GQRE Profile
The FlexShares Global Quality Real Estate Index Fund is engineered to track the performance of a specialized index that emphasizes quality, value, and momentum within the global real estate sector. This index is constructed to capture the performance of companies demonstrating stronger attributes in these factors compared to the broader Northern Trust Global Real Estate Index. By focusing on high-quality real estate companies with robust value metrics and positive momentum, the fund aims to provide a targeted investment approach within the real estate market.
The fund commits at least 80% of its total assets to investing in the securities that constitute the index. This includes direct investments in common stocks and other equity securities of real estate companies that meet the index's selection criteria. Additionally, the fund may invest in American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) that are based on the securities included in the index. This broad exposure allows investors to gain access to a diverse range of real estate companies with global reach.
The index’s design incorporates factors such as quality, value, and momentum to identify and weight companies that are expected to exhibit superior performance relative to their peers. Quality factors typically include financial stability and profitability, while value factors focus on valuation metrics such as price-to-earnings ratios. Momentum factors consider recent performance trends. By integrating these elements, the fund seeks to enhance potential returns and manage risk more effectively than a standard global real estate index.
Investors should recognize that while the FlexShares Global Quality Real Estate Index Fund aims to provide exposure to high-quality real estate investments, it also carries inherent risks associated with the real estate sector. These include market volatility, economic fluctuations, and specific sector risks. The fund’s focus on quality and momentum may also lead to variability in performance relative to other real estate investment strategies. Overall, the ETF is designed for investors looking to capitalize on global real estate opportunities with a strategic emphasis on quality and value.
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