FlexShares® Exchange Traded Funds, sponsored and managed by Northern Trust Corp., today introduced dividend-focused equity index funds to help investors achieve their income needs while still participating in capital growth through the equity market.
The exchange-traded funds – the Quality Dividend Index Fund, Quality Dividend Defensive Index Fund and the Quality Dividend Dynamic Index Fund – seek to deliver a portfolio of stocks that emphasize long-term capital growth and income. They invest in quality companies that provide dividend income while controlling for market risk.
The ETFs employ Northern Trust’s proprietary Dividend Quality Score, used for many years in separately managed accounts. They also seek to replicate Northern Trust's 1250 index, but target different levels of market volatility or beta. They include:
- FlexShares Quality Dividend Index Fund (QDF), which seeks to deliver a beta similar to that of the market, while mitigating sector, industry, and security concentration risks.
- FlexShares Quality Dividend Dynamic Index Fund (QDYN), which seeks to deliver a beta greater than the market, while mitigating sector, industry, and security concentration risks.
- FlexShares Quality Dividend Defensive Index Fund (QDEF), which strives to deliver a beta less than the market, while mitigating sector, industry, and security concentration risks.
“Our research shows that a high-quality, yield-focused equity position can potentially act as a return stabilizer for a broader portfolio, mitigate risk in volatile markets and provide higher dividend growth,” said Shundrawn Thomas, head of Northern Trust's Exchange Traded Funds Group. “The new equity funds are designed to outperform in a variety of market environments, including upward- and downward-trending markets.”For more information, please visit www.flexshares.com. Before investing, carefully consider the FlexShares investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting www.flexshares.com . Read the prospectus carefully before you invest. Foreside Fund Services, LLC, distributor.