FlexShares

What FlexShares does

FlexShares is an exchange-traded fund (ETF) brand sponsored and managed by Northern Trust Asset Management, a $1 trillion-AUM division of Northern Trust Corporation. Founded in 2011 and headquartered in Chicago, FlexShares offers a focused suite of passive and active fixed-income ETFs plus a single large-cap equity product, distributed through financial advisors to U.S. individual investors.

The product line centers on three pillars: a low-cost Tax-Exempt Bond Suite (TAXS, TAXI, TAXT) tracking ICE municipal bond indexes at 5 basis points; Tax-Exempt Distributing Ladder ETFs (MUNA, MUNB, MUNC, MUND) with defined maturities from 5 to 30 years at 18 basis points; and Inflation-Linked Distributing Ladder ETFs (TIPA, TIPB, TIPC, TIPD) using TIPS at 10 basis points. The FlexShares U.S. Quality Large Cap Index Fund (QLC) extends into equities with a fundamentals-tilted, mega-cap-avoidance strategy. Passive products use representative sampling against ICE indexes; active ladder products employ structured maturity schedules through terminal years. The brand is being renamed Northern Trust ETFs in 2026 and has liquidated two ESG-themed funds (FEHY in 2023, FEEM in 2024) as part of portfolio rationalization.

The business model is a classic asset management fee model: revenue is generated by charging expense ratios (5–18 bps) on assets under management, with fees standardized across share classes. Distribution operates through financial advisors, national securities exchanges for secondary trading, Authorized Participants for creation/redemption in kind, and Foreside Fund Services, LLC as the FINRA-member distributor. FlexShares employs 1–10 dedicated staff and is fully owned by Northern Trust Corporation, with no independent capital structure or external funding.

Name

FlexShares

Legal name

Northern Trust Corporation

Website

https://flexshares.com

Company type

Private

Founded year

2011

Operating status

Operating

Headcount range

1–10 employees

Short description

FlexShares is an ETF brand of Northern Trust Asset Management offering low-cost tax-exempt municipal bond, TIPS ladder, and quality large-cap equity ETFs distributed through financial advisors to U.S. individual investors.

Ownership category

akta.pro rank

Product category

Exchange-Traded Funds (Asset Management)

NAICS

Open-End Investment Funds (525910), Portfolio Management and Investment Advice (523940)

SIC

Investment Advice (6282)

akta.pro primary industry

Fixed Income ETFs (Government, Corporate, Munis, TIPS) (FSAAAFAD)

Keywords

• Exchange-traded funds
• Municipal bond ETFs
• Inflation-protected securities
• Distributing ladder ETFs
• Tax-exempt income funds

Headquarters

HQ city

Chicago

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Operations, Marketing or Sales, Personnel, Technology or R&D, Infrastructure

Revenue model

1. Management Fees / Expense Ratios: FlexShares generates revenue through management fees charged on assets under management. The expense ratios range from 5 basis points (0.05%) for the Tax-Exempt Bond Suite to 18 basis points (0.18%) for Tax-Exempt Distributing Ladders and 10 basis points (0.10%) for Inflation-Linked Distributing Ladders. These fees cover administration, operation, and management costs.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels4 records

Core offering

FlexShares is an ETF (Exchange-Traded Fund) brand sponsored and managed by Northern Trust Asset Management. The firm offers a focused suite of passive and active ETFs centered on U.S. investment-grade municipal bonds (tax-exempt income) and inflation-linked distributing ladder ETFs built on Treasury Inflation Protected Securities (TIPS), with structured maturities ranging from 5 to 30 years. Funds are SEC-registered under the Investment Company Act of 1940 and distributed via Foreside Fund Services, LLC.

Product overview

FlexShares is an ETF (Exchange Traded Fund) provider managed by Northern Trust Asset Management, offering a diversified range of passive and active ETFs. The product suite includes: Northern Trust Tax-Exempt Bond ETFs (TAXS, TAXI, TAXT) providing tax-exempt income across short-, intermediate-, and all-maturity municipal bonds at 5 basis points; Northern Trust Inflation-Linked Distributing Ladder ETFs (TIPA, TIPB, TIPC, TIPD) offering TIPS-based inflation protection over 5-30 year horizons at 10 basis points; Northern Trust Tax-Exempt Distributing Ladder ETFs (MUNA, MUNB, MUNC, MUND) providing municipal bond ladders over 5-30 year horizons at 18 basis points; and the FlexShares U.S. Quality Large Cap Index Fund (QLC) focusing on large-cap fundamentals while avoiding mega-cap concentration. The funds are registered with the SEC under the Investment Company Act of 1940 and distributed by Foreside Fund Services, LLC. Note: FlexShares will be renamed Northern Trust ETFs in 2026.

Differentiator

Problem solved

Functional benefit

Products and services

• Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS) Passively managed investment-grade municipal bond ETF offering short-term maturities of 1-5 years, seeking tax-exempt income. Tracks the ICE Short-term Focused Municipal Bond Index. Net and gross expense ratio of 5 basis points (0.05%).
• Northern Trust Intermediate Tax-Exempt Bond ETF (TAXI) Passively managed investment-grade municipal bond ETF offering intermediate term maturities of 1-15 years, seeking tax-exempt income. Tracks the ICE Intermediate Term Focused Municipal Bond Index. Net and gross expense ratio of 5 basis points (0.05%).
• Northern Trust Tax-Exempt Bond ETF (TAXT) Passively managed investment-grade municipal bond ETF with exposure to the full municipal curve, seeking tax-exempt income. Tracks the ICE All Maturity Focused Municipal Bond Index. Net and gross expense ratio of 5 basis points (0.05%).
• Northern Trust Tax-Exempt Distributing Ladder ETFs (MUNA, MUNB, MUNC, MUND) Suite of tax-exempt municipal bond ETFs with structured maturities ranging from 5 to 30 years (targeting 2030, 2035, 2045, and 2055), seeking tax-exempt income for use as bond ladder substitutes. Expense ratio of 18 basis points (0.18%).
• Northern Trust Inflation-Linked Distributing Ladder ETFs (TIPA, TIPB) Actively managed inflation-linked ETFs providing periodic inflation-linked distributions through U.S. Treasury Inflation Protected Securities (TIPS) over 5-year (TIPA, 2030) and 10-year (TIPB, 2035) time horizons using a laddered bond strategy. Expense ratio of 10 basis points (0.10%).
• Northern Trust 2045 Inflation-Linked Distributing Ladder ETF (TIPC) Actively managed ETF providing periodic inflation-linked distributions through U.S. TIPS over a twenty-year time horizon through 2045, employing a laddered bond strategy. Expense ratio of 10 basis points (0.10%).
• Northern Trust 2055 Inflation-Linked Distributing Ladder ETF (TIPD) Actively managed ETF providing periodic inflation-linked distributions through U.S. TIPS over a thirty-year time horizon through 2055, employing a laddered bond strategy. Expense ratio of 10 basis points (0.10%).
• FlexShares U.S. Quality Large Cap Index Fund (QLC) ETF designed to avoid concentration in mega-cap (Mag-7) names and focuses on fundamentals to enhance risk-adjusted returns for large-cap U.S. equity exposure.

Quantifiable outcome

• SEC Unsubsidized Yield of 3.50% for TAXT (All Maturities Tax-Exempt Bond ETF)
• +4 more outcomes

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Four partnerships are on record, tiered core.

• Northern Trust Investments, Inc.coreImplementation/ SI/ Consulting PartnerNorthern Trust Investments, Inc. is the investment advisor responsible for day-to-day portfolio management of FlexShares ETFs, creating security baskets for the daily portfolio composition file, and managing the funds' investment strategies.
• Foreside Fund Services, LLCcoreChannel Partner/ Reseller/ DistributorForeside Fund Services, LLC is an independent third-party distributor and member of FINRA that distributes FlexShares Funds. It takes orders from Authorized Participants and facilitates communication between APs and the investment advisor.
• Northern Trust Asset ManagementcoreStrategic or Co-development PartnerNorthern Trust Asset Management sponsors and manages FlexShares ETFs. It provides global investment management with $1 trillion in investor assets, combining capital markets research, portfolio construction, and risk management to deliver targeted investment outcomes. In 2026, FlexShares will be renamed Northern Trust ETFs.
• Intercontinental Exchange (ICE)coreTechnology or IntegrationICE provides the index methodology and licensing for FlexShares municipal bond ETFs. The ICE All Maturity Focused Municipal Bond Index, ICE Intermediate Term Focused Municipal Bond Index, and ICE Short-term Focused Municipal Bond Index are used as underlying indexes.

Scale indicators2 records

Recent moves9 records

Expansion highlights4 records

Broad incumbents

• iShares (BlackRock): The largest ETF sponsor globally, offering broad muni, TIPS, and core equity ETFs that directly compete with FlexShares' fixed income suite and QLC. iShares sets the competitive benchmark on expense ratios, distribution scale, and platform shelf placement.
• Vanguard ETFs: Vanguard's ETF lineup includes low-cost municipal bond and TIPS ETFs that compete head-to-head with FlexShares' TAXS/TAXI/TAXT and TIPA-D suites. Vanguard's scale and cost discipline make it the most direct price competitor.
• SPDR State Street Global Advisors: SPDR operates one of the largest ETF franchises with broad fixed income and equity exposure, including muni bond ETFs that overlap with FlexShares' core municipal product suite.
• Schwab ETFs: Schwab's low-cost municipal and core equity ETFs compete directly with FlexShares on price, and Schwab's strong advisor and direct-to-consumer platform creates a distribution overlap.
• JPMorgan ETFs: JPMorgan's broad ETF platform — including municipal bond and inflation-protected ETFs — competes for advisor wallet share with FlexShares' fixed income products.
• Goldman Sachs Asset Management ETFs: Goldman's ETF lineup spans municipal, active fixed income, and equity strategies that compete for the same advisor-led distribution channels as FlexShares.

Direct peers

• Invesco ETFs: Invesco issues a range of municipal, inflation-protected, and niche equity ETFs that overlap with FlexShares' product categories, and competes for similar advisor-led distribution.
• First Trust: First Trust is a mid-sized ETF sponsor with strong advisor relationships and niche product strategies (income, factor, thematic) that overlap with FlexShares' outcome-oriented positioning.
• WisdomTree: WisdomTree focuses on income- and outcome-oriented ETFs (including fixed income and quality equity strategies) that compete with FlexShares' laddered muni/TIPS suites and QLC.
• PIMCO ETFs: PIMCO is a fixed income specialist with a growing active ETF lineup (munis, TIPS, multisector) that competes most directly with FlexShares' Tax-Exempt and Inflation-Linked Distributing Ladder suites.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• YouTubeyoutube.com/channel/UCC42Oar0JOwVqCLyLHeGiiw
• LinkedInlinkedin.com/company/flexshares
• Xx.com/FlexSharesETFs

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about FlexShares