FlexShares® Exchange Traded Funds, sponsored and managed by Northern Trust, today launched the FlexShares Global Quality Real Estate Index Fund (NYSE Arca: GQRE). The Fund attempts to outperform traditional real estate indices via global exposure to listed, non-mortgage real estate investment trusts and operating companies that emphasize stable, long-term capital growth at an attractive price.
The Fund employs Northern Trust’s Quality Score, a proprietary quantitative methodology that uses fundamental data to evaluate the strength of a company's financial health and growth prospects. The Quality Score index, similar to the methodology used in FlexShares’ Quality Dividend product suite, incorporates factors of management efficiency, profitability and cash flow.
The Fund strives to outperform legacy real estate indices in upward and downward trending markets -during central bank tightening and easing cycles. It uses a combination of current and historical valuation metrics that include a momentum factor to try to avoid ‘value traps.’
“Research shows that a high-quality, value-focused portfolio of real estate securities may offer attractive returns with less volatility compared to traditional capitalization-weighted global real estate indices,” said Shundrawn Thomas, head of Northern Trust's FlexShares Exchange Traded Funds Group. “GQRE provides investors a disciplined approach for investing in global real estate equities.”
The Fund is available today. For more information, please visit www.flexshares.com.
Before investing, carefully consider the FlexShares investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting www.flexshares.com. Read the prospectus carefully before you invest.
Foreside Fund Services, LLC, distributor.
An investment in FlexShares is subject to numerous risks, including possible loss of principal. Fund returns may not match the return of the respective indexes. The Fund is subject to the following principal risks: asset class; concentration; counterparty; currency; derivatives; dividend; emerging markets; equity securities; foreign securities; interest rate; issuer; issuer; management; market; market segment; market trading; mid cap stock; momentum; new funds; non-diversification; passive investment; real estate securities; REIT; small cap stock; tracking error; and value investing. A full description of risks is in the prospectus.
FlexShares ETFs are designed to pursue real world goals that help investors adapt to changing market conditions. FlexShares leverage investment expertise and research across disciplines – equity, fixed income, passive, active – to offer new, insight-led solutions. FlexShares ETFs are sponsored by Northern Trust. Individual investors can purchase and sell shares through any brokerage firm, financial advisor or online broker. Follow us on Twitter @FlexSharesETFs.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment management, asset and fund administration, banking solutions and fiduciary services for institutional and wealthy investors worldwide. Northern Trust, a financial holding company based in Chicago, has offices in 18 U.S. states and 18 international locations in North America, Europe, the Middle East and the Asia-Pacific region. As of September 30, 2013, Northern Trust had assets under custody of US$5.2 trillion, and assets under investment management of US$846.2 billion. For more than 120 years, Northern Trust has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology. For more information, visit www.northerntrust.com or follow us on Twitter @NorthernTrust.