FlexShares - iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) ETF

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TDTT

FlexShares iBoxx 3-Year Target Duration TIPS Index Fund

FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund gives investors access to the inflation-hedging qualities of TIPS and seeks to provide targeted duration exposure through changing interest rate and economic cycles. The Fund has a secondary goal of income generation and may also be used to help diversify a portfolio. The Fund reflects the performance of a selection of inflation-protected public obligations of the U.S. Treasury, commonly known as “TIPS,” with a target average duration of approximately three years and specific maturity dates of at least one year but not more than ten years. The Fund seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the iBoxx 3-Year Target Duration TIPS Index. Dividend payments of income are anticipated monthly with realized capital gains dividends anticipated at least annually.
• Strategies for Managing Interest Rate Risk
• Hedging Inflation: The Case for Precise Targeting of TIPS Durations

Fact Sheet
Summary Prospectus
SAI

Premium/Discount Charts

Historical Performance

Overview
Performance
Pricing
Holdings
Distributions
Index

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as of 06/18/2013

Inception	09/19/2011
CUSIP	33939L506
Total Net Assets	$1,704,971,460.88
Shares Outstanding	68,104,000
# of Holdings	11
Gross Expense Ratio	.22%
Net Expense Ratio	.20%
Index Provider	MARKIT
Primary Exchange	NYSE
Options Available	N
Marginable	Y
Derivative Use	Y
Securities Lending	N
*NTI has contractually agreed to reimburse the fees and expenses of the Fund’s independent trustees and independent legal counsel until March 1, 2014.

Moody's
Fitch

as of 06/18/2013	% of Fund
Aaa	100.00
Total	100.00

as of 06/18/2013	% of Fund
AAA	100.00
Total	100.00

as of 06/18/2013

30-Day SEC Yield(as of 05/31/2013)	1.33%
Distribution Yield	2.33%
12-Month Dividend Yield	.64%
Weighted Avg Maturity	2.78
Weighted Avg Coupon	.92
Weighted Avg Price	105.48
Modified Adjusted Duration	3.08
View Standarized Performance

as of 06/18/2013

	% of Fund
1 - 3 Years	78.48
3 - 5 Years	21.52
Total	100.00

ETF Ticker	TDTT
Related Index	IBXXTD3C
NAV	TDTT.NV
IOPV	TDTT.IV
Shares Outstanding	TDTT.SO
Estimated Cash	TDTT.EU
Total Cash	TDTT.TC

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as of 05/31/2013

	1 Month	QTD	YTD	1 Year	Since Inception 09/19/2011
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT)
Market Price	-1.10	-1.60	-1.45	-.07	1.06
NAV	-1.06	-1.53	-1.22	.01	1.06
iBoxx 3-Year Target Duration TIPS Index (IBXXTD3T)	-1.01	-1.51	-1.13	.22	1.17
Barclays US TIPS Index (LBUTTRUU)	-4.36	-3.60	-3.95	-1.79	2.48

as of 03/31/2013

	1 Month	QTD	YTD	1 Year	Since Inception 09/19/2011
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT)
Market Price	.20	.16	.16	1.44	2.25
NAV	.20	.31	.31	1.72	2.20
iBoxx 3-Year Target Duration TIPS Index (IBXXTD3T)	.21	.38	.38	1.89	2.30
Barclays US TIPS Index (LBUTTRUU)	.28	-.36	-.36	5.68	5.24

Performance information presented on this website is historical, and is not indicative of future results. Investment returns and principal may vary, and at the time of sale an investment may be worth more or worth less than its original value. For most recent month end performance please call 1-855-353-9383 (1-855-FlexETF). All performance figures assume reinvestment of dividend and capital gains at net asset value; actual returns may differ. Performance 1-year and less are cumulative; performance over 1-year are average annualized total returns. The fund inception date is generally several days prior to when the fund begins trading. NAV prices are used to calculate market price performance prior to 09/23/2011, when the fund first traded on the New York Stock Exchange. Market performance is determined using the bid/ask midpoint at 4:00pm Eastern time, when the NAV is typically calculated. They do not represent the returns you would receive if you traded shares at other times. Index performance does not represent FlexShares fund performance. It is not possible to invest directly in an index.

as of 06/18/2013

Gross Expense Ratio	.22%
Net Expense Ratio	.20%

Definitions

Net Asset Value (NAV)
NAV is a fund’s price per share, which is calculated by dividing the total value of all the securities in the fund’s portfolio plus cash, interest and receivables less any liabilities by the number of fund shares outstanding.

Market Price
Because ETFs trade like stocks, ETF shares trade at market value on the secondary market, which can be a dollar value above (trading at a premium) or below (trading at a discount) the fund’s NAV.

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as of 06/18/2013

Price	$25.06
Price $ Change	$.07
Price % Change	.28%
Avg Bid/Ask Spread	$.02
Bid/Ask Midpoint	$25.05
Closing Bid Price	$25.03
Closing Ask Price	$25.06

as of 06/18/2013

Price	$25.03
Price $ Change	$.03
Price % Change	.12%

as of 06/18/2013

52-Week High	$25.90
52-Week Low	$24.93
Premium/Discount	$.01
Daily Trading Volume (Shares)	204,199
Average Trading Volume (Shares)	351,948
Shares Outstanding	68,104,000

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as of 06/18/2013

VIEW ALL >

Name	Fund Weight %	Coupon	Maturity	Country
UNITED STATES TREAS NTS TIPS 0.125% 15/APR/2016	48.2138	.13	04/15/2016	United States
UNITED STATES OF AMER TREAS NOTES1.875% NTS	9.5705	1.88	07/15/2015	United States
TSY INFL IX N/B VAR 15/JAN/2016	9.5122	2.00	01/15/2016	United States
UNITED STATES TREAS NTS VAR 15/APR/2017	7.3769	.13	04/15/2017	United States
UNITED STATES VAR 07/16	4.6300	2.50	07/15/2016	United States
UNITED STATES OF AMER TREAS NOTES 2% 15/JUL/2014	3.7798	2.00	07/15/2014	United States
UNITED STATES TREASURY NOTE VAR DUE 15/JAN/2015	3.7577	1.63	01/15/2015	United States
UNITED STATES TREAS NTS TIPS 15/APR/2015	3.6484	.50	04/15/2015	United States
UNITED STATES OF AMER TREAS NOTES TIPS 2.375%	3.5265	2.38	01/15/2017	United States
UNITED STATES OF AMER TREAS NOTES 1.625%	3.1647	1.63	01/15/2018	United States
UNITED STATES OF AMER TREAS NOTES 2.625%	2.8195	2.63	07/15/2017	United States

Export data

View by year:

Ex-Date	Record Date	Payable Date	Income	Short-Term Capital Gains	Long-Term Capital Gains	Total Distribution
11/01/2011	11/03/2011	11/07/2011	.022252	0	0	.022252
12/01/2011	12/05/2011	12/07/2011	.011295	0	0	.011295
12/28/2011	12/30/2011	01/05/2012	.002012	.033275	0	.035287
02/01/2012	02/03/2012	02/07/2012	0	0	0	0
03/01/2012	03/05/2012	03/07/2012	0	0	0	0
04/02/2012	04/04/2012	04/09/2012	0	0	0	0
05/01/2012	05/03/2012	05/07/2012	0	0	0	0
06/01/2012	06/05/2012	06/07/2012	.115718	0	0	.115718
07/02/2012	07/05/2012	07/09/2012	.071699	0	0	.071699
08/01/2012	08/03/2012	08/07/2012	0	0	0	0
09/04/2012	09/06/2012	09/10/2012	0	0	0	0
10/01/2012	10/03/2012	10/05/2012	0	0	0	0
11/01/2012	11/05/2012	11/07/2012	0	0	0	0
12/03/2012	12/05/2012	12/07/2012	.047971	0	0	.047971
12/27/2012	12/31/2012	01/03/2013	0	.006136	.000358	.006494
02/01/2013	02/05/2013	02/07/2013	0	0	0	0
03/01/2013	03/05/2013	03/07/2013	0	0	0	0
04/01/2013	04/03/2013	04/05/2013	0	0	0	0
05/01/2013	05/03/2013	05/07/2013	0	0	0	0
06/03/2013	06/05/2013	06/07/2013	.047957	0	0	.047957
07/01/2013	07/03/2013	07/08/2013
08/01/2013	08/05/2013	08/07/2013
09/03/2013	09/05/2013	09/09/2013
10/01/2013	10/03/2013	10/07/2013
11/01/2013	11/05/2013	11/07/2013
12/02/2013	12/04/2013	12/06/2013
12/27/2013	12/31/2013	01/03/2014

Ex-Date	Record Date	Payable Date	Income	Short-Term Capital Gains	Long-Term Capital Gains	Total Distribution
12/27/2012	12/31/2012	01/03/2013	0	.006136	.000358	.006494
12/03/2012	12/05/2012	12/07/2012	.047971	0	0	.047971
11/01/2012	11/05/2012	11/07/2012	0	0	0	0
10/01/2012	10/03/2012	10/05/2012	0	0	0	0
09/04/2012	09/06/2012	09/10/2012	0	0	0	0
08/01/2012	08/03/2012	08/07/2012	0	0	0	0
07/02/2012	07/05/2012	07/09/2012	.071699	0	0	.071699
06/01/2012	06/05/2012	06/07/2012	.115718	0	0	.115718
05/01/2012	05/03/2012	05/07/2012	0	0	0	0
04/02/2012	04/04/2012	04/09/2012	0	0	0	0
03/01/2012	03/05/2012	03/07/2012	0	0	0	0
02/01/2012	02/03/2012	02/07/2012	0	0	0	0
12/28/2011	12/30/2011	01/05/2012	.002012	.033275	0	.035287
12/01/2011	12/05/2011	12/07/2011	.011295	0	0	.011295
11/01/2011	11/03/2011	11/07/2011	.022252	0	0	.022252

The iBoxx 3-Year Target Duration TIPS Index measures the performance of Treasury Inflation Protected Securities (TIPS) as determined by Markit iBoxx's proprietary index methodology. The iBoxx index methodology targets a modified adjusted duration of 3.0 years and defines the eligible universe of TIPS as having no less than one year and no more than ten years until maturity as of the Index determination date. A proprietary regression calculation is then used to determine the modified adjusted duration of the TIPS and weight the TIPS in the Index at a modified adjusted duration level within a range of 3.0 years, plus or minus 5% within Index constraints. One cannot invest directly in an index.

855-FLEXETF

Carefully consider the FlexShares Funds’ investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the prospectus, which may be obtained by calling 1-855-353-9383 (1-855 FlexETF) or by downloading a Prospectus. Read the prospectus carefully before investing; investing involves risk, including possible loss of principal.

Investment Products and Services are:

An investment in FlexShares is subject to investment risk, including the possible loss of principal amount invested. Fund returns may not match the return of its respective index. The Funds may invest in emerging and foreign markets, derivatives and concentrated sectors. In addition, the Funds may be subject to asset class risk, small cap stock risk, value investing risk, non-diversification risk, fluctuation of yield, income risk, interest rate/maturity risk, currency risk, passive investment risk, inflation protected security risk, market risk and manager risk. For a complete description of risks associated with each Fund, please refer to the prospectus.

FlexShares iBoxx 3-Year Target Duration TIPS fund may invest in derivative instruments. Changes in the value of the derivative may not correlate with the underlying asset, rate or index and the Fund could lose more than the principal amount invested. The Fund is subject to fluctuation of yield risk, income risk, inflation protected security risk and interest rate/maturity risk. The Fund is non-diversified meaning the Fund performance may depend on the performance of a small number of issuers because the Fund may invest a large percentage of its assets in securities issued by or representing a small number of issuers.

Shares of FlexShares may be sold throughout the day on the exchange through any brokerage account. However, shares may only be redeemed directly from the Fund by Authorized Participants, in very large creation/redemption units. There can be no assurance that an active trading market for shares of an ETF will develop or be maintained.

All registered investment companies, including FlexShares, are obliged to distribute portfolio gains to shareholders at year-end regardless of performance. Trading FlexShares Funds will also generate tax consequences and transaction expenses. The information provided is not intended to be tax advice. Tax consequences of dividend distributions may vary by individual taxpayer.

The FlexShares Funds, registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940 (“Funds”) are distributed by Foreside Fund Services, LLC , not affiliated with Northern Trust.