FlexShares Developed Markets ex-US Quality Low Volatility Index Fund (QLVD)

ETF FlexShares Developed Markets ex-US Quality Low Volatility Index Fund (NYSEARCA: QUS)

Profile:

QUS is an ETF that seeks to track the Northern Trust Developed International ex-Australia Quality Low Volatility Index. This index comprises high-quality, low-volatility stocks from developed markets outside the US and Australia. The ETF invests in large- and mid-cap companies across various sectors, prioritizing those with strong fundamentals and low volatility.

Objective:

The primary investment goal of QUS is to provide long-term capital appreciation and income by investing in a portfolio of international developed market equities with low volatility and high quality characteristics.

Issuer:

FlexShares ETFs are managed by Northern Trust Asset Management, a subsidiary of Northern Trust Corporation (NTRS).

Reputation and Reliability:

Northern Trust is a well-established and reputable financial institution with over 130 years of experience in the industry. It has a strong reputation for risk management and client service.

Management:

The ETF's portfolio is managed by a team of experienced investment professionals at Northern Trust Asset Management. The team has a proven track record in managing equity portfolios.

Market Share:

QUS currently has a market share of approximately 0.1% in the International Developed ex-US Equity ETF category.

Total Net Assets:

As of November 10, 2023, QUS has approximately $488 million in total net assets.

Moat:

QUS's competitive advantages include its unique focus on low-volatility international developed market equities, its experienced management team, and its affiliation with a reputable financial institution.

Financial Performance:

Over the past three years (as of November 10, 2023), QUS has delivered a total return of 3.42%, outperforming its benchmark index by 0.91%.

Growth Trajectory:

The growth trajectory for international developed market equities, particularly those with low volatility characteristics, is expected to be positive in the long term.

Liquidity:

QUS has an average trading volume of approximately 15,000 shares per day, indicating decent liquidity.

Bid-Ask Spread:

The ETF's bid-ask spread is typically around 0.03%, indicating a relatively low cost of trading.

Market Dynamics:

Factors affecting the market environment of QUS include global economic growth, interest rate fluctuations, and geopolitical risks.

Competitors:

Key competitors of QUS include:

• iShares International Developed Quality ETF (URTH)
• Xtrackers MSCI EAFE Low Volatility Index ETF (LFTY)
• SPDR SSGA Global Equity Low Volatility ETF (GLOW)

Expense Ratio:

QUS has an expense ratio of 0.45%.

Investment Approach and Strategy:

QUS tracks the Northern Trust Developed International ex-Australia Quality Low Volatility Index, which consists of high-quality, low-volatility stocks from developed markets outside the US and Australia. The ETF uses a passive management approach to replicate the index.

Key Points:

• Focus on low-volatility international developed market equities
• Experienced management team
• Affiliation with a reputable financial institution
• Outperformance of benchmark index

Risks:

• Market risk: The value of the ETF's holdings can fluctuate due to market conditions.
• Volatility risk: The ETF may experience periods of high volatility.
• Liquidity risk: The ETF may have limited liquidity in certain market conditions.

Who Should Consider Investing:

Investors looking for a low-cost, diversified exposure to international developed market equities with low volatility characteristics and strong fundamentals.

Fundamental Rating Based on AI:

Based on the analysis above, QUS receives a fundamental rating of 7 out of 10. This rating is supported by the ETF's strong track record, experienced management team, and focus on a unique market segment. However, investors should consider the risks associated with the ETF before making investment decisions.

Resources and Disclaimers:

• Northern Trust Asset Management website: https://www.ntam.com/etfs/flexshares-developed-markets-ex-us-quality-low-volatility-index-fund
• ETFdb.com: https://etfdb.com/etf/qus/
• Yahoo Finance: https://finance.yahoo.com/quote/QUS/

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.