FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund (TLTD)

Overview

The FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund (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. It aims to provide exposure to developed market equities outside the U.S., with a focus on factors like value, momentum, and quality.

Reputation and Reliability

FlexShares is a suite of ETFs managed by Northern Trust Asset Management, a well-established and reputable asset manager.

Management Expertise

Northern Trust has extensive experience in managing passive and factor-based investment strategies.

Goal

To provide 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.

Investment Approach and Strategy

Strategy: The fund seeks to track a specific index: the Morningstar Developed Markets ex-US Factor Tilt Index.

Composition The ETF primarily holds equities of companies located in developed markets outside the United States, with a tilt towards value, momentum, and quality factors.

Market Share: TLTD's market share within the international developed markets ETF category is moderate.

Total Net Assets (AUM): 144900000

Key Competitors

• VEA
• IEFA
• SPDW

Competitive Landscape

The international developed markets ETF space is highly competitive, with several large, well-established funds. TLTD's factor tilt strategy differentiates it, but it faces competition from broad-market funds like VEA and IEFA, which offer lower expense ratios. TLTD provides targeted factor exposure while competitors offer broader diversification at potentially lower costs.

Historical Performance: Historical performance varies depending on the time period. Refer to official fund data for specific returns.

Benchmark Comparison: The ETF's performance should be compared to the Morningstar Developed Markets ex-US Factor Tilt Index to assess its tracking efficiency.

Expense Ratio: 0.22

Average Trading Volume

The average daily trading volume of TLTD is moderate, and it is important to verify the latest data.

Bid-Ask Spread

The bid-ask spread may vary based on market conditions, and it is also important to check the current spread before trading.

Market Environment Factors

Economic growth in developed markets outside the US, interest rates, and currency fluctuations impact TLTD. Sector growth and geopolitical risks also play a role.

Growth Trajectory

TLTD's growth depends on investor demand for factor-based international equity exposure and the relative performance of its underlying index.

Competitive Edge

TLTD's competitive edge lies in its factor tilt strategy, which aims to enhance returns by focusing on value, momentum, and quality factors. This differentiated approach may appeal to investors seeking more targeted exposure. The fund also benefits from Northern Trust's established expertise in factor-based investing. However, the higher expense ratio is its drawback. It may also offer superior risk-adjusted returns compared to broad market funds, although past performance is not a guarantee of future results.

Volatility

TLTD's volatility will depend on the volatility of the underlying developed market equities, which may be impacted by global economic and political events.

Market Risk

The ETF is subject to market risk associated with international equities, including currency risk and political risk. It is also subject to the risk that its factor tilts may underperform the broader market.

Ideal Investor Profile

The ideal investor is seeking international equity exposure with a factor tilt strategy and understands the potential for both enhanced returns and increased risk.

Market Risk

TLTD may be suitable for long-term investors seeking diversification and factor-based strategies. However, its more targeted approach may not be ideal for passive index followers.

The FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund (TLTD) offers exposure to developed markets outside the US, with a focus on value, momentum, and quality factors. Managed by Northern Trust, it aims to outperform broad market indices through its factor tilt strategy. While it offers a differentiated approach, potential investors should consider its expense ratio and moderate liquidity. It is more suited to long term investors seeking targeted exposure rather than passive index tracking.

Data Sources:

• FlexShares Website
• Morningstar
• ETF.com
• Bloomberg

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on your own due diligence and consultation with a financial advisor. Market share data is estimated and may not reflect the most current information.