ETF Research Center

The FlexShares Credit-Scored U.S. Long Corporate Bond Index Fund tracks an index composed of U.S. corporate bonds with investment-grade ratings and a maturity of 10 or more years, optimized for fundamental factors and liquidity.

FUND BASICS
Category	Corporate
Fund Sponsor	Northern Trust
Website	www.flexshares.com
Inception date	Sep 23, 2015
Assets (mns)	$35
Currency	USD
Expense ratio	22 bp
Distributions	Monthly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Multi-Factor
Index replication

ISSUER TYPE BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	458
No of distinct issuers	268
Inflation protected	0%
Variable/Fixed coupon	4% /96%
Non-standard maturity (callable, etc.)	78%

TOP TEN HOLDINGS
TOTAL	5.6 %
0.0% //	1.1 %
0.0% //	0.6 %
0.0% //	0.6 %
0.0% //	0.5 %
0.0% //	0.5 %
0.0% //	0.5 %
0.0% //	0.5 %
0.0% //	0.5 %
0.0% //	0.4 %
0.0% //	0.4 %

TOP ISSUERS
ENTERPRISE PRODUCTS OPERATING LLC	2.0%
LOWE'S COMPANIES, INC.	2.0%
BROADCOM INC.	1.9%
ABBVIE INC.	1.9%
WELLS FARGO & COMPANY	1.7%

TOP COUNTRY EXPOSURE
	UNITED STATES	86.8 %
	CANADA	3.6 %
	BRAZIL	1.0 %
	NETHERLANDS	0.9 %
	UNITED KINGDOM	0.8 %

HISTORICAL RETURNS info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru May 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
-0.6%	0.9%	-2.5%	--	2.6%

Market Correlations
versus...	Beta	R-squared
Barclays Agg. Bond	2.09	93%
S&P500	0.69	54%
MSCI EAFE	0.77	71%
MSCI Emg. Mkts.	0.72	62%

Technical Indicators
Recent close	$42.14
30d moving avg.	$41.00
Annualized volatility	15.8%
Short interest (ETF)	0.1%
Relative strength (RSI)	53

Liquidity measures
Avg. volume (thou.)	7
Avg. daily value traded (mns)	$0
Turnover	0.8%
Bid/Ask (% of price)	0.15

Distributions

Yield Comparison

*Fund Category: CORPORATE

CREDIT QUALITY: MOODY'S

DISTRIBUTION YIELD (TRAILING 12 MONTHS)

Macaulay Duration

LKOR	13.6 yrs	Category Avg.*	4.7 yrs

Modified Duration

LKOR	13.2%	Category Avg.*	4.5%

RATE SENSITIVITY ANALYSIS
Change in YTM	New YTM	Est. Price Change	Est. New Price
+300 bp	9.16%	-30.6%	$29.26
+200 bp	8.16%	-22.4%	$32.71
+150 bp	7.66%	-17.5%	$34.75
+100 bp	7.16%	-12.2%	$37.00
+75 bp	6.91%	-9.3%	$38.21
+50 bp	6.66%	-6.3%	$39.46
+25 bp	6.41%	-3.2%	$40.77
0 bp	6.16%	0%	$42.14
-25 bp	5.91%	3.4%	$43.55
-50 bp	5.66%	6.8%	$45.02
-75 bp	5.41%	10.5%	$46.54
-100 bp	5.16%	14.2%	$48.12
-150 bp	4.66%	22.0%	$51.42
-200 bp	4.16%	30.4%	$54.94
-300 bp	3.16%	48.6%	$62.60

*Fund Category: CORPORATE

ALTAR Score™

Calculation of ALTAR Score™
Adj. Yield to Maturity	616	bp
Less: Annual "default factor"	24	bp
Less: Expense ratio	22	bp
Equals: ALTAR Score	5.70	%

Average ALTAR Score™ by Category
Aggregate	3.1%
Corporate	4.0%
Emerging Market	5.8%
Government	7.1%
Inflation Protected	2.4%
Mortgage	5.0%
Municipals	3.5%

Note: The FlexShares Credit-Scored US Long Corporate Bond Index Fund is classified as a Corporate* fund.