About FlexShares High Yield Value-Scored Bond Index Fund (HYGV)

FlexShares High Yield Value-Scored Bond Index Fund (HYGV) is an exchange-traded fund (ETF) that seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust High Yield Value-Scored US Corporate Bond Index (the Index). The Index is designed to reflect the performance of a selection of high yield corporate bonds with higher value exposures. HYGV utilizes a unique investment approach that combines traditional credit analysis with a value scoring model to identify high yield corporate bonds that exhibit attractive valuations. By targeting high yield bonds with strong fundamentals and attractive valuation multiples, HYGV aims to potentially enhance risk-adjusted returns for investors.

HYGV's investment strategy is focused on selecting bonds that are both high yield and undervalued. The fund's investment process begins with a universe of high yield corporate bonds and ranks them according to various value factors, such as book value to market value ratio and cash flow to total debt ratio. The top-ranked bonds are then included in the fund's portfolio. This value-driven approach allows HYGV to potentially capture higher income and capital appreciation opportunities within the high yield bond market. Furthermore, the fund's portfolio is diversified across multiple sectors to manage risk and provide broad exposure to different segments of the high yield bond market.