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About FlexShares Quality Dividend Index Fund

QDF targets neutral market risk using a multi-factor model, aiming for high yield from 'quality' dividend payers. The index initially removes non-dividend payers and lowest-scoring securities in terms of quality from its parent index, the Northern Trust 1250 Index. Quality is scored using a proprietary scoring model based on management efficiency, profitability, and cash flow. The index selects and weights remaining securities based on an optimization process that aims to maximize the overall quality score, attain a higher dividend yield, and achieve a similar beta relative to the parent index. The result of this process is not a radically different portfolio from the market. On June 30, 2023, the ETF acquired the assets and liabilities of the FlexShares Quality Dividend Dynamic Index Fund (ticker: QDYN), which had $16.79 million in assets.