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FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund is an exchanged-traded fund incorporated in the USA. The Fund seeks to track the performance of the Morningstar Developed Markets ex-US Factor Tilt Index.

FUND BASICS
Category	International Equities
Fund Sponsor	Northern Trust Investments Inc
Website	www.flexshares.com
Inception date	Sep 28, 2012
Assets (mns)	$973
Currency	USD
Expense ratio	39 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	2720
Wgt avg mkt cap (mns)	$37,218
Large cap (>$10bn)	53.5%
Mid cap ($2-10bn)	18.1%
Small cap (<$2bn)	28.2%
Developed mkts	99.8%
Emerging mkts	0.2%

TOP TEN HOLDINGS
Total	7.0 %
TOYOTA MOTOR CORP	1.0 %
NESTLE SA-REG	0.9 %
HSBC HOLDINGS PLC	0.8 %
BP PLC	0.7 %
TOTAL SA	0.7 %
NOVARTIS AG-REG	0.7 %
ROYAL DUTCH SHELL PLC-A SHS	0.6 %
ROCHE HOLDING AG-GENUSSCHEIN	0.6 %
ROYAL DUTCH SHELL PLC-B SHS	0.6 %
ALLIANZ SE-REG	0.5 %

TOP COUNTRY EXPOSURE
	JAPAN	27.2 %
	BRITAIN	14.2 %
	CANADA	8.3 %
	FRANCE	6.7 %
	GERMANY	6.4 %
	SWITZERLAND	5.3 %
	AUSTRALIA	4.9 %
	NETHERLANDS	3.0 %
	HONG KONG	2.7 %
	ITALY	2.5 %

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.
15.2%	8.2%	3.9%	--	6.2%

Market Correlations
versus...	Beta	R-squared
S&P500	0.80	67%
MSCI EAFE	1.04	96%
MSCI Emg. Mkts.	0.73	78%

Technical Indicators
Recent close	$63.15
30d moving avg.	$62.63
Annualized volatility	11.8%
Short interest (ETF)	0.0%
Relative strength (RSI)	78

Liquidity measures
Avg. volume (thou.)	21
Turnover	0.1%
Bid/Ask (% of price)	0.13%
ADV underlying (mns)	$58,707

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the FlexShares Mngstr Developed Mkts ex-US Factor Tilt ETF based on the alternatives' overlap in portfolio holdings with TLTD. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

TLTD

Expense:

39 bp

ALTAR Score™:

8.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH TLTD
Ticker	Fund Name	Overlap¹ vs TLTD (%)	Expense ratio (bp)	Savings vs TLTD (bp)	ALTAR Score™ (%)	ALTAR vs TLTD (%)
VEA	Vanguard Europe Pacific	63.9	5	34	7.4	-1.1
IDEV	iShares Core MSCI Int'l Developed Markets	63.3	5	34	7.2	-1.3
IEFA	iShares Core MSCI EAFE	60.5	7	32	7.1	-1.3
SCHF	Schwab International Equity	59.8	6	33	7.5	-1.0
SPDW	SPDR Portfolio World ex-US	59.8	4	35	7.2	-1.2
IXUS	iShares Core International Stock	57.9	9	30	7.5	-0.9
VXUS	Vanguard Total International Stock	57.0	9	30	7.6	-0.8
PBDM	Invesco PureBeta FTSE Developed ex-North America	55.8	7	32	7.6	-0.9
VEU	Vanguard FTSE All-World ex-US	55.5	9	30	7.6	-0.8
PXF	Invesco FTSE-RAFI Developed ex-US	53.8	45	-6	8.2	-0.2
ACWX	iShares MSCI ACWI ex-US	53.5	31	8	7.5	-1.0
DBAW	Xtrackers MSCI All World ex-US Hedged	53.5	40	-1	7.3	-1.1
EFA	iShares MSCI EAFE	52.9	31	8	7.0	-1.4
DBEF	Xtrackers MSCI EAFE Hedged	52.8	35	4	6.9	-1.6
FNDF	Schwab Fundamental Intl Large Cap	52.6	25	14	7.6	-0.9
HFXI	IQ 50 Percent Hedged FTSE Int'l	50.8	20	19	7.3	-1.2
EFAX	SPDR MSCI EAFE Fossil Fuel Free	48.1	20	19	7.2	-1.3
DWM	WisdomTree DEFA Fund	47.8	48	-9	7.7	-0.7
JHMD	John Hancock Multifactor Developed International	47.4	45	-6	7.3	-1.2
GSIE	Goldman Sachs ActiveBeta Int'l Equity	46.9	25	14	6.7	-1.7

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

	2014	2015	2016	2017	2018	2019E	2020E
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

	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 Mngstr Developed Mkts ex-US Factor Tilt
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	9.5	%
Divided by: Fwd. P/BV	1.1	x
Less: Expense ratio	39	bp
Equals: ALTAR Score	8.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.60	CATEGORY AVERAGE	1.63

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.