FlexShares ESG & Climate Investment Grade Corporate Core Index Fund (FEIG)

Overview

The FlexShares ESG & Climate Investment Grade Corporate Core Index Fund (FEIG) aims to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust ESG & Climate Investment Grade Corporate Core Index. It focuses on investment-grade corporate bonds while incorporating ESG and climate-related considerations. It targets the broad investment-grade corporate bond market with an emphasis on companies with strong ESG profiles and lower carbon emissions.

Reputation and Reliability

Northern Trust is a well-established and reputable financial institution with a long history of providing investment management and trust services.

Management Expertise

Northern Trust has a team of experienced investment professionals with expertise in fixed income investing and ESG integration.

Goal

To provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust ESG & Climate Investment Grade Corporate Core Index.

Investment Approach and Strategy

Strategy: The fund seeks to track the Northern Trust ESG & Climate Investment Grade Corporate Core Index.

Composition The ETF holds a portfolio of investment-grade corporate bonds that meet certain ESG criteria and have lower carbon emissions compared to the broader market.

Market Share: FEIG's market share within the ESG-focused investment-grade corporate bond ETF space is growing, but is still less than major broad market competitors.

Total Net Assets (AUM): 85356770

Key Competitors

• LQD
• AGG
• VCSH
• IUSB

Competitive Landscape

The competitive landscape in the investment-grade corporate bond ETF market is dominated by large, established funds like LQD and AGG. FEIG differentiates itself through its ESG and climate focus, which appeals to investors seeking socially responsible investments. FEIG's advantage lies in its ESG focus, while its disadvantage is its smaller AUM and less established track record compared to its larger competitors.

Historical Performance: Historical performance data is essential to consider. However, it is not directly provided in the prompt and is subject to data sources and specific dates.

Benchmark Comparison: Comparison to the Northern Trust ESG & Climate Investment Grade Corporate Core Index is crucial to determine tracking effectiveness.

Expense Ratio: 0.18

Average Trading Volume

FEIG's average trading volume is moderate, indicating sufficient liquidity for most investors. The average trading volume varies depending on the market condition.

Bid-Ask Spread

The bid-ask spread is generally tight, reflecting the liquidity of the underlying bond market, but may widen during periods of market volatility.

Market Environment Factors

Economic indicators such as interest rates, inflation, and economic growth, as well as sector-specific trends, all influence FEIG's performance.

Growth Trajectory

FEIG's growth depends on investor demand for ESG-focused fixed income products and its ability to attract assets from competitors.

Competitive Edge

FEIG's competitive edge lies in its combination of investment-grade corporate bond exposure with ESG and climate considerations, providing a socially responsible investment option. It caters to the growing demand for sustainable investing by offering investors the opportunity to align their investments with their values. This niche focus can attract investors who prioritize ESG factors alongside financial returns. Furthermore, the fund's methodology screens for companies with strong ESG profiles and lower carbon emissions, potentially mitigating risks associated with environmental and social issues.

Volatility

FEIG's volatility is generally lower than equity ETFs, reflecting the relatively stable nature of investment-grade corporate bonds.

Market Risk

The main risks include interest rate risk (the risk that bond prices will fall as interest rates rise) and credit risk (the risk that issuers will default on their debt obligations).

Ideal Investor Profile

The ideal investor for FEIG is one who seeks income from investment-grade corporate bonds while prioritizing ESG and climate considerations.

Market Risk

FEIG is suitable for long-term investors seeking a balance between income, capital preservation, and socially responsible investing.

FlexShares ESG & Climate Investment Grade Corporate Core Index Fund (FEIG) provides exposure to investment-grade corporate bonds with a focus on ESG and climate factors. The fund's investment objective is to track the Northern Trust ESG & Climate Investment Grade Corporate Core Index. FEIG's differentiating factor is its ESG screen to address the sustainability concerns. Its expense ratio is 0.18%.

Data Sources:

• FlexShares website
• Northern Trust website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market share data can vary depending on the source and date.