A Closer Look at TILT’s Vast Portfolio



Vast portfolio

The FlexShares Morningstar U.S. Market Factor Tilt Index Fund (TILT) manages one of the largest portfolios in the market. As of November 16, 2015, the fund manages a total portfolio of 2,195 stocks distributed mostly in financials, information technology, and industrials. The current assets under management (or AUM) are $761.5 million. The fund seeks to replicate the investment results of the Morningstar US Market Factor Tilt Index. The ETF has an expense ratio of 0.27%, which is lower than the smart beta industry average of 0.38%. TILT’s detailed sector allocation breakdown is provided in the chart below.

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Moving averages and earnings

TILT’s top holdings include stocks such as Microsoft (MSFT), J.P. Morgan Chase (JPM), Apple (AAPL), and General Electric (GE).

The financial sector, which is the highest-weighted sector for TILT, is trading below its 20-day and 100-day moving averages but above its 100-day moving average due to its low earnings, missing analyst estimates by 1.0% for 3Q15. The financial sector constitutes about 20% of TILT’s portfolio

TILT’s other major component, the information technology sector, is trading below its 20-day average but above its 50-day and 100-day moving averages.

In the next part of this series, we’ll study the effect of adding TILT to a portfolio.


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