ | Johnson & Johnson | 1.93% | 38.8 | 21.0 | 6.2 | 2.10% | 1.08% |
| JPM | JPMorgan Chase & Co. | 1.88% | 14.2 | 13.5 | 4.7 | 1.94% | 2.87% |
| MU | Micron Technology, Inc. | 1.74% | 11.8 | 7.0 | 7.5 | 0.07% | 3.19% |
| META | Meta Platforms, Inc. | 1.62% | 26.7 | 22.1 | 7.9 | 0.30% | 1.32% |
| GS | The Goldman Sachs Group, Inc. | 1.50% | 12.7 | 12.8 | 3.6 | 2.27% | 2.58% |
| C | Citigroup Inc. | 1.43% | 12.1 | 10.2 | 2.5 | 2.16% | 2.57% |
| BRK.B | Berkshire Hathaway Inc. | 1.37% | 13.4 | 22.7 | 3.0 | — | 2.23% |
| LLY | Eli Lilly and Company | 1.26% | 42.2 | 24.4 | 14.1 | 0.55% | 0.65% |
| BAC | Bank of America Corporation | 1.21% | 12.2 | 10.8 | 3.1 | 2.50% | 2.16% |
| GCP | General Electric Company | 1.02% | — | — | — | — | — |
| MO | Altria Group, Inc. | 0.96% | 15.8 | 11.9 | 6.1 | 5.91% | 1.32% |
| MPC | Marathon Petroleum Corporation | 0.95% | 16.6 | 5.5 | 0.9 | 0.84% | 1.25% |
| LMT | Lockheed Martin Corporation | 0.93% | 20.3 | 16.2 | 1.7 | 2.61% | 1.00% |
| NEM | Newmont Corporation | 0.93% | 15.0 | 11.6 | 4.8 | 0.88% | 1.35% |
| BMY | Bristol-Myers Squibb Company | 0.93% | 13.2 | 9.4 | 2.5 | 4.22% | 1.53% |
| VLO | Valero Energy Corporation | 0.92% | 18.5 | 10.2 | 1.0 | 1.08% | 1.08% |
| KLAC | KLA Corporation | 0.91% | 45.3 | 34.8 | 15.9 | 0.56% | 0.44% |
| CVS | CVS Health Corporation | 0.85% | 24.3 | 10.7 | 0.3 | 2.88% | 0.76% |
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 QLC valuation
Adding up its 155 holdings with company data, QLC trades at 21.4 times trailing earnings and 15.5 times analysts' forward estimates, with a price-to-book ratio of 4.06 and a dividend yield of 1.43%. Its earnings yield of 4.67% is 0.66 percentage points below the 5.33% yield to maturity of the U.S. bond market (AGG).
The ten largest holdings are 35.2% of the fund and earn 32.6% of its combined profit. By sector, Consumer Defensive is the most expensive at 36.8 times earnings and Financial Services the cheapest at 12.6. Companies that lost money over the past year are 3.4% 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 99.0% of the fund's weight (U.S.-listed stocks with company data); company figures as of October 26, 2026.
Related: QLC chart, QLC performance, QLC holdings, QLC dividends.
QLC valuation FAQ
What is the P/E ratio of QLC?
Based on its holdings, QLC has a trailing P/E of 21.4 and a forward P/E of 15.5 (earnings of all covered holdings combined in proportion to their weights, as of October 26, 2026).
What is the earnings yield of QLC?
The trailing earnings yield is 4.67% (1 ÷ P/E) and the forward earnings yield 6.45%. For comparison the U.S. bond market (AGG) yields 5.33% to maturity and T-bills about 3.91%.
Is QLC more expensive than the S&P 500?
QLC trades at 21.4 times trailing earnings versus 25.9 for the S&P 500 (SPY); on forward estimates the figures are 15.5 and 19.9.
What is the price-to-book ratio of QLC?
The holdings of QLC trade at 4.06 times book value, with a combined return on equity of 19.0%.
Which sector in QLC has the highest P/E?
Consumer Defensive has the highest P/E at 36.8 and Financial Services the lowest at 12.6.