FlexShares International Quality Dividend Dynamic Index Fund (IQDY)

Overview

The FlexShares International Quality Dividend Dynamic Index Fund (IQDY) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust International Quality Dividend Dynamic IndexSM. It focuses on dividend-paying stocks in developed markets, excluding the U.S. and Canada, with a focus on quality and dividend growth. The asset allocation is primarily towards equities in developed international markets.

Reputation and Reliability

FlexShares, a division of Northern Trust, is a well-established ETF provider with a reputation for innovative and well-managed funds.

Management Expertise

Northern Trust has a long history of asset management expertise, with a seasoned team managing the FlexShares ETF lineup.

Goal

To provide investment results that generally correspond to the price and yield performance, before fees and expenses, of the Northern Trust International Quality Dividend Dynamic IndexSM.

Investment Approach and Strategy

Strategy: IQDY tracks the Northern Trust International Quality Dividend Dynamic Index, which selects dividend-paying stocks based on quality, profitability, and management efficiency, along with dividend metrics. The strategy dynamically adjusts sector allocations based on market conditions.

Composition The ETF primarily holds dividend-paying stocks of companies located in developed countries outside of the U.S. and Canada.

Market Share: The fund holds a modest market share within the international dividend ETF category.

Total Net Assets (AUM): 207670000

Key Competitors

• Vanguard FTSE Developed Markets ETF (VEA)
• iShares Core MSCI EAFE ETF (IEFA)
• Schwab International Dividend Equity ETF (SCHF)

Competitive Landscape

The international developed markets ETF market is highly competitive, with large, established funds dominating the landscape. IQDY's dynamic, quality-focused dividend strategy offers a differentiated approach but faces challenges in gaining significant market share against low-cost, broad-market competitors. Its advantage lies in its dynamic sector allocation and quality screen, but the disadvantage is a higher expense ratio than some of the larger competitors.

Historical Performance: Historical performance data is necessary to fully assess. Actual data should be inserted here based on current market values.

Benchmark Comparison: Benchmark comparison requires historical data to directly compare against the Northern Trust International Quality Dividend Dynamic IndexSM.

Expense Ratio: 0.37

Average Trading Volume

The fund's average trading volume reflects its liquidity, indicating the ease with which shares can be bought or sold; actual data is needed.

Bid-Ask Spread

The bid-ask spread, typically small, represents the difference between the highest price a buyer will pay and the lowest price a seller will accept, affecting trading costs; actual data is needed.

Market Environment Factors

IQDY's performance is influenced by global economic conditions, international market volatility, currency fluctuations, and sector-specific trends in developed markets outside the U.S. and Canada.

Growth Trajectory

The growth trajectory of IQDY depends on its ability to attract investors seeking international dividend income with a focus on quality and dynamic sector allocation. Changes to the underlying index methodology or increased competition could impact its growth.

Competitive Edge

IQDY's competitive edge stems from its dynamic sector allocation, allowing it to adapt to changing market conditions. The fund's focus on high-quality, dividend-paying companies offers a degree of downside protection. The dynamic approach differentiates it from purely passive dividend ETFs. Its quality screen and focus on profitability provide a competitive advantage. However, the higher expense ratio poses a disadvantage against its larger competitors.

Volatility

IQDY's volatility depends on the underlying volatility of the international equity markets and the specific stocks it holds. Historical data is needed to assess its specific volatility profile.

Market Risk

Market risk is a key concern, as the fund is subject to the fluctuations of international equity markets. Currency risk and geopolitical events can also impact the fund's performance. Dividend cuts or suspensions by underlying holdings could negatively affect income generation.

Ideal Investor Profile

The ideal investor for IQDY is someone seeking international dividend income with a focus on quality and a willingness to accept a moderate level of market risk. Investors looking for diversification beyond the U.S. market and a dynamically managed approach may find it suitable.

Market Risk

IQDY is suitable for long-term investors seeking dividend income and diversification, but may not be ideal for active traders due to its moderate liquidity compared to broader market ETFs.

The FlexShares International Quality Dividend Dynamic Index Fund provides exposure to international dividend-paying companies with a focus on quality and dynamic sector allocation. While its dynamic approach offers a potential advantage, it faces competition from larger, lower-cost ETFs. The ETF is suitable for long-term investors seeking dividend income and international diversification, but its higher expense ratio should be considered. IQDY's success depends on its ability to outperform its benchmark and attract investors seeking a differentiated dividend strategy.

• VYMI
• DVY
• IDV
• SDIV
• PID
• FIDI

Data Sources:

• FlexShares website
• ETF.com
• Morningstar
• Northern Trust Asset Management

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on your own research and due diligence. Past performance is not indicative of future results. Market conditions can change rapidly.