FEUS Profile
The FlexShares ESG & Climate US Large Cap Core Index Fund is an exchange-traded fund (ETF) that seeks to provide investors with exposure to U.S. large-capitalization companies that demonstrate strong environmental, social, and governance (ESG) characteristics. The fund’s underlying index is specifically designed to reflect the performance of a selection of companies that meet stringent ESG criteria while offering broad-market exposure to publicly traded large-cap equity securities in the United States. By focusing on ESG factors, the fund aims to promote responsible investing and support companies that are leaders in sustainability and ethical practices.
Under normal circumstances, the FlexShares ESG & Climate US Large Cap Core Index Fund invests at least 80% of its total assets in the securities that comprise its underlying index. This approach ensures that the fund closely tracks the performance of the index, providing investors with a diversified portfolio of large-cap companies that are not only financially robust but also committed to addressing key ESG issues. The index selection process incorporates a range of criteria to identify companies that are making meaningful progress in areas such as carbon footprint reduction, corporate governance, labor practices, and community impact, making the fund an attractive option for investors who prioritize sustainability.
As a non-diversified fund, the FlexShares ESG & Climate US Large Cap Core Index Fund is more concentrated in its holdings compared to diversified funds. This concentration allows the fund to focus on companies that are leading the charge in ESG performance, but it also means that the fund's returns may be more volatile, as they are tied more closely to the performance of its selected companies. Despite this, the fund's emphasis on large-cap companies, which are generally more stable and well-established, helps to mitigate some of the risks associated with a non-diversified investment strategy.
Managed by FlexShares, a brand of Northern Trust Asset Management, the FlexShares ESG & Climate US Large Cap Core Index Fund is part of a broader suite of investment products designed to integrate ESG principles into core portfolio holdings. The fund is ideal for investors who are looking to align their investment choices with their values, particularly those who are focused on climate change and sustainable business practices. By investing in this ETF, investors gain access to a carefully curated selection of U.S. large-cap companies that are not only financially sound but also leaders in ESG performance, supporting a more sustainable and responsible future while seeking competitive financial returns.
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