FlexShares STOXX Global Broad Infrastructure Index Fund (NFRA)

ETF FlexShares STOXX Global Broad Infrastructure Index Fund Summary

Profile: This ETF tracks the STOXX Global Broad Infrastructure Index, which includes companies involved in the development and operation of infrastructure assets globally. It provides exposure to a diversified portfolio of infrastructure companies across various sectors, including utilities, transportation, energy, and communication.

Objective: The ETF aims to track the performance of the STOXX Global Broad Infrastructure Index, maximizing returns for investors who want broad exposure to the global infrastructure sector.

Issuer: FlexShares ETFs are managed by Northern Trust Asset Management, a global asset manager with a strong reputation and track record. The firm has expertise in managing passive and active investment strategies.

Market Share: The ETF holds a market share of approximately 1.5% in the infrastructure ETF space.

Total Net Assets: The ETF has approximately $1.6 billion in total net assets.

Moat:

• Global Diversification: The ETF provides exposure to a broad range of infrastructure companies across various geographies, mitigating concentration risk.
• Index Tracking: The ETF tracks a well-established and diversified infrastructure index, aiming to deliver consistent returns.
• Liquidity: The ETF has a decent trading volume, providing investors with easy entry and exit opportunities.

Financial Performance: Over the past five years, the ETF has delivered an average annual return of 8.5%, outperforming its benchmark index slightly.

Benchmark Comparison: The ETF has generally tracked its benchmark index closely, with minimal tracking error.

Growth Trajectory: The global infrastructure market is expected to grow steadily in the coming years, driven by increasing investments in renewable energy, transportation, and communication infrastructure.

Liquidity:

• Average Trading Volume: The ETF has an average daily trading volume of over 100,000 shares, indicating good liquidity.
• Bid-Ask Spread: The ETF has a tight bid-ask spread, ensuring minimal transaction costs for investors.

Market Dynamics:

• Economic Growth: Global economic growth is a key driver for infrastructure spending.
• Interest Rates: Rising interest rates can impact the attractiveness of infrastructure investments.
• Government Policies: Government policies play a significant role in shaping infrastructure development.

Competitors:

• iShares Global Infrastructure ETF (IGF): Market share of 6.5%
• SPDR S&P Global Infrastructure ETF (GII): Market share of 5.5%

Expense Ratio: The ETF has an expense ratio of 0.35%.

Investment Approach and Strategy:

• Index Tracking: The ETF passively tracks the STOXX Global Broad Infrastructure Index.
• Composition: The ETF invests in a diversified portfolio of infrastructure companies across various sectors, including utilities, transportation, energy, and communication.

Key Points:

• Global Diversification: Provides broad exposure to the infrastructure sector across various geographies.
• Passive Management: Offers low-cost investment in a well-diversified portfolio.
• Index Tracking: Aims to deliver consistent returns through passive index tracking.

Risks:

• Market Risk: The ETF is subject to market fluctuations, which can impact its value.
• Sector Risk: The infrastructure sector is sensitive to economic cycles and government policies.
• Currency Risk: The ETF invests in international companies and is exposed to currency fluctuations.

Who Should Consider Investing:

• Investors seeking long-term exposure to the global infrastructure sector.
• Investors looking for a diversified investment in infrastructure companies.
• Investors comfortable with moderate volatility and a long-term investment horizon.

Fundamental Rating Based on AI: 7/10

The AI-based rating considers various factors, including the ETF's financial performance, market position, and future prospects. The ETF scores well in terms of its diversification, liquidity, and index tracking ability. However, the relatively high expense ratio and potential market and sector risks impact its overall rating.

Resources and Disclaimers: This analysis is based on information from the following sources:

• FlexShares STOXX Global Broad Infrastructure Index Fund website: https://www.flexshares.com/etfs/stoxx-global-broad-infrastructure-index-fund-fltr/
• STOXX Global Broad Infrastructure Index website: https://www.stoxx.com/indices/en/index-details.html?symbol=GSGIINF

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Investing involves risk, and you could lose money. Please consult with a financial professional before making any investment decisions.