Before investing, visit flexshares.com/prospectus to obtain a prospectus that includes the investment objectives, risks, fees, expenses and other information you should read carefully and consider carefully. Foreside Fund Services, LLC, distributor.
Investment in FlexShares Global Quality Real Estate Index Fund is subject to investment risk, including possible loss of principal. Fund’s return may not match the return of its respective index. Fund may invest in emerging and foreign markets, derivatives and concentrated sectors. In addition, Fund may be subject to risks including: asset class; concentration; counterparty; currency; derivatives; emerging markets; equity securities; foreign securities; interest rate; issuer; management; market; market segment; market trading; mid cap stock; momentum; non-diversification; passive investment; real estate securities; REIT; small cap stock; tracking error; valuation; and value investing risk. For a complete description of risks, please refer to the prospectus.
FlexShares Global Quality Real Estate Index Fund is subject to real estate sector risk in addition to general stock market risk. Investing in securities of real estate companies will make the Fund more susceptible to risks associated with ownership of real estate and with the real estate industry in general, as well as risks that relate specifically to the way in which real estate companies are organized and operated. Real estate companies may have lower trading volumes and may be subject to more abrupt or erratic price movements than the overall securities market. The value of real estate securities may underperform other sectors of the economy or broader equity markets. To the extent that the Fund concentrates its investments in the real estate sector, it may be subject to greater risk of loss than if it were diversified across different industry sectors. The Fund is also subject to the risk that its investments will be affected by factors that impact REITs and the real estate sector generally. Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real estate industry in general. REITs whose underlying properties are concentrated in a particular industry or geographic region are also subject to risks affecting such industries and regions. By investing in REITs through the Fund, a shareholder will bear proportionate expenses of the REITs in addition to expenses of the Fund.