TILT vs. FEDM

Last updated Aug 2, 2026

TILT (FlexShares Morningstar US Market Factor Tilt Index Fund) and FEDM (FlexShares ESG & Climate Developed Markets ex-US Core Index Fund) are both exchange-traded funds - TILT is a Large Cap Blend Equities fund tracking the Morningstar US Market Factor Tilt Index, while FEDM is a Foreign Large Cap Equities fund tracking the Northern Trust ESG & Climate Developed Markets ex-US Core Index - Benchmark TR Net. Both are passively managed. Over the past 3 years, TILT returned 17.95%/yr vs 14.74%/yr for FEDM. Their 0.77 correlation means they have sometimes moved together and sometimes differently. TILT charges 0.25%/yr vs 0.12%/yr for FEDM.

Performance

TILT vs. FEDM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Morningstar US Market Factor Tilt Index Fund (TILT) and FlexShares ESG & Climate Developed Markets ex-US Core Index Fund (FEDM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TILT achieves a 11.94% return, which is significantly higher than FEDM's 11.05% return.

TILT

• 1D: 0.48%
• 1M: 0.57%
• 6M: 9.63%
• YTD: 11.94%
• 1Y: 24.72%
• 3Y*: 17.95%
• 5Y*: 11.57%
• 10Y*: 13.76%
• ALL TIME*: 14.47%

FEDM

• 1D: -0.84%
• 1M: 2.87%
• 6M: 6.92%
• YTD: 11.05%
• 1Y: 23.27%
• 3Y*: 14.74%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 8.15%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FEDM FlexShares ESG & Climate Developed Markets ex-US Core Index Fund	$27.64K	$60.01K	$69.14K
TILT FlexShares Morningstar US Market Factor Tilt Index Fund	$630.91K	$1.40M	$1.78M

TILT vs. FEDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
TILT FlexShares Morningstar US Market Factor Tilt Index Fund	11.94%	16.59%	19.88%	24.70%	-17.25%	8.35%
FEDM FlexShares ESG & Climate Developed Markets ex-US Core Index Fund	11.05%	26.85%	2.85%	17.39%	-15.25%	1.50%

Correlation

The correlation between TILT and FEDM is 0.72, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.72
Correlation (3Y) Balances recent behavior with more history.	0.73
Correlation (All Time) Calculated using the full available price history since Sep 21, 2021	0.77

The correlation between TILT and FEDM has been stable across timeframes, ranging from 0.72 to 0.77 - a consistent structural relationship.

TILT vs. FEDM - Sectors Allocation Comparison

Sectors	TILT	FEDM
Technology	29.8%	11.1%
Financial Services	16.3%	28.7%
Consumer Cyclical	10.5%	5.4%
Industrials	9.9%	16.9%
Healthcare	9.8%	9.1%
Communication Services	8.0%	3.3%
Consumer Defensive	4.6%	6.5%
Energy	3.9%	5.6%
Real Estate	2.9%	1.7%
Utilities	2.3%	3.2%
Basic Materials	2.1%	6.4%

Return for Risk

TILT vs. FEDM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

TILT

TILT Risk / Return Rank: 78
TILT Sharpe Ratio Rank: 78
TILT Sortino Ratio Rank: 77
TILT Omega Ratio Rank: 77
TILT Calmar Ratio Rank: 76
TILT Martin Ratio Rank: 84

FEDM

FEDM Risk / Return Rank: 58
FEDM Sharpe Ratio Rank: 58
FEDM Sortino Ratio Rank: 59
FEDM Omega Ratio Rank: 58
FEDM Calmar Ratio Rank: 54
FEDM Martin Ratio Rank: 59

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

TILT vs. FEDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Morningstar US Market Factor Tilt Index Fund (TILT) and FlexShares ESG & Climate Developed Markets ex-US Core Index Fund (FEDM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	TILT	FEDM	Difference
Sharpe ratio: Return per unit of total volatility	1.79	1.38	+0.41
Sortino ratio: Return per unit of downside risk	2.49	2.02	+0.46
Omega ratio: Gain probability vs. loss probability	1.32	1.25	+0.07
Calmar ratio: Return relative to maximum drawdown	2.68	1.92	+0.76
Martin ratio: Return relative to average drawdown	11.54	7.00	+4.55

TILT vs. FEDM - Sharpe Ratio Comparison

The current TILT Sharpe Ratio is 1.79, which is comparable to the FEDM Sharpe Ratio of 1.38. The chart below compares the historical Sharpe Ratios of TILT and FEDM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

TILT vs. FEDM - Drawdown Comparison

The maximum TILT drawdown since its inception was -38.46%, which is greater than FEDM's maximum drawdown of -29.37%. Use the drawdown chart below to compare losses from any high point for TILT and FEDM.

Drawdown Indicators

	TILT	FEDM	Difference
Max Drawdown Largest peak-to-trough decline	-38.46%	-29.37%	-9.09%
Max Drawdown (1Y) Largest decline over 1 year	-8.51%	-11.92%	+3.41%
Max Drawdown (3Y) Largest decline over 3 years	-19.85%	-14.24%	-5.61%
Max Drawdown (5Y) Largest decline over 5 years	-24.12%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-38.46%	—	—
Current Drawdown Current decline from peak	-0.36%	-0.84%	+0.48%
Average Drawdown Average peak-to-trough decline	-4.19%	-6.80%	+2.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.97%	3.26%	-1.29%

Volatility

TILT vs. FEDM - Volatility Comparison

The current volatility for FlexShares Morningstar US Market Factor Tilt Index Fund (TILT) is 3.08%, while FlexShares ESG & Climate Developed Markets ex-US Core Index Fund (FEDM) has a volatility of 4.25%. This indicates that TILT experiences smaller price fluctuations and is considered to be less risky than FEDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TILT	FEDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.08%	4.25%	-1.17%
Volatility (6M) Calculated over the trailing 6-month period	9.55%	13.24%	-3.69%
Volatility (1Y) Calculated over the trailing 1-year period	12.77%	16.55%	-3.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.40%	16.42%	+0.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.70%	16.42%	+2.28%

TILT vs. FEDM - Expense Ratio Comparison

TILT has a 0.25% expense ratio, which is higher than FEDM's 0.12% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

TILT vs. FEDM - Dividend Comparison

TILT's dividend yield for the trailing twelve months is around 1.07%, less than FEDM's 2.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FEDM FlexShares ESG & Climate Developed Markets ex-US Core Index Fund	2.87%	2.97%	2.94%	2.61%	2.53%	0.62%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TILT FlexShares Morningstar US Market Factor Tilt Index Fund	1.07%	1.15%	1.23%	1.44%	1.60%	1.16%	1.49%	1.54%	1.97%	1.55%	1.60%	1.98%

Frequently Asked Questions

Can I hold both TILT and FEDM in my portfolio?

TILT and FEDM have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TILT or FEDM?

FEDM has higher volatility (4.25%) compared to TILT (3.08%). In terms of maximum drawdown, TILT dropped -38.46% vs FEDM's -29.37%.

Which ETF is better, TILT or FEDM?

On 3-year performance, TILT leads with 17.95% vs 14.74% for FEDM. On fees, FEDM is cheaper at 0.12% per year. On volatility, TILT has been the lower-risk option at 3.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TILT or FEDM?

Over the 3-year period, TILT has performed better with a 17.95% return vs 14.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TILT or FEDM?

FEDM is cheaper with a 0.12% expense ratio, compared with 0.25% for TILT.

Which ETF pays a higher dividend yield, TILT or FEDM?

FEDM has the higher dividend yield at 2.87%, compared with 1.07% for TILT.

What is the main difference between TILT and FEDM?

TILT is categorized as Large Cap Blend Equities, while FEDM is Foreign Large Cap Equities. TILT tracks Morningstar US Market Factor Tilt Index, while FEDM tracks Northern Trust ESG & Climate Developed Markets ex-US Core Index - Benchmark TR Net. Their fees differ too: 0.25% for TILT and 0.12% for FEDM.

Which has better risk-adjusted returns?

TILT currently has the higher Sharpe Ratio (1.79 vs 1.38), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.