Investors seeking quality exposure and access to various parts of the globe can look to three FlexShares ETFs.
First off, investors can get large cap exposure to quality holdings with the FlexShares US Quality Large Cap Index Fund (QLC). QLC can give investors focused exposure to big tech and companies like Apple, Microsoft, Facebook, Amazon, and Google.
“For many investors, large-cap stocks comprise the core of their portfolio’s equity allocation,” a FlexShares Fund Focus article said. “And while large-cap stocks have historically been consistent drivers of performance, the returns of many large-cap equity funds may track closely to the performance of the broader large-cap market.”
QLC seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Quality Large Cap Index. The underlying index is designed to reflect the performance of a selection of companies that, in aggregate, possess greater exposure to quality, value, and momentum factors relative to a universe of publicly-traded U.S. large-capitalization equity securities.
Looking Beyond the States
Additionally, investors can round out their portfolios with exposure from international holdings that incorporate low volatility characteristics. One fund to consider is the FlexShares Developed Markets ex-US Quality Low Volatility Index Fund (QLVD).
QLVD seeks investment results that correspond generally to the Northern Trust Developed Markets ex-US Quality Low Volatility Index. The underlying index is designed to reflect the performance of a selection of companies that, in aggregate, possess lower overall absolute volatility characteristics relative to a broad universe of securities domiciled in developed market countries, excluding the United States.
For emerging markets exposure, there’s the FlexShares Emerging Markets Quality Low Volatility Index Fund (QLVE). This fund seeks investment results that correspond generally to the price and yield performance of the Northern Trust Emerging Markets Quality Low Volatility Index, which is designed to reflect the performance of a selection of companies that, in aggregate, possess lower overall absolute volatility characteristics relative to a broad universe of securities domiciled in emerging market countries.
“Investing in low volatility international stocks is often used as a defensive strategy by investors who want to participate in some of the market’s growth while potentially reducing their downside risk,” FlexShares added. “Our research has found, however, that traditional low volatility strategies may introduce unintended sector concentration and interest rate risk, among other challenges.”
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