FlexShares STOXX® Global Broad Infrastructure Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the STOXX® Global Broad Infrastructure Index (Underlying Index).
1. Identify equities that derive the majority of their revenue from infrastructure business
2. Provide market-weighted exposure to three traditional (Utilities, Transportation, and Energy) and two nontraditional (Communication and Government Outsourcing/Social) supersectors
2:16 | Investing in Global Infrastructure Through NFRA | Transcript
Infrastructure will potentially play an important role in the global economy’s future, and with FlexShares STOXX® Global Broad Infrastructure Index Fund, it can play an important part of your portfolio’s future too.
Though investment involves compensation for risk in the form of return, investors must:
This is particularly important in today’s environment, in which global markets are highly interconnected and experience more volatility in the form of price movement. Unexpected market shocks (or tail risks) are more common and change the view of normal investment distributions. The following risk solutions may complement investors' portfolios by providing a investments that seek to mitigate exposure to risk, while seeking to receive compensation for that risk.
The STOXX® Global Broad Infrastructure Index measures the performance of companies that generate a least half of their revenues from one of the following 17 sectors defined as infrastructure-specific by a propriety classification system used by STOXX®: Communication (Cable & Satellite, Data Centers, Wireless, Wireless Towers, Wireline), Energy (Energy Utilities, Midstream Energy), Government Outsourcing / Social (Correctional Facilities, Hospitals, Postal Services), Transportation (Air Transportation, Passenger Transportation, Rail Transportation, Road Transportation, Water Transportation) and Utilities (Waste Management and Water Utilities).
The universe of securities for STOXX® Global Broad Infrastructure Index encompasses all constituents of the STOXX® Global Total Market Index listed in developed or emerging markets. The companies within the index universe for the STOXX® Global Broad Infrastructure Index which derive at least 50% of their revenues from one of the 17 sectors above are screened to meet a minimum liquidity measurement and sorted by their free-float market capitalization. The index methodology limits the number of index constituents from each supersector (Communication, Energy, Government Outsourcing / Social, Transportation, Utilities). Further, a maximum number of constituents per sector within each supersector is defined.