For investors seeking a core investment utilizing all three aspects of ESG without sacrificing potential long-term returns
Our research suggests that there is growing interest in ESG investing among investors who want to align their portfolios with their values, or who believe that ESG criteria can impact a company’s long-term business performance.
In our view, the key to successful ESG investing is to focus on the analysis of disclosed ESG data, combining it with improved portfolio construction guidelines, in an attempt to provide a more diversified, ESG tilted core equity investment portfolio. The resulting portfolio could help deliver the potential benefits of ESG investing while avoiding common pitfalls such as insufficient diversification.
To learn more about how the FlexShares STOXX US ESG Select Index Fund (ESG) seeks enhanced risk return characteristics relative to the broad large-cap US equity market by tracking a custom index, the STOXX USA ESG Impact Index* - download our white paper today.
FlexShares offers an array of ETFs, designed for all types of investors. Visit our website to learn more.
Read more of our unique insights on other investment and advisor topics in our Insights section.
* The STOXX USA ESG Impact Index is an optimized index designed to provide broad market exposure that is tilted toward U.S. companies that score better with respect to a small set of ESG characteristics and to provide the potential for attractive risk-adjusted performance relative to the STOXX USA 900 Index.
IMPORTANT INFORMATION
Before investing, carefully consider the FlexShares investment objectives, risks, charges and expenses. This and other information is in the prospectus and a summary prospectus, copies of which may be obtained by visiting www.flexshares.com. Read the prospectus carefully before you invest.
Foreside Fund Services, LLC, distributor.
An investment in FlexShares is subject to numerous risks, including possible loss of principal. Fund returns may not match the return of the respective indexes. A full description of risks is in the prospectus.
FlexShares STOXX® US ESG Select Index Fund (ESG) is passively managed and uses a representative sampling strategy to track its underlying index. Use of a representative sampling strategy creates tracking risk where the Fund’s performance could vary substantially from the performance of the underlying index along with the risk of high portfolio turnover. The Fund is subject to environmental, social and governance (ESG) Investment Risk, which is the risk that because the methodology of the Underlying Index selects and assigns weights to securities of issuers for non-financial reasons, the Fund may underperform the broader equity market or other funds that do not utilize ESG criteria when selecting investments. The Fund is also at increased risk of industry concentration, where it may be more than 25% invested in the assets of a single industry. The Fund may also invest in derivative instruments. Changes in the value of the derivative may not correlate with the underlying asset, rate or index and the Fund could lose more than the principal amount invested.