FlexShares International Quality Dividend Index Fund (NYSEArca: IQDF)
AUM: $345.6 million
YTD performance: Down 3.4%
Comment: IQDF tries to reflect the performance of the Northern Trust International Quality Dividend Index, which is comprised of developed ex-U.S. and emerging market securities screened to maximize “quality,” target a beta similar to the parent index and improve on the parent index’s dividend yield.
Translation: This is a smart beta ETF that focuses on fundamental factors, such as profitability, solid management and reliable cash flow. After all, profitability and free cash flow generation are vital tells regarding a company’s ability to continue paying and raising dividends.