The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Quality Low Volatility IndexSM (the "Underlying Index").
1. Invests in US-based companies and employs quality factor as a tool to potentially mitigate future volatility
2. Utilize constraints to help optimize and remove biases
3. Maximize exposure to low volatility factor
1:42 | Transcript
Learn the three step quality ranking process that the FlexShares US Quality Low Volatility Index Fund (QLV) utilizes to find what we believe are long-term quality US-based companies that possess lower overall absolute volatility characteristics that also exhibit financial strength and stability characteristics.
Many investors have discrete goals in mind when they consider long-term growth of their investment portfolios. A few of the common goals include retirement savings, education plans, capital purchases, bequests and/or charitable intentions. Capital appreciation emphasizes the components of an investment portfolio dedicated to achieving long-term goals. It goes beyond wealth preservation and focuses on potential return on principal. There is an expansive array of investment options with an emphasis on equities. FlexShares capital appreciation strategies may complement investor’s portfolios by offering targeted solutions that seek to meet specific goals over defined time horizons. Risk-adjusted returns, risk tolerance, time horizon and performance expectations are key considerations when designing and delivering capital appreciation solutions.
The Northern Trust Quality Low Volatility Index (Underlying Index) is designed to reflect the performance of a selection of companies that, in aggregate, possess lower overall absolute volatility characteristics relative to the Northern Trust 1250 Index, a float-adjusted market capitalization weighted index of U.S. domiciled large- and mid-capitalization companies. In addition, the Underlying Index looks to select companies from the Parent Index that exhibit financial strength and stability (i.e., quality) characteristics. The Underlying Index seeks to enhance risk-return characteristics and have lower volatility to the broader U.S. equity market.