Two New Tilt ETFs from FlexShares (TILT, TLTD, TLTE)

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By Jon C. Ogg Updated Published
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There are a couple new exchange traded funds that have hit the market now. FlexShares has introduced two new ETFs which are intended to complement its FlexShares Morningstar US Market Factors Tilt ETF (NYSE: TILT) by focusing on developed and emerging markets. FlexShares has been out a year and it recently crossed above 1.5 billion in assets.

The new funds counterbalance the inherent bias toward large-growth companies embedded in market-weighted strategies by applying a nuanced “tilt” methodology toward the long-term growth potential of small cap and value stocks. And unlike many alternatively weighted approaches, FlexShares’ tilted index funds seek a consistent level of risk exposure to size and style providing total market coverage – including large cap and growth.

FlexShares Morningstar Developed Markets ex-U.S. Factor Tilt Index Fund (NYSE: TLTD): FlexShares Morningstar Developed Markets ex-U.S. Factor Tilt Index ETF seeks to enhance exposure to international stocks by tilting the portfolio toward the long-term growth potential of the small cap and value segments. It seeks to provide investors with an expanded opportunity set of developed market stocks from outside the U.S. to help meet their longer term capital appreciation needs, while attempting to enhance portfolio risk/return characteristics.

FlexShares Morningstar Emerging Market Factor Tilt Index Fund (NYSE: TLTE): FlexShares Morningstar Emerging Market Factor Tilt Index ETF seeks to enhance exposure to developing market stocks by tilting the portfolio toward the long-term growth potential of the small cap and value segments. It seeks to provide investors with an emerging market equity option that helps to meet their longer term capital appreciation needs while attempting to enhance portfolio risk/return characteristics.

These ETFs are sponsored and managed by Northern Trust Corporation (NASDAQ: NTRS).

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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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