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FlexShares International Quality Dividend Defensive Index Fund is an exchange-traded fund incorporated in the USA. The Fund seeks to track the performance of the Northern Trust International Quality Dividend Defensive Index.

FUND BASICS
Category	International Equities
Fund Sponsor	Northern Trust Investments Inc
Website	www.flexshares.com
Inception date	Apr 16, 2013
Assets (mns)	$67
Currency	USD
Expense ratio	47 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Multi-Factor
Index replication	Optimized
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	183
Wgt avg mkt cap (mns)	$53,082
Large cap (>$10bn)	57.1%
Mid cap ($2-10bn)	39.7%
Small cap (<$2bn)	3.2%
Developed mkts	72.2%
Emerging mkts	27.9%

TOP TEN HOLDINGS
Total	17.2 %
NESTLE SA-REG	3.0 %
GLAXOSMITHKLINE PLC	2.8 %
ROYAL BANK OF CANADA	2.3 %
ROCHE HOLDING AG-GENUSSCHEIN	2.0 %
KDDI CORPORATION	1.4 %
RIO TINTO PLC	1.3 %
L'OREAL	1.2 %
ASTELLAS PHARMA INC	1.1 %
KONE OYJ-B	1.1 %
NTT DOCOMO, INC.	1.1 %

TOP COUNTRY EXPOSURE
	JAPAN	14.5 %
	BRITAIN	11.5 %
	SWITZERLAND	6.8 %
	AUSTRALIA	5.5 %
	TAIWAN	5.2 %
	CHINA	5.2 %
	CANADA	4.4 %
	FINLAND	4.1 %
	RUSSIA	3.9 %
	FRANCE	3.2 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru May 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
-17.4%	-7.9%	-1.3%	--	-0.4%

Market Correlations
versus...	Beta	R-squared
S&P500	0.80	75%
MSCI EAFE	0.96	92%
MSCI Emg. Mkts.	0.76	89%

Technical Indicators
Recent close	$19.59
30d moving avg.	$18.13
Annualized volatility	15.7%
Short interest (ETF)	0.0%
Relative strength (RSI)	67

Liquidity measures
Avg. volume (thou.)	15
Turnover	0.4%
Bid/Ask (% of price)	0.24%
ADV underlying (mns)	$18,104

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 99 potential alternatives to the FlexShares International Quality Dividend Defensive Index Fd ETF based on the alternatives' overlap in portfolio holdings with IQDE. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

IQDE

Expense:

47 bp

ALTAR Score™:

12.7%

ALTERNATIVE ETFs BASED ON OVERLAP WITH IQDE
Ticker	Fund Name	Overlap¹ vs IQDE (%)	Expense ratio (bp)	Savings vs IQDE (bp)	ALTAR Score™ (%)	ALTAR vs IQDE (%)
IQDF	FlexShares International Quality Dividend Index Fund	68.6	47	0	12.9	+0.2
IQDY	FlexShares International Quality Dividend Dynamic Index Fund	45.1	47	0	13.5	+0.8
QLVD	FlexShares Developed Markets ex-US Quality Low Volatility Id	27.3	32	15	6.5	-6.2
DOL	WisdomTree International LargeCap Dividend Fund	26.9	48	-1	8.5	-4.2
DTH	WisdomTree DEFA Equity Income Fund	24.1	58	-11	9.6	-3.2
DWM	WisdomTree International Equity Fund	23.8	48	-1	8.2	-4.5
DDWM	WisdomTree Dynamic Currency Hedged International Equity Fund	23.6	35	12	8.6	-4.1
OEUR	O'shares FTSE Europe Quality Dividend ETF	22.7	48	-1	6.6	-6.1
HDAW	Xtrackers MSCI All World ex US High Dividend Yield Hedged	22.4	20	27	10.9	-1.8
VYMI	Vanguard International High Dividend Yield ETF	22.2	32	15	10.1	-2.6
QEFA	SPDR MSCI EAFE Quality Mix ETF	22.1	30	17	6.8	-6.0
FDEV	Fidelity Targeted International Factor ETF	21.8	39	8	6.5	-6.2
IDY	Pacific Global International Equity Income ETF	21.7	39	8	8.0	-4.7
EFV	iShares MSCI EAFE Value ETF	21.3	39	8	10.0	-2.7
RFDI	First Trust Riverfront Dynamic Developed International ETF	21.3	83	-36	6.3	-6.4
DHDG	WisdomTree Dynamic Currency Hedged Intl Quality Div Growth	20.9	48	-1	0.0	-12.7
FIVA	Fidelity International Value Factor ETF	20.2	39	8	10.2	-2.5
PXF	Invesco FTSE RAFI Developed Markets ex-U.S. ETF	20.0	45	2	8.8	-3.9
HDEF	Xtrackers MSCI EAFE High Dividend Yield Hedged Equity ETF	20.0	20	27	9.3	-3.5
IQLT	iShares Edge MSCI Intl Quality Factor ETF	19.8	30	17	6.2	-6.5
EFAV	iShares Edge MSCI Min Vol EAFE ETF	19.8	20	27	5.9	-6.9
PDEV	Principal International Multi-Factor Core Index ETF	19.5	25	22	7.9	-4.9
FNDF	Schwab Fundamental International Large Co. Index ETF	19.4	25	22	8.7	-4.1
EFA	iShares MSCI EAFE ETF	19.4	32	15	7.2	-5.6
DBEF	Xtrackers MSCI EAFE Hedged Equity ETF	19.2	35	12	7.0	-5.7
IEV	iShares Europe ETF	19.2	59	-12	6.8	-5.9
RODM	Hartford Multifactor Developed Markets (ex-US) ETF	19.1	29	18	8.6	-4.1
HFXI	IQ 50 Percent Hedged FTSE International ETF	19.0	20	27	7.5	-5.2
HFXE	IQ 50 PERCENT HEDGED FTSE EUROPE ETF	19.0	30	17	6.8	-5.9
DWMF	WisdomTree International Multifactor Fund	19.0	38	9	6.8	-5.9
FLEE	Franklin FTSE Europe ETF	18.9	9	38	7.0	-5.7
LVIN	Hartford Multifactor Low Volatility International Equity ETF	18.9	29	18	12.2	-0.5
DBEU	Xtrackers MSCI Europe Hedged Equity ETF	18.8	45	2	6.8	-6.0
ESGD	iShares MSCI EAFE ESG Optimized ETF	18.8	20	27	7.2	-5.6
FLEH	Franklin FTSE Europe Hedged ETF	18.8	9	38	7.2	-5.6
GSEU	Goldman Sachs ActiveBeta Europe Equity ETF	18.7	25	22	6.7	-6.0
BBEU	JPMorgan BetaBuilders Europe ETF	18.7	9	38	7.3	-5.5
IQSI	IQ Candriam ESG International Equity ETF	18.6	15	32	7.3	-5.4
PBDM	Invesco PureBeta FTSE Developed ex-North America ETF	18.2	7	40	7.6	-5.2
SCHF	Schwab International Equity ETF	18.2	6	41	7.4	-5.3
RFEU	First Trust Riverfront Dynamic Europe ETF	18.1	83	-36	5.0	-7.8
EFAX	SPDR MSCI EAFE Fossil Fuel Free ETF	18.0	20	27	7.3	-5.5
CWI	SPDR MSCI ACWI ex-US ETF	17.9	30	17	7.6	-5.1
ACWX	iShares MSCI ACWI ex U.S. ETF	17.9	32	15	7.5	-5.2
DOO	WisdomTree International Dividend ex-Financials Fund	17.9	58	-11	8.7	-4.1
GSIE	Goldman Sachs ActiveBeta International Equity ETF	17.8	25	22	6.8	-5.9
DBAW	Xtrackers MSCI All World ex US Hedged Equity ETF	17.7	40	7	7.4	-5.3
IEUR	iShares Core MSCI Europe ETF	17.7	9	38	7.3	-5.5
VGK	Vanguard FTSE Europe ETF	17.3	8	39	7.3	-5.5
FEU	SPDR Portfolio Europe ETF	17.0	9	38	7.3	-5.5
CID	VictoryShares Intl High Dividend Volatility Wtd Index ETF	17.0	45	2	9.8	-3.0
IEFA	iShares Core MSCI EAFE ETF	17.0	7	40	7.3	-5.4
MFDX	PIMCO RAFI Dynamic Multi-Factor International Equity ETF	16.8	39	8	6.7	-6.1
EUMV	iShares Edge MSCI Min Vol Europe ETF	16.7	25	22	5.5	-7.3
IDEV	iShares Core MSCI International Developed Markets ETF	16.6	5	42	7.3	-5.5
IQIN	IQ 500 International ETF	16.5	25	22	9.0	-3.8
VEU	Vanguard FTSE All-World ex-US Index Fund	16.5	8	39	7.7	-5.0
QINT	American Century Quality Diversified International ETF	16.4	39	8	5.9	-6.8
RNDM	Developed International Equity Select ETF	16.3	65	-18	6.4	-6.4
VEA	Vanguard FTSE Developed Markets ETF	16.3	5	42	7.4	-5.3
IGRO	iShares International Dividend Growth ETF	16.0	22	25	8.0	-4.7
JHMD	John Hancock Multifactor Developed International ETF	16.0	45	2	7.4	-5.3
IXUS	ishares Core MSCI Total International Stock ETF	16.0	9	38	7.6	-5.2
SPDW	SPDR Portfolio Developed World ex-US ETF	16.0	4	43	7.2	-5.5
IDV	iShares International Select Dividend ETF	15.9	49	-2	12.3	-0.5
IDHQ	Invesco S&P International Developed High Quality ETF	15.8	29	18	5.4	-7.3
ISDX	Invesco Strategic Developed ex-US ETF	15.8	23	24	7.4	-5.3
VXUS	Vanguard Total International Stock Index Fund	15.7	8	39	7.7	-5.0
IDHD	Invesco S&P Intl Developed High Dividend Low Volatility ETF	15.7	30	17	7.4	-5.4
EASG	Xtrackers MSCI EAFE ESG Leaders Equity ETF	15.5	14	33	7.0	-5.7
HDMV	First Trust Horizon Managed Volatility Developed Intl ETF	15.5	80	-33	6.0	-6.7
IDLV	Invesco S&P International Developed Low Volatility ETF	14.6	25	22	6.9	-5.9
JPEU	JPMorgan Diversified Return Europe Equity ETF	14.6	37	10	6.8	-5.9
NUDM	Nuveen ESG International Developed Markets Equity ETF	14.5	40	7	6.9	-5.9
RBIN	Nationwide Risk-Based International Equity ETF	14.5	42	5	6.5	-6.3
VSGX	Vanguard ESG International Stock ETF	14.5	17	30	7.4	-5.3
DWX	SPDR S&P International Dividend ETF	14.0	45	2	7.7	-5.0
ACSG	Xtrackers MSCI ACWI ex USA ESG Leaders Equity ETF	14.0	16	31	7.1	-5.6
EFAS	Global X MSCI SuperDividend EAFE ETF	13.8	55	-8	9.8	-3.0
LVHI	Legg Mason International Low Volatility High Dividend ETF	13.8	40	7	10.2	-2.5
EFAD	ProShares MSCI EAFE Dividend Growers ETF	13.5	50	-3	6.6	-6.1
CIL	VictoryShares International Volatility Weighted Index ETF	13.4	45	2	6.7	-6.0
JPIN	JPMorgan Diversified Return International Equity ETF	13.3	38	9	8.0	-4.8
IDMO	Invesco S&P International Developed Momentum ETF	13.3	25	22	4.7	-8.1
MVIN	Natixis Seeyond International Minimum Volatility ETF	13.3	55	-8	5.8	-7.0
FYLD	Cambria Foreign Shareholder Yield ETF	13.1	59	-12	9.3	-3.5
IVLU	iShares Edge MSCI Intl Value Factor ETF	12.7	30	17	11.3	-1.5
FGD	First Trust Dow Jones Global Select Dividend Index Fund	12.6	58	-11	9.9	-2.9
TLTD	FlexShares Morningstar Developed Markets ex-US Factor Tilt	12.5	39	8	9.1	-3.7
JPGE	JPMorgan Diversified Return Global Equity ETF	12.4	29	18	7.3	-5.4
DEW	WisdomTree Global High Dividend Fund	12.3	58	-11	9.0	-3.7
FIDI	Fidelity International High Dividend ETF	12.2	39	8	10.8	-1.9
INTF	iShares Edge MSCI Multifactor Intl ETF	12.2	30	17	8.3	-4.4
VIGI	Vanguard International Dividend Appreciation ETF	12.0	25	22	5.9	-6.8
IDOG	ALPS International Sector Dividend Dogs ETF	11.9	50	-3	11.0	-1.8
RFAP	First Trust Riverfront Dynamic Asia Pacific ETF	11.9	83	-36	7.1	-5.6
EFG	iShares MSCI EAFE Growth ETF	11.7	40	7	4.7	-8.0
EUDV	ProShares MSCI Europe Dividend Growers ETF	11.5	55	-8	6.9	-5.9
CEY	VictoryShares Emerging Market High Dividend Volatility Wtd E	11.4	51	-4	13.4	+0.7

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 International Quality Dividend Defensive Index Fd
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	17.2	%
Divided by: Fwd. P/BV	1.3	x
Less: Expense ratio	47	bp
Equals: ALTAR Score	12.7	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.61	CATEGORY AVERAGE	1.59

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.