FlexShares Quality Dividend Defensive Index Fund(AMEX:QDEF)

QDEF approaches the total market segment with a high-dividend/low-volatility strategy. The index initially removes non-dividend payers and lowest-scoring securities in terms of quality from its parent index, the Northern Trust 1250 Index. Quality is scored using a proprietary methodology based on management efficiency, dividend policy, profitability, and cash flow. The remaining securities are selected and weighted using an optimization process that aims to maximize the overall quality score, attain a higher dividend yield, and achieve a lower beta (0.5 to 1x) relative to the parent index. Caps on individual securities, sectors, and industries are employed to manage diversification. The fund is rebalanced on a quarterly basis.