At a glance
TLTD charges 0.39% a year, above the 0.1% average of the 8 funds most like it (the most expensive of 9). It has $670.1M in assets, the 9th largest of that group; it paid 3.31% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +14.7% with distributions reinvested (S&P 500: +11.5%), 4th of those 9 funds; over three years it returned +23.3% a year. At its worst it fell 35.1% in the 2020 crash (S&P 500: 33.7%) and 28.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 17 months after the lows. Its ten largest positions make up 7.7% of the fund, out of 2,265 in all.
The short version
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund (TLTD), from Northern Trust, holds more than 2,000 stocks from developed countries outside the US. It tilts slightly toward smaller and lower-priced companies. Its 0.39% expense ratio is the highest among the similar funds compared here, which average about 0.10%. As of October 27, 2026, its three-year annualized return ranked first in that group.
Price history
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TLTD +14.7% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| TLTD official prospectus, to Dec 31, 2025 | — | +38.59% | — | +10.65% | +8.73% | — |
| MSCI World Ex USA Index index, same period | — | +31.85% | — | +9.47% | +8.55% | — |
| MSCI World Ex USA Investable Market Index index, same period | — | +32.18% | — | +9.03% | +8.47% | — |
| Morningstar Developed Markets Ex US Factor Tilt Index index, same period | — | +39.33% | — | +10.84% | +8.84% | — |
| TLTD price data to Oct 27, 2026 | +10.0% | +14.7% | +23.3% | +10.1% | +9.5% | +8.2% |
- Over the year to Oct 27, 2026, TLTD returned +14.7%, 4th of 9 among similar funds.
- Its 5-year annualized return was +10.1% and its 10-year +9.5%.
- In the 2020 COVID crash it fell 35.1% and regained its old high 7.8 months after the low.
- Its worst full calendar year was 2018 (-17.6%); its best was 2025 (+39.7%).
- The deepest fall in its price history was 40.6% (Jan 26, 2018 to Mar 23, 2020), recovered by Jan 6, 2021.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +10.0% | — |
| 2025 | +39.7% | +38.59% |
| 2024 | +4.8% | +5.10% |
| 2023 | +17.2% | +17.56% |
| 2022 | -13.7% | -13.73% |
| 2021 | +12.9% | +12.26% |
| 2020 | +4.2% | +4.36% |
| 2019 | +21.3% | +21.50% |
| 2018 | -17.6% | -17.24% |
| 2017 | +26.2% | +25.92% |
| 2016 | +5.3% | +5.40% |
| 2015 | -1.2% | — |
| 2014 | -6.5% | — |
| 2013 | +20.9% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 35.1% over that stretch · deepest drop along the way 35.1%, back to its old high 7.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 27.3% over that stretch · deepest drop along the way 28.4%, back to its old high 16.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.9700 | |
| 2025 | $3.1900 | +19.9% |
| 2024 | $2.6600 | +15.2% |
| 2023 | $2.3100 | +39.2% |
| 2022 | $1.6600 | -33.3% |
| 2021 | $2.4900 | +85.8% |
| 2020 | $1.3400 | -40.2% |
| 2019 | $2.2400 | +28.0% |
| 2018 | $1.7500 | -6.4% |
| 2017 | $1.8700 | +13.3% |
| 2016 | $1.6500 | +17.0% |
| 2015 | $1.4100 | -21.7% |
| 2014 | $1.8000 | +150.0% |
| 2013 | $0.7200 |
What's inside
As of Jul 31, 2026, the fund held 2,265 securities; the ten largest made up 7.65% of assets.
| Holding | Weight | |
|---|---|---|
| ASML Holding NV | 1.21% | |
| HSBC Holdings plc | 1.17% | |
| Shell plc | 0.81% | |
| METROPOLITAN LIFE INSURANCE COMPANY RA | 0.75% | |
| Toyota Motor Corp. | 0.72% | |
| Banco Santander SA | 0.65% | |
| Allianz SE | 0.61% | |
| TotalEnergies SE | 0.59% | |
| Novartis AG | 0.57% | |
| Roche Holding AG | 0.56% | |
| Royal Bank of Canada | 0.54% | |
| Sumitomo Mitsui Financial Group, Inc. | 0.53% | |
| Banco Bilbao Vizcaya Argentaria SA | 0.51% | |
| AstraZeneca plc | 0.51% | |
| Mitsubishi UFJ Financial Group, Inc. | 0.47% |
By country
Japan 25.81%United Kingdom 11.36%Canada 9.33%France 7.32%Germany 6.38%By asset type
Stocks 98.11%RA 1.07%Other 0.12%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $20.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.69%, -2.24%, +3.62%.
How it works
TLTD tracks the Morningstar Developed Markets ex-US Factor Tilt Index. The index starts from a parent index, the Morningstar Developed Markets ex-US Index. The parent weights companies by float-adjusted market value, which means the value of the shares freely available to trade. Morningstar then adjusts those weights to put slightly more weight on smaller companies and on companies with lower valuations. Investors call these traits the "size" and "value" factors. As of December 31, 2025, the index held 2,759 issues.
The index replaces its members twice a year and resets its weights every quarter, and the fund follows suit. Northern Trust's adviser uses "representative sampling": it buys a sample of stocks chosen to behave like the whole index, not necessarily every stock in it. As of July 31, 2026, the fund held 2,265 holdings. The top 10 made up only 7.65% of assets, led by ASML Holding, HSBC Holdings and Shell. At least 80% of assets must be in index stocks or depositary receipts, which are certificates that represent foreign shares. Up to 20% can go into cash, futures and currency forwards. The fund may also lend out securities worth up to one-third of its assets.
The fund doesn't move to cash when markets fall. It also takes on the index's concentrations. As of December 31, 2025, that meant a focus on Japan and on the Financial sector. Japan was 25.81% of assets as of July 31, 2026.
What it really costs
- TLTD charges 0.39% a year, versus an average of 0.1% for the similar funds below (9th of 9, cheapest first).
- The fee includes a 0.02% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $40 in the first year and $516 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| TLTD | $40 | $130 | $228 | $516 |
In a retirement portfolio
It adds broad exposure to developed-market stocks outside the US, which may balance a portfolio built mainly on US shares.
TLTD spreads money across Japan, the UK, Canada and Europe, with a modest lean toward smaller and cheaper companies. It launched in 2012, so it has no record from 2008. It fell 35.1% in the 2020 COVID crash and took 7.8 months to recover. In 2022 it dropped 28.4% and took 16.5 months to recover. Its deepest drop, 40.6%, ran from January 2018 to March 2020. Its worst calendar year was 2018, at -17.24%. A retiree who had to sell shares during those stretches would have sold at a loss. The trailing 12-month yield was 3.31% as of October 27, 2026, paid quarterly. Under the SEC's standard example, $10,000 would cost about $516 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want developed-market stocks outside the US with a modest lean toward smaller and cheaper companies, not plain market-value weighting.
- People who value quarterly income: the trailing 12-month yield was 3.31% as of October 27, 2026.
- Holders comfortable with a heavy weight in Japan (about 26% of assets as of July 31, 2026) and a concentration in financial stocks.
Look elsewhere if
- Cost-focused investors: TLTD's 0.39% expense ratio compares with 0.03% for VEA and 0.06% for SCHF, which hold many of the same stocks.
- Anyone who may need to sell in a slump: TLTD fell 35.1% in early 2020 and 28.4% in 2022.
- Investors who prefer very large funds: TLTD's $670 million in net assets as of July 31, 2026 was the smallest in its comparison group.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| TLTD this fund | — | 0.39% | $670.1M | +14.7% | +23.3% |
| SCHF Schwab International Equity ETF | 49% | 0.06% | $69.68B | +17.7% | +20.4% |
| VEA Vanguard FTSE Developed Markets ETF | 47% | 0.03% | $316.42B | +16.8% | +21.7% |
| EFA iShares MSCI EAFE ETF | 44% | 0.32% | $77.98B | +13.5% | +18.2% |
| IEFA iShares Core MSCI EAFE ETF | 44% | 0.07% | $190.11B | +13.7% | +18.5% |
| VEU Vanguard FTSE All-World ex-US Index Fund | 43% | 0.04% | $95.84B | +13.4% | +20.6% |
| DFAI Dimensional International Core Equity Marke… | 43% | 0.18% | $17.47B | +16.2% | +19.9% |
| IXUS iShares Core MSCI Total International Stock… | 43% | 0.07% | $58.39B | +13.8% | +19.5% |
Questions investors ask
Does TLTD pay dividends?
Yes. TLTD pays dividends quarterly. Its trailing 12-month yield was 3.31% as of October 27, 2026. The money comes from dividends paid by the fund's more than 2,000 stocks in developed markets outside the US, such as HSBC, Shell, Toyota and Banco Santander. Payments can change from quarter to quarter because they depend on what those companies pay and on exchange rates.
What's the difference between TLTD and VEA?
Both hold developed-market stocks outside the US. About 47% of their holdings overlap. VEA weights stocks by market value. TLTD leans slightly toward smaller and lower-valued companies. VEA costs 0.03% a year and TLTD costs 0.39%. VEA's net assets were about $316 billion and TLTD's about $670 million. VEA returned 16.8% over one year and 21.7% a year over three years as of October 30, 2026. TLTD returned 14.7% and 23.3% as of October 27, 2026.
What is TLTD's expense ratio?
TLTD's expense ratio is 0.39%, according to the prospectus filed February 25, 2026. That is the highest among the nine funds compared here, which average about 0.10%. Under the SEC's standard example, with $10,000 invested and a 5% yearly return, total costs would be about $40 after one year, $130 after three, $228 after five and $516 after ten.
Is TLTD a value fund?
Not fully. TLTD has a "factor tilt": it starts from Morningstar's broad index of developed markets outside the US, then gives slightly more weight to smaller and lower-valued companies. It still held 2,265 holdings as of July 31, 2026, including large growth names like ASML. The prospectus lists value investing risk, which means cheaper stocks may stay cheap and not rise as expected.
How did TLTD do in the 2020 crash and the 2022 bear market?
TLTD fell sharply both times. It dropped 35.1% from February 19 to March 23, 2020, then took 7.8 months to recover. In 2022 it fell 28.4% from January 12 to October 12, and it didn't recover until February 27, 2024. Its full-year 2022 return was -13.73%, according to the prospectus. Its deepest drop, 40.6%, ran from January 2018 to March 2020.