BNDC will act as a type of fund-of-funds, largely investing in U.S. dollar-denominated investment-grade fixed-income securities through ETFs and other registered investment companies. The active ETF will be exposed to U.S. governments and their agencies, instrumentalities or sponsored enterprises, and U.S. and non-U.S. private-sector entities, like corporations and banks.

The underlying portfolio is based on Northern Trust’s forecast, which is based on over 40 years of fixed-income investing experience.

Current holdings include , FlexShares Disciplined Duration MBS Index Fund (NasdaqGM: MBSD) 34.4%, FlexShares Credit‐Scored US Corporate Bond Index Fund (NasdaqGM: SKOR) 27.9%, iShares 3-7 Year Treasury Bond ETF (NYSEArca: IEI) 15.2%, FlexShares Credit‐Scored US Long Corporate Bond Index Fund (NasdaqGM: LKOR) 14.2%, iShares 7-10 Year Treasury Bond ETF (NYSEArca: IEF) 4.3%, iShares 20+ Year Treasury Bond ETF (NYSEArca: TLT) 1.4%, FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (NYSEArca: TDTT) 1.3% and FlexShares iBoxx 5-Year Target Duration TIPS Index Fund Profile (NYSEArca: TDTF) 1.3%.

For more information on new fund products, visit our new ETFs category.