The FlexShares TILT ETF offers a unique investment strategy focusing on small-cap and value stocks
Smart beta ETFs like TILT aim to outperform traditional market cap-weighted funds. While many investors stick to the conventional approach, some believe they can do better with smart stock selection. TILT is one of those options, tracking a unique index that emphasizes certain stock characteristics.
Managed by FlexShares, TILT has over $1.70 billion in assets. It aims to match the performance of the Morningstar U.S. Market Factor Tilt Index, which targets U.S. equities with a tilt towards smaller and value stocks.
When it comes to costs, TILT has an expense ratio of 0.25%, which is pretty standard for its category. It also offers a 12-month trailing dividend yield of 1.24%, making it a decent choice for income-seeking investors.
In terms of sector exposure, TILT has a significant chunk in Information Technology, around 24.40%. Its top holdings include big names like Apple, Nvidia, and Microsoft, which together make up a good portion of the fund.
This year, TILT has seen a slight dip of about -0.89%, but it’s up around 19.29% over the past year. It’s considered a medium-risk option with a beta of 1.09, which means it’s a bit more volatile than the market.
If you’re looking for alternatives, there are other ETFs like the iShares Core S&P Total U.S. Stock Market ETF and the Vanguard Total Stock Market ETF. Both have lower expense ratios and might be worth considering if you want to keep costs down.
In summary, TILT is a solid choice for those wanting to explore the small-cap and value stock space. If you’re curious about more ETFs, check out resources that align with your investment goals.
