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Net expense ratio9/4/2023 ![]() ETFs can be traded throughout the day, whereas mutual funds are traded only once a day. Since ordinary brokerage commissions apply for each ETF buy and sell transaction, frequent trading activity may increase the cost of ETFs. Unlike ETFs, actively managed mutual funds have the ability react to market changes and the potential to outperform a stated benchmark. Most ETFs are passively managed and are structured to track an index, whereas many mutual funds are actively managed and thus have higher management fees. ETFs generally have lower expenses than actively managed mutual funds due to their different management styles. Investors should be aware of the material differences between mutual funds and ETFs. However, while mutual funds are priced once a day at the market close, ETFs can be bought and sold like individual stocks throughout the day.Ĭompared to mutual funds, ETFs tend to have better tax efficiency and more transparency, as well as lower fees on average. Morgan, Refinitiv and Morningstar.ETFs are similar to mutual funds in that they both can provide exposure to broad areas of the market in a single investment. Also, the Fund is "non-diversified" under the Investment Company Act of 1940, and may invest more of its assets in fewer issuers than diversified funds.Īll data provided by: Northern Trust, J.P. Additionally, the Fund may invest without limitation in mortgage or asset-backed securities, which puts it at increased risk for interest rate/maturity risk, debt extension risk, and prepayment (or call) risk. The Fund may also be subject to increased concentration risk as it may invest more than 25% of its assets into the securities of a single developed market. The Fund is at increased credit and default risk, where there is an inability or unwillingness by the issuer of a fixed income security to meet its financial obligations, debt extension risk, where an issuer may exercise its right to pay principal on an obligation later than expected, as well as interest rate/maturity risk, where the value of the Fund's fixed income assets will decline because of rising interest rates. Additionally, the Fund may invest without limitation in the fixed income and debt securities of foreign issuers in both developed and emerging markets. The FlexShares Funds, registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940 ("Funds") are distributed by Foreside Fund Services, LLC, not affiliated with Northern Trust.įlexShares Ultra-Short Income Fund (RAVI) is actively managed and does not seek to replicate a specified index. Tax consequences of dividend distributions may vary by individual taxpayer. The information provided is not intended to be tax advice. Trading FlexShares Funds will also generate tax consequences and transaction expenses. Not FDIC INSURED May lose value No bank guaranteeĪll registered investment companies, including FlexShares, are obliged to distribute portfolio gains to shareholders at year-end regardless of performance. Individual investors should contact their financial advisor or broker dealer representative for more information on FlexShares ETFs. A full description of risks is in the prospectus. The Funds are subject to the following principal risks: ESG Investing corporate bond concentration Income currency derivatives LIBOR emerging markets equity securities fluctuation of yield foreign securities geographic industry concentration interest rate / maturity risk issuer large cap management market market trading new funds non-diversification passive investment privatization small cap stock tracking error turnover Authorized Participant Concentration liquidity high yield and volatility risk. Fund returns may not match the return of the respective indexes. Foreside Fund Services, LLC, distributor.Īn investment in FlexShares is subject to numerous risks, including possible loss of principal. Read the prospectus carefully before you invest. This and other information is in the prospectus and a summary prospectus, copies of which may be obtained on this website. Before investing, carefully consider the FlexShares investment objectives, risks, charges and expenses.
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