Northern Trust’s FlexShares has expanded its line-up of factor-based ETFs with the launch of three funds that combine quality with low volatility. Listed on NYSE Arca, the ETFs track proprietary indices that provide exposure to US, international developed, and emerging market equities. Christopher Huemmer, Senior Investment Strategist at FlexShares, said, “Existing low volatility strategies often rely exclusively on historical return data and fail to account for future price fluctuations and unintended risks. Our quality-focused approach addresses these flaws in an effort to provide a more efficient means of accessing the low volatility factor.”

By Chris Huemmer, Senior Investment Strategist at FlexShares ETFs.

While there’s been a clear uptick in ESG ETF interest, there remains a lack of consensus as to how to define or apply ESG criteria and, as such, ETFs that focus on ESG take a variety of different approaches.

Northern Trust’s FlexShares has expanded its fixed income lineup with the launch of the FlexShares High Yield Value-Scored Bond Index Fund (HYGV US) on NYSE Arca. “Our new value-scored high-yield fund offers investors an innovative approach to income generation by focusing on maximizing the value factor to enhance total return potential,” said Mark Carlson, senior investment strategist at FlexShares.

Arrow Funds has launched the Arrow Reserve Capital Management ETF (ARCM) on the Bats Global Markets Exchange. The actively managed ultra-short term fixed income portfolio seeks capital preservation with maximum income, offering investors an alternative to traditional money market funds and bank deposits.

FlexShares has reported a 55% growth in ETF assets during 2016, significantly above the 20% rate of growth recorded across the entire US ETF industry, according to Morningstar figures. Shundrawn Thomas, Head of FlexShares ETFs at Northern Trust, notes demand for ETFs are being driven by three key trends: regulatory change, keen interest from institutional investors and the increasing use of ETFs within multi-asset class strategies.

Northern Trust Asset Management has launched a unique sustainable real estate index tracking the performance of developed market real estate investment trusts (REITs) with strong responsible investment characteristics. According to GRESB, property ESG analyst and co-creator of the index, the global property sector is at the heart of the most important and far-reaching issues of our time, including urbanization, demographic change, resource constraints, environmental impacts and emerging technologies.

Northern Trust has reduced the maximum annual management fee on six of its FlexShares ETFs, including five funds which provide factor-tilted (low size and value) exposures to US, international, or emerging market portfolios. The sixth ETF to have its fees reduced invests in global upstream natural resources companies. Shundrawn Thomas, Head of Northern Trust’s Funds and Managed Accounts Group, commented: “The reduction of management fees for certain FlexShares ETFs reflects the ongoing commitment to our value proposition.”

Northern Trust’s exchange-traded fund division FlexShares has introduced two new funds that target the equities of firms listed in the US or globally with high environmental, social and corporate governance scores. The FlexShares STOXX US ESG Impact Index Fund (NASDAQ: ESG) and FlexShares STOXX Global ESG Impact Index Fund (NASDAQ: ESGG) seek to provide enhanced risk-adjusted returns by reducing portfolio exposure to specific stocks with operational risks associated with poor ESG scores.

FlexShares, the exchange-traded fund arm of Northern Trust, has unveiled their latest fund offering, the FlexShares Real Asset Allocation Index Fund (Nasdaq: ASET). The ETF invests in three FlexShares ETFs that together provide exposure to equities focused on real assets: infrastructure, real estate and natural resources. Real assets have historically provided investors with an inflation hedge while also supplying a regular income stream especially through exposure to real estate investment trusts.

FlexShares, the exchange-traded fund arm of Northern Trust, has introduced currency-hedged versions of two existing smart beta ETFs. The ETFs provide dollar-hedged exposure to either developed or emerging markets stocks, with the portfolio tilted towards size and value factors. Shundrawn A. Thomas, Head of Northern Trust’s Funds and Managed Accounts Group, commented: “Our research shows that employing a tilted approach to capturing size and value factors potentially adds value to global equity strategies.”