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FlexShares International Quality Dividend Dynamic 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 Dynamic Index.

FUND BASICS
Category	International Equities
Fund Sponsor	Northern Trust Investments Inc
Website	www.flexshares.com
Inception date	Apr 16, 2013
Assets (mns)	$51
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	162
Wgt avg mkt cap (mns)	$52,337
Large cap (>$10bn)	65.7%
Mid cap ($2-10bn)	33.5%
Small cap (<$2bn)	0.7%
Developed mkts	73.7%
Emerging mkts	26.3%

TOP TEN HOLDINGS
Total	16.4 %
GLAXOSMITHKLINE PLC	2.5 %
ROYAL BANK OF CANADA	2.5 %
ASML HOLDING NV	2.4 %
ALLIANZ SE-REG	1.9 %
L'OREAL	1.6 %
NESTLE SA-REG	1.2 %
NINTENDO CO LTD	1.1 %
ATLAS COPCO AB CLASS A	1.1 %
RECRUIT HOLDINGS CO LTD	1.0 %
ENEL SPA	1.0 %

TOP COUNTRY EXPOSURE
	JAPAN	15.9 %
	BRITAIN	12.4 %
	CHINA	8.1 %
	SWEDEN	4.9 %
	TAIWAN	4.8 %
	FRANCE	4.7 %
	GERMANY	4.5 %
	CANADA	4.4 %
	RUSSIA	4.4 %
	HONG KONG	4.2 %

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.
27.3%	27.3%	5.6%	--	4.8%

Market Correlations
versus...	Beta	R-squared
S&P500	0.87	61%
MSCI EAFE	1.16	89%
MSCI Emg. Mkts.	0.86	84%

Technical Indicators
Recent close	$26.88
30d moving avg.	$26.28
Annualized volatility	13.5%
Short interest (ETF)	0.0%
Relative strength (RSI)	75

Liquidity measures
Avg. volume (thou.)	9
Turnover	0.5%
Bid/Ask (% of price)	0.20%
ADV underlying (mns)	$12,647

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the FlexShares Int'l Quality Dividend Dynamic ETF based on the alternatives' overlap in portfolio holdings with IQDY. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

IQDY

Expense:

47 bp

ALTAR Score™:

8.6%

ALTERNATIVE ETFs BASED ON OVERLAP WITH IQDY
Ticker	Fund Name	Overlap¹ vs IQDY (%)	Expense ratio (bp)	Savings vs IQDY (bp)	ALTAR Score™ (%)	ALTAR vs IQDY (%)
IQDF	FlexShares Int'l Quality Dividend	60.0	47	0	8.8	+0.2
IQDE	FlexShares Int'l Quality Dividend Defensive	48.0	47	0	8.8	+0.2
RFEU	First Trust Riverfront Dynamic Europe	22.0	83	-36	5.9	-2.7
DOL	WisdomTree Int'l Large Cap Dividend	21.2	48	-1	7.5	-1.1
HDAW	Xtrackers MSCI All World ex US High Div Yield	20.9	20	27	9.6	+1.0
RFDI	First Trust Riverfront Dynamic Developed Int'l	20.8	83	-36	6.3	-2.3
IDHQ	Invesco Int'l Developed High Quality Portfolio	19.1	29	18	4.8	-3.8
QINT	American Century Quality Diversified International	18.9	39	8	5.9	-2.7
DTH	WisdomTree DEFA Equity Income	18.8	58	-11	8.2	-0.4
DDWM	WisdomTree Dynamic Currency Hedged Int'l Equity	18.8	35	12	7.6	-1.0
IQLT	iShares MSCI Int'l Developed Quality	18.7	30	17	5.7	-2.9
DWM	WisdomTree DEFA Fund	18.6	48	-1	7.4	-1.2
EASG	Xtrackers MSCI EAFE ESG Leaders Equity	18.3	14	33	6.5	-2.1
FIVA	Fidelity International Value Factor	17.9	39	8	9.0	+0.4
FDEV	Fidelity Targeted International Factor	17.5	39	8	6.7	-1.9
PDEV	Principal International Multi-Factor Core Index	17.2	25	22	6.5	-2.2
IDY	Pacific Global International Equity Income	17.0	39	8	8.0	-0.6
IGRO	iShares International Dividend Growth	16.9	22	25	7.4	-1.2
ESGD	iShares MSCI EAFE ESG Optimized	16.9	20	27	6.7	-2.0
IMTM	iShares MSCI Int'l Developed Momentum	16.9	30	17	4.5	-4.1

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 Int'l Quality Dividend Dynamic
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	15.4	%
Divided by: Fwd. P/BV	1.7	x
Less: Expense ratio	47	bp
Equals: ALTAR Score	8.6	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.58	CATEGORY AVERAGE	1.63

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.