Stocks with the value designation accounted for almost 43% of TLTE’s weight at the end of the first quarter while micro- and small-caps represented a combine for 34.3% of the ETF’s weight, according to FlexShares data.
Due to its significant exposure to smaller stocks, TLTE does not trade at a discount to the MSCI Emerging Markets Index as has been seen with other smart beta emerging markets ETFs with a more direct focus on value stocks. [EM ETF With a Value Tilt]
The ETF sports a P/E ratio of almost 19, well above the MSCI Emerging Markets Index. However, TLTE has returned 7.2% over the past 90 days, confirming why investors have poured $45.4 million, or 18% of the ETF’s assets, into the fund this year.
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund