FlexShares Exchange Traded Funds, sponsored and managed by Northern Trust, begun trading the FlexShares Credit-Scored US Long Corporate Bond Index Fund (Nasdaq: LKOR) on Thursday, September 24, 2015.
|Name: FlexShares Credit-Scored US Long Corporate Bond Index Fund
|Net Expense Ratio: 0.22%
The FlexShares Credit-Scored US Long Corporate Bond Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Credit-Scored US Long Corporate Bond Index.
The Northern Trust Credit-Scored US Long Corporate Bond Index reflects the performance of a broad universe of US-dollar denominated bonds of companies that are considered by the Index Provider to have higher credit quality, lower risk of default and the potential for higher yield, price appreciation and liquidity relative to the universe of securities comprising the Northern Trust Investment-Grade US Long Corporate Bond Index (Parent Index), pursuant to the Underlying Index’s index methodology.
The Underlying Index is designed to outperform the Parent Index on a risk-adjusted basis, as measured by a combination of yield return and price appreciation. Securities included in the Underlying Index are component securities of the Parent Index. The Underlying Index begins with the Parent Index and then follows a rules-based methodology to select and calculate optimal weights for securities in the Underlying Index based on liquidity and security issuers’ fundamental factors, as determined by NTI, in its capacity as index provider. An eligible bond must have a final time to stated maturity that is greater than or equal to 10 years.
In order to be eligible for inclusion in the Underlying Index, a bond also must:
(i) be a fixed rate taxable bond with $500 million or greater outstanding principal at the time of Index reconstitution; and
(ii) be either publicly offered in the U.S. or that is offered pursuant to Rule 144A under the Securities Act of 1933, as amended (Securities Act), with registration rights.
In addition, a security also must be rated within the top 4 rating categories by a Nationally Recognized Statistical Rating Organization (NRSRO) or of comparable quality as determined by the Index Provider.
The Underlying Index is a new index, with an inception date of July 7, 2015. As of July 31, 2015, there were 628 issues in the Underlying Index.
Fund’s Top 10 Holdings (09/25/2015):
|TIME WARNER INC
|JPMORGAN CHASE & CO
|CVS HEALTH CORP
|SUNCOR ENERGY INC
|UNITED TECHNOLOGIES CORP
|BRITISH TELECOMMUNICATIONS PLC
|GILEAD SCIENCES INC
|DOMINION RESOURCES INC
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Category: Bonds> US Bonds> US IG Corporate Bonds