The FlexShares TLTE ETF offers exposure to emerging markets with a focus on small-cap and value stocks, but is it the right choice for you?
New York: The FlexShares Morningstar Emerging Markets Factor Tilt ETF, or TLTE, is designed to give investors broad exposure to emerging markets. Launched in 2012, it’s a smart beta ETF, which means it doesn’t just follow market cap-weighted indexes like many other funds.
Smart beta ETFs are for those who want to go beyond traditional investing. Instead of just tracking the market, they focus on specific strategies to potentially outperform it. TLTE aims to pick stocks based on certain characteristics, like size and value, which can lead to better risk-return performance.
Managed by FlexShares, TLTE has around $237.91 million in assets. It tracks the Morningstar Emerging Markets Factor Tilt Index, which includes a mix of equity securities with a tilt towards small-cap and value stocks.
When it comes to costs, TLTE has an expense ratio of 0.57%, which is pretty standard for this type of fund. Plus, it offers a decent dividend yield of 3.76% over the past year.
Before investing, it’s smart to check out the fund’s holdings. For instance, Taiwan Semiconductor Manufacturing is a major player in the fund, making up about 4.73% of its assets. The top ten holdings together account for around 14.48% of the total assets.
As for performance, TLTE has seen a slight dip of about -0.73% this year, but it’s up roughly 4.33% over the last year. It’s traded between $48.60 and $58.58 in the past 52 weeks, showing some volatility.
With a beta of 0.76, TLTE is considered a medium-risk option, and it holds around 2956 stocks, which helps spread out risk.
If you’re looking for alternatives, there are other ETFs like the iShares Core MSCI Emerging Markets ETF and the Vanguard FTSE Emerging Markets ETF that might be worth considering. They have lower expense ratios and larger asset bases.
In the end, TLTE could be a solid choice for those wanting to tap into emerging markets, but it’s always good to compare with other options to find what fits your investment goals best.
