US based FlexShares Exchange Traded Funds has launched two new ETFs, which focus on developed and emerging markets outside the US, marking its $1.5bn asset milestone in the first year.
The two new ETFs include Morningstar Developed Markets ex-US Factor Tilt Index Fund (TLTD) and Morningstar Emerging Market Factor Tilt Index Fund (TLTE).
TLTD seeks to increase exposure to overseas stocks and TLTE aims to increase exposure to developing market stocks, while both incorporate ’tilt’ methodology to incline the portfolio towards long-term growth potential of the small cap and value segments.
The new funds also try to offset the innate bias toward large-growth companies rooted in market-weighted strategies, according to the US based wealth manager.
Northern Trust’s ETF head Shundrawn Thomas said, "Now, with our two additional tilted index funds, investors have the ability to apply the strategy to investments across the globe."
FlexShares is a suite of ETF products and is sponsored by Northern Trust, which trades in 18 US states and 16 locations in North America, Europe, the Middle East and the Asia-Pacific region.