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)	$155
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	272
Wgt avg mkt cap (mns)	$509,407
Large cap (>$10bn)	99.8%
Mid cap ($2-10bn)	0.2%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	33.9 %
APPLE INC	4.9 %
MICROSOFT CORP	4.8 %
AMAZON.COM INC	4.8 %
FACEBOOK	3.9 %
TESLA MOTORS INC	3.5 %
ALPHABET INC. CLASS C	3.5 %
JPMORGAN CHASE & CO	2.7 %
PROCTER & GAMBLE CO/THE	2.1 %
HOME DEPOT INC	1.9 %
WALT DISNEY CO/THE	1.7 %

TOP COUNTRY EXPOSURE
	UNITED STATES	95.6 %
	IRELAND	2.1 %
	SWITZERLAND	0.4 %
	BRITAIN	0.4 %
	BERMUDA	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.
20.7%	20.7%	--	--	16.3%

Market Correlations
versus...	Beta	R-squared
S&P500	1.01	99%
MSCI EAFE	0.93	83%
MSCI Emg. Mkts.	0.73	65%

Technical Indicators
Recent close	$92.34
30d moving avg.	$90.91
Annualized volatility	19.1%
Short interest (ETF)	0.0%
Relative strength (RSI)	61

Liquidity measures
Avg. volume (thou.)	13
Turnover	0.8%
Bid/Ask (% of price)	0.09%
ADV underlying (mns)	$184,472

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 98 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™:

4.6%

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 (%)
ESGV	Vanguard ESG U.S. Stock ETF	74.2	12	20	4.6	0.0
EFIV	SPDR S&P 500 ESG ETF	68.5	10	22	4.7	+0.1
SNPE	Xtrackers S&P 500 ESG ETF	68.4	10	22	4.7	+0.1
MGC	Vanguard Mega Cap Index Fund	67.7	7	25	4.7	+0.1
PBP	Invesco S&P 500 BuyWrite ETF	66.7	49	-17	4.4	-0.2
IWL	iShares Russell Top 200 ETF	66.4	15	17	4.5	-0.1
XYLG	Global X S&P 500 Covered Call & Growth ETF	66.2	60	-28	4.4	-0.1
BKLC	BNY Mellon US Large Cap Core Equity ETF	65.8	0	32	4.6	+0.0
SPY	SPDR S&P 500 ETF Trust	65.6	9	23	4.8	+0.2
SPLG	SPDR Portfolio Large Cap ETF	65.6	3	29	4.8	+0.3
IVV	iShares Core S&P 500 ETF	65.5	3	29	4.8	+0.3
JUST	Goldman Sachs JUST U.S. Large Cap Equity ETF	64.8	20	12	4.7	+0.1
GSUS	Goldman Sachs MarketBeta U.S. Equity ETF	64.6	7	25	4.6	+0.1
SPXE	ProShares S&P 500 Ex-Energy ETF	64.5	27	5	4.7	+0.2
SPXN	ProShares S&P 500 Ex-Financials ETF	64.1	27	5	4.5	-0.1
SPYX	SPDR S&P 500 Fossil Fuel Reserves Free ETF	64.0	20	12	4.9	+0.3
OEF	iShares S&P 100 ETF	64.0	20	12	4.3	-0.2
VOO	VANGUARD S&P 500 ETF	63.9	3	29	4.9	+0.3
JCTR	JPMorgan Carbon Transition U.S. Equity ETF	63.7	15	17	4.7	+0.2
BBUS	JP Morgan Betabuilders U.S. Equity ETF	63.5	2	30	4.7	+0.2
VV	Vanguard Large-Cap Index Fund	63.5	4	28	4.7	+0.1
PBUS	Invesco PureBeta MSCI USA ETF	63.3	4	28	4.7	+0.1
ESGU	iShares MSCI USA ESG Optimized ETF	62.4	15	17	4.5	-0.1
SCHX	Schwab U.S. Large-Cap ETF	61.8	3	29	4.6	+0.1
SPXV	ProShares S&P 500 Ex-Health Care ETF	61.7	27	5	4.4	-0.2
XOUT	GraniteShares XOUT U.S. Large Cap ETF	61.6	60	-28	3.7	-0.8
SPTM	SPDR Portfolio Total Stock Market ETF	61.0	3	29	4.9	+0.3
IQSU	IQ Candriam ESG US Equity ETF	60.8	9	23	4.6	+0.1
SCHK	Schwab 1000 Index ETF	60.5	5	27	4.7	+0.1
IWB	iShares Russell 1000 ETF	60.2	15	17	4.6	-0.0
IYY	iShares Dow Jones U.S. ETF	59.8	20	12	4.5	-0.1
CATH	Global X S&P 500 Catholic Values Custom ETF	59.4	29	3	4.7	+0.1
ESGG	FlexShares STOXX Global ESG Impact Index Fund	59.3	42	-10	4.7	+0.1
SFY	SoFi Select 500 ETF	59.1	0	32	4.6	+0.1
NACP	Impact Shares NAACP Minority Empowerment ETF	58.4	49	-17	4.8	+0.2
EPS	WisdomTree U.S. Earnings 500 Fund	58.2	8	24	6.0	+1.4
VTHR	Vanguard Russell 3000 Index Fund	58.1	10	22	4.5	-0.1
XLG	Invesco S&P 500 Top 50 ETF	57.9	20	12	4.2	-0.4
SPXT	ProShares S&P 500 Ex-Technology ETF	57.5	27	5	4.9	+0.4
IWV	iShares Russell 3000 ETF	56.8	20	12	4.4	-0.2
SCHB	Schwab U.S. Broad Market ETF	56.7	3	29	4.5	-0.0
ITOT	iShares Core S&P Total U.S. Stock Market ETF	56.4	3	29	4.5	-0.1
VONE	Vanguard Russell 1000 ETF	56.2	8	24	4.6	+0.1
VTI	Vanguard Total Stock Market Index Fund	55.7	3	29	4.5	-0.1
GSLC	Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF	55.3	9	23	4.9	+0.3
DIVB	iShares U.S. Dividend & Buyback ETF	55.2	25	7	5.9	+1.4
DFAU	Dimensional US Core Equity Market ETF	55.2	12	20	4.7	+0.2
DSI	iShares MSCI KLD 400 Social ETF	54.9	25	7	4.7	+0.1
VOOG	Vanguard S&P 500 Growth ETF	54.8	10	22	4.1	-0.5
DLN	WisdomTree U.S. LargeCap Dividend Fund	54.7	28	4	6.2	+1.6
SPYG	SPDR Portfolio S&P 500 Growth ETF	53.7	4	28	3.8	-0.8
IVW	iShares S&P 500 Growth ETF	53.7	18	14	3.7	-0.9
MMTM	SPDR S&P 1500 Momentum Tilt ETF	53.2	12	20	4.1	-0.4
QUS	SPDR MSCI USA StrategicFactors ETF	52.5	15	17	5.3	+0.7
JHML	John Hancock Multifactor Large Cap ETF	52.5	29	3	4.9	+0.4
IUSG	iShares Core S&P US Growth ETF	52.3	4	28	3.8	-0.8
DTD	WisdomTree U.S.Total Dividend Fund	51.8	28	4	6.3	+1.7
FNDX	Schwab Fundamental U.S. Large Co. Index ETF	51.6	25	7	5.8	+1.2
SPUS	SP Funds S&P 500 Sharia Industry Exclusions ETF	51.6	49	-17	3.5	-1.0
SPYV	SPDR Portfolio S&P 500 Value ETF	51.5	4	28	6.4	+1.8
WOMN	Impact Shares YWCA Women's Empowerment ETF	51.5	75	-43	3.6	-0.9
IVE	iShares S&P 500 Value ETF	51.5	18	14	6.3	+1.7
PRF	Invesco FTSE RAFI US 1000 ETF	51.3	39	-7	5.8	+1.3
SCHV	Schwab U.S. Large-Cap Value ETF	50.9	4	28	6.1	+1.5
IWF	iShares Russell 1000 Growth ETF	50.5	19	13	3.6	-1.0
PLC	Principal U.S. Large-Cap Multi-Factor Core Index ETF	50.5	15	17	5.8	+1.2
SUSL	iShares ESG MSCI USA Leaders ETF	50.4	10	22	4.9	+0.3
USSG	Xtrackers MSCI USA ESG Leaders Equity ETF	50.4	10	22	4.9	+0.3
VONG	Vanguard Russell 1000 Growth Index Fund	50.0	8	24	3.7	-0.9
VTV	Vanguard Value Index Fund	50.0	4	28	6.5	+2.0
IUSV	iShares Core S&P U.S. Value ETF	49.8	4	28	6.4	+1.8
HIPR	Direxion High Growth ETF	49.6	40	-8	4.0	-0.6
IWY	iShares Russell Top 200 Growth ETF	49.5	20	12	3.7	-0.8
VOOV	Vanguard S&P 500 Value ETF	49.3	10	22	6.6	+2.0
FNDB	Schwab Fundamental U.S. Broad Market Index ETF	48.7	25	7	5.7	+1.2
DGRO	iShares Core Dividend Growth ETF	47.8	8	24	6.0	+1.4
RESP	WisdomTree US ESG Fund of Benef Interest	47.5	28	4	5.2	+0.6
KOKU	Xtrackers MSCI Kokusai Equity ETF	47.2	9	23	5.1	+0.5
TOK	iShares MSCI Kokusai ETF	47.0	25	7	5.0	+0.4
VONV	Vanguard Russell 1000 Value Index Fund	47.0	8	24	6.1	+1.6
RWL	Invesco S&P 500 Revenue ETF	46.4	39	-7	6.3	+1.7
IUS	Invesco Strategic US ETF	46.4	19	13	5.5	+1.0
AVUS	Avantis U.S. Equity ETF	46.3	15	17	4.9	+0.3
DYNF	BlackRock U.S. Equity Factor Rotation ETF	46.2	30	2	5.3	+0.8
SUSA	iShares MSCI USA ESG Select ETF	46.0	25	7	4.3	-0.3
EQWL	Invesco Russell Top 200 Equal Weight ETF	45.9	25	7	5.6	+1.1
IWD	iShares Russell 1000 Value ETF	45.8	19	13	6.0	+1.5
VUG	Vanguard Growth Index Fund	45.8	4	28	3.6	-0.9
KRMA	Global X Conscious Companies ETF	45.4	43	-11	4.9	+0.4
MGV	Vanguard Mega Cap Value ETF	45.2	7	25	6.4	+1.9
MGK	Vanguard Mega Cap Growth ETF	45.1	7	25	3.8	-0.8
TILT	Flexshares Morningstar US Market Factors Tilt Index Fund	44.8	25	7	5.0	+0.4
RECS	Columbia Research Enhanced Core ETF	44.7	15	17	5.2	+0.6
MFUS	PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF	44.3	30	2	5.1	+0.6
ACIO	Aptus Collared Income Opportunity ETF	44.3	79	-47	3.9	-0.7
TMFC	Motley Fool 100 Index ETF	44.1	50	-18	3.2	-1.4
QARP	Xtrackers Russell 1000 US Quality at a Reasonable Price ETF	44.0	19	13	5.4	+0.8
RAFE	PIMCO RAFI ESG U.S. ETF	43.7	30	2	6.7	+2.2

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

	2015	2016	2017	2018	2019	2020E	2021E
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

	2019	2020E	2021E
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	17.7	%
Divided by: Fwd. P/BV	3.6	x
Less: Expense ratio	32	bp
Equals: ALTAR Score	4.6	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.43	CATEGORY AVERAGE	1.49

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.