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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)	$16
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	142
Wgt avg mkt cap (mns)	$402,236
Large cap (>$10bn)	84.7%
Mid cap ($2-10bn)	14.8%
Small cap (<$2bn)	0.5%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	32.4 %
APPLE INC	8.3 %
MICROSOFT CORP	4.6 %
JOHNSON & JOHNSON	3.6 %
JPMORGAN CHASE & CO	3.5 %
THERMO FISHER SCIENTIFIC INC	2.6 %
CISCO SYSTEMS INC	2.5 %
TEXAS INSTRUMENTS INC	2.1 %
AMGEN INC	1.9 %
CITIGROUP INC	1.7 %
LOWE'S COS INC	1.7 %

TOP COUNTRY EXPOSURE
	UNITED STATES	97.3 %
	IRELAND	1.4 %

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.
10.2%	10.2%	12.1%	--	12.5%

Market Correlations
versus...	Beta	R-squared
S&P500	1.11	97%
MSCI EAFE	1.06	88%
MSCI Emg. Mkts.	0.87	75%

Technical Indicators
Recent close	$53.44
30d moving avg.	$51.51
Annualized volatility	21.2%
Short interest (ETF)	0.2%
Short interest (Underlying)	3.5%
Relative strength (RSI)	68

Liquidity measures
Avg. volume (thou.)	0
Turnover	0.0%
Bid/Ask (% of price)	0.10%
ADV underlying (mns)	$76,719

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 97 potential alternatives to the FlexShares Quality Dividend Dynamic Index Fund 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™:

5.3%

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 Index Fund	68.0	37	0	5.5	+0.2
QDEF	FlexShares Quality Dividend Defensive Index Fund	59.9	37	0	5.5	+0.2
FDRR	Fidelity Dividend ETF for Rising Rates	45.9	29	8	6.0	+0.7
QLC	FlexShares US Quality Large Cap Index Fund	45.4	32	5	4.4	-0.9
DLN	WisdomTree U.S. LargeCap Dividend Fund	44.1	28	9	6.1	+0.9
DTD	WisdomTree U.S.Total Dividend Fund	42.6	28	9	6.2	+1.0
DIVB	iShares U.S. Dividend & Buyback ETF	41.9	25	12	5.9	+0.6
RECS	Columbia Research Enhanced Core ETF	40.1	15	22	5.1	-0.2
EPS	WisdomTree U.S. Earnings 500 Fund	39.9	8	29	5.9	+0.6
DGRO	iShares Core Dividend Growth ETF	39.1	8	29	6.0	+0.7
DGRW	WisdomTree U.S. Quality Dividend Growth Fund	38.9	28	9	6.0	+0.7
ESGV	Vanguard ESG U.S. Stock ETF	38.9	12	25	4.5	-0.8
NACP	Impact Shares NAACP Minority Empowerment ETF	37.6	49	-12	4.7	-0.6
PLC	Principal U.S. Large-Cap Multi-Factor Core Index ETF	37.4	15	22	5.8	+0.5
OEF	iShares S&P 100 ETF	37.1	20	17	4.2	-1.1
OUSA	O'Shares FTSE US Quality Dividend ETF	37.0	48	-11	5.5	+0.2
EFIV	SPDR S&P 500 ESG ETF	36.7	10	27	4.6	-0.7
SNPE	Xtrackers S&P 500 ESG ETF	36.7	10	27	4.6	-0.7
FQAL	Fidelity Quality Factor ETF	36.6	29	8	5.0	-0.3
IWL	iShares Russell Top 200 ETF	36.5	15	22	4.4	-0.9
BKLC	BNY Mellon US Large Cap Core Equity ETF	36.4	0	37	4.5	-0.8
SPHQ	Invesco S&P 500 Quality ETF	36.3	15	22	4.4	-0.9
MGC	Vanguard Mega Cap Index Fund	36.3	7	30	4.6	-0.7
IQSU	IQ Candriam ESG US Equity ETF	36.0	9	28	4.5	-0.8
FDVV	Fidelity Core Dividend ETF	36.0	29	8	6.1	+0.8
JCTR	JPMorgan Carbon Transition U.S. Equity ETF	35.9	15	22	4.6	-0.7
PBP	Invesco S&P 500 BuyWrite ETF	35.7	49	-12	4.3	-1.0
VYM	Vanguard High Dividend Yield Index ETF	35.5	6	31	6.6	+1.3
XYLG	Global X S&P 500 Covered Call & Growth ETF	35.4	60	-23	4.4	-0.9
SPYX	SPDR S&P 500 Fossil Fuel Reserves Free ETF	35.3	20	17	4.8	-0.5
XLG	Invesco S&P 500 Top 50 ETF	35.2	20	17	4.1	-1.2
VOO	VANGUARD S&P 500 ETF	35.0	3	34	4.8	-0.5
SPY	SPDR S&P 500 ETF Trust	34.9	9	28	4.7	-0.6
IVV	iShares Core S&P 500 ETF	34.8	3	34	4.7	-0.6
SPLG	SPDR Portfolio Large Cap ETF	34.8	3	34	4.7	-0.6
JUST	Goldman Sachs JUST U.S. Large Cap Equity ETF	34.7	20	17	4.6	-0.7
SPXE	ProShares S&P 500 Ex-Energy ETF	34.3	27	10	4.6	-0.7
SPXN	ProShares S&P 500 Ex-Financials ETF	34.3	27	10	4.3	-0.9
GSUS	Goldman Sachs MarketBeta U.S. Equity ETF	34.2	7	30	4.5	-0.8
XOUT	GraniteShares XOUT U.S. Large Cap ETF	34.2	60	-23	3.6	-1.7
FLQL	Franklin LibertyQ U.S. Equity ETF	34.2	15	22	5.9	+0.6
XVV	iShares ESG Screened S&P 500 ETF	34.2	8	29	4.9	-0.4
ESG	FlexShares STOXX US ESG Impact Index Fund	34.1	32	5	4.4	-0.8
RAFE	PIMCO RAFI ESG U.S. ETF	34.0	30	7	6.6	+1.4
AFLG	First Trust Active Factor Large Cap ETF	33.9	55	-18	4.7	-0.6
GSLC	Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF	33.8	9	28	4.8	-0.5
ACIO	Aptus Collared Income Opportunity ETF	33.7	79	-42	3.8	-1.5
PBUS	Invesco PureBeta MSCI USA ETF	33.6	4	33	4.6	-0.7
SPUS	SP Funds S&P 500 Sharia Industry Exclusions ETF	33.4	49	-12	3.4	-1.9
BBUS	JP Morgan Betabuilders U.S. Equity ETF	33.3	2	35	4.6	-0.7
FNDX	Schwab Fundamental U.S. Large Co. Index ETF	33.3	25	12	5.7	+0.5
VV	Vanguard Large-Cap Index Fund	33.1	4	33	4.6	-0.7
SPXV	ProShares S&P 500 Ex-Health Care ETF	33.0	27	10	4.3	-1.0
SPTM	SPDR Portfolio Total Stock Market ETF	32.9	3	34	4.8	-0.5
ESGU	iShares MSCI USA ESG Optimized ETF	32.8	15	22	4.4	-0.9
MMTM	SPDR S&P 1500 Momentum Tilt ETF	32.8	12	25	4.0	-1.3
SCHX	Schwab U.S. Large-Cap ETF	32.7	3	34	4.5	-0.7
RESP	WisdomTree US ESG Fund of Benef Interest	32.5	28	9	5.0	-0.3
IWB	iShares Russell 1000 ETF	32.4	15	22	4.4	-0.8
SCHK	Schwab 1000 Index ETF	32.3	5	32	4.6	-0.7
STLC	iShares Factors US Blend Style ETF	32.2	25	12	4.8	-0.5
FVAL	Fidelity Value Factor ETF	32.0	29	8	6.8	+1.5
IYY	iShares Dow Jones U.S. ETF	32.0	20	17	4.4	-0.9
VOOG	Vanguard S&P 500 Growth ETF	31.9	10	27	3.9	-1.4
QARP	Xtrackers Russell 1000 US Quality at a Reasonable Price ETF	31.6	19	18	5.3	-0.0
VTHR	Vanguard Russell 3000 Index Fund	31.4	10	27	4.4	-0.9
DFAU	Dimensional US Core Equity Market ETF	31.3	12	25	4.7	-0.6
PRF	Invesco FTSE RAFI US 1000 ETF	31.2	39	-2	5.8	+0.5
USMC	Principal U.S. Mega-Cap Multi-Factor Index ETF	31.1	12	25	4.9	-0.4
FNDB	Schwab Fundamental U.S. Broad Market Index ETF	31.1	25	12	5.7	+0.4
PFM	Invesco Dividend Achievers ETF	30.9	53	-16	5.0	-0.3
JHML	John Hancock Multifactor Large Cap ETF	30.8	29	8	4.8	-0.5
QUAL	iShares MSCI Usa Quality Factor ETF	30.7	15	22	5.0	-0.3
FLRG	Fidelity U.S. Multifactor ETF	30.7	29	8	5.9	+0.6
HLAL	Wahed FTSE USA Shariah ETF	30.7	50	-13	3.8	-1.5
JVAL	JPMorgan U.S. Value Factor ETF	30.6	12	25	7.1	+1.8
IWV	iShares Russell 3000 ETF	30.5	20	17	4.3	-1.0
SCHB	Schwab U.S. Broad Market ETF	30.4	3	34	4.4	-0.8
CATH	Global X S&P 500 Catholic Values Custom ETF	30.3	29	8	4.5	-0.7
ITOT	iShares Core S&P Total U.S. Stock Market ETF	30.2	3	34	4.4	-0.9
VONE	Vanguard Russell 1000 ETF	30.2	8	29	4.5	-0.7
QUS	SPDR MSCI USA StrategicFactors ETF	30.2	15	22	5.2	-0.0
SPYG	SPDR Portfolio S&P 500 Growth ETF	29.9	4	33	3.7	-1.6
IVW	iShares S&P 500 Growth ETF	29.9	18	19	3.5	-1.8
JQUA	JPMorgan U.S. Quality Factor ETF	29.9	12	25	5.0	-0.3
HIPR	Direxion High Growth ETF	29.9	40	-3	3.8	-1.5
VTV	Vanguard Value Index Fund	29.8	4	33	6.5	+1.2
EQWL	Invesco Russell Top 200 Equal Weight ETF	29.8	25	12	5.6	+0.3
KRMA	Global X Conscious Companies ETF	29.7	43	-6	4.8	-0.5
IUSG	iShares Core S&P US Growth ETF	29.7	4	33	3.7	-1.6
MGV	Vanguard Mega Cap Value ETF	29.7	7	30	6.4	+1.2
VTI	Vanguard Total Stock Market Index Fund	29.7	3	34	4.4	-0.9
IUS	Invesco Strategic US ETF	29.7	19	18	5.4	+0.2
MFUS	PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF	29.2	30	7	5.0	-0.2
SCHV	Schwab U.S. Large-Cap Value ETF	29.1	4	33	6.0	+0.8
ROUS	Hartford Multifactor US Equity ETF	29.1	19	18	5.8	+0.6
SFY	SoFi Select 500 ETF	29.1	0	37	4.5	-0.8

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 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	19.4	%
Divided by: Fwd. P/BV	3.4	x
Less: Expense ratio	37	bp
Equals: ALTAR Score	5.3	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.48	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.