FlexShares US Quality Large Cap
ALTAR
Score™
6.6% info Recommen-
dation
OVERWEIGHT
2019E    2020E
P/E
ratio
15.5x P/Sales
ratio
1.7x
P/BV
ratio
2.7x Div.
yield
2.0%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
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 24, 2015
Assets (mns) $52
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 141
Wgt avg mkt cap (mns) $217,795
Large cap (>$10bn) 95.6%
Mid cap ($2-10bn) 4.4%
Small cap (<$2bn) 0.0%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
APPLE INC 5.3 %
MICROSOFT CORP 2.7 %
JOHNSON & JOHNSON 2.4 %
HOME DEPOT INC 2.2 %
CHEVRON CORP 2.1 %
CITIGROUP INC 2.1 %
CISCO SYSTEMS INC 1.9 %
AMGEN INC 1.8 %
BROADCOM INC. 1.8 %
ORACLE CORP 1.7 %
Total 24.0 %

TOP COUNTRY EXPOSURE
UNITED STATES 92.8 %
IRELAND 3.8 %
BRITAIN 1.2 %
NETHERLANDS 0.3 %
ISRAEL 0.2 %






HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru October 31)
Year-to-date 1 year 5 years 10 years Since Incep.
16.9% 5.1% -- -- 10.4%

Market Correlations
versus... Beta R-squared
S&P500 1.03 92%
MSCI EAFE 0.87 56%
MSCI Emg. Mkts. 0.58 41%

Technical Indicators
Recent close $35.37
30d moving avg. $34.36
Annualized volatility 13.0%
Short interest (ETF) 0.0%
Relative strength (RSI) 65

Liquidity measures
Avg. volume (thou.) 9
Turnover 0.6%
Bid/Ask (% of price) 0.11%
ADV underlying (mns) $61,410

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the FlexShares US Quality Large Cap 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™: 6.6%


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 44.2 37 -5 6.9 +0.4
DIVB iShares U.S. Dividend & Buyback 44.0 25 7 6.7 +0.1
QDYN FlexShares Quality Dividend Dynamic 42.0 37 -5 6.7 +0.2
FVAL Fidelity Value Factor 40.7 29 3 8.2 +1.6
QARP Xtrackers Russell 1000 US QARP 40.6 19 13 6.5 -0.1
GSLC Goldman Sachs ActiveBeta U.S. Large Cap Equity 40.0 9 23 6.4 -0.1
IWL iShares Russell Top 200 39.7 15 17 5.7 -0.8
QUS SPDR MSCI USA Quality Mix 39.4 15 17 6.0 -0.5
MGC Vanguard Mega Cap 300 ETF 38.9 7 25 5.9 -0.7
OEF iShares S&P 100 38.9 20 12 5.5 -1.0
JQUA JPMorgan U.S. Quality Factor 38.9 12 20 5.9 -0.7
EPS WisdomTree Earnings 500 38.8 8 24 7.0 +0.4
PBP Invesco S&P 500 Buy/Write 38.7 49 -17 5.6 -1.0
JUST Goldman Sachs JUST U.S. Large Cap Equity 38.5 20 12 5.7 -0.9
HSPX Global X S&P 500 Covered Call 38.0 65 -33 5.4 -1.1
SNPE Xtrackers S&P 500 ESG 37.9 11 21 5.8 -0.8
ESGU iShares MSCI USA ESG Optimized 37.9 15 17 5.6 -0.9
PLC Principal U.S. Large-Cap Multi-Factor Core Index 37.8 15 17 5.5 -1.1
SPY S&P 500 SPDR 37.8 9 23 5.9 -0.6
IVV iShares Core S&P 500 37.7 4 28 6.0 -0.6

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%.

Content on this tab for subscribers only**

RESULTS & ESTIMATES

  2014 2015 2016 2017 2018 2019E 2020E
Sales per share ** ** ** ** ** ** **
Earnings per share ** ** ** ** ** ** **
Dividends per share info ** ** ** ** ** ** **
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

Content on this tab for subscribers only

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 US Quality Large Cap
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 16.7 %
Divided by: Fwd. P/BV 2.4 x
Less: Expense ratio 32 bp
Equals: ALTAR Score 6.6 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.56 CATEGORY
AVERAGE
1.55
 
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.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.