FlexShares ESG & Climate Developed Markets ex-US Core Index Fund (FEDM)

Overview

The FlexShares ESG & Climate Developed Markets ex-US Core Index Fund (EFGX) aims to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Developed Ex-US Climate ESG Core Index. It focuses on developed markets outside the US, incorporating ESG and climate factors into its investment strategy.

Reputation and Reliability

FlexShares is known for its innovative ETF offerings and commitment to factor-based and ESG investing. They are generally considered reliable.

Management Expertise

Northern Trust Asset Management, the parent company of FlexShares, has extensive experience in index and quantitative investing.

Goal

To provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Developed Ex-US Climate ESG Core Index.

Investment Approach and Strategy

Strategy: The ETF tracks a specific index, the Northern Trust Developed Ex-US Climate ESG Core Index.

Composition The ETF primarily holds stocks of companies in developed markets excluding the United States. The index incorporates ESG and climate considerations by excluding companies involved in certain controversial activities, and weighting companies based on climate-related factors.

Market Share: The fund's market share within the ESG ex-US developed markets ETF space is relatively small compared to larger, more established funds.

Total Net Assets (AUM): 149200000

Key Competitors

• iShares ESG Aware MSCI EAFE ETF (ESGD)
• Vanguard ESG International Stock ETF (VSGX)
• Xtrackers MSCI EAFE ESG Leaders Equity ETF (EASG)

Competitive Landscape

The ex-US developed markets ESG ETF industry is competitive, with several large players. EFGX differentiates itself with its specific index focusing on climate factors within a broad ESG framework. A potential disadvantage is its smaller size, which can impact liquidity compared to larger competitors. EFGX's advantage lies in its targeted climate focus, appealing to investors prioritizing that specific aspect of ESG.

Historical Performance: Historical performance data should be obtained from reliable financial data providers. Past performance is not indicative of future results.

Benchmark Comparison: Benchmark comparisons should be performed using the Northern Trust Developed Ex-US Climate ESG Core Index. Data available from financial data providers.

Expense Ratio: 0.09

Average Trading Volume

Average trading volume data should be obtained from reliable financial data providers to assess the ETFu2019s liquidity.

Bid-Ask Spread

Bid-ask spread data should be obtained from reliable financial data providers to understand the cost of trading the ETF.

Market Environment Factors

Economic indicators in developed ex-US markets, sector growth prospects within those markets, and overall market sentiment affect EFGX. Demand for ESG and climate-focused investments also influences the fund's performance.

Growth Trajectory

Growth trends depend on investor demand for ESG and climate-conscious investments, as well as the performance of the underlying index and the companies within it. Any changes to the index methodology or holdings could impact the fund's growth trajectory.

Competitive Edge

EFGX's competitive advantage stems from its focused approach on climate factors within a developed ex-US ESG framework. This specialization allows it to appeal to investors specifically seeking climate-conscious investments in developed markets outside the US. Its low expense ratio of 0.09% compared to some peers gives it a cost advantage. However, it faces the challenge of competing with larger, more established ESG ETFs with greater brand recognition and AUM.

Volatility

Volatility data should be obtained from reliable financial data providers. Volatility will be influenced by the volatility of the underlying stocks in developed ex-US markets.

Market Risk

Specific risks include market risk associated with developed ex-US equities, currency risk, and risks related to the ESG and climate factors used in the index construction. Companies within the index might underperform due to climate-related policies or events.

Ideal Investor Profile

The ideal investor for EFGX is someone seeking ESG and climate-conscious exposure to developed markets outside the US, aligning investments with their values.

Market Risk

EFGX is suitable for long-term investors looking for diversified exposure to developed ex-US markets with an ESG and climate focus. It can be used as a core holding in a portfolio with a responsible investing mandate.

EFGX offers exposure to developed markets ex-US with a specific focus on ESG and climate factors, tracking the Northern Trust Developed Ex-US Climate ESG Core Index. Its low expense ratio and targeted investment approach make it appealing to climate-conscious investors. However, its smaller AUM compared to competitors could impact liquidity. EFGX is a suitable investment for those seeking to align their investments with their environmental and social values while investing in developed ex-US markets.

Data Sources:

• FlexShares website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and does not constitute financial advice. Investment decisions should be based on thorough research and consultation with a qualified financial advisor. Market share data is approximate and may vary depending on the source and date.