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Is FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT) a Strong ETF Right Now?
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Launched on 09/16/2011, the FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
TILT is managed by Flexshares, and this fund has amassed over $2.21 billion, which makes it one of the larger ETFs in the Style Box - All Cap Blend. TILT seeks to match the performance of the Morningstar U.S. Market Factor Tilt Index before fees and expenses.
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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics 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.
It has a 12-month trailing dividend yield of 1.06%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, 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 30.4% of the portfolio --while Financials and Industrials round out the top three.
Taking into account individual holdings, Nvidia Corp Common Stock Usd 0.001 (NVDA) accounts for about 4.81% of the fund's total assets, followed by Apple Inc Common Stock Usd 0.00001 (AAPL) and Microsoft Corp Common Stock Usd 0.00000625 (MSFT).
Its top 10 holdings account for approximately 24.05% of TILT's total assets under management.
Performance and Risk
Year-to-date, the FlexShares Morningstar U.S. Market Factor Tilt ETF has added roughly 11.4% so far, and is up roughly 30.26% over the last 12 months (as of 06/03/2026). TILT has traded between $215.15 $276.51 in this past 52-week period.
TILT has a beta of 1.01 and standard deviation of 15.05% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 1949 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 Index Fund ETF Shares (VTI) tracks CRSP US Total Market Index. iShares Core S&P Total U.S. Stock Market ETF has $93.88 billion in assets, Vanguard Total Stock Market Index Fund ETF Shares has $659.61 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?
Launched on 09/16/2011, the FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
TILT is managed by Flexshares, and this fund has amassed over $2.21 billion, which makes it one of the larger ETFs in the Style Box - All Cap Blend. TILT seeks to match the performance of the Morningstar U.S. Market Factor Tilt Index before fees and expenses.
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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics 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.
It has a 12-month trailing dividend yield of 1.06%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, 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 30.4% of the portfolio --while Financials and Industrials round out the top three.
Taking into account individual holdings, Nvidia Corp Common Stock Usd 0.001 (NVDA) accounts for about 4.81% of the fund's total assets, followed by Apple Inc Common Stock Usd 0.00001 (AAPL) and Microsoft Corp Common Stock Usd 0.00000625 (MSFT).
Its top 10 holdings account for approximately 24.05% of TILT's total assets under management.
Performance and Risk
Year-to-date, the FlexShares Morningstar U.S. Market Factor Tilt ETF has added roughly 11.4% so far, and is up roughly 30.26% over the last 12 months (as of 06/03/2026). TILT has traded between $215.15 $276.51 in this past 52-week period.
TILT has a beta of 1.01 and standard deviation of 15.05% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 1949 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 Index Fund ETF Shares (VTI) tracks CRSP US Total Market Index. iShares Core S&P Total U.S. Stock Market ETF has $93.88 billion in assets, Vanguard Total Stock Market Index Fund ETF Shares has $659.61 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.