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FlexShares launches High Yield Value-Scored ETF


Northern Trust’s FlexShares Exchange Traded Funds has expanded its fixed-income exchange traded fund roster with the launch of an ETF that uniquely screens high yield corporate debt, the FlexShares High Yield Value-Scored Bond Index Fund (HYGV).

“As high yield bonds have become a mainstream fixed-income asset, we believe fund providers have sacrificed their original focus on yield generation,” says Mark Carlson, Senior Investment Strategist at FlexShares. “Our new value-scored high yield fund offers investors an innovative approach to income generation by focusing on maximizing the value factor to enhance total return potential, while also placing a renewed focus on the ‘yielding’ aspect of high yield.”
The FlexShares High Yield Value-Scored Bond Index Fund utilises Northern Trust’s proprietary credit scoring model to maximize factor inputs for value while screening for quality and liquidity risk. The fundamentals of the bond issuers are then evaluated against current market conditions, and the lowest quality issuers are removed from the index.
“The addition of the FlexShares High Yield Value-Scored Bond Index Fund will enhance our suite of efficient fixed-income funds, providing investors a diverse set of income generating products within the FlexShares lineup,” says Darek Wojnar, Head of Northern Trust’s Funds and Managed Accounts Group. “We believe our deep fixed-income expertise and selective approach to product development will help our clients meet their investment goals and potentially deliver income in a dynamic market environment where traditional income sources have become less predictable.”

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