FlexShares ESG & Climate High Yield Corporate Core Index Fund
FEHY
New York Stock Exchange Arca- -
USD
- -
- -
Capital Structure
FRC
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in mil. unless spec.Working Capital
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in mil. unless spec.Growth Rates
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in mil. unless spec.Quarterly Revenue
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in mil. unless spec.Quarterly Earnings Per Share
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in mil. unless spec.Quarterly Dividends Per Share
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in mil. unless spec.- Sector
- Financial Services
- Industry
- Asset Management - Bonds
- Address
- MD United States of America
- IPO Date
- Sep 20, 2021
- CIK
- 0001491978
- Similar Companies
- Business
- FlexShares ESG & Climate High Yield Corporate Core Index Fund (FEHY) is an exchange-traded fund that seeks investment results corresponding generally to the price and yield performance, before fees and expenses, of the Northern Trust ESG & Climate High Yield U.S. Corporate Core Index. The fund employs a representative sampling strategy to track its underlying index, which measures the performance of a diversified universe of high yield, U.S. dollar-denominated corporate bonds issued by companies exhibiting favorable environmental, social, and governance (ESG) characteristics; these bonds are drawn from the Northern Trust High Yield U.S. Corporate Bond Index after applying ESG exclusions such as UN Global Compact violators, tobacco, weapons, thermal coal, for-profit prisons, and unconventional oil & gas producers, followed by optimization using Northern Trust ESG Vector Scores for sustainability issues, carbon intensity from ISS ESG data, and constraints on sector, issuer, and country weights. As of mid-2023, the portfolio featured approximately 718 holdings with a weighted average maturity of 6.25 years, weighted average effective duration of 3.81 years, and weighted average option adjusted spread of 410.77 basis points; top sectors included industrials (30.72%), consumer (29.32%), and technology, telecomm & media (14.60%), with primary country exposure to the United States (86.31%), followed by Canada (4.20%) and others. The fund targets investors seeking high yield exposure integrated with ESG and climate considerations, primarily through U.S.-listed shares traded on NYSE Arca. Northern Trust Investments, Inc. (NTI), a subsidiary of Northern Trust Asset Management, serves as the adviser and index provider, with FlexShares Trust established in 2010 and headquartered at 50 South La Salle Street, Chicago, Illinois; FEHY itself was launched on September 20, 2021. The fund maintains a net expense ratio of 0.23% following NTI's contractual fee reimbursements through March 1, 2024, and as of June 30, 2023, managed net assets of approximately $2.02 million across 50,000 shares outstanding. FEHY formed part of a suite of four ESG & climate-focused ETFs launched by FlexShares in September 2021, representing a strategic expansion into sustainable fixed income products amid growing demand for ESG-integrated high yield strategies; the underlying index itself had an inception date of July 30, 2021. No major acquisitions, partnerships, funding rounds, name changes, or new product launches specific to FEHY have been announced in the last 1-2 years, with ongoing monthly index reconstitutions to manage turnover at approximately 10% and maintain ESG alignment. The fund continues to operate passively without defensive positioning, focusing on tracking amid high yield market volatility and LIBOR transition risks completed in 2023.