ETF Research Center

FlexShares 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 Quality Dividend Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Northern Trust Investments Inc
Website	www.flexshares.com
Inception date	Dec 14, 2012
Assets (mns)	$56
Currency	USD
Expense ratio	37 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	State Street Bank and Trust Co
Weighting	Multi-Factor
Index replication	Optimized
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	137
Wgt avg mkt cap (mns)	$281,613
Large cap (>$10bn)	79.6%
Mid cap ($2-10bn)	20.4%
Small cap (<$2bn)	0.1%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	33.8 %
APPLE INC	7.2 %
MICROSOFT CORP	4.3 %
JPMORGAN CHASE & CO	4.1 %
HOME DEPOT INC	3.3 %
CISCO SYSTEMS INC	3.1 %
CHEVRON CORP	2.6 %
JOHNSON & JOHNSON	2.5 %
CITIGROUP INC	2.5 %
PHILIP MORRIS INTERNATIONAL	2.2 %
ABBVIE INC	2.2 %

TOP COUNTRY EXPOSURE
	UNITED STATES	95.7 %
	IRELAND	1.7 %
	CANADA	0.6 %
	BRITAIN	0.6 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
-2.7%	15.5%	9.1%	--	12.3%

Market Correlations
versus...	Beta	R-squared
S&P500	1.06	89%
MSCI EAFE	1.02	68%
MSCI Emg. Mkts.	0.67	51%

Technical Indicators
Recent close	$49.01
30d moving avg.	$48.41
Annualized volatility	13.6%
Short interest (ETF)	0.0%
Short interest (Underlying)	3.5%
Relative strength (RSI)	55

Liquidity measures
Avg. volume (thou.)	2
Turnover	0.2%
Bid/Ask (% of price)	0.06%
ADV underlying (mns)	$52,030

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

QDYN

Expense:

37 bp

ALTAR Score™:

7.0%

ALTERNATIVE ETFs BASED ON OVERLAP WITH QDYN
Ticker	Fund Name	Overlap¹ vs QDYN (%)	Expense ratio (bp)	Savings vs QDYN (bp)	ALTAR Score™ (%)	ALTAR vs QDYN (%)
QDF	FlexShares Quality Dividend	67.0	37	0	7.1	+0.2
QDEF	FlexShares Quality Dividend Defensive	49.9	37	0	6.1	-0.8
FDRR	Fidelity Dividend for Rising Rates	47.6	29	8	7.3	+0.3
DIVB	iShares U.S. Dividend & Buyback	45.9	25	12	6.5	-0.4
OYLD	Invesco Russell 1000 Yield Factor ETF	43.9	19	18	7.4	+0.4
DLN	WisdomTree Large Cap Dividend	43.8	28	9	6.4	-0.6
DGRO	iShares Core Dividend Growth	41.3	8	29	6.3	-0.7
OVOL	Invesco Russell 1000 Low Volatility Factor ETF	40.9	19	18	6.6	-0.4
DTD	WisdomTree Total Dividend	40.7	28	9	6.5	-0.4
RECS	Columbia Research Enhanced Core	40.4	15	22	5.9	-1.1
FVAL	Fidelity Value Factor	40.2	29	8	7.7	+0.7
QLC	FlexShares US Quality Large Cap	40.1	32	5	6.0	-1.0
OUSA	O'Shares FTSE U.S. Quality Dividend	40.1	48	-11	5.9	-1.1
OEF	iShares S&P 100	39.8	20	17	5.2	-1.8
VYM	Vanguard High Dividend Yield ETF	39.7	6	31	7.1	+0.1
XLG	Invesco S&P Top 50	39.2	20	17	4.9	-2.1
EPS	WisdomTree Earnings 500	38.8	8	29	6.7	-0.3
RFDA	RiverFront Dynamic US Dividend Advantage	38.6	52	-15	6.3	-0.7
USDY	Pacific Global US Equity Income	38.1	29	8	7.4	+0.4
FDVV	Fidelity Core Dividend	37.6	29	8	6.9	-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

	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 Quality Dividend Dynamic
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	20.2	%
Divided by: Fwd. P/BV	2.8	x
Less: Expense ratio	37	bp
Equals: ALTAR Score	7.0	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.58	CATEGORY AVERAGE	1.56

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.