CHICAGO--(BUSINESS WIRE)--FlexShares® Exchange Traded Funds, sponsored and managed by Northern Trust, today introduced the FlexShares STOXX® US ESG Impact Index Fund (NASDAQ: ESG) and FlexShares STOXX® Global ESG Impact Index Fund (NASDAQ: ESGG). These funds use the latest data science techniques to combine key performance indicators (KPIs) in each of the environmental, social and governance buckets that are most influential in improving risk-adjusted returns.
FlexShares® engaged STOXX, a global index provider, to measure the impact of ESG-related KPIs that are most influential in determining risk and returns across a global universe of stocks. The new funds integrate material, ESG-related KPIs into a targeted methodology that provides investors with an efficient, scalable option for sustainable investing.
“Investors are increasingly seeing ESG exposure as a core element of their portfolios that allows them to invest the way they live – that is, to invest in sustainable companies – while also focusing on reducing portfolio risk and enhancing long-term growth,” said Shundrawn Thomas, head of Northern Trust’s Funds and Managed Accounts Group. “The launches of ESG and ESGG allow investors to incorporate sustainable investing values into their investment strategy as a core portfolio element.”
The new funds are:
FlexShares® STOXX® US ESG Impact Index Fund (ESG)
FlexShares® STOXX® US ESG Impact Index Fund provides domestic exposure to U.S. stocks and integrates ESG-related KPIs into its investment process, seeking to improve absolute total return relative to legacy non-ESG benchmarks and improve risk adjusted return by reducing average stock-specific risk.
FlexShares® STOXX® Global ESG Impact Index Fund (ESGG)
FlexShares® STOXX® Global ESG Impact Index Fund provides global exposure to international stocks and integrates ESG-related KPIs into its investment process, seeking to improve absolute total return relative to legacy non-ESG benchmarks and improve risk adjusted return by reducing average stock-specific risk.
"The STOXX ESG Impact Indices provide a broad market exposure to the companies that score superior with respect to a carefully selected set of environmental, social, and governance KPIs which are found to positively impact shareholder equity," said Matteo Andreetto, chief executive officer, STOXX Limited. "Our methodology directly links sustainability policies with the volatility of underlying share prices. Thus, the indices offer investors a unique and innovative way to increase sustainability in their portfolio."
For more information, please visit www.flexshares.com.
Before investing, carefully consider the FlexShares investment
objectives, risks, charges and expenses. This and other information is
in the prospectus, a copy of which may be obtained by visiting www.flexshares.com.
Read the prospectus carefully before you invest.
Foreside Fund
Services, LLC, distributor.
About FlexShares
FlexShares Exchange Traded Funds are designed to pursue specific investment goals across both passive and active strategies. FlexShares offers differentiated ETF strategies that improve and simplify the investment decision process for the long-term investor. For more information, please visit flexshares.com. Follow us on Twitter @FlexSharesETFs.
About Northern Trust
Northern Trust Corporation (NASDAQ: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has offices in the United States in 19 states and Washington, D.C., and 20 international locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2016, Northern Trust had assets under custody of US$6.2 trillion, and assets under management of US$900 billion. For more than 125 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit northerntrust.com or follow us on Twitter @NorthernTrust.
Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/disclosures.
Before investing, carefully consider the FlexShares investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting www.flexshares.com. Read the prospectus carefully before you invest. Foreside Fund Services, LLC, distributor.
An investment in FlexShares is subject to numerous risks, including possible loss of principal. Fund returns may not match the return of the respective indexes. The Funds are subject to the following principal risks: asset class; commodity; concentration; counterparty; currency; derivatives; dividend; emerging markets; equity securities; fluctuation of yield; foreign securities; geographic; income; industry concentration; inflation-protected securities; infrastructure-related companies; interest rate / maturity risk; issuer; large cap; management; market; market trading; mid cap stock; MLP; momentum; natural resources; new funds; non-diversification; passive investment; privatization; small cap stock; tracking error; value investing; and volatility risk. A full description of risks is in the prospectus.
FlexShares STOXX US ESG Impact Index Fund (ESG) and the FlexShares STOXX Global ESG Impact Index Fund (ESGG) are passively managed and use a representative sampling strategy to track their underlying index respectively. Use of a representative sampling strategy creates tracking risk where the Fund’s performance could vary substantially from the performance of the underlying index. The Funds are subject to environmental, social and governance (ESG) Investment Risk, which is the risk that because the methodology of the Underlying Indices selects and assigns weights to securities of issuers for non-financial reasons, the Funds may underperform the broader equity market or other funds that do not utilize ESG criteria when selecting investments. The Funds are also at increased risk of industry concentration, where it may be more than 25% invested in the assets of a single industry. For ESGG, investments in foreign market securities involve certain risks such as currency volatility, political and social instability and reduced market liquidity. The Funds may also invest in derivative instruments. Changes in the value of the derivative may not correlate with the underlying asset, rate or index and the Funds could lose more than the principal amount invested.
STOXX, Deutsche Boerse Group and their licensors, research partners or data providers do not make any warranties or representations, express or implied, with respect to the timeliness, sequence, accuracy, completeness, currentness, merchantability, quality or fitness for any particular purpose of its index data and exclude any liability in connection therewith. STOXX, Deutsche Boerse Group and their licensors, research partners or data providers are not providing investment advice through the publication of indices or in connection therewith. In particular, the inclusion of a company in an index, its weighting, or the exclusion of a company from an index, does not in any way reflect an opinion of STOXX, Deutsche Boerse Group or their licensors, research partners or data providers on the merits of that company. Financial instruments based on the STOXX® indices, DAX® indices or on any other indices supported by STOXX are in no way sponsored, endorsed, sold or promoted by STOXX, Deutsche Boerse Group or their licensors, research partners or data providers.