(TLTD) FlexShares Morningstar - Ratings and Ratios

The FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund (TLTD) tracks a float-adjusted, market-cap weighted index of large-cap stocks in developed markets outside the United States, but it tilts toward the size and value factors relative to its parent index. The fund is required to hold at least 80 % of its assets in the underlying securities (including ADRs and GDRs) that compose the index.

Key quantitative attributes (as of Q3 2024, based on publicly available fund filings):
• Expense ratio ≈ 0.35 % (lower than the average 0.45 % for foreign large-value ETFs).
• Total assets under management ≈ $1.2 billion, indicating modest but growing investor interest.
• Top sector exposures are European financials (≈ 18 %) and consumer discretionary (≈ 15 %), both historically aligned with value-tilt strategies.

Economic drivers that are likely to influence TLTD’s performance include:
• Eurozone monetary policy: tighter rates tend to compress equity valuations, especially for value-oriented financials.
• Global trade dynamics: a slowdown in trans-Atlantic trade can weigh on European exporters, a sizable component of the index.
• Commodity price cycles: higher commodity prices can boost the earnings of resource-heavy countries (e.g., Canada, Australia) that are part of the index.

Assumption: The factor tilt remains consistent with Morningstar’s methodology; any deviation in the underlying index construction could alter the fund’s exposure profile. Uncertainty: Future changes in currency hedging practices or shifts in the fund’s minimum 80 % holdings rule could affect tracking error.

If you want a data-rich, side-by-side comparison of TLTD’s factor exposures versus peers, ValueRay’s analytics dashboard offers a quick way to dig deeper.