FlexShares Developed Markets ex-US Quality Low Volatility Index Fund (QLVD)

Overview

The FlexShares Developed Markets ex-US Quality Low Volatility Index Fund (QLVD) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Developed Markets ex-U.S. Quality Low Volatility Index. It focuses on developed markets outside the US, emphasizing high-quality and low-volatility stocks.

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 has extensive experience in managing ETFs and other investment products, with a team of professionals dedicated to index tracking and portfolio management.

Goal

The fund aims to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Developed Markets ex-U.S. Quality Low Volatility Index.

Investment Approach and Strategy

Strategy: The fund tracks a specific index, the Northern Trust Developed Markets ex-U.S. Quality Low Volatility Index.

Composition The ETF primarily holds stocks from developed markets outside the United States, selected based on quality and low volatility factors.

Market Share: QLVD has a moderate market share within the developed markets ex-US low volatility ETF category.

Total Net Assets (AUM): 407000000

Key Competitors

• EFAV
• IDLV
• XSOE

Competitive Landscape

The competitive landscape is moderately concentrated, with a few large players dominating the market. QLVD differentiates itself through its specific index and quality factor tilt. Competitors may have lower expense ratios or different factor combinations, offering investors alternative risk-return profiles.

Historical Performance: Historical performance data is available from financial data providers. Consult with a financial advisor to review how this ETF has performed over time.

Benchmark Comparison: The ETF's performance should be compared to the Northern Trust Developed Markets ex-U.S. Quality Low Volatility Index to assess its tracking effectiveness.

Expense Ratio: 0.35

Average Trading Volume

The ETF's average trading volume is moderate, which could influence the ease of trading large positions.

Bid-Ask Spread

The bid-ask spread is typically tight, indicating efficient trading costs under normal market conditions.

Market Environment Factors

Economic conditions in developed markets outside the US, interest rates, currency fluctuations, and global trade dynamics affect QLVD.

Growth Trajectory

Growth depends on investor demand for international exposure, low volatility strategies, and quality factor investing, including changes to the underlying index and its holdings.

Competitive Edge

QLVD's competitive edge lies in its combination of quality and low volatility factors within developed markets outside the US. The ETF utilizes a rules-based index from Northern Trust, offering a transparent and systematic approach. This approach may appeal to investors seeking diversification and downside protection. The fund's focus on high-quality companies can lead to more stable returns during market downturns. Its experienced management team at Northern Trust adds to its credibility.

Volatility

QLVD's historical volatility is expected to be lower than broader developed market indices due to its low volatility factor.

Market Risk

Market risk is associated with fluctuations in international equity markets, currency risk, and geopolitical events affecting developed economies outside the US.

Ideal Investor Profile

The ideal investor profile includes those seeking international diversification, downside protection, and exposure to high-quality, low-volatility stocks in developed markets outside the US.

Market Risk

QLVD is suitable for long-term investors seeking a core international equity allocation with a focus on risk management and stable returns.

The FlexShares Developed Markets ex-US Quality Low Volatility Index Fund (QLVD) provides exposure to developed markets outside the US, focusing on high-quality and low-volatility stocks. Its strategy involves tracking the Northern Trust Developed Markets ex-U.S. Quality Low Volatility Index, offering a rules-based approach to international equity investing. The fund is suitable for long-term investors seeking diversification and downside protection. While having a moderate expense ratio, QLVD competes with other low volatility ETFs in the developed market space, differing in index construction and factor tilts.

Data Sources:

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

Disclaimers:

The data provided is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Market conditions can change rapidly. Consult with a qualified financial advisor before making any investment decisions.