Key stats
About FlexShares Trust FlexShares Credit-Scored US Long Corporate Bond Index Fund
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Inception date
Sep 23, 2015
Structure
Open-Ended Fund
Distributes
Capital Gains
Max ST capital gains rate
39.60%
Max LT capital gains rate
20.00%
Tax on distributions
Ordinary income
LKOR passively invests in USD-denominated long-term corporate bonds selected for value characteristics. The objective is to potentially deliver a higher total return than the broader US corporate bond market. The portfolio is optimized based on a proprietary Composite Alpha calculation, which combines quality and value scores, and effective duration. The quality score is a quantitative ranking that focuses on corporate finance, profitability measures, and financial solvency. The value score is a quantitative measure including market and fundamental valuations, including issuer default risk. The index excludes bonds ranking in the lowest quintile of non-financial sectors of the Composite Alpha score. At the monthly reconstitution, LKORs sector exposure and effective duration is adjusted to be similar to its parent index. Individual issuer exposure is capped at 3.0%. Prior to May 1, 2020, LKOR follows the Northern Trust Credit-Scored U.S. Long Corporate Bond Index.
Classification
What's in the fund
Exposure type
Corporate
Bonds, Cash & Other100.00%
Corporate99.67%
Government0.29%
Structured0.04%
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