The FlexShares ESG & Climate U.S. Large Cap Core Index Fund ETF (FEUS) has several things going for it.
This little-known fund carries a notably cheap expense ratio of just 9 basis points, significantly lower than the category average of 57 basis points, and since its inception in September 2021, FEUS has showcased an early ability to outpace rivals, according to Morningstar.
The fund has garnered $2.6 million in assets under management since its inception just shy of five months ago.
The fund seeks results that correspond generally to the price and yield performance of the Northern Trust ESG & Climate US Large Cap Core IndexSM. The underlying index is designed to reflect the performance of a selection of companies that exhibit certain ESG characteristics, while also seeking to provide broad-market, core exposure to publicly traded U.S. large-capitalization equity securities, according to regulatory filings.
Under normal circumstances, the fund will invest at least 80% of its total assets in the securities of the underlying index. The fund is non-diversified.
The portfolio is positioned across 202 holdings and is diversified among those holdings. In its most recent portfolio, 30.8% of the strategy’s assets were concentrated in the top 10 fund holdings, compared to the category’s 49.5% average.
The portfolio is weighted heaviest toward certain sectors, including technology, healthcare, financial services, and consumer cyclicals; however, it is not weighted more than 150 basis points beyond its category peers.
While not significantly different than its competitors, the fund has lower exposure to certain sectors, including basic materials, utilities, real estate, energy, and consumer defense.
The fund’s top holdings include Apple (7.00%), Microsoft (5.78%), Amazon.com (3.46%), Alphabet Class A (2.54%), Alphabet Class C (2.53%), and Tesla (2.17%).
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