QLVE Profile
The FlexShares Emerging Markets Quality Low Volatility Index Fund seeks to mirror the performance of the Northern Trust Emerging Markets Quality Low Volatility Index. This index is designed to capture the performance of companies from emerging market countries that exhibit lower overall absolute volatility relative to a broad array of securities within the emerging markets. The emphasis is on selecting firms with lower price fluctuations to provide more stable returns amidst the typically higher volatility of emerging markets.
Under typical market conditions, the fund commits at least 80% of its total assets to the securities included in the Northern Trust Emerging Markets Quality Low Volatility Index. This investment approach incorporates not only direct investments in the component stocks of the index but also American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) that are linked to these securities. The index aims to provide exposure to a diversified range of emerging market companies with a focus on those demonstrating lower volatility and high quality.
Managed by FlexShares, the fund targets equities in emerging markets with a focus on minimizing volatility while ensuring high quality. By prioritizing companies that show reduced volatility, the fund aims to offer a more stable investment experience compared to the broader emerging markets index. The selection criteria for the underlying index emphasize financial stability and lower price variability, seeking to mitigate some of the inherent risks associated with emerging market investments.
The FlexShares Emerging Markets Quality Low Volatility Index Fund is designed for investors who want to gain exposure to emerging markets while aiming to reduce the impact of high volatility. By focusing on low-volatility and high-quality companies in these markets, the fund provides a strategic approach to achieving more consistent performance. The use of both direct stock investments and depositary receipts allows for comprehensive access to emerging market equities, aligning with investors’ goals for stability and quality in their international portfolio.
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