Everyone Missed Morningstar's ETF Quietly Beating the S&P 500 by 30%

"TILT fits best as a replacement for traditional market-cap-weighted funds like Vanguard Total Stock Market ETF (NYSEARCA:VTI) or SPDR S&P 500 ETF Trust (NYSE:SPY) when you want exposure to the entire U.S. equity market but with a tilt toward quality and momentum factors. The fund holds over 150 positions spanning all eleven sectors, providing the diversification of a total market fund while applying a smarter weighting system based on company fundamentals rather than just size."

"The portfolio charges 0.15% annually, competitive for a factor-tilted strategy that systematically favors companies with strong fundamentals. By weighting toward businesses with robust cash flows and recent price strength while reducing exposure to struggling firms, the fund delivers a smarter market exposure. The strategy maintains reasonable tax efficiency through disciplined rebalancing. TILT's factor-tilted approach has meaningfully outperformed traditional benchmarks over the long term, with the strategy's quality and momentum focus consistently adding value."

FlexShares Morningstar US Market Factor Tilt Index Fund (TILT) provides diversified exposure to the entire U.S. equity market while tilting weights toward companies with stronger balance sheets, higher profitability, and positive momentum. The fund holds over 150 positions across all eleven sectors and replaces traditional market-cap-weighted funds by using fundamentals-based weights instead of size. The strategy charges 0.15% annually and emphasizes firms with robust cash flows and recent price strength while reducing exposure to struggling companies. Disciplined rebalancing preserves reasonable tax efficiency. Over the past decade, TILT has generated 300.67% total returns versus SPY's 271.83%, reflecting its quality-and-momentum bias.

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