What is Northern Trust FlexShares ETFs?
Northern Trust FlexShares ETFs are a range of exchange-traded funds (ETFs) managed by Northern Trust Asset Management that offer investors cost-efficient access to factor-based investing. The FlexShares ETFs have a total of 32 U.S. funds with a total of $18.9 billion in assets. The ETFs are designed to help investors achieve their investment goals through a range of investing strategies.
FlexShares ETFs are focused on providing investors with access to factor-based investing, which involves selecting securities based on factors such as quality, low volatility, and dividends. These factors are used to create investment strategies that aim to achieve specific investment goals, such as enhanced income or capital appreciation.
Northern Trust Asset Management is a global investment manager that helps investors build and maintain their wealth. The firm has a long history of managing assets for institutional and individual investors, and it offers a wide range of investment solutions, including mutual funds, ETFs, and separately managed accounts.
Investment Products and Services offered by Northern Trust are not FDIC insured, may lose value, and have no bank guarantee. It's important to consult with a financial professional before making any investment decisions.
Frequently Asked Questions about northern trust flexshares etfs
Northern Trust is a pioneer in the servicing of European exchange traded funds (ETFs) and a recognised industry leader.
Bottom Line. ETFs and investment trusts are investment vehicles that can help investors diversify their portfolio and potentially earn a good return over time. ETFs are open-ended and often passively managed, while investment trusts are closed-ended and actively managed.
An ETF (exchange-traded fund) is an investment that's built like a mutual fund - investing in potentially hundreds, sometimes thousands, of individual securities - but trades on an exchange throughout the day like a stock.
An exchange-traded fund (ETF) is a type of pooled investment security that operates much like a mutual fund. Typically, ETFs will track a particular index, sector, commodity, or other assets, but unlike mutual funds, ETFs can be purchased or sold on a stock exchange the same way that a regular stock can.
Unlike an ETF's or a mutual fund's net asset value (NAV) - which is only calculated at the end of each trading day - an ETF's market price can be expected to change throughout the day. (A mutual fund doesn't have a market price because it isn't repriced throughout the day.)
Conservative ETF List
| Symbol Symbol | ETF Name ETF Name | % In Top 10 % In Top 10 |
|---|
| AOK | iShares Core Conservative Allocation ETF | 100.00% |
| SWAN | Amplify BlackSwan Growth & Treasury Core ETF | 90.28% |
| TRTY | Cambria Trinity ETF | 68.97% |
| MFUL | Collaborative Investment - Mindful Conservative ETF | 97.83% |
Since ETFs are more diversified, they tend to have a lower risk level than stocks. Similar to stocks, ETFs can be bought and traded at any time and they are also taxed at short-term or long-term capital gains rates. The assets inside an ETFs are bought and pooled together by the fund's managers.
Advantages of investing in ETFs
ETFs allow you to buy one fund and have a stake in dozens or even thousands of companies. Because of this broad ownership, ETFs offer the power of diversification, reducing your risk and increasing your returns.
Vanguard's unique cost structure, the economies of scale it has achieved, and the total number of assets under management (AUM) allow it to offer its ETFs at the lowest cost available in the market. We've listed 10 of the firm's cheapest ETFs by their expense ratio.
Vanguard's ETF offerings can also offer some significant advantages over the firm's lineup of mutual funds. "ETFs are a good investment option as they offer diversification, low costs and the ability to trade shares during the trading day," says Lauren Wybar, senior wealth advisor at Vanguard.
There are many ways an ETF can stray from its intended index. That tracking error can be a cost to investors. Indexes do not hold cash but ETFs do, so a certain amount of tracking error in an ETF is expected. Fund managers generally hold some cash in a fund to pay administrative expenses and management fees.
Two of the most popular ETFs include index funds based on the Standard & Poor's 500 index and the Nasdaq 100 index, which contain high-quality businesses listed on American exchanges: Vanguard S&P 500 ETF (VOO), with an expense ratio of 0.03 percent. Invesco QQQ Trust (QQQ), with an expense ratio of 0.20 percent.
