Bringing you live news and features since 2006 

FlexShares takes ’tilt’ at international markets

RELATED TOPICS​

Northern Trust has expanded its exchange-traded fund line-up with the launch of two FlexShares ETFs employing the firm’s “tilt” model – the basis for FlexShares’ existing Morningstar US Market Factor Tilt Index Fund (TILT).

As their names suggest, the new funds – The Morningstar Developed Markets ex-US Factor Tilt Index Fund (TLTD) and the Morningstar Emerging Markets Factor Tilt Index Fund (TLTE) – take the company’s ETF offering into new territory, but Northern Trust will be hoping the newcomers follow in the footsteps of the original tilt ETF, which currently has over USD125m in assets under management.

The new funds, listed on the NYSE, seek to counterbalance the inherent bias toward large-growth companies embedded in market-weighted strategies by applying a nuanced "tilt" methodology toward the long-term growth potential of small cap and value stocks. And unlike many alternatively weighted approaches, FlexShares’ tilted index funds seek a consistent level of risk exposure to size and style providing total market coverage – including large cap and growth.

"Coming just after our one-year anniversary, this announcement gives us the opportunity to note the progress we’ve made in our first year," says Shundrawn Thomas, head of Northern Trust’sExchange Traded Funds Group. "We continue to provide investors with distinctive, yet practical solutions. Now, with our two additional tilted index funds, investors have the ability to apply the strategy to investments across the globe."

According to Northern Trust: "FlexShares Morningstar Developed Markets ex-U.S. Factor Tilt Index ETF seeks to enhance exposure to international stocks by tilting the portfolio toward the long-term growth potential of the small cap and value segments. It seeks to provide investors with an expanded opportunity set of developed market stocks from outside the U.S. to help meet their longer term capital appreciation needs, while attempting to enhance portfolio risk/return characteristics.

"FlexShares Morningstar Emerging Market Factor Tilt Index ETF seeks to enhance exposure to developing market stocks by tilting the portfolio toward the long-term growth potential of the small cap and value segments. It seeks to provide investors with an emerging market equity option that helps to meet their longer term capital appreciation needs while attempting to enhance portfolio risk/return characteristics."

 

Latest News

BlackRock s iShares an undisputed leader among European ETF issuers pushed further ahead in Q1 with EUR173 billion in trades..
European ETFs raised USD47 8 billion in Q1 a 15 per cent increase compared to the same period in 2023..
LSEG Lipper s March report finds that globally equity ETFs +EUR113 2 billion enjoyed the highest estimated net inflows for..
Morningstar has published a review of the European ETF market for the first quarter 2024 which finds that it gathered..

Related Articles

etf active trading
Latest Morningstar data shows actively managed ETFs share of the US ETF market rose to 8 5 per cent at...
Kristen Mierzwa, FTSE Russell
Index Investments Group IIG a division within index provider FTSE Russell has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023 with an introductory suite of 11 ETFs seven thematic and four fundamental...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by