The FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund is designed to mirror the financial performance—specifically the price changes and income generated—of the Morningstar Developed Markets ex-US Factor Tilt Hedged IndexSM, before any management fees or operational costs are deducted. The underlying index focuses on a curated selection of companies that collectively display a more significant inclination towards "size" (e.g., smaller market capitalization) and "value" (e.g., undervalued assets) investment characteristics when compared to the standard Morningstar Developed Markets ex-US Index. A key feature of this index is its monthly strategy to neutralize the currency fluctuation risk of its foreign holdings relative to the U.S. dollar. To achieve its objective, the fund allocates at least 80% of its entire asset base to the direct securities of the index, or to American and Global Depositary Receipts (ADRs and GDRs) that represent these same securities. Investors should be aware that this fund is classified as non-diversified.