FlexShares® Exchange Traded Funds, sponsored and managed by Northern Trust, has introduced two new ETFs that complement its U.S. tilt product (NYSE: TILT) by focusing on developed (NYSE: TLTD) and emerging markets (NYSE: TLTE) outside the U.S. The announcement coincides with FlexShares’ first anniversary, a year in which the suite of innovative funds accumulated more than $1.5 billion in assets, as of 9/22/2012.
The new funds, listed on the NYSE, seek to counterbalance the inherent bias toward large-growth companies embedded in market-weighted strategies by applying a nuanced “tilt” methodology toward the long-term growth potential of small cap and value stocks. And unlike many alternatively weighted approaches, FlexShares’ tilted index funds seek a consistent level of risk exposure to size and style providing total market coverage – including large cap and growth.
“Coming just after our one-year anniversary, this announcement gives us the opportunity to note the progress we’ve made in our first year,” said Shundrawn Thomas, head of Northern Trust's Exchange Traded Funds Group. "We continue to provide investors with distinctive, yet practical solutions. Now, with our two additional tilted index funds, investors have the ability to apply the strategy to investments across the globe."
FlexShares ETFs help provide investors with the flexibility to construct, allocate and manage portfolios according to their real-world goals. The new ETFs are:
FlexShares Morningstar Developed Markets ex-U.S. Factor Tilt Index
- FlexShares Morningstar Developed Markets ex-U.S. Factor Tilt Index ETF seeks to enhance exposure to international stocks by tilting the portfolio toward the long-term growth potential of the small cap and value segments. It seeks to provide investors with an expanded opportunity set of developed market stocks from outside the U.S. to help meet their longer term capital appreciation needs, while attempting to enhance portfolio risk/return characteristics.
FlexShares Morningstar Emerging Market Factor Tilt Index Fund (TLTE)
- FlexShares Morningstar Emerging Market Factor Tilt Index ETF seeks to enhance exposure to developing market stocks by tilting the portfolio toward the long-term growth potential of the small cap and value segments. It seeks to provide investors with an emerging market equity option that helps to meet their longer term capital appreciation needs while attempting to enhance portfolio risk/return characteristics.
FlexShares entered the ETF market in September 2011 with four FlexShares funds.
For more information, please visit www.flexshares.com
An investment in FlexShares is subject to numerous risks, including possible loss of principal. The Funds are subject to the following principal risks: asset class; commodity; concentration; counterparty; currency; derivatives; emerging markets; equity securities; foreign securities; geographic; industry concentration; issuer; management; market; market trading; mid cap stock; new funds; non-diversification; passive investment; privatization; small cap stock; tracking error; and value investing risk. A full description of risks is in the prospectus.
Before investing carefully consider the FlexShares investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting www.flexshares.com. Read the prospectus carefully before you invest.
FlexShares ETFs are distributed by Foreside Fund Services, LLC, not affiliated with Northern Trust.
FlexShares is a suite of ETF products designed to pursue real-world goals by evolving the process of ETF development, providing flexibility for meeting investor needs. FlexShares Funds are sponsored by Northern Trust. Individual investors can purchase and sell shares through any brokerage firm, financial advisor or online broker.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment management, asset and fund administration, banking solutions and fiduciary services for corporations, institutions and affluent individuals worldwide. Northern Trust, a financial holding company based in Chicago, has offices in 18 U.S. states and 16 international locations in North America, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2012, Northern Trust had assets under custody of US$4.6 trillion, and assets under investment management of US$704.3 billion. For more than 120 years, Northern Trust has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology. For more information, visit www.northerntrust.com or follow us on Twitter @NorthernTrust.
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individuals, financial advisors, and institutions. Morningstar provides data on more than 385,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 8 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its registered investment advisor subsidiaries and has more than $186 billion in assets under advisement and management as of June 30, 2012. The company has operations in 27 countries.
The FlexShares Morningstar ETFs are not sponsored, endorsed, sold or promoted by Morningstar, and Morningstar makes no representation regarding the advisability of investing in them.