The FlexShares US Quality Large Cap ETF (QLC) was launched on September 23, 2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Flexshares. It has amassed assets over $1.05 billion, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.25%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.9%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector -- about 37.2% of the portfolio. Financials and Telecom round out the top three.
Looking at individual holdings, Apple Inc Common Stock Usd 0.00001 (AAPL) accounts for about 7.02% of total assets, followed by Nvidia Corp Common Stock Usd 0.001 (NVDA) and Alphabet Inc-Cl A - Common Stock Usd 0.001 (GOOGL).
The top 10 holdings account for about 36.14% of total assets under management.
Performance and Risk
QLC seeks to match the performance of the Northern Trust Quality Large Cap Index before fees and expenses. The Northern Trust Quality Large Cap Index is designed to measure the performance of a universe of large capitalization securities which demonstrate characteristics of better quality, attractive valuation and positive momentum.
The ETF has gained about 16.25% so far this year and was up about 27.09% in the last one year (as of 08/14/2026). In the past 52-week period, it has traded between $73.38 and $93.79.
The ETF has a beta of 0.99 and standard deviation of 14.87% for the trailing three-year period, making it a medium risk choice in the space. With about 181 holdings, it effectively diversifies company-specific risk.
Alternatives
FlexShares US Quality Large Cap ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, QLC is an excellent option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Core S&P 500 ETF (IVV) and the Vanguard 500 Index Fund ETF Shares (VOO) track a similar index. While iShares Core S&P 500 ETF has $907.77 billion in assets, Vanguard 500 Index Fund ETF Shares has $1,038.97 billion. IVV has an expense ratio of 0.03% and VOO charges 0.03%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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FlexShares US Quality Large Cap ETF (QLC): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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