QLV Profile
The FlexShares US Quality Low Volatility Index Fund seeks to provide investment results that correspond to the performance of an index designed to measure the performance of U.S. companies with lower overall absolute volatility. The underlying index, known as the Northern Trust Quality Low Volatility Index, is constructed to capture large- and mid-cap companies exhibiting lower volatility characteristics compared to the broader Northern Trust 1250 Index, which is a float-adjusted market capitalization-weighted index of U.S. large- and mid-cap stocks.
Under normal market conditions, the fund allocates at least 80% of its total assets to the securities that comprise the Northern Trust Quality Low Volatility Index. This index includes companies selected based on their lower volatility compared to their peers within the Northern Trust 1250 Index, which encompasses a broad spectrum of U.S. equities. The goal is to reduce the overall volatility of the fund's portfolio while maintaining exposure to high-quality, large- and mid-cap U.S. stocks.
Managed by FlexShares Exchange Traded Funds, this fund targets a specific segment of the equity market, focusing on stability and quality. The selection criteria for the underlying index emphasize companies with lower price fluctuations and higher quality metrics, aiming to provide a smoother investment experience with potentially reduced risk. By concentrating on lower volatility stocks, the fund aims to offer investors a less turbulent investment option within the U.S. equity market.
The FlexShares US Quality Low Volatility Index Fund is suitable for investors seeking to minimize risk while still participating in the growth potential of large- and mid-cap U.S. equities. The fund’s focus on low volatility and high-quality companies is designed to appeal to risk-conscious investors looking for stability and consistent performance. The underlying index’s methodology emphasizes long-term performance and risk management, making this fund a strategic choice for investors aiming to balance growth with reduced volatility.
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