Northern Trust’s FlexShares unit launched three dividend-focused ETFs in December that each track in-house indexes. The funds’ names and expense ratios are as follows:
- FlexShares Quality Dividend Index Fund (NYSE Arca: QDF), 0.37 percent after a 0.01 percent fee reimbursement
- FlexShares Quality Dividend Defensive Index Fund (NYSE Arca: QDEF), 0.37 percent
- FlexShares Quality Dividend Dynamic Index Fund (NYSE Arca: QDYN), 0.37 percent
The portfolios each comprise high-quality U.S. securities. Companies included in the various underlying indexes are selected based on expected dividend payments as well as fundamental factors such as profitability, solid management and reliable cash flow, the company said in the prospectus. Each fund targets a different level of volatility, with QDF aiming for volatility on par with the market, while QDEF and QDYN target volatility levels that are, respectively, lower and higher than market levels.