QDF Profile
The FlexShares Quality Dividend Index Fund is engineered to track an index that identifies companies with superior financial strength and stability compared to those in the Northern Trust 1250 Index. The underlying index is a float-adjusted, market-capitalization weighted benchmark representing large- and mid-cap U.S. companies. It targets firms exhibiting robust financial health, strong balance sheets, and a consistent track record of dividend payments. The fund's strategy is designed to provide investors with exposure to high-quality companies that demonstrate stability and resilience in various market conditions.
The index employs a meticulous selection process to ensure that only companies with exceptional financial metrics are included. These criteria encompass financial strength, profitability, and dividend reliability, making it a valuable tool for investors seeking lower-risk opportunities. By focusing on these attributes, the fund aims to deliver more stable returns and reduced volatility compared to broader market indices, making it a preferred choice for conservative investors and those seeking dependable income.
Under normal market conditions, the FlexShares Quality Dividend Index Fund commits at least 80% of its total assets to the securities that compose the underlying index. This allocation, excluding any collateral from securities lending, ensures that the fund's performance closely aligns with the index. By adhering to this investment approach, the fund seeks to replicate the index's characteristics, providing investors with a portfolio of high-quality companies known for their financial strength and stability.
In summary, the FlexShares Quality Dividend Index Fund offers a focused investment strategy that emphasizes financial strength and dividend reliability. With its rigorous index-based approach, the fund is designed to attract investors looking for stability and income through a selection of financially sound companies. By maintaining a substantial investment in the index securities, the fund provides an efficient means for investors to access a high-quality, dividend-oriented portfolio while mitigating exposure to market volatility.
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