ETF Research Center

The FlexShares STOXX US ESG Impact Index Fund follows a principles-based index composed of US-listed companies that exhibit environmental, social, and corporate governance (ESG) characteristics.

FUND BASICS
Category	US Equities
Fund Sponsor	Northern Trust
Website	www.flexshares.com
Inception date	Jul 13, 2016
Assets (mns)	$67
Currency	USD
Expense ratio	32 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Principles-based
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	264
Wgt avg mkt cap (mns)	$363,008
Large cap (>$10bn)	99.3%
Mid cap ($2-10bn)	0.7%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	33.9 %
APPLE INC	5.7 %
MICROSOFT CORP	5.2 %
AMAZON.COM INC	5.0 %
ALPHABET INC. CLASS C	3.4 %
JPMORGAN CHASE & CO	3.2 %
FACEBOOK	2.6 %
PROCTER & GAMBLE CO/THE	2.4 %
INTEL CORP	2.3 %
BANK OF AMERICA CORP	2.1 %
EXXON MOBIL CORP	2.0 %

TOP COUNTRY EXPOSURE
	UNITED STATES	95.1 %
	IRELAND	3.0 %
	BRITAIN	0.5 %
	SWITZERLAND	0.2 %
	LUXEMBOURG	0.1 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
31.8%	31.8%	--	--	15.0%

Market Correlations
versus...	Beta	R-squared
S&P500	0.99	98%
MSCI EAFE	0.89	66%
MSCI Emg. Mkts.	0.60	52%

Technical Indicators
Recent close	$78.44
30d moving avg.	$77.20
Annualized volatility	12.0%
Short interest (ETF)	0.0%
Relative strength (RSI)	76

Liquidity measures
Avg. volume (thou.)	2
Turnover	0.2%
Bid/Ask (% of price)	0.05%
ADV underlying (mns)	$97,379

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the FlexShares STOXX US ESG Impact Index Fund ETF based on the alternatives' overlap in portfolio holdings with ESG. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

ESG

Expense:

32 bp

ALTAR Score™:

5.0%

ALTERNATIVE ETFs BASED ON OVERLAP WITH ESG
Ticker	Fund Name	Overlap¹ vs ESG (%)	Expense ratio (bp)	Savings vs ESG (bp)	ALTAR Score™ (%)	ALTAR vs ESG (%)
SNPE	Xtrackers S&P 500 ESG	67.0	11	21	5.4	+0.4
IWL	iShares Russell Top 200	66.2	15	17	5.3	+0.3
OEF	iShares S&P 100	66.0	20	12	5.2	+0.1
MGC	Vanguard Mega Cap 300 ETF	65.8	7	25	5.5	+0.5
SPXV	ProShares S&P 500 Ex-Health Care	64.8	27	5	5.4	+0.3
JUST	Goldman Sachs JUST U.S. Large Cap Equity	64.6	20	12	5.2	+0.2
PBP	Invesco S&P 500 Buy/Write	64.4	49	-17	5.2	+0.2
SPY	S&P 500 SPDR	63.9	9	23	5.5	+0.5
IVV	iShares Core S&P 500	63.8	4	28	5.6	+0.6
SFY	SoFi Select 500	63.8	0	32	5.3	+0.2
HSPX	Global X S&P 500 Covered Call	63.8	65	-33	5.1	+0.0
SPXN	ProShares S&P 500 Ex-Financials	63.5	27	5	5.5	+0.5
VOO	Vanguard S&P 500 ETF	63.4	3	29	5.7	+0.6
SPYX	SPDR S&P 500 Fossil Fuel Reserves Free	63.4	20	12	5.6	+0.6
SPXE	ProShares S&P 500 Ex-Energy	63.2	27	5	5.5	+0.5
IQSU	IQ Candriam ESG US Equity ETF	62.7	9	23	5.5	+0.5
PBUS	Invesco PureBeta MSCI USA	62.4	4	28	5.6	+0.6
VV	Vanguard Large-Cap ETF	62.1	4	28	5.5	+0.5
BBUS	JP Morgan Betabuilders U.S. Equity	62.0	2	30	5.5	+0.5
NACP	Impact Shares NAACP Minority Empowerment	61.9	75	-43	5.2	+0.1

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	FlexShares STOXX US ESG Impact Index Fund
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	16.8	%
Divided by: Fwd. P/BV	3.1	x
Less: Expense ratio	32	bp
Equals: ALTAR Score	5.0	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.48	CATEGORY AVERAGE	1.55

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.