New ETF seeks to offer investors an optimized approach to real assets
FlexShares® Exchange
Traded Funds, sponsored and managed by Northern Trust, today introduced
FlexShares Real Asset Allocation Index Fund (NASDAQ:ASET), a passively
managed ETF that seeks to provide exposure to real assets by investing
in three stand-alone FlexShares ETFs. The component ETFs are global
products comprised of equity securities and each tracks an innovative
index focused on infrastructure, real estate and natural resource
investments.
The FlexShares® Real Asset Allocation Index Fund features:
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Innovative ETF strategy offers exposure to a broad mix of real asset
classes to investors seeking an optimized approach within a turn-key
real asset solution
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Applies a proprietary optimization to the three underlying FlexShares
funds in an effort to minimize the volatility of returns and lower
risk in the fund
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An index-based strategy with competitive fees that addresses investor
goals of risk management, income and capital appreciation objectives
"Institutional investors and independent advisors are increasingly
turning to real assets such as natural resources, real estate and
infrastructure for portfolio diversification and risk management," said
Shundrawn A. Thomas, head of Northern Trust's Funds and Managed Accounts
Group. "The FlexShares Real Asset Index Fund delivers an optimized mix
of innovative real asset strategies in a simple index-based solution."
The new FlexShares fund features exposure to real assets by investing in
three FlexShares ETFs including FlexShares Morningstar Global Upstream
Natural Resources Index Fund (GUNR), FlexShares STOXX Global Broad
Infrastructure Index Fund (NFRA) and FlexShares Global Quality Real
Estate Index Fund (GQRE). For investors with a core real assets
allocation, this fund may help address their desire to inflation hedge,
provide enhanced diversification and help meet income needs.
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
September 30, 2015, Northern Trust had assets under custody of US$6
trillion, and assets under management of US$887 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 http://www.northerntrust.com/disclosures.
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.
In addition, the Funds are subject to commodity exposure risk, the risk
of investing in economies that are susceptible to fluctuations in
certain commodity markets. The Funds enter into foreign currency forward
contracts designed to offset the Funds' currency exposure of non-U.S.
dollar denominated securities included in the Underlying Index against
the U.S. dollar, which may not be successful. Investments in foreign and
emerging market securities involve certain risks such as currency
volatility, political and social instability and reduced market
liquidity. The Funds' investments are concentrated in the securities of
issuers in a particular market, industry, sector or asset class. The
Funds may be subject to increased price volatility and may be more
susceptible to adverse economic, market, political or regulatory
occurrences affecting that market, industry, sector or asset class. 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.
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