FlexShares International Quality Dividend Index Fund (IQDF)

Overview

The FlexShares International Quality Dividend Index Fund (IQDF) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust International Quality Dividend Index. The fund primarily focuses on dividend-paying companies in developed markets outside of the United States and aims to provide current income and potential capital appreciation.

Reputation and Reliability

FlexShares is a suite of ETFs managed by Northern Trust, a well-established and reputable financial institution known for its expertise in asset management and index-based investing.

Management Expertise

Northern Trust has a dedicated team of experienced portfolio managers and analysts responsible for overseeing the FlexShares ETF lineup. Their expertise lies in quantitative investing and index replication.

Goal

The fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust International Quality Dividend Index.

Investment Approach and Strategy

Strategy: The ETF tracks the Northern Trust International Quality Dividend Index, which is designed to reflect the performance of a selection of companies that are found in developed markets outside of the U.S. that exhibit relatively high dividend yields and quality characteristics.

Composition The ETF holds a basket of international stocks, focusing on dividend-paying companies with quality characteristics. It may also hold cash or cash equivalents.

Market Share: Data on market share is unavailable.

Total Net Assets (AUM): 104778146

Key Competitors

• SPDR S&P International Dividend ETF (DWX)
• Vanguard International Dividend Appreciation ETF (VIID)
• Schwab International Dividend Equity ETF (SCHY)

Competitive Landscape

The international dividend ETF market is competitive, with several established players offering similar strategies. IQDF competes on the basis of its underlying index methodology, expense ratio, and tracking error. Advantages may include a targeted focus on quality and potentially higher yield. Disadvantages could be a smaller AUM compared to larger competitors, resulting in potentially lower liquidity.

Historical Performance: Historical performance data is readily available through financial websites but cannot be included here.

Benchmark Comparison: Performance can be compared to the Northern Trust International Quality Dividend Index.

Expense Ratio: 0.37

Average Trading Volume

The average trading volume varies, influencing how easily shares can be bought and sold.

Bid-Ask Spread

The bid-ask spread impacts the cost of trading, so a narrower spread indicates higher liquidity and lower transaction costs.

Market Environment Factors

Economic indicators in developed international markets, sector-specific growth prospects within those regions, and overall global market sentiment influence IQDF's performance.

Growth Trajectory

The growth trajectory depends on factors such as dividend growth in international markets, the ETF's ability to track its index, and investor demand for international dividend exposure.

Competitive Edge

IQDF's competitive advantage lies in its specific index methodology focusing on quality dividend-paying companies in international markets. The fund's rules-based approach aims to select companies with sustainable dividends and strong financial health. Northern Trust's experience in index construction and ETF management adds to its credibility. This targeted approach potentially offers a balance between income generation and capital preservation, appealing to investors seeking both.

Volatility

Historical volatility can be assessed by analyzing the ETF's price fluctuations over time.

Market Risk

The primary risks include currency risk, political risk, and economic risk inherent in investing in international markets. Specific sector risks are associated with the industries represented in the portfolio.

Ideal Investor Profile

The ideal investor is someone seeking international dividend income and capital appreciation, with a moderate risk tolerance and a long-term investment horizon.

Market Risk

The ETF is suitable for long-term investors looking for diversification and dividend income from international equities. Active traders may find the trading volume insufficient.

The FlexShares International Quality Dividend Index Fund (IQDF) offers exposure to dividend-paying companies in developed markets outside the U.S., tracking the Northern Trust International Quality Dividend Index. Managed by Northern Trust, the fund provides a rules-based approach to selecting quality companies with sustainable dividends. While it faces competition in the international dividend ETF market, IQDF's focus on quality and potential for income generation can be attractive to investors seeking international diversification and income. Factors like currency risk and market volatility in international markets should be considered. Its a good addition to a dividend and value portfolio for an investor seeking international diversification.

Data Sources:

• FlexShares website
• Northern Trust website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Consult with a qualified financial advisor before making any investment decisions. Market share data is based on available public information and may be subject to change.