QDEF Profile
The FlexShares Quality Dividend Defensive Index Fund is designed to track the performance of an index that selects companies demonstrating superior financial stability and strength compared to those in the Northern Trust 1250 Index. This underlying index is a float-adjusted, market-capitalization weighted benchmark of large- and mid-cap U.S. companies. By focusing on firms with strong financial health and consistent dividend payments, the fund aims to provide investors with stable returns and reduced risk relative to the broader market.
The index incorporates a rigorous selection process that emphasizes companies with robust balance sheets, high profitability, and reliable dividend payouts. These criteria help identify companies that are better positioned to withstand economic downturns and market volatility. The goal is to offer exposure to high-quality, financially sound companies that demonstrate resilience and stability, making it an appealing option for conservative investors seeking income and capital preservation.
To align with the index's objectives, the FlexShares Quality Dividend Defensive Index Fund allocates at least 80% of its total assets to the securities comprising the index. This allocation excludes any collateral held from securities lending activities. By maintaining this investment strategy, the fund seeks to closely mirror the performance of the index, which is designed to reflect the characteristics of financially strong and stable companies.
Overall, the FlexShares Quality Dividend Defensive Index Fund provides a strategic investment approach focused on quality and defensive characteristics. It offers investors exposure to a select group of financially robust companies with a track record of stability and dependable dividends, making it a suitable choice for those looking to minimize risk while seeking consistent returns in a fluctuating market environment.
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