At a glance
TLTE charges 0.57% a year, above the 0.27% average of the 8 funds most like it (the 8th cheapest of 9). It has $342.5M in assets, the 8th largest of that group; it paid 3.48% of its price in distributions over the past 12 months, semiannual. Over the past year it returned +14.1% with distributions reinvested (S&P 500: +11.5%), 4th of those 9 funds; over three years it returned +20.2% a year. At its worst it fell 33.3% in the 2020 crash (S&P 500: 33.7%) and 28.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 23 months after the lows. Its ten largest positions make up 23.1% of the fund, out of 2,972 in all.
The short version
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund (TLTE), from Northern Trust, tracks a Morningstar index of emerging-market stocks that gives slightly more weight to smaller and cheaper, or "value," companies. As of July 31, 2026, its 2,972 holdings were led by Taiwan Semiconductor, Samsung Electronics and SK hynix. The tilt is the draw; the catch is cost: its 0.57% expense ratio (annual fee) is more than twice the 0.27% average of similar funds.
Price history
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TLTE +14.1% 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 | |
|---|---|---|---|---|---|---|
| TLTE official prospectus, to Dec 31, 2025 | — | +29.57% | — | +5.96% | +7.77% | — |
| MSCI Emerging Markets Index index, same period | — | +33.57% | — | +4.20% | +8.42% | — |
| MSCI Emerging Markets Investable Market Index index, same period | — | +31.38% | — | +4.67% | +8.37% | — |
| Morningstar Emerging Markets Factor Tilt Index index, same period | — | +29.82% | — | +6.88% | +8.62% | — |
| TLTE price data to Oct 27, 2026 | +13.8% | +14.1% | +20.2% | +7.0% | +7.5% | +5.3% |
- Over the year to Oct 27, 2026, TLTE returned +14.1%, 4th of 9 among similar funds.
- Its 5-year annualized return was +7.0% and its 10-year +7.5%.
- In the 2020 COVID crash it fell 33.3% and regained its old high 7.5 months after the low.
- Its worst full calendar year was 2018 (-17.4%); its best was 2017 (+32.8%).
- The deepest fall in its price history was 44.2% (Jan 26, 2018 to Mar 23, 2020), recovered by Jan 8, 2021.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +13.8% | — |
| 2025 | +30.2% | +29.57% |
| 2024 | +3.5% | +4.89% |
| 2023 | +13.6% | +12.52% |
| 2022 | -17.3% | -17.12% |
| 2021 | +4.8% | +5.39% |
| 2020 | +12.1% | +11.44% |
| 2019 | +14.5% | +14.17% |
| 2018 | -17.4% | -16.14% |
| 2017 | +32.8% | +32.37% |
| 2016 | +12.8% | +12.05% |
| 2015 | -12.3% | — |
| 2014 | -5.0% | — |
| 2013 | -2.7% | — |
| 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 33.3% over that stretch · deepest drop along the way 33.3%, back to its old high 7.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 26.8% over that stretch · deepest drop along the way 28.5%, back to its old high 23.4 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.8600 | |
| 2025 | $2.3900 | +25.8% |
| 2024 | $1.9000 | -7.3% |
| 2023 | $2.0500 | -0.5% |
| 2022 | $2.0600 | +8.4% |
| 2021 | $1.9000 | +66.7% |
| 2020 | $1.1400 | -33.7% |
| 2019 | $1.7200 | +19.4% |
| 2018 | $1.4400 | +14.3% |
| 2017 | $1.2600 | +18.9% |
| 2016 | $1.0600 | +26.2% |
| 2015 | $0.8400 | -16.0% |
| 2014 | $1.0000 | +132.6% |
| 2013 | $0.4300 |
What's inside
As of Jul 31, 2026, the fund held 2,972 securities; the ten largest made up 23.14% of assets.
| Holding | Weight | |
|---|---|---|
| Taiwan Semiconductor Manufacturing Co. Ltd. | 6.99% | |
| Samsung Electronics Co. Ltd. | 5.70% | |
| SK hynix, Inc. | 4.52% | |
| Tencent Holdings Ltd. | 1.43% | |
| Alibaba Group Holding Ltd. | 1.04% | |
| China Construction Bank Corp. | 0.77% | |
| Samsung Electronics Co. Ltd. | 0.73% | |
| CF SECURED LLC RA | 0.69% | |
| MediaTek, Inc. | 0.65% | |
| Hon Hai Precision Industry Co. Ltd. | 0.63% | |
| Industrial & Commercial Bank of China Ltd. | 0.49% | |
| SK Square Co. Ltd. | 0.41% | |
| Reliance Industries Ltd. | 0.40% | |
| Bank of China Ltd. | 0.38% | |
| Delta Electronics, Inc. | 0.37% |
By country
Taiwan 22.39%South Korea 21%China 18%India 10.25%Brazil 5.4%By asset type
Stocks 98.19%RA 0.72%Other 0%What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $7.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +6.68%, -2.08%, -3.15%.
How it works
TLTE tracks the Morningstar Emerging Markets Factor Tilt Index. The starting point is the Morningstar Emerging Markets Index, which weights companies in emerging-market countries by the market value of their shares that are available to trade. Morningstar then shifts those weights to put slightly more money in smaller companies and in companies with lower valuations. These traits are known as the "size" and "value" factors. Northern Trust Investments (NTI), the manager, believes these traits have paid off over full market cycles. As of December 31, 2025, the index had 3,779 issues, with market values from $133.6 million to $1.5 trillion.
The fund is passive. It does not try to beat the index or move to cash when markets fall. NTI uses "representative sampling": it holds a group of stocks that together behave like the index, not every stock in it. At least 80% of assets go into index stocks or depositary receipts, which are certificates traded on other exchanges that stand for foreign shares. Up to 20% can be held in cash, futures and currency forwards. Morningstar resets the index's members twice a year and rebalances its weights every quarter, and the fund follows those changes. Turnover was 30%.
The tilt is modest. As of July 31, 2026, the largest holdings were still giants: Taiwan Semiconductor Manufacturing at 7.0%, Samsung Electronics at 5.7% and SK hynix at 4.5%. The fund may also lend out securities worth up to one-third of its total assets.
What it really costs
- TLTE charges 0.57% a year, versus an average of 0.27% for the similar funds below (8th of 9, cheapest first).
- The fee includes a 0.01% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $58 in the first year and $725 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| TLTE | $58 | $185 | $323 | $725 |
In a retirement portfolio
It adds emerging-market stocks with a small-and-value tilt, but it has been volatile, it is concentrated in three markets, and it costs more than most similar funds.
TLTE could add emerging-market stocks to a portfolio built mostly on US companies, but it swings hard. It launched in September 2012, so it has no record from the 2008 crisis. In the 2020 COVID crash it fell 33.3% and recovered about 7.5 months later. In 2022 it fell 28.5% and took until September 2024 to recover, about 23 months. Its worst calendar years were 2022 (-17.12%) and 2018 (-16.14%). Its deepest decline was 44.2%, from January 2018 to March 2020. Anyone forced to sell shares during a slump like that would lock in losses.
The trailing yield was 3.48% as of October 27, 2026, paid twice a year. In the SEC's standard example, costs on $10,000 come to $58 over one year and $725 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 broad emerging-markets exposure with a slight lean toward smaller and cheaper companies, rather than a standard index weighted purely by company size.
- Fans of size and value tilts: in the five years to December 31, 2025, it returned 5.96% a year versus 4.2% for MSCI Emerging Markets.
- Investors wanting income alongside growth: the trailing yield was 3.48% as of October 27, 2026, with payouts twice a year.
Look elsewhere if
- Cost-focused investors: the 0.57% expense ratio compares with 0.09% for IEMG and 0.07% for VWO, which hold many of the same stocks.
- Anyone who can't stomach deep drops: the fund fell 44.2% from January 2018 to March 2020 and 28.5% in the 2022 bear market.
- Investors expecting the tilt to always win: over 10 years to December 31, 2025, it returned 7.77% a year, trailing MSCI Emerging Markets' 8.42%.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| TLTE this fund | — | 0.57% | $342.5M | +14.1% | +20.2% |
| EEM iShares MSCI Emerging Markets ETF | 50% | 0.72% | $31.21B | +12.7% | +20.3% |
| IEMG iShares Core MSCI Emerging Markets ETF | 49% | 0.09% | $160.90B | +11.7% | +19.8% |
| DFAE Dimensional Emerging Core Equity Market ETF | 44% | 0.35% | $9.47B | +14.5% | +22.1% |
| EMXC iShares MSCI Emerging Markets ex China ETF | 41% | 0.25% | $24.92B | +27.3% | +24.6% |
| KEMX KraneShares MSCI Emerging Markets ex China … | 36% | 0.24% | $133.7M | +35.1% | +28.3% |
| SCHE Schwab Emerging Markets Equity ETF | 35% | 0.11% | $13.00B | +4.4% | +16.7% |
| VWO Vanguard FTSE Emerging Markets ETF | 35% | 0.07% | $162.04B | +3.3% | +16.8% |
Questions investors ask
What does TLTE invest in?
TLTE holds emerging-market stocks, chosen and weighted by the Morningstar Emerging Markets Factor Tilt Index. As of July 31, 2026, it had 2,972 holdings, and the 10 largest made up 23.14% of assets. The top three were Taiwan Semiconductor Manufacturing (7.0%), Samsung Electronics (5.7%) and SK hynix (4.5%), followed by Tencent and Alibaba. By country, Taiwan was 22.4%, South Korea 21.0%, China 18.0% and India 10.3%.
Is TLTE expensive compared with other emerging markets ETFs?
Yes, compared with most of them. TLTE's expense ratio is 0.57%, against a 0.27% average for similar funds, which puts it 8th of 9 on cost. Within that group, only EEM costs more, at 0.72%. VWO charges 0.07% and IEMG 0.09%. In the SEC's standard example, $10,000 earning 5% a year would cost $58 in fees over one year, $185 over three years, $323 over five and $725 over 10.
TLTE vs IEMG: what's the difference?
Both own emerging-market stocks, and about 49% of their holdings overlap. TLTE follows a Morningstar index tilted toward smaller and lower-valued companies. IEMG, from iShares, follows an MSCI index. IEMG charges 0.09% a year, compared with 0.57% for TLTE. It is also far larger: about $161 billion in net assets as of August 31, 2026, against TLTE's $342 million as of July 31, 2026. Over one year, TLTE returned 14.1% through October 27, 2026, and IEMG returned 11.3% through October 30.
Does TLTE pay dividends?
Yes, twice a year. Over the 12 months through October 27, 2026, TLTE paid $2.50 per share, a trailing yield of 3.48%. The amount isn't fixed. It depends on dividends from the companies the fund owns, and those can rise or fall with profits. Exchange rates matter too: when emerging-market currencies weaken against the US dollar, dividends paid in those currencies are worth fewer dollars.
Has TLTE beaten the MSCI Emerging Markets Index?
The results are mixed. In the 10 years through December 31, 2025, TLTE returned 7.77% a year, compared with 8.42% for the MSCI Emerging Markets Index. Over five years it came out ahead, 5.96% a year against 4.20%. In 2025 it gained 29.57%, while the MSCI index gained 33.57%. TLTE also trailed its own Morningstar index, which returned 8.62% a year over 10 years. Part of that gap reflects fund expenses.