(TLTD) Morningstar Developed - Overview

The FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund (TLTD) seeks to track a float-adjusted, market-cap weighted index of large-cap companies in developed markets outside the United States, but with a systematic tilt toward size (small-cap) and value characteristics relative to the parent index. The fund is required to hold at least 80 % of its assets in the underlying securities, including ADRs and GDRs that represent those securities.

As of the most recent quarter (Q4 2025), TLTD reported an expense ratio of 0.45 % and total assets of roughly $1.2 billion. The fund’s factor exposure is quantified at +12 % to the size factor and +9 % to the value factor, compared with a neutral baseline of 0 % for the reference index. Sector allocations are weighted toward financials (≈22 % of assets) and industrials (≈18 %), reflecting the broader market composition of Europe and Japan, while information technology exposure remains modest at ≈9 %.

Key macro drivers that could influence TLTD’s performance include the European Central Bank’s monetary-policy stance (policy rates held at 3.75 % as of Jan 2026) and the pace of GDP growth in the Eurozone (Q4 2025 annualized growth at 1.2 %). A slowdown in European consumer confidence or a resurgence of geopolitical risk in the region would likely depress the value tilt, whereas a shift toward tighter monetary conditions could amplify the size premium by reducing liquidity for smaller firms.

For a deeper, data-driven assessment of TLTD’s factor dynamics and risk profile, you might find the analytics on ValueRay worth exploring.