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FEDM - ETF AI Analysis

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FEDM

FlexShares ESG & Climate Developed Markets ex-US Core Index Fund ETF (FEDM)

Rating:67Neutral
Price Target:
FEDM’s rating suggests it is a solid, but not top-tier, ESG and climate-focused international fund, supported by strong core holdings like Novartis and AstraZeneca, which benefit from robust financial performance, positive earnings sentiment, and good long-term growth prospects. Additional strength comes from high-quality companies such as ASML, Royal Bank of Canada, and Siemens, which add stability and diversification despite some valuation and short-term technical concerns. The main risk factor is exposure to several holdings with signs of overvaluation or bearish momentum, like Schneider Electric and Siemens Energy, which can introduce volatility even though the overall portfolio remains relatively well balanced.
Positive Factors
Strong Recent Performance
The ETF has shown solid gains so far this year and over the past month, indicating positive recent momentum.
Leading Top Holdings
Several of the largest positions, including major technology, banking, and industrial companies, have delivered strong year-to-date performance that supports the fund’s returns.
Low Expense Ratio
The fund’s relatively low fee means more of the investment returns stay in investors’ pockets over time.
Negative Factors
Moderate Country Concentration
A significant portion of assets is concentrated in a few developed markets like Japan and the UK, which can increase sensitivity to economic or political issues in those countries.
Financial Sector Exposure
With a sizable allocation to financial companies, the ETF may be more affected by changes in interest rates and banking sector stress.
Some Lagging Holdings
At least one top holding has shown weak year-to-date performance, which can slightly drag on overall fund results if the weakness continues.

FEDM vs. SPDR S&P 500 ETF (SPY)

FEDM Summary

FEDM is an ETF that follows the Northern Trust ESG & Climate Developed Markets ex-US Core Index, focusing on companies in developed countries outside the U.S. that score well on environmental, social, and governance (ESG) factors and have lower carbon footprints. It holds well-known names like ASML Holding, Royal Bank of Canada, AstraZeneca, Novartis, and Siemens, and spreads investments across many countries such as Japan, the UK, France, and Canada. Someone might invest for global diversification while supporting more sustainable businesses. A key risk is that international stock prices can go up and down with global markets and currency swings.
How much will it cost me?The ETF FEDM has an expense ratio of 0.12%, which means you’ll pay $1.20 per year for every $1,000 invested. This is lower than average because it is passively managed, tracking an index rather than relying on active management strategies.
What would affect this ETF?FEDM could benefit from increasing global focus on ESG and low-carbon initiatives, as governments and corporations prioritize sustainability and climate goals. However, it may face challenges if economic conditions in developed markets ex-US weaken or if regulatory changes impact ESG-focused investments. Additionally, sector-specific risks, such as volatility in financials and technology, could influence performance.

FEDM Top 10 Holdings

FEDM leans heavily into non-U.S. blue chips, with Europe and other developed markets doing most of the heavy lifting. ASML is one of the fund’s star players, rising on strong demand for chipmaking gear, while Schneider Electric and Siemens add punch from the industrial and electrification side. Financials like Royal Bank of Canada and Canadian Bank of Commerce are also climbing, giving the fund a solid banking backbone. Shell has been more of a mixed bag lately, occasionally losing steam, but steady pharma names like AstraZeneca and Novartis help smooth out the ride.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
ASML Holding NV2.58%$1.99M€498.49B113.07%
76
Outperform
Royal Bank Of Canada1.85%$1.43M$253.78B51.12%
75
Outperform
Shell (UK)1.65%$1.27M£179.32B32.21%
73
Outperform
Commonwealth Bank of Australia1.64%$1.26MAU$297.55B7.24%
64
Neutral
Siemens1.57%$1.21M€204.52B27.59%
74
Outperform
AstraZeneca1.53%$1.18M$286.22B29.15%
80
Outperform
Novartis AG1.51%$1.16MCHF211.11B25.94%
80
Outperform
Schneider Electric1.48%$1.14M€159.22B31.46%
62
Neutral
Siemens Energy1.36%$1.05M€158.32B170.88%
72
Outperform
Enbridge1.34%$1.03M$118.45B16.08%
69
Neutral

FEDM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
60.17
Positive
100DMA
60.58
Positive
200DMA
58.44
Positive
Market Momentum
MACD
0.42
Negative
RSI
56.23
Neutral
STOCH
77.35
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FEDM, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 61.70, equal to the 50-day MA of 60.17, and equal to the 200-day MA of 58.44, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 56.23 is Neutral, neither overbought nor oversold. The STOCH value of 77.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FEDM.

FEDM Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$76.62M0.12%
67
Neutral
$320.78M0.12%
65
Neutral
$238.78M0.22%
65
Neutral
$87.09M0.48%
60
Neutral
$81.62M0.50%
63
Neutral
$79.32M0.45%
64
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FEDM
FlexShares ESG & Climate Developed Markets ex-US Core Index Fund ETF
62.29
10.37
19.97%
PABD
iShares Paris-Aligned Climate MSCI World ex USA ETF
LCTD
BlackRock World ex U.S. Carbon Transition Readiness ETF
IFGL
iShares International Developed Real Estate ETF
AGNG
Global X Aging Population ETF
WCBR
WisdomTree Cybersecurity Fund
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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