FlexShares, the Portland, ME-based ETF issuing arm of Northern Trust, has launched three dividend products for investors seeking income-generating options in this low yield environment. The products may come handy for various investors since many companies are planning last minute dividends to reduce their own tax liabilities as going over the fiscal cliff looks almost certain now.
The FlexShares Quality Dividend Index Fund (QDF) replicates the performance of the Northern Trust Quality Dividend Index (the underlying index), the benchmark designed to provide exposure to a high-quality portfolio of long-only US equity securities with a targeted overall beta that is similar to the Northern Trust 1250 Index, or the parent index.
Companies included in the index are selected based on fundamental factors such as profitability, management reputation and cash-flow history, along with other factors such as expected dividend payout amount. The underlying index for this passively-managed fund is reconstituted every quarter.




