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FlexShares Disciplined Duration MBS Index Fund

ETF
MBSD
Payout Change
Pending
Price as of:
$20.04 +0.14 +0.68%
primary theme
Intermediate-Term U.S. Treasury Bond
MBSD (ETF)

FlexShares Disciplined Duration MBS Index Fund

Payout Change
Pending
Price as of:
$20.04 +0.14 +0.68%
primary theme
Intermediate-Term U.S. Treasury Bond
MBSD (ETF)

FlexShares Disciplined Duration MBS Index Fund

Payout Change
Pending
Price as of:
$20.04 +0.14 +0.68%
primary theme
Intermediate-Term U.S. Treasury Bond

Name

As of 04/17/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

FlexShares Disciplined Duration MBS Index Fund

MBSD | ETF

$20.04

$80.6 M

3.56%

$0.71

0.21%

Vitals

YTD Return

-1.7%

1 yr return

1.3%

3 Yr Avg Return

-2.7%

5 Yr Avg Return

N/A

Net Assets

$80.6 M

Holdings in Top 10

18.1%

52 WEEK LOW AND HIGH

$19.9
$19.35
$20.70

Expenses

OPERATING FEES

Expense Ratio 0.21%

SALES FEES

Front Load N/A

Deferred Load N/A

TRADING FEES

Turnover 175.00%

Redemption Fee N/A

Min Investment

Standard (Taxable)

N/A

IRA

N/A

Fund Classification

Fund Type

Exchange Traded Fund

Name

As of 04/17/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

FlexShares Disciplined Duration MBS Index Fund

MBSD | ETF

$20.04

$80.6 M

3.56%

$0.71

0.21%

MBSD - Profile

Distributions

  • YTD Total Return -1.7%
  • 3 Yr Annualized Total Return -2.7%
  • 5 Yr Annualized Total Return N/A
  • Capital Gain Distribution Frequency N/A
  • Net Income Ratio N/A
DIVIDENDS
  • Dividend Yield 3.6%
  • Dividend Distribution Frequency Monthly

Fund Details

  • Legal Name
    FlexShares Disciplined Duration MBS Index Fund
  • Fund Family Name
    Flexshares Trust
  • Inception Date
    Sep 03, 2014
  • Shares Outstanding
    5050001
  • Share Class
    N/A
  • Currency
    USD
  • Domiciled Country
    US
  • Manager
    Kevin O'Shaughnessy

Fund Description

The Underlying Index is designed to reflect the performance of a selection of investment-grade US agency residential mortgage backed pass-through securities. The term “US agency mortgage-backed pass-through security” (“MBS”) refers to a category of pass-through securities backed by pools of mortgages and issued by one of the following US government agencies: the Federal National Mortgage Association (FNMA or Fannie Mae), the Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) or the Government National Mortgage Association (GNMA or Ginnie Mae) (each a “US Agency”). The Underlying Index is formed by grouping the universe of individual fixed-rate mortgage-backed securities pools into generic aggregates according to the following parameters: (i) agency; (ii) mortgage program; (iii) pass-through coupon; and (iv) origination year. These aggregates are then assessed based on certain criteria, as determined by ICE Data Indices, LLC as the Index Provider (“Index Provider” or “ICE”), to determine eligibility for inclusion in the Underlying Index. MBS that are eligible for inclusion in
the Underlying Index (a) have been issued by a US Agency, (b) have a weighted average remaining time to final stated maturity of at least one year, (c) have at least $5 billion or more of outstanding face value in the coupon for a given agency program, (d) have at least $1 billion or more of outstanding face value at the time of inclusion in the Underlying Index and at least $250 million to remain in the Index and (e) are characterized by one or more of the following fixed-rate mortgage programs: 30-year, 20-year, and 15-year maturities. The Underlying Index constituents are capitalization-weighted, based on their outstanding face value times price plus accrued interest, adjusted by the Index Provider, to achieve an effective duration that is generally between 3.25 and 4.25 years. Balloon, mobile home, graduated payment and quarter coupon fixed rate mortgages are excluded from the Underlying Index, as are all collateralized mortgage obligations.
NTI uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. Unlike many investment companies, the Fund does not try to “beat” the index it tracks and does not seek temporary defensive positions when markets decline or appear overvalued.
NTI uses a representative sampling strategy to manage the Fund. “Representative sampling” is investing in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index. The Fund reserves the right to invest in substantially all of the securities in its Underlying Index in approximately the same proportions (i.e., replication) if NTI determines that it is in the best interest of the Fund.
The Fund generally will invest under normal circumstances at least 80% of its total assets (exclusive of collateral held from securities lending) in the securities of the Underlying Index and in “TBA Transactions” (defined below) that represent securities in the Underlying Index. The Fund may also invest up to 20% of its assets in cash and cash equivalents, including shares of money market funds advised by NTI or its affiliates, futures contracts and options on futures contracts, as well as securities not included in the Underlying Index, but which NTI believes will help the Fund track its Underlying Index. Most transactions in mortgage pass-through securities occur through standard
ized contracts for future delivery in which the exact mortgage pools to be delivered are not specified until a few days prior to settlement, referred to as a “to-be announced transaction” or “TBA Transaction.” In a TBA Transaction, the buyer and seller agree upon general trade parameters such as agency, coupon rate, settlement date, par amount and price. The actual pools delivered generally are determined two days prior to the settlement date. The Fund expects to enter into such contracts on a regular basis, and pending settlement of such contracts, the Fund will invest its assets in liquid, short-term instruments, which may include shares of money market funds advised by NTI or its affiliates. The Fund will assume its pro rata share of the fees and expenses of any money market fund, in which it may invest, in addition to the Fund’s own fees and expenses.
The Underlying Index is sponsored by the Index Provider. The Index Provider is not affiliated with the Fund or NTI. The Index Provider determines the composition and relative weightings of the securities in the Underlying Index in accordance with a published methodology and disseminates information regarding the market value of the Underlying Index. The Underlying Index is rebalanced on the last calendar day of each month. The Fund generally rebalances its portfolio in accordance with the Underlying Index. As of December 31, 2023, there were 119 MBS in the Underlying Index.
The Fund may lend securities representing up to one-third of the value of the Fund’s total assets (including the value of the collateral received).
Industry Concentration Policy. The Fund will concentrate its investments (i.e., hold 25% or more of its total assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated. For purposes of this limitation, securities of the U.S. government (including its agencies and instrumentalities) are not considered to be issued by members of any industry. As of December 31, 2023, the Underlying Index was concentrated in the financial sector. The components of the Underlying Index, and the degree to which these components represent certain industries or sectors, may change over time.
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MBSD - Performance

Return Ranking - Trailing

Period MBSD Return Category Return Low Category Return High Rank in Category (%)
YTD -1.7% -4.6% 6.6% 3.54%
1 Yr 1.3% -4.4% 27.1% 3.10%
3 Yr -2.7%* -8.5% 9.3% 5.33%
5 Yr N/A* -5.9% 3.6% 14.16%
10 Yr N/A* -2.2% 3.4% 16.06%

* Annualized

Return Ranking - Calendar

Period MBSD Return Category Return Low Category Return High Rank in Category (%)
2023 0.9% -1.0% 22.1% 64.16%
2022 -12.1% -20.4% -5.8% 16.44%
2021 -3.7% -7.1% 16.6% 70.00%
2020 N/A -1.3% 8.8% 86.17%
2019 N/A 0.3% 7.1% 86.21%

Total Return Ranking - Trailing

Period MBSD Return Category Return Low Category Return High Rank in Category (%)
YTD -1.7% -4.6% 6.6% 3.54%
1 Yr 1.3% -4.4% 27.1% 3.10%
3 Yr -2.7%* -8.5% 9.3% 5.33%
5 Yr N/A* -5.9% 3.6% 12.17%
10 Yr N/A* -2.2% 3.4% N/A

* Annualized

Total Return Ranking - Calendar

Period MBSD Return Category Return Low Category Return High Rank in Category (%)
2023 4.5% -0.5% 28.8% 36.28%
2022 -9.5% -18.5% -3.3% 6.22%
2021 -1.4% -4.5% 25.3% 42.27%
2020 N/A -1.3% 13.0% 86.17%
2019 N/A 1.8% 11.3% 86.21%

MBSD - Holdings

Concentration Analysis

MBSD Category Low Category High MBSD % Rank
Net Assets 80.6 M 9.43 M 134 B 94.69%
Number of Holdings 430 18 12663 49.12%
Net Assets in Top 10 13.8 M 5.49 M 43.7 B 96.02%
Weighting of Top 10 18.12% 6.3% 115.2% 94.69%

Top 10 Holdings

  1. GNMA 2.35%
  2. UMBS 2.24%
  3. GNMA 2.20%
  4. GNMA 1.93%
  5. UMBS 1.65%
  6. UMBS 1.59%
  7. UMBS 1.56%
  8. UMBS 1.55%
  9. FHLMC 1.54%
  10. UMBS 1.51%

Asset Allocation

Weighting Return Low Return High MBSD % Rank
Bonds 		97.92% 0.08% 167.02% 74.34%
Cash 		2.08% -29.69% 22.63% 52.21%
Stocks 		0.00% 0.00% 96.75% 5.75%
Preferred Stocks 		0.00% 0.00% 0.10% 1.77%
Other 		0.00% -26.81% 18.17% 65.93%
Convertible Bonds 		0.00% 0.00% 3.29% 3.54%

Bond Sector Breakdown

Weighting Return Low Return High MBSD % Rank
Securitized 		96.12% 0.00% 99.79% 5.75%
Derivative 		0.00% -20.68% 1.69% 57.96%
Cash & Equivalents 		0.00% -29.63% 33.75% 88.94%
Corporate 		0.00% 0.00% 9.48% 32.30%
Municipal 		0.00% 0.00% 5.24% 22.12%
Government 		0.00% 0.00% 100.00% 92.48%

Bond Geographic Breakdown

Weighting Return Low Return High MBSD % Rank
US 		97.92% 0.08% 167.02% 74.34%
Non US 		0.00% 0.00% 12.01% 4.42%

MBSD - Expenses

Operational Fees

MBSD Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Expense Ratio 0.21% 0.03% 3.55% 89.78%
Management Fee 0.20% 0.00% 0.85% 13.27%
12b-1 Fee 0.00% 0.00% 1.00% 0.94%
Administrative Fee N/A 0.01% 0.45% N/A

Sales Fees

MBSD Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Front Load N/A 2.00% 4.50% N/A
Deferred Load N/A 1.00% 4.50% N/A

Trading Fees

MBSD Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Max Redemption Fee N/A 1.00% 1.00% N/A

Related Fees

Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.

MBSD Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Turnover 175.00% 3.35% 948.00% 52.11%

MBSD - Distributions

Dividend Yield Analysis

MBSD Category Low Category High MBSD % Rank
Dividend Yield 3.56% 0.00% 4.91% 42.92%

Dividend Distribution Analysis

MBSD Category Low Category High Category Mod
Dividend Distribution Frequency Monthly Monthly Monthly Monthly

Net Income Ratio Analysis

MBSD Category Low Category High MBSD % Rank
Net Income Ratio N/A -0.80% 2.96% 12.60%

Capital Gain Distribution Analysis

MBSD Category Low Category High Capital Mode
Capital Gain Distribution Frequency Annually Annually Annually

Distributions History

View More +

MBSD - Fund Manager Analysis

Managers

Kevin O'Shaughnessy

Start Date

Tenure

Tenure Rank

May 27, 2016

6.01

6.0%

Kevin is responsible for quantitatively managing and trading fixed income portfolios for Northern Trust clients. He currently manages both separately managed accounts and daily valued commingled funds. Kevin began his career with American National Bank (ANB) in 1989. He continued his role as a senior portfolio manager after Northern Trust’s purchase of ANB at the end of 1997. Prior to his current responsibilities, Kevin managed fixed income portfolios with American National Bank’s investment management subsidiary.

Michael Chico

Start Date

Tenure

Tenure Rank

Sep 29, 2020

1.67

1.7%

Michael Chico is a Vice President at the Northern Trust Investments, Inc. He is a Fixed Income Portfolio Manager in the Fixed Income group and is responsible for quantitatively managing and trading fixed income accounts for Northern Trust clients. Mike originally joined Northern Trust in 2005 as Fixed Income Securities Trader with Northern Trust Securities, Inc., where he focused on structured products, non-USD fixed income securities, MBS/ABS, and Treasury securities. Prior to joining Northern Trust, he was vice president of MBS Trading at J.P. Morgan Securities, Inc, formerly Banc One Capital Markets, Inc.Mike received his B.A. degree in Economics from the University of Pennsylvania and his M.B.A. in Finance and Economics from The University of Chicago Graduate School of Business. He is a CFA charterholder in the CFA Society of Chicago. Michael R. Chico is Vice President of NTI. Mr. Chico joined NTI in 2007 and is responsible for managing various fixed-income funds.

David Alongi

Start Date

Tenure

Tenure Rank

Jun 14, 2021

0.96

1.0%

Mr. Alongi is a Senior Vice President at NTI where he is responsible for the management and trading process for passive fixed income portfolios. Mr. Alongi joined NTI in 2000.

Tenure Analysis

Category Low Category High Category Average Category Mode
0.11 31.64 8.38 7.35

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