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Is FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT) a Strong ETF Right Now?
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Making its debut on 09/16/2011, smart beta exchange traded fund FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT - Free Report) provides investors broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Managed by Flexshares, TILT has amassed assets over $1.82 billion, making it one of the larger ETFs in the Style Box - All Cap Blend. TILT, before fees and expenses, seeks to match the performance of the Morningstar U.S. Market Factor Tilt Index.
The Morningstar U.S. Market Factor Tilt Index measures the performance of U.S. equity markets with increased exposure toward small-capitalization and value stocks.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.25% for this ETF, which makes it on par with most peer products in the space.
TILT's 12-month trailing dividend yield is 1.14%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
For TILT, it has heaviest allocation in the Information Technology sector --about 26.3% of the portfolio --while Financials and Consumer Discretionary round out the top three.
When you look at individual holdings, Nvidia Corp Common Stock Usd 0.001 (NVDA) accounts for about 4.77% of the fund's total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Apple Inc Common Stock Usd 0.00001 (AAPL).
TILT's top 10 holdings account for about 25.52% of its total assets under management.
Performance and Risk
So far this year, TILT has added about 13.33%, and was up about 16.76% in the last one year (as of 09/23/2025). During this past 52-week period, the fund has traded between $181.13 and $242.86.
The fund has a beta of 1.04 and standard deviation of 16.83% for the trailing three-year period, which makes TILT a medium risk choice in this particular space. With about 1902 holdings, it effectively diversifies company-specific risk .
Alternatives
FlexShares Morningstar U.S. Market Factor Tilt ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
iShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index. iShares Core S&P Total U.S. Stock Market ETF has $77.96 billion in assets, Vanguard Total Stock Market ETF has $547.14 billion. ITOT has an expense ratio of 0.03% and VTI changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Blend
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT) a Strong ETF Right Now?
Making its debut on 09/16/2011, smart beta exchange traded fund FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT - Free Report) provides investors broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Managed by Flexshares, TILT has amassed assets over $1.82 billion, making it one of the larger ETFs in the Style Box - All Cap Blend. TILT, before fees and expenses, seeks to match the performance of the Morningstar U.S. Market Factor Tilt Index.
The Morningstar U.S. Market Factor Tilt Index measures the performance of U.S. equity markets with increased exposure toward small-capitalization and value stocks.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.25% for this ETF, which makes it on par with most peer products in the space.
TILT's 12-month trailing dividend yield is 1.14%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
For TILT, it has heaviest allocation in the Information Technology sector --about 26.3% of the portfolio --while Financials and Consumer Discretionary round out the top three.
When you look at individual holdings, Nvidia Corp Common Stock Usd 0.001 (NVDA) accounts for about 4.77% of the fund's total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Apple Inc Common Stock Usd 0.00001 (AAPL).
TILT's top 10 holdings account for about 25.52% of its total assets under management.
Performance and Risk
So far this year, TILT has added about 13.33%, and was up about 16.76% in the last one year (as of 09/23/2025). During this past 52-week period, the fund has traded between $181.13 and $242.86.
The fund has a beta of 1.04 and standard deviation of 16.83% for the trailing three-year period, which makes TILT a medium risk choice in this particular space. With about 1902 holdings, it effectively diversifies company-specific risk .
Alternatives
FlexShares Morningstar U.S. Market Factor Tilt ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
iShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index. iShares Core S&P Total U.S. Stock Market ETF has $77.96 billion in assets, Vanguard Total Stock Market ETF has $547.14 billion. ITOT has an expense ratio of 0.03% and VTI changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Blend
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.