FlexShares US Quality Large Cap Index Fund
ALTAR
Score™
6.0% info Recommen-
dation
NEUTRAL
2020E    2021E
P/E
ratio
16.4x P/Sales
ratio
1.9x
P/BV
ratio
2.8x Div.
yield
1.9%


  • 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 143
Wgt avg mkt cap (mns) $277,407
Large cap (>$10bn) 97.3%
Mid cap ($2-10bn) 2.7%
Small cap (<$2bn) 0.0%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
APPLE INC 6.2 %
MICROSOFT CORP 3.1 %
VISA INC-CLASS A SHARES 2.6 %
JOHNSON & JOHNSON 2.6 %
HOME DEPOT INC 2.1 %
CITIGROUP INC 1.8 %
CHEVRON CORP 1.8 %
CISCO SYSTEMS INC 1.7 %
AMGEN INC 1.6 %
AMAZON.COM INC 1.6 %
Total 25.2 %

TOP COUNTRY EXPOSURE
UNITED STATES 91.9 %
IRELAND 3.8 %
BRITAIN 1.8 %
ISRAEL 0.5 %
LUXEMBOURG 0.1 %






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.
-0.8% 13.8% -- -- 11.2%

Market Correlations
versus... Beta R-squared
S&P500 1.02 93%
MSCI EAFE 0.95 67%
MSCI Emg. Mkts. 0.63 51%

Technical Indicators
Recent close $38.06
30d moving avg. $37.44
Annualized volatility 12.8%
Short interest (ETF) 0.0%
Relative strength (RSI) 60

Liquidity measures
Avg. volume (thou.) 5
Turnover 0.4%
Bid/Ask (% of price) 0.08%
ADV underlying (mns) $71,150

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 20 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™: 6.0%


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
(%)
DIVB iShares U.S. Dividend & Buyback 46.4 25 7 6.6 +0.6
RECS Columbia Research Enhanced Core 44.7 15 17 5.9 -0.1
OQAL Invesco Russell 1000 Quality Factor ETF 43.7 19 13 6.0 0.0
OVOL Invesco Russell 1000 Low Volatility Factor ETF 43.4 19 13 6.6 +0.6
IWL iShares Russell Top 200 42.2 15 17 5.3 -0.7
QARP Xtrackers Russell 1000 US QARP 42.1 19 13 6.3 +0.3
FVAL Fidelity Value Factor 41.8 29 3 7.7 +1.7
EPS WisdomTree Earnings 500 41.6 8 24 6.7 +0.7
QUS SPDR MSCI USA Quality Mix 41.3 15 17 5.7 -0.3
QDF FlexShares Quality Dividend 41.3 37 -5 7.2 +1.2
OEF iShares S&P 100 41.2 20 12 5.2 -0.8
MGC Vanguard Mega Cap 300 ETF 41.0 7 25 5.5 -0.5
GSLC Goldman Sachs ActiveBeta U.S. Large Cap Equity 40.8 9 23 5.7 -0.3
JQUA JPMorgan U.S. Quality Factor 40.6 12 20 5.6 -0.4
OMOM Invesco Russell 1000 Momentum Factor ETF 40.4 19 13 5.8 -0.2
QDYN FlexShares Quality Dividend Dynamic 40.1 37 -5 7.0 +1.0
PBP Invesco S&P 500 Buy/Write 40.0 49 -17 5.2 -0.8
HSPX Global X S&P 500 Covered Call 39.6 65 -33 5.1 -0.9
JUST Goldman Sachs JUST U.S. Large Cap Equity 39.6 20 12 5.2 -0.8
SPY S&P 500 SPDR 39.6 9 23 5.6 -0.4

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 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
  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 17.2 %
Divided by: Fwd. P/BV 2.7 x
Less: Expense ratio 32 bp
Equals: ALTAR Score 6.0 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.54 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.
 

 

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.