ETF Research Center

The FlexShares US Quality Large Cap Index Fund ETF tracks an index of the highest quality large-caps, as defined by Northern Trust's proprietary scoring model.

FUND BASICS
Category	US Equities
Fund Sponsor	Northern Trust
Website	www.flexshares.com
Inception date	Sep 23, 2015
Assets (mns)	$92
Currency	USD
Expense ratio	32 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-End Investment Company
Custodian
Weighting	Proprietary
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	152
Wgt avg mkt cap (mns)	$474,361
Large cap (>$10bn)	98.8%
Mid cap ($2-10bn)	1.2%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	28.4 %
APPLE INC	8.1 %
MICROSOFT CORP	3.8 %
AMAZON.COM INC	3.0 %
JOHNSON & JOHNSON	2.4 %
FACEBOOK	2.2 %
VISA INC-CLASS A SHARES	2.0 %
ELI LILLY & CO	1.8 %
CITIGROUP INC	1.7 %
TEXAS INSTRUMENTS INC	1.7 %
PROCTER & GAMBLE CO/THE	1.7 %

TOP COUNTRY EXPOSURE
	UNITED STATES	97.1 %
	IRELAND	0.8 %
	ISRAEL	0.5 %

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.
13.6%	13.6%	11.2%	--	12.0%

Market Correlations
versus...	Beta	R-squared
S&P500	1.02	97%
MSCI EAFE	0.96	86%
MSCI Emg. Mkts.	0.76	69%

Technical Indicators
Recent close	$42.48
30d moving avg.	$41.15
Annualized volatility	19.4%
Short interest (ETF)	0.0%
Relative strength (RSI)	70

Liquidity measures
Avg. volume (thou.)	10
Turnover	0.5%
Bid/Ask (% of price)	0.13%
ADV underlying (mns)	$150,107

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 99 potential alternatives to the FlexShares US Quality Large Cap Index Fund ETF based on the alternatives' overlap in portfolio holdings with QLC. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

QLC

Expense:

32 bp

ALTAR Score™:

4.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH QLC
Ticker	Fund Name	Overlap¹ vs QLC (%)	Expense ratio (bp)	Savings vs QLC (bp)	ALTAR Score™ (%)	ALTAR vs QLC (%)
QDF	FlexShares Quality Dividend Index Fund	51.2	37	-5	5.5	+1.0
ESGV	Vanguard ESG U.S. Stock ETF	50.3	12	20	4.5	+0.0
IWL	iShares Russell Top 200 ETF	48.2	15	17	4.4	-0.0
MGC	Vanguard Mega Cap Index Fund	48.2	7	25	4.6	+0.1
GSLC	Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF	48.0	9	23	4.8	+0.4
PBP	Invesco S&P 500 BuyWrite ETF	47.8	49	-17	4.3	-0.1
BKLC	BNY Mellon US Large Cap Core Equity ETF	47.7	0	32	4.4	+0.0
DIVB	iShares U.S. Dividend & Buyback ETF	47.6	25	7	5.9	+1.5
XYLG	Global X S&P 500 Covered Call & Growth ETF	47.3	60	-28	4.4	-0.0
OEF	iShares S&P 100 ETF	47.2	20	12	4.2	-0.2
SPYX	SPDR S&P 500 Fossil Fuel Reserves Free ETF	47.0	20	12	4.8	+0.3
SPY	SPDR S&P 500 ETF Trust	46.8	9	23	4.7	+0.3
SPLG	SPDR Portfolio Large Cap ETF	46.8	3	29	4.7	+0.3
IVV	iShares Core S&P 500 ETF	46.8	3	29	4.7	+0.3
EPS	WisdomTree U.S. Earnings 500 Fund	46.7	8	24	5.9	+1.5
SPXE	ProShares S&P 500 Ex-Energy ETF	46.6	27	5	4.6	+0.2
VOO	VANGUARD S&P 500 ETF	46.2	3	29	4.8	+0.4
GSUS	Goldman Sachs MarketBeta U.S. Equity ETF	46.2	7	25	4.5	+0.1
PLC	Principal U.S. Large-Cap Multi-Factor Core Index ETF	46.2	15	17	5.8	+1.4
JCTR	JPMorgan Carbon Transition U.S. Equity ETF	45.8	15	17	4.6	+0.2
QDEF	FlexShares Quality Dividend Defensive Index Fund	45.7	37	-5	5.4	+1.0
QDYN	FlexShares Quality Dividend Dynamic Index Fund	45.7	37	-5	5.3	+0.9
PBUS	Invesco PureBeta MSCI USA ETF	45.6	4	28	4.6	+0.2
RECS	Columbia Research Enhanced Core ETF	45.5	15	17	5.1	+0.7
BBUS	JP Morgan Betabuilders U.S. Equity ETF	45.5	2	30	4.6	+0.2
XVV	iShares ESG Screened S&P 500 ETF	45.4	8	24	4.9	+0.4
VV	Vanguard Large-Cap Index Fund	45.4	4	28	4.6	+0.2
AFLG	First Trust Active Factor Large Cap ETF	45.1	55	-23	4.6	+0.2
SPXN	ProShares S&P 500 Ex-Financials ETF	44.9	27	5	4.3	-0.1
SPXV	ProShares S&P 500 Ex-Health Care ETF	44.7	27	5	4.3	-0.2
SCHX	Schwab U.S. Large-Cap ETF	44.7	3	29	4.5	+0.1
JUST	Goldman Sachs JUST U.S. Large Cap Equity ETF	44.7	20	12	4.6	+0.2
ESGU	iShares MSCI USA ESG Optimized ETF	44.5	15	17	4.4	-0.0
SNPE	Xtrackers S&P 500 ESG ETF	44.3	10	22	4.6	+0.1
EFIV	SPDR S&P 500 ESG ETF	44.3	10	22	4.6	+0.1
SPTM	SPDR Portfolio Total Stock Market ETF	44.3	3	29	4.8	+0.4
FQAL	Fidelity Quality Factor ETF	44.1	29	3	5.0	+0.6
IWB	iShares Russell 1000 ETF	44.0	15	17	4.4	+0.0
SCHK	Schwab 1000 Index ETF	43.8	5	27	4.6	+0.1
IYY	iShares Dow Jones U.S. ETF	43.6	20	12	4.4	-0.0
CATH	Global X S&P 500 Catholic Values Custom ETF	43.6	29	3	4.6	+0.1
IQSU	IQ Candriam ESG US Equity ETF	43.4	9	23	4.5	+0.1
HIPR	Direxion High Growth ETF	43.2	40	-8	3.8	-0.6
SPHQ	Invesco S&P 500 Quality ETF	43.1	15	17	4.4	-0.1
VTHR	Vanguard Russell 3000 Index Fund	43.1	10	22	4.4	-0.0
RESP	WisdomTree US ESG Fund of Benef Interest	42.8	28	4	5.0	+0.6
QUS	SPDR MSCI USA StrategicFactors ETF	42.7	15	17	5.3	+0.8
XOUT	GraniteShares XOUT U.S. Large Cap ETF	42.6	60	-28	3.6	-0.9
SFY	SoFi Select 500 ETF	42.5	0	32	4.6	+0.1
DFAU	Dimensional US Core Equity Market ETF	42.1	12	20	4.7	+0.2
JQUA	JPMorgan U.S. Quality Factor ETF	42.0	12	20	5.0	+0.6
IWV	iShares Russell 3000 ETF	41.9	20	12	4.3	-0.2
SCHB	Schwab U.S. Broad Market ETF	41.7	3	29	4.4	+0.0
FVAL	Fidelity Value Factor ETF	41.5	29	3	6.8	+2.4
ITOT	iShares Core S&P Total U.S. Stock Market ETF	41.5	3	29	4.4	-0.0
MMTM	SPDR S&P 1500 Momentum Tilt ETF	41.4	12	20	4.0	-0.4
VOOG	Vanguard S&P 500 Growth ETF	41.4	10	22	3.9	-0.6
VONE	Vanguard Russell 1000 ETF	41.4	8	24	4.5	+0.1
SPUS	SP Funds S&P 500 Sharia Industry Exclusions ETF	41.1	49	-17	3.4	-1.0
QARP	Xtrackers Russell 1000 US Quality at a Reasonable Price ETF	41.0	19	13	5.3	+0.9
VTI	Vanguard Total Stock Market Index Fund	40.6	3	29	4.4	-0.0
NACP	Impact Shares NAACP Minority Empowerment ETF	40.5	49	-17	4.7	+0.3
XLG	Invesco S&P 500 Top 50 ETF	40.4	20	12	4.0	-0.4
SPYG	SPDR Portfolio S&P 500 Growth ETF	40.4	4	28	3.6	-0.8
IVW	iShares S&P 500 Growth ETF	40.4	18	14	3.5	-0.9
KRMA	Global X Conscious Companies ETF	40.4	43	-11	4.9	+0.5
IWF	iShares Russell 1000 Growth ETF	40.2	19	13	3.4	-1.0
QYLD	Global X NASDAQ 100 Covered Call ETF	40.0	60	-28	3.1	-1.3
JHML	John Hancock Multifactor Large Cap ETF	40.0	29	3	4.8	+0.4
ESG	FlexShares STOXX US ESG Impact Index Fund	40.0	32	0	4.4	+0.0
SYE	SPDR MFS Systematic Core Equity ETF	39.8	60	-28	4.7	+0.3
NUSI	Nationwide Risk-Managed Income ETF	39.8	68	-36	3.1	-1.3
IUSG	iShares Core S&P US Growth ETF	39.7	4	28	3.6	-0.8
QYLG	Global X Nasdaq 100 Covered Call & Growth ETF	39.7	60	-28	3.1	-1.3
QUAL	iShares MSCI Usa Quality Factor ETF	39.7	15	17	5.0	+0.6
VONG	Vanguard Russell 1000 Growth Index Fund	39.6	8	24	3.5	-0.9
STLC	iShares Factors US Blend Style ETF	39.5	25	7	4.8	+0.4
QQQ	Invesco QQQ Trust	39.5	20	12	3.4	-1.0
QQQM	Invesco NASDAQ 100 ETF	39.5	15	17	3.5	-0.9
IWY	iShares Russell Top 200 Growth ETF	39.4	20	12	3.5	-0.9
EQWL	Invesco Russell Top 200 Equal Weight ETF	38.9	25	7	5.6	+1.2
FDRR	Fidelity Dividend ETF for Rising Rates	38.1	29	3	5.9	+1.5
DLN	WisdomTree U.S. LargeCap Dividend Fund	38.1	28	4	6.1	+1.7
WOMN	Impact Shares YWCA Women's Empowerment ETF	37.7	75	-43	3.5	-0.9
FLRG	Fidelity U.S. Multifactor ETF	37.7	29	3	5.8	+1.4
SYG	SPDR MFS Systematic Growth Equity ETF	37.2	60	-28	3.4	-1.0
FNDX	Schwab Fundamental U.S. Large Co. Index ETF	37.2	25	7	5.7	+1.3
SPQQ	Siren Large Cap Blend Index ETF	37.0	20	12	4.2	-0.2
AVUS	Avantis U.S. Equity ETF	36.6	15	17	4.8	+0.4
FLQL	Franklin LibertyQ U.S. Equity ETF	36.3	15	17	5.9	+1.5
IGM	iShares Expanded Tech Sector ETF	36.2	46	-14	3.3	-1.2
QLV	FlexShares US Quality Low Volatility Index Fund	36.2	22	10	4.3	-0.1
IUS	Invesco Strategic US ETF	36.0	19	13	5.5	+1.1
SUSA	iShares MSCI USA ESG Select ETF	36.0	25	7	4.2	-0.2
VUG	Vanguard Growth Index Fund	36.0	4	28	3.5	-0.9
PRF	Invesco FTSE RAFI US 1000 ETF	35.9	39	-7	5.8	+1.4
DTD	WisdomTree U.S.Total Dividend Fund	35.9	28	4	6.2	+1.8
KOKU	Xtrackers MSCI Kokusai Equity ETF	35.6	9	23	5.0	+0.6
TOK	iShares MSCI Kokusai ETF	35.6	25	7	4.9	+0.5

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 US Quality Large Cap 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	15.3	%
Divided by: Fwd. P/BV	3.2	x
Less: Expense ratio	32	bp
Equals: ALTAR Score	4.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.47	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.