FlexShares Morningstar® Global Upstream Natural Resources Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar® Global Upstream Natural Resources IndexTM (Underlying Index).
1. Identify upstream natural resources equities based on a Morningstar industry classification system
2. Balanced exposure to three traditional (30% each in Agriculture, Energy, and Metals) and two nontraditional (5% each in Timber and Water) natural resource sectors
Though investment involves compensation for risk in the form of return, investors must:
This is particularly important in today’s environment, in which global markets are highly interconnected and experience more volatility in the form of price movement. Unexpected market shocks (or tail risks) are more common and change the view of normal investment distributions. The following risk solutions may complement investors' portfolios by providing a investments that seek to mitigate exposure to risk, while seeking to receive compensation for that risk.
The Morningstar® Global Upstream Natural Resources IndexSM measures the performance of stocks issued by companies that have significant business operations in the ownership, management and/or production of natural resources in energy, agriculture, precious or industrial metals, timber and water resources sectors as defined by Morningstar’s industry classification standards. The Morningstar® index methodology uses a proprietary industry classification system to identify companies within the five natural resource categories. Individual stock weights as well as category and regional exposure are capped to provide diversified exposure. One cannot invest directly in an index.