ETF Research Center

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

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	Northern Trust Investments Inc
Website	www.flexshares.com
Inception date	Sep 28, 2012
Assets (mns)	$413
Currency	USD
Expense ratio	59 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	2138
Wgt avg mkt cap (mns)	$65,498
Large cap (>$10bn)	47.0%
Mid cap ($2-10bn)	25.4%
Small cap (<$2bn)	26.4%
Developed mkts	10.6%
Emerging mkts	88.0%

TOP TEN HOLDINGS
Total	15.6 %
SAMSUNG ELECTRONICS CO LTD	4.1 %
ALIBABA GROUP HOLDING LTD. SPONSOR	2.6 %
TENCENT HOLDINGS LTD	2.1 %
TAIWAN SEMICONDUCTOR MANUFAC	1.5 %
CHINA CONSTRUCTION BANK-H	1.3 %
PING AN INSURANCE GROUP CO-H	1.0 %
IND & COMM BK OF CHINA - H	0.9 %
GAZPROM OAO	0.8 %
CHINA MOBILE LIMITED	0.7 %
LUKOIL OAO	0.7 %

TOP COUNTRY EXPOSURE
	CHINA	25.6 %
	SOUTH KOREA	13.7 %
	TAIWAN	10.5 %
	HONG KONG	6.3 %
	INDIA	6.2 %
	BRAZIL	6.2 %
	RUSSIA	4.7 %
	SOUTH AFRICA	4.4 %
	MEXICO	2.1 %
	THAILAND	1.9 %

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.
14.5%	14.5%	4.4%	--	3.0%

Market Correlations
versus...	Beta	R-squared
S&P500	0.86	49%
MSCI EAFE	1.13	71%
MSCI Emg. Mkts.	1.00	96%

Technical Indicators
Recent close	$54.31
30d moving avg.	$52.47
Annualized volatility	14.8%
Short interest (ETF)	0.0%
Relative strength (RSI)	71

Liquidity measures
Avg. volume (thou.)	20
Turnover	0.3%
Bid/Ask (% of price)	0.16%
ADV underlying (mns)	$27,111

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

TLTE

Expense:

59 bp

ALTAR Score™:

12.0%

ALTERNATIVE ETFs BASED ON OVERLAP WITH TLTE
Ticker	Fund Name	Overlap¹ vs TLTE (%)	Expense ratio (bp)	Savings vs TLTE (bp)	ALTAR Score™ (%)	ALTAR vs TLTE (%)
IEMG	iShares Core MSCI Emerging Markets	60.7	14	45	8.0	-4.0
EEM	iShares MSCI Emerging Markets	58.7	67	-8	7.7	-4.3
DBEM	Xtrackers MSCI Emg. Mkts. Hedged	57.2	65	-6	7.7	-4.3
VWO	Vanguard Emerging Markets	50.4	12	47	7.9	-4.1
JHEM	John Hancock Multifactor Emerging Markets	48.0	55	4	8.1	-3.9
SCHE	Schwab Emerging Markets Equity	47.6	13	46	7.9	-4.1
FLAX	Franklin FTSE Asia Ex Japan	44.9	19	40	7.8	-4.2
PBEE	Invesco PureBeta FTSE Emerging Markets	44.8	14	45	8.4	-3.6
GEM	Goldman Sachs ActiveBeta Emg Mkts Equity	44.8	45	14	8.3	-3.6
AAXJ	iShares MSCI Asia ex-Japan	44.3	67	-8	7.4	-4.6
EEMA	iShares MSCI Emg Mkts Asia	43.9	50	9	7.9	-4.0
EEMX	SPDR MSCI Emerging Markets Fossil Fuel Free	41.8	30	29	7.9	-4.1
REEM	Invesco Emerging Markets Revenue ETF	40.4	46	13	11.0	-1.0
SPEM	SPDR Portfolio Emerging Markets	38.6	11	48	7.8	-4.2
DVEM	WisdomTree Emerging Markets Dividend	37.8	32	27	10.4	-1.6
QEMM	SPDR MSCI Emerging Markets Quality Mix	37.7	30	29	8.6	-3.4
AVEM	Avantis Emerging Markets Equity	37.3	33	26	7.7	-4.3
PXH	Invesco FTSE-RAFI Emerging Markets	36.2	50	9	11.4	-0.6
ESGE	iShares MSCI EM ESG Optimized	35.0	25	34	8.5	-3.5
XSOE	WisdomTree Emg Mkt ex-SOE	34.9	32	27	6.3	-5.7

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 Emerging Markets Factor Tilt
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	11.3	%
Divided by: Fwd. P/BV	0.9	x
Less: Expense ratio	59	bp
Equals: ALTAR Score	12.0	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.44	CATEGORY AVERAGE	1.48

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.