ESG ETF — Holdings & Analysis

The FlexShares STOXX US ESG Select Index Fund (ESG) is an equity ETF with $0.12 billion in assets under management. It seeks to track the STOXX USA ESG Select KPIs Index, focusing on U.S.

companies with strong environmental, social, and governance (ESG) profiles. With an expense ratio of 0.33%, ESG offers investors exposure to a portfolio of 259 U.S. companies that meet specific ESG criteria, providing a socially conscious investment option.

FlexShares STOXX US ESG Select Index Fund (ESG) ETF — Price, Holdings & Analysis

The FlexShares STOXX US ESG Select Index Fund (ESG) is an equity ETF with $0.12 billion in assets under management. It seeks to track the STOXX USA ESG Select KPIs Index, focusing on U.S. companies with strong environmental, social, and governance (ESG) profiles. With an expense ratio of 0.33%, ESG offers investors exposure to a portfolio of 259 U.S. companies that meet specific ESG criteria, providing a socially conscious investment option.

ETF Overview

For investors seeking a focus on select ESG KPIs of US companies.The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the STOXX USA ESG Select KPIs Index (the "Underlying Index").

The FlexShares STOXX US ESG Select Index Fund (ESG) aims to replicate the performance of the STOXX USA ESG Select KPIs Index. This index screens U.S. companies based on environmental, social, and governance (ESG) factors, selecting those with strong ESG profiles. The fund provides investors with a way to invest in companies that meet specific ESG standards. The fund's top holdings include Meta Platforms Inc Class A (4.93%), NVIDIA Corp (4.85%), and Apple Inc (4.71%), reflecting a significant allocation to technology companies. Sector allocation shows a heavy weighting towards Technology (29.8%), Financial Services (17.5%), and Healthcare (11.2%). This ETF is designed for investors seeking to align their investments with their values by focusing on companies demonstrating strong ESG performance, while still maintaining exposure to the broader U.S. equity market.

Risk Metrics

The FlexShares STOXX US ESG Select Index Fund (ESG) carries certain risks inherent in its investment strategy. With 29.8% of its assets allocated to the Technology sector, the fund is exposed to sector-specific risks, where a downturn in the technology industry could disproportionately affect its performance. The fund's beta of 0.97 indicates that it is slightly less volatile than the overall market. The expense ratio of 0.33% will create a slight drag on performance over time. Concentration risk is present, as the top 10 holdings account for a significant portion of the fund's assets. these may be worth researching factors when evaluating the suitability of ESG for their portfolios. Past performance does not guarantee future results.

Expense Ratio

0.33%

What does ESG hold?

Holding	Weight
Meta Platforms Inc Class A (META)	4.93%
NVIDIA Corp (NVDA)	4.85%
Apple Inc (AAPL)	4.71%
Microsoft Corp (MSFT)	4.02%
JPMorgan Chase & Co (JPM)	3.55%
Broadcom Inc (AVGO)	3.24%
Berkshire Hathaway Inc Class B (BRK-B)	2.98%
Amazon.com Inc (AMZN)	2.93%
Exxon Mobil Corp (XOM)	2.77%
Johnson & Johnson (JNJ)	2.58%

How Is the Fund Allocated?

Sector	Weight
Technology	29.8%
Financial Services	17.5%
Healthcare	11.2%
Consumer Cyclical	10.6%
Consumer Defensive	10.2%
Communication Services	6.1%
Industrials	4.9%
Energy	3.4%
Real Estate	2.8%
Basic Materials	2.0%
Utilities	1.5%

Country	Weight
United States	95.8%
Ireland	1.8%
Other	1.4%
United Kingdom	0.6%
Netherlands	0.2%
Switzerland	0.1%
Canada	0.1%
Bermuda	0.1%
Singapore	0.1%
Israel	0.0%

Dividend Yield

0.00%

State Street Energy Select Sector SPDR ETF (XLE) — 0.08% expense ratio
Invesco QQQ Trust, Series 1 (QQQ) — 0.18% expense ratio
State Street Technology Select Sector SPDR ETF (XLK) — 0.08% expense ratio
State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) — 0.16% expense ratio
iShares Russell 2000 ETF (IWM) — 0.19% expense ratio
State Street Financial Select Sector SPDR ETF (XLF) — 0.08% expense ratio
iShares MSCI Emerging Markets ETF (EEM) — 0.72% expense ratio
iShares MSCI EAFE ETF (EFA) — 0.32% expense ratio

FlexShares Emerging Markets Quality Low Volatility Index Fund (QLVE) (Equity) — 0.19% expense ratio
FlexShares ESG & Climate High Yield Corporate Core Index Fund (FEHY) (Equity) — 0.23% expense ratio
Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS) (Fixed Income) — 0.05% expense ratio
Northern Trust 2035 Inflation-Linked Distributing Ladder ETF (TIPB) (Fixed Income) — 0.10% expense ratio
Northern Trust 2045 Tax-Exempt Distributing Ladder ETF (MUNC) (Fixed Income) — 0.18% expense ratio

Risk Metrics

Beta: 0.97

Questions & Answers

What is ESG and what does it track?

ESG stands for Environmental, Social, and Governance, representing three key factors used to evaluate the sustainability and societal impact of a company or investment.

The FlexShares STOXX US ESG Select Index Fund (ESG) tracks the STOXX USA ESG Select KPIs Index, which is designed to measure the performance of U.S. companies with strong ESG profiles.

What is the expense ratio for ESG?

The expense ratio for the FlexShares STOXX US ESG Select Index Fund (ESG) is 0.33%. This means that for every $10,000 invested in the fund, $33 is used to cover the fund's operating expenses.

While 0.33% is the stated expense ratio, it's important to consider all costs associated with owning an ETF, including brokerage commissions or transaction fees. The expense ratio is lower than the category average of 0.44%.

What are the top holdings in ESG?

The top holdings in the FlexShares STOXX US ESG Select Index Fund (ESG) are: Meta Platforms Inc Class A (4.93%), NVIDIA Corp (4.85%), Apple Inc (4.71%), Microsoft Corp (4.02%), and JPMorgan Chase & Co (3.55%).

These holdings represent a significant portion of the fund's assets and reflect the fund's focus on large-cap U.S. companies with strong ESG profiles.

Is ESG a good long-term investment?

Whether the FlexShares STOXX US ESG Select Index Fund (ESG) is a suitable long-term investment depends on an individual investor's goals, risk tolerance, and investment horizon. The fund offers exposure to U.S.

companies with strong ESG profiles, which may align with the values of some investors. The fund's expense ratio of 0.33% and beta of 0.97 should be considered.

How does ESG compare to similar ETFs?

The FlexShares STOXX US ESG Select Index Fund (ESG) can be compared to other ESG-focused ETFs based on several factors. Its expense ratio of 0.33% is a key consideration, as lower expenses can lead to better long-term returns.

The fund's AUM of $0.12 billion indicates its relative size and popularity compared to other ESG ETFs.

Does ESG pay dividends?

The FlexShares STOXX US ESG Select Index Fund (ESG) currently has a dividend yield of 0.00%. This indicates that the fund does not currently distribute dividends to its shareholders.

Investors seeking income-generating investments may need to consider other ETFs or investment options that offer higher dividend yields. While ESG's primary focus is on ESG-conscious investing, it may not be suitable for investors prioritizing dividend income.