FEDM - ETF AI Analysis

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

Rating:67Neutral

Price Target:―

FEDM, the FlexShares ESG & Climate Developed Markets ex-US Core Index Fund ETF, earns a solid overall rating driven largely by high-quality global leaders like Novartis and AstraZeneca, which bring strong financial performance, positive earnings outlooks, and solid long-term potential. Other major holdings such as ASML, Hitachi, and Royal Bank of Canada further support the fund with robust balance sheets and growth prospects, though some positions like Schneider Electric and Commonwealth Bank of Australia face bearish technical trends or valuation and leverage concerns, which slightly weigh on the fund’s appeal. Investors should also note that several holdings show signs of being expensive or overbought, which can add short-term volatility risk.

Positive Factors

Broad International Diversification

The fund spreads its investments across many developed countries outside the U.S., which helps reduce the impact of problems in any single market.

Balanced Sector Mix

Holdings are spread across financials, industrials, technology, health care, and other sectors, helping avoid heavy dependence on just one industry.

Low Expense Ratio

The fund charges a relatively low management fee, which helps investors keep more of their returns over time.

Negative Factors

Heavy Tilt Toward Financials

Financial stocks make up a large share of the portfolio, so the fund could be more affected if that sector struggles.

Mixed Performance Among Top Holdings

While some leading positions have shown strong gains, several others have been weak or lagging, which can drag on overall results.

Limited U.S. Market Exposure

Because the fund focuses on developed markets outside the U.S., investors relying on it alone may miss out on parts of the U.S. market’s performance.

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

AUM80.44M

RegionDeveloped Markets

Expense Ratio0.12%

Beta0.66

IssuerFlexShares

Inception DateSep 20, 2021

Dividend Yield2.77%

Asset ClassEquity

Index TrackedNorthern Trust ESG & Climate Developed Markets ex-US Core Index - Benchmark TR Net

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume403

30 Day Avg. Volume1,473

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

69.81

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering219

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FEDM Summary

FEDM is an ETF that tracks 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 aim to reduce carbon emissions. It holds well-known names like ASML Holding and Royal Bank of Canada, and spreads investments across sectors such as financials, industrials, and technology. Someone might invest for global diversification while supporting more sustainable businesses. A key risk is that international and ESG-focused stocks can go up and down in value and may lag the broader market at times.

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. developed markets, with Europe and Japan doing much of the heavy lifting. ASML is the clear engine here, rising on strong demand for chipmaking gear and giving the fund a tech-powered boost. Industrial names like Siemens and Hitachi are also pulling their weight, keeping performance steady in the core of the portfolio. On the other side, SAP and Schneider Electric have been lagging, while big banks like Commonwealth Bank of Australia and Royal Bank of Canada are losing a bit of steam, tempering the fund’s otherwise solid ESG-tilted story.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
ASML	ASML Holding NV	2.54%	$2.01M	€454.71B	63.98%	76 Outperform
RY	Royal Bank Of Canada	1.72%	$1.37M	$237.07B	42.36%	75 Outperform
AZN	AstraZeneca	1.67%	$1.33M	$319.11B	29.06%	80 Outperform
NOVN	Novartis AG	1.64%	$1.30M	CHF238.17B	30.71%	80 Outperform
CBA	Commonwealth Bank of Australia	1.63%	$1.29M	AU$294.57B	8.07%	64 Neutral
SIE	Siemens	1.59%	$1.26M	€195.89B	10.40%	74 Outperform
SU	Schneider Electric	1.52%	$1.21M	€148.07B	6.05%	62 Neutral
SHEL	Shell (UK)	1.40%	$1.11M	£162.38B	6.90%	73 Outperform
6501	Hitachi,Ltd.	1.37%	$1.09M	¥23.80T	32.34%	77 Outperform
SAP	SAP SE	1.36%	$1.08M	€195.52B	-38.52%	66 Neutral

FEDM Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

60.34

Positive

100DMA

58.75

Positive

200DMA

56.52

Positive

Market Momentum

MACD

0.87

Negative

RSI

63.94

Neutral

STOCH

85.32

Negative

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 61.89, equal to the 50-day MA of 60.34, and equal to the 200-day MA of 56.52, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 63.94 is Neutral, neither overbought nor oversold. The STOCH value of 85.32 is Negative, 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
FEDM	―	―	$80.44M	0.12%	―
PABD	―	―	$303.89M	0.12%	―
LCTD	―	―	$242.05M	0.22%	―
IFGL	―	―	$93.05M	0.48%	―
AGNG	―	―	$86.63M	0.50%	―
WCBR	―	―	$82.23M	0.45%	―

Performance Comparison

FEDM

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

63.26

13.20

26.37%

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.

Disclaimer

This 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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