FlexShares International Quality Dividend Dynamic Index Fund (IQDY) is passively managed and uses a representative sampling strategy to track its Underlying Index. Use of a representative sampling strategy creates Tracking Risk where the Fund’s performance could vary substantially from the performance of the Underlying Index. Additionally, the Fund is at increased Dividend Risk, as the issuers of the underlying stock might not declare a dividend, or the dividend rate may not remain at current levels. The Fund is also is at increased risk of Industry Concentration, where it may be more than 25% invested in the assets of a single industry. The Fund may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that country, market, industry, sector or asset class. Finally, the Fund may also be subject to increased Volatility Risk, where volatility may not equal the target of the Underlying Index.