ETF Research Center

FlexShares Morningstar US Market Factor Tilt Index Fund is an exchange-traded fund incorporated in the USA. The Fund seeks to track the performance of the Morningstar US Market Factor Tilt Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Northern Trust Investments Inc
Website	www.flexshares.com
Inception date	Sep 22, 2011
Assets (mns)	$1,559
Currency	USD
Expense ratio	25 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	JPMorgan Chase Bank
Weighting	Proprietary
Index replication	Optimized
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	2017
Wgt avg mkt cap (mns)	$209,493
Large cap (>$10bn)	68.8%
Mid cap ($2-10bn)	22.2%
Small cap (<$2bn)	9.0%
Developed mkts	99.9%
Emerging mkts	0.1%

TOP TEN HOLDINGS
Total	15.2 %
MICROSOFT CORP	3.0 %
APPLE INC	2.9 %
AMAZON.COM INC	1.9 %
BERKSHIRE HATHAWAY INC-CL B	1.4 %
JPMORGAN CHASE & CO	1.3 %
FACEBOOK	1.1 %
ALPHABET INC. CLASS C	1.0 %
ALPHABET INC. CLASS A	0.9 %
INTEL CORP	0.9 %
UNITEDHEALTH GROUP INC	0.9 %

TOP COUNTRY EXPOSURE
	UNITED STATES	95.0 %
	IRELAND	1.5 %
	BRITAIN	1.0 %
	BERMUDA	0.6 %
	SWITZERLAND	0.4 %
	PUERTO RICO	0.1 %
	ARGENTINA	0.1 %
	CAYMAN ISLANDS	0.1 %
	CANADA	0.0 %
	SINGAPORE	0.0 %

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.
-1.8%	15.7%	10.1%	--	14.4%

Market Correlations
versus...	Beta	R-squared
S&P500	1.07	96%
MSCI EAFE	0.99	67%
MSCI Emg. Mkts.	0.65	50%

Technical Indicators
Recent close	$130.44
30d moving avg.	$128.14
Annualized volatility	13.3%
Short interest (ETF)	0.0%
Short interest (Underlying)	3.7%
Relative strength (RSI)	58

Liquidity measures
Avg. volume (thou.)	19
Turnover	0.2%
Bid/Ask (% of price)	0.05%
ADV underlying (mns)	$208,011

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Flexshares Morningstar US Market Factor Tilt ETF based on the alternatives' overlap in portfolio holdings with TILT. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

TILT

Expense:

25 bp

ALTAR Score™:

5.8%

ALTERNATIVE ETFs BASED ON OVERLAP WITH TILT
Ticker	Fund Name	Overlap¹ vs TILT (%)	Expense ratio (bp)	Savings vs TILT (bp)	ALTAR Score™ (%)	ALTAR vs TILT (%)
SCHB	Schwab U.S. Broad Market	78.5	3	22	5.4	-0.5
ITOT	iShares Core S&P Total US	78.4	3	22	5.3	-0.5
IWV	iShares Russell 3000	78.1	20	5	5.2	-0.6
VTI	Vanguard Total Market	77.8	3	22	5.3	-0.5
VTHR	Vanguard Russell 3000	77.6	15	10	5.2	-0.6
IYY	iShares DJ US Total Market	75.8	20	5	5.3	-0.5
SCHK	Schwab 1000 Index	74.7	5	20	5.5	-0.4
SPTM	SPDR Portfolio Total Stock Market	74.0	3	22	5.6	-0.2
IWB	iShares Russell 1000	73.7	15	10	5.4	-0.5
VONE	Vanguard Russell 1000	73.4	12	13	5.4	-0.4
SCHX	Schwab U.S. Large-Cap	71.7	3	22	5.5	-0.4
AVUS	Avantis U.S. Equity	70.5	15	10	5.9	+0.1
PBUS	Invesco PureBeta MSCI USA	69.5	4	21	5.6	-0.2
BBUS	JP Morgan Betabuilders U.S. Equity	69.4	2	23	5.5	-0.3
VV	Vanguard Large-Cap ETF	68.2	4	21	5.5	-0.4
JHML	John Hancock Multifactor Large Cap	67.1	34	-9	5.6	-0.2
PBP	Invesco S&P 500 Buy/Write	66.8	49	-24	5.2	-0.6
SPLG	SPDR Portfolio Large Cap	66.8	3	22	5.6	-0.2
SPY	S&P 500 SPDR	66.8	9	16	5.6	-0.3
IVV	iShares Core S&P 500	66.8	4	21	5.6	-0.2

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 Morningstar US Market Factor Tilt
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	12.6	%
Divided by: Fwd. P/BV	2.1	x
Less: Expense ratio	25	bp
Equals: ALTAR Score	5.8	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.52	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.