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A Closer Look at TILT’s Vast Portfolio

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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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