FlexShares US Quality Large Cap Index Fund [QLC]

QLC focuses on stocks that have certain quality, value, and momentum characteristics. Northern Trusts index defines quality firms as those exhibiting financial strength and stability relative to the broader universe of eligible securities. The funds selection universe consists of the largest 600 stocks in the Northern Trust 1250 Index. Selected constituents are weighted by a mix of value, momentum and quality measurements. Quality metrics consist of management expertise (e.g. corporate finance activities), profitability (e.g. assess the reliability and the sustainability of financial performance), and cash flow (e.g. cash flow generation). Additionally, QLC applies sector, style and security level constraints in order to manage its risk profile. The Index is reconstituted quarterly starting each February.