TILT, which can be used as an alternative to plain vanilla broad market ETFs, such as S&P 500 funds, has gained 77.3% since coming to market, topping the S&P 500 by nearly 1,600 basis points over the same period. TILT now has $693.1 million in assets and the fund proved so successful so rapidly that it spurred the introduction of the developed and emerging markets equivalents, the FlexShares Morningstar Emerging Market Factor Tilt Index ETF (NYSEArca: TLTE) and the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index (NYSEArca: TLTD).
“Three years ago we launched FlexShares with a simple yet compelling mission, to deliver thoughtfully designed products that meet targeted investment objectives,” said Shundrawn Thomas, executive vice president and head of Northern Trusts’ Funds and Managed Accounts Group, in a statement. “The rapid growth in assets and positive response from investors affirms that our investor-centric approach fills a tremendous need in the marketplace.”
Chicago-based FlexShares has also made its presence felt in the fixed income space. The FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (NYSEArca: TDTT) and the FlexShares iBoxx 5-Year Target Duration TIPS Index Fund Profile (NYSEArca: TDTF) also celebrated their third anniversaries last month. Buoyed by a flight to lower duration bond ETFs, TDTT, with a modified adjusted duration of 3.12 years, has $2.2 billion in AUM. TDTF has $307.2 million in assets. [Nifty Bond ETFs]
FlexShares Morningstar US Market Factor Tilt Index Fund