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ESGG Investment Process

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ESGG Investment Process

ESGG Investment Process

ESGG Investment Process

ESGG Investment Process


FlexShares STOXX® US ESG Impact Index Fund (ESG} and the FlexShares STOXX® Global ESG Impact Index Fund (ESGG} are passively managed and use a representative sampling strategy to track their underlying index respectively. Use of a representative sampling strategy creates tracking risk where the Fund's performance could vary substantially from the performance of the underlying index. The Funds are subject to environmental, social and governance (ESG) Investment Risk, which is the risk that because the methodology of the Underlying Indices selects and assigns weights to securities of issuers for non-financial reasons, the Funds may underperform the broader equity market or other funds that do not utilize ESG criteria when selecting investments. The Funds are also at increased risk of industry concentration, where it may be more than 25% invested in the assets of a single industry. For ESGG, investments in foreign market securities involve certain risks such as currency volatility, political and social instability and reduced market liquidity. The Funds may also invest in derivative instruments. Changes in the value of the derivative may not correlate with the underlying asset, rate or index and the Funds could lose more than the principal amount invested.

The STOXX® Global 1 BOO Index contains 600 European, 600 North American and 600 Asia/Pacific region stocks represented by the STOXX® Europe 600 Index the STOXX® North America 600 Index and the STOXX® Asia/Pacific 600 Index.

The MSCI World is a stock market index of 1,643 'world' stocks. It is maintained by MSCI Inc., formerly Morgan Stanley Capital International, and is used as a common benchmark for 'world' or 'global' stock funds. The index includes a collection of stocks of all the developed markets in the world, as defined by MSCI.

STOXX® Global ESG Impact Index focuses on global stocks, emerging and developed markets that exhibit certain environmental, social and governance (ESG) Performance Indicators (KPls). The index will rank those firms higher with better ESG metrics using its propriety system for scoring.