SKOR Profile
The FlexShares Credit-Scored US Corporate Bond Index Fund aims to offer investors exposure to a diverse array of intermediate maturity, U.S. dollar-denominated investment-grade corporate bonds. The fund tracks an index specifically designed to outperform the broader U.S. investment-grade corporate bond market by selecting bonds based on a proprietary credit scoring methodology. This approach seeks to enhance total returns compared to traditional investment-grade corporate bond benchmarks, such as the Northern Trust US Investment Grade Corporate Bond Index SM.
The underlying index includes corporate bonds with intermediate maturities, typically ranging from 1 to 10 years. These bonds are selected based on their creditworthiness, which is assessed using a credit scoring system that evaluates factors such as credit ratings, financial health of issuers, and other key metrics. By focusing on bonds with higher credit scores, the fund aims to mitigate default risk and improve the overall quality of its portfolio while potentially achieving higher returns compared to the broader market.
The FlexShares Credit-Scored US Corporate Bond Index Fund commits to investing at least 80% of its total assets in securities that are components of the index. This ensures that the fund's performance closely aligns with the index it tracks. The fund's strategy emphasizes intermediate maturity bonds, which typically offer a balance between risk and return, and are less sensitive to interest rate fluctuations compared to long-term bonds.
This fund is particularly suited for investors seeking to enhance their income through investment-grade corporate bonds while leveraging a credit scoring approach to potentially achieve superior returns. Its focus on intermediate maturity bonds and rigorous credit assessment process positions it as a strategic choice for those looking to optimize their fixed-income allocations with an emphasis on credit quality and performance.
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