FlexShares International Quality Dividend Index Fund (IQDF)

Overview

The FlexShares International Quality Dividend Index Fund (IQDF) aims to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust International Quality Dividend IndexSM. It focuses on dividend-paying stocks from developed market countries outside the US, emphasizing quality, management efficiency, and cash flow.

Reputation and Reliability

Northern Trust is a well-established and reputable financial institution with a long history of providing investment management services.

Management Expertise

Northern Trust Asset Management has a team of experienced professionals dedicated to managing ETFs and other investment products.

Goal

The fund seeks to track the performance of an index composed of dividend-paying stocks from developed markets outside the US, selected based on quality factors.

Investment Approach and Strategy

Strategy: The fund employs a passive management strategy, attempting to replicate the Northern Trust International Quality Dividend IndexSM.

Composition The fund primarily holds stocks of companies located in developed markets outside the United States that exhibit high quality, profitability, and dividend payments.

Market Share: IQDF holds a relatively small market share within the international dividend ETF category.

Total Net Assets (AUM): 447400000

Key Competitors

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

Competitive Landscape

The international dividend ETF market is competitive, with several large players. IQDF differentiates itself through its quality-focused selection criteria, but faces competition from lower-cost and more popular funds. IQDF has a competitive disadvantage against the larger competitors with more brand recognition and a lower expense ratio.

Historical Performance: IQDF's historical performance varies depending on the time period, and is readily available from financial data providers.

Benchmark Comparison: Investors should compare IQDF's performance to the Northern Trust International Quality Dividend IndexSM to assess its tracking effectiveness.

Expense Ratio: 0.35

Average Trading Volume

IQDF's average trading volume is moderate, suggesting reasonable liquidity.

Bid-Ask Spread

IQDF's bid-ask spread is typically narrow, indicating low trading costs.

Market Environment Factors

Economic growth in developed markets outside the US, interest rate policies, and currency fluctuations can affect IQDF's performance.

Growth Trajectory

IQDF's growth is tied to investor demand for international dividend-paying stocks and its ability to attract assets based on its quality-focused strategy. Growth of assets under management can fluctuate based on investor sentiment and performance of the underlying index.

Competitive Edge

IQDF's competitive advantage lies in its emphasis on quality factors when selecting dividend-paying stocks. By focusing on profitability, management efficiency, and cash flow, IQDF aims to provide a higher-quality dividend stream than broader international dividend ETFs. This quality screen may lead to more sustainable dividend payments over time. However, it may also result in a higher expense ratio compared to more broadly diversified international dividend ETFs.

Volatility

IQDF's volatility is influenced by the volatility of the underlying international equity markets.

Market Risk

IQDF is subject to market risk, currency risk, and political risk associated with investing in international markets. Company-specific risks can affect individual stock performance within the portfolio.

Ideal Investor Profile

IQDF is suitable for investors seeking exposure to international dividend-paying stocks with a focus on quality. It is a good fit for investors who prioritize dividend income and long-term capital appreciation.

Market Risk

IQDF is suitable for long-term investors seeking diversification and dividend income. It can be used as part of a broader international equity allocation strategy.

The FlexShares International Quality Dividend Index Fund (IQDF) provides exposure to dividend-paying stocks in developed markets outside the U.S., with an emphasis on quality factors. Its investment objective is to track the Northern Trust International Quality Dividend IndexSM. This ETF is best suited for long-term investors seeking dividend income and international diversification. Although its expense ratio is relatively competitive, it faces competition from larger, lower-cost alternatives. Overall, IQDF provides a viable option for investors with a focus on quality within their international dividend investments.

Data Sources:

• Northern Trust Asset Management
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The information provided is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.