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Value blasted out the gates in 2021, but growth came back and now holds a slight lead when looking at the S&P 500. FlexShares utilizes a growth model investors can look to for a long-term strategy.
The model is comprised of varying FlexShares ETFs with the primary goal of capital appreciation. The ETFs’ investments are distributed as follows:
- 80% in equities
- 10% in real assets
- 10% in fixed income
A Tilt Toward Growth
The FlexShares strategy features nine ETFs that tilt towards growth. Here are the four funds with the highest allocations:
- FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund (TLTD ): TLTD seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar® Developed Markets ex-US Factor Tilt Index. The index reflects the performance of a selection of companies that, in aggregate, possess greater exposure to size and value factors relative to the Morningstar Developed Markets ex-US Index. The index is a float-adjusted market-capitalization weighted index of companies incorporated in developed-market countries, excluding the U.S.
- FlexShares Morningstar US Market Factors Tilt Index Fund (TILT ): The fund seeks investment results that correspond generally to the price and yield performance of the Morningstar® US Market Factor Tilt Index. The index is designed to reflect the performance of a selection of companies that, in aggregate, possess greater exposure to size and value factors relative to the Morningstar US Market Index, a float-adjusted market-capitalization weighted index of U.S.-incorporated large-, mid-, small-, and micro-capitalization companies.
- FlexShares US Quality Low Volatility Index Fund (QLV ): QLV seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Quality Low Volatility Index. The underlying index is designed to reflect the performance of a selection of companies that, in aggregate, possess lower overall absolute volatility characteristics relative to the Northern Trust 1250 Index, a float-adjusted market capitalization weighted index of U.S. domiciled large- and mid-capitalization companies.
- FlexShares International Quality Dividend Index Fund (IQDF ): IQDF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust International Quality Dividend Index. The index reflects the performance of a selection of companies that, in aggregate, possess greater financial strength and stability characteristics relative to the Northern Trust International Large Cap Index, a float-adjusted market-capitalization weighted index of non-U.S. domiciled large- and mid-capitalization companies.
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