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FEDM - ETF AI Analysis

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FEDM

FlexShares ESG & Climate Developed Markets ex-US Core Index Fund ETF (FEDM)

Rating:67Neutral
Price Target:
FEDM’s rating suggests it is a solid, but not perfect, international ESG and climate-focused fund. Strong holdings like Novartis and AstraZeneca, which show robust financial performance, positive earnings sentiment, and solid long-term prospects, help support the fund’s quality. However, positions such as Schneider Electric and Commonwealth Bank of Australia face bearish or mixed technical signals and valuation concerns, and the fund’s exposure to a range of large non-US companies means investors should be mindful of international market and sector-specific risks.
Positive Factors
Strong Overall Performance
The fund has shown solid gains so far this year and in recent months, indicating positive momentum.
Leading Holdings with Strong Returns
Several of the largest positions, including ASML and Recruit Holdings, have delivered strong performance, helping support the ETF’s results.
Broad International Diversification
The ETF spreads its investments across many developed markets outside the U.S. and across multiple sectors, which helps reduce the impact of problems in any single country or industry.
Negative Factors
Meaningful Exposure to One Country
Japan makes up a large share of the portfolio, so weakness in the Japanese market could have a noticeable effect on the fund.
Underperforming Top Holding
AstraZeneca, one of the top positions, has shown weak performance this year, which can drag on overall returns.
Moderate Size Fund
With a relatively modest asset base, the ETF may be more vulnerable to large investor inflows or outflows than bigger, more established funds.

FEDM vs. SPDR S&P 500 ETF (SPY)

FEDM Summary

FEDM is an ETF that follows the Northern Trust ESG & Climate Developed Markets ex-US Core Index, focusing on companies in developed countries outside the U.S. that score well on environmental, social, and governance (ESG) factors and aim to reduce carbon emissions. It holds well-known names like ASML Holding and Royal Bank of Canada, spread across regions such as Japan, the UK, and Europe, and across many sectors, which can help with global diversification while supporting more sustainable businesses. A key risk is that international stocks and ESG-focused companies can still go up and down with global market conditions.
How much will it cost me?The ETF FEDM has an expense ratio of 0.12%, which means you’ll pay $1.20 per year for every $1,000 invested. This is lower than average because it is passively managed, tracking an index rather than relying on active management strategies.
What would affect this ETF?FEDM could benefit from increasing global focus on ESG and low-carbon initiatives, as governments and corporations prioritize sustainability and climate goals. However, it may face challenges if economic conditions in developed markets ex-US weaken or if regulatory changes impact ESG-focused investments. Additionally, sector-specific risks, such as volatility in financials and technology, could influence performance.

FEDM Top 10 Holdings

FEDM leans heavily on non-U.S. blue chips, with Dutch chip-gear giant ASML and Japan’s Advantest acting as the main growth engines as semiconductor demand stays hot. European industrials like Siemens and Schneider Electric are also pulling their weight, giving the fund a solid backbone in automation and electrification. Big banks such as Royal Bank of Canada and BBVA add steady, if less exciting, support. On the softer side, AstraZeneca and Shell have been lagging lately, slightly braking an otherwise forward-leaning, ESG-focused portfolio across developed markets outside the U.S.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
ASML Holding NV3.33%$2.55M€608.65B161.45%
76
Outperform
Royal Bank Of Canada2.07%$1.58M$294.00B58.38%
75
Outperform
Siemens1.60%$1.22M€206.15B18.79%
74
Outperform
Novartis AG1.56%$1.20MCHF229.19B36.23%
80
Outperform
Shell (UK)1.54%$1.18M£180.31B24.06%
73
Outperform
Banco Bilbao Vizcaya Argentaria1.45%$1.11M€125.64B79.51%
76
Outperform
Schneider Electric1.41%$1.08M€151.79B12.94%
62
Neutral
Recruit Holdings Co1.40%$1.07M¥17.54T36.92%
67
Neutral
Commonwealth Bank of Australia1.38%$1.06MAU$285.02B-1.12%
64
Neutral
AstraZeneca1.36%$1.04M$259.29B19.00%
80
Outperform

FEDM Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
61.90
Positive
100DMA
60.59
Positive
200DMA
59.48
Positive
Market Momentum
MACD
0.25
Positive
RSI
48.82
Neutral
STOCH
40.82
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FEDM, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 62.56, equal to the 50-day MA of 61.90, and equal to the 200-day MA of 59.48, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 48.82 is Neutral, neither overbought nor oversold. The STOCH value of 40.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FEDM.

FEDM Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$77.46M0.12%
67
Neutral
$323.79M0.12%
65
Neutral
$281.44M0.22%
65
Neutral
$85.66M0.50%
64
Neutral
$82.11M0.48%
60
Neutral
$26.89M0.35%
59
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FEDM
FlexShares ESG & Climate Developed Markets ex-US Core Index Fund ETF
62.26
7.91
14.55%
PABD
iShares Paris-Aligned Climate MSCI World ex USA ETF
LCTD
BlackRock World ex U.S. Carbon Transition Readiness ETF
AGNG
Global X Aging Population ETF
IFGL
iShares International Developed Real Estate ETF
WISE
Themes Generative Artificial Intelligence ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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