FlexShares® Exchange Traded Funds, sponsored and managed by Northern Trust, introduced the FlexShares STOXX Global Broad Infrastructure Fund (NYSE Arca: NFRA) on October 8th. A global equity portfolio, consisting of companies that have infrastructure ownership, the Fund operates with a goal of increasing diversification with other equity assets while also providing income to investors.
The Fund focuses on infrastructure ownership through a bottom-up analysis of each company's assets, as opposed to reliance on industry classifications. It also delivers greater diversification of infrastructure exposure by providing a larger array of super sectors beyond the typical exposure to utilities, energy and transportation.
NFRA also features:
- Inclusion of Communication Infrastructure owners as part of the investment thesis, which helps generate incremental returns with lower volatility
- Access to the newest area of infrastructure with dedicated exposure to Government Outsourcing/Social Infrastructure
“Historically, infrastructure stocks have low correlation to the overall equity market, and they tend to be defensive in nature,” said Shundrawn Thomas, head of Northern Trust's FlexShares Exchange Traded Funds Group. “With our ongoing focus on real world investor needs, we created this Fund first as a risk-mitigation tool that offers investors the unique characteristics of infrastructure in an effort to diversify their equity risk exposure, generate income and hedge against long-term inflation.”Hartmut Graf, chief executive officer, STOXX® Limited added, “Our goal with the STOXX Global Broad Infrastructure Index was to identify infrastructure companies across developed and emerging markets using a transparent, rule-based methodology that meets flexible indexing needs.” 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.