FlexShares Real Assets Allocation Index Fund (ASET)

Overview

The FlexShares Real Assets Allocation Index Fund (RAAX) seeks long-term capital appreciation by investing in a diversified portfolio of real asset securities, including natural resources, infrastructure, and real estate.

Reputation and Reliability

Northern Trust is a well-established and reputable asset manager with a long history in the financial services industry.

Management Expertise

Northern Trust has a team of experienced investment professionals who specialize in managing real asset portfolios.

Goal

Seeks long-term capital appreciation.

Investment Approach and Strategy

Strategy: Tracks the Northern Trust Real Assets Allocation Index, which provides exposure to a diversified basket of real asset securities.

Composition Holds a mix of equities, REITs, and commodity-related investments, allocated across different sectors within the real asset space.

Market Share: Data unavailable.

Total Net Assets (AUM): 102770000

Key Competitors

• FPX
• IDHD
• QDF
• IHDG
• FYLD

Competitive Landscape

The real assets ETF market is competitive, with numerous funds offering similar exposure. RAAX differentiates itself through its specific index and allocation strategy, aiming for diversification across real asset sectors. Advantages include Northern Trust's management expertise and a focus on long-term capital appreciation; disadvantages may involve tracking error relative to the index and potentially higher expense ratios compared to broader market ETFs.

Historical Performance: Historical performance data is available, but not included here in numerical format as requested.

Benchmark Comparison: Data not readily available for numerical comparison.

Expense Ratio: 0.39

Average Trading Volume

The average trading volume for RAAX is relatively moderate, which may impact the ease of buying or selling large quantities of shares.

Bid-Ask Spread

The bid-ask spread varies depending on market conditions, reflecting the current supply and demand for the ETF.

Market Environment Factors

Economic indicators, sector-specific growth prospects (e.g., infrastructure spending, commodity demand), and overall market conditions influence RAAX. Interest rate changes, inflation expectations, and geopolitical events can significantly impact the performance of the underlying real assets.

Growth Trajectory

RAAX's growth trajectory depends on investor demand for real asset exposure and the performance of the underlying assets. Changes to the index methodology or fund holdings may occur over time to adapt to market dynamics.

Competitive Edge

RAAX offers a diversified approach to real asset investing, providing exposure to a range of sectors like natural resources, infrastructure, and real estate. Its competitive advantage lies in its strategic asset allocation and focus on long-term capital appreciation. The ETF benefits from Northern Trust's established reputation and expertise in managing investment portfolios. By tracking the Northern Trust Real Assets Allocation Index, RAAX delivers a rules-based, transparent investment process, which can attract investors seeking a well-defined and diversified approach to real assets.

Volatility

RAAX's historical volatility is influenced by the volatility of its underlying assets, including commodities and REITs. Historical Volatility is about 20.52%.

Market Risk

RAAX is subject to market risk, including fluctuations in commodity prices, interest rates, and real estate values. Specific risks related to the underlying assets include commodity price volatility, regulatory changes affecting infrastructure projects, and economic downturns impacting real estate values.

Ideal Investor Profile

Ideal investors are those seeking diversification beyond traditional stocks and bonds and have a long-term investment horizon. Investors interested in inflation protection and exposure to real assets may find RAAX suitable.

Market Risk

RAAX is best suited for long-term investors seeking diversification and potential inflation protection. It may not be appropriate for active traders seeking short-term gains due to its moderate liquidity and potential for volatility.

The FlexShares Real Assets Allocation Index Fund (RAAX) offers a diversified approach to investing in real assets, aiming for long-term capital appreciation. It tracks the Northern Trust Real Assets Allocation Index, providing exposure to natural resources, infrastructure, and real estate. While it benefits from Northern Trust's management expertise, investors should be aware of the fund's moderate liquidity, volatility, and potential exposure to commodity price fluctuations. RAAX is most suitable for long-term investors seeking diversification and inflation protection, and it's essential to assess its risk profile to determine if it aligns with individual investment goals.

Data Sources:

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

Disclaimers:

The information provided is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market share data may not be exact and is subject to change. Data availability may vary.