FlexShares Ready Access Variable Income Fund (RAVI)

ETF FlexShares Ready Access Variable Income Fund (RVAI) Overview

Profile:

The ETF FlexShares Ready Access Variable Income Fund (RVAI) is an actively managed exchange-traded fund that invests primarily in short-duration, investment-grade fixed-income securities. It aims to provide investors with a high level of current income and capital preservation.

Objective:

The primary investment goal of RVAI is to maximize current income and total return while preserving capital.

Issuer:

RVAI is issued by FlexShares Exchange Traded Funds Trust, a series of trusts established by Northern Trust Investments, Inc.

Reputation and Reliability:

Northern Trust Investments, Inc. is a leading global financial services firm with a long history and a strong reputation. The company has over $13 trillion in assets under management and is known for its expertise in investment management.

Management:

RVAI is actively managed by a team of experienced portfolio managers at Northern Trust Investments. The team has a deep understanding of the fixed-income market and a proven track record of success.

Market Share:

RVAI has a market share of approximately 0.2% in the short-term fixed-income ETF category.

Total Net Assets:

As of November 10, 2023, RVAI has approximately $1.2 billion in total net assets.

Moat:

RVAI's competitive advantages include:

• Active management: The fund is actively managed by an experienced team of portfolio managers, which allows for greater flexibility in selecting investments and responding to market changes.
• Short-duration portfolio: The fund's focus on short-duration securities helps to mitigate interest rate risk.
• High credit quality: The fund invests primarily in investment-grade securities, which reduces credit risk.

Financial Performance:

RVAI has generated a total return of 4.5% year-to-date as of November 10, 2023. This compares favorably to the Bloomberg Barclays US Treasury Bill 1-3 Month Index, which has returned 3.8% over the same period.

Growth Trajectory:

The short-term fixed-income ETF market is expected to continue to grow in the coming years as investors seek income and capital preservation in a low-interest-rate environment.

Liquidity:

RVAI has an average daily trading volume of approximately 100,000 shares. The bid-ask spread is typically around 0.05%.

Market Dynamics:

The short-term fixed-income market is influenced by factors such as interest rates, economic growth, and inflation.

Competitors:

• iShares Short Treasury Bond ETF (SHV)
• Vanguard Short-Term Treasury ETF (VGSH)
• SPDR Bloomberg Barclays Short Term Treasury ETF (BSV)

Expense Ratio:

The expense ratio for RVAI is 0.25%.

Investment Approach and Strategy:

RVAI invests in a diversified portfolio of short-duration, investment-grade fixed-income securities. The fund's portfolio managers actively manage the fund to maximize current income and total return while preserving capital.

Key Points:

• Actively managed short-term fixed-income ETF
• Seeks to provide high current income and capital preservation
• Managed by experienced portfolio managers at Northern Trust Investments
• Competitive expense ratio

Risks:

• Interest rate risk: As interest rates rise, the value of the fund's holdings may decline.
• Credit risk: The fund invests in debt securities, which are subject to the risk that the issuer may default on its obligations.
• Liquidity risk: The fund may not be able to sell its investments quickly and at a desirable price in certain market conditions.

Who Should Consider Investing:

RVAI is suitable for investors who are seeking a high level of current income and capital preservation. The fund is also suitable for investors who are looking for an actively managed short-term fixed-income solution.

Fundamental Rating Based on AI:

Based on an AI-based analysis of RVAI's financial health, market position, and future prospects, the fund receives a Fundamental Rating of 8 out of 10. This rating is supported by the fund's strong track record, experienced management team, and competitive expense ratio.

Resources and Disclaimers:

This analysis is based on information available as of November 10, 2023. All data is sourced from publicly available information. This information is not intended to be investment advice. Please consult with a financial professional before making any investment decisions.