FlexShares Trust NCSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-22555

FlexShares Trust

(Exact name of registrant as specified in charter)

50 South LaSalle Street

Chicago, Illinois 60603

(Address of principal executive offices) (Zip code)

Jose Del Real, Esq.

Northern Trust Investments, Inc.

50 South LaSalle Street

Chicago, Illinois 60603

(Name and Address of Agent for Service)

with a copy to:

Himanshu Surti

Northern Trust Investments, Inc.

50 South LaSalle Street

Chicago, Illinois 60603

(Name and Address of Agent for Service)

Registrant’s telephone number, including area code: 855-353-9383

Date of fiscal year end: October 31

Date of reporting period: April 30, 2021

Item 1. Reports to Stockholders.

a.) The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).

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FlexShares^® Trust

Semiannual Report

April 30, 2021

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Table of Contents



Statements of Assets and Liabilities			2

Statements of Operations			9

Statements of Changes in Net Assets			16

Financial Highlights			30

Schedules of Investments			56

FlexShares^®US Quality Low Volatility Index Fund			56

FlexShares^®Developed Markets ex-US Quality Low Volatility Index Fund			59

FlexShares^®Emerging Markets Quality Low Volatility Index Fund			65

FlexShares^®Morningstar US Market Factor Tilt Index Fund			70

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund			104

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund			145

FlexShares^® US Quality Large Cap Index Fund			187

FlexShares^® STOXX^® US ESG Select Index Fund (formerly known as FlexShares^® STOXX^® US ESG Impact Index Fund)			192

FlexShares^® STOXX^® Global ESG Select Index Fund (formerly known as FlexShares^® STOXX^® Global ESG Impact Index Fund)			199

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund			213

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund			220

FlexShares^® Global Quality Real Estate Index Fund			227

FlexShares^® Real Assets Allocation Index Fund			232

FlexShares^® Quality Dividend Index Fund			233

FlexShares^® Quality Dividend Defensive Index Fund			238

FlexShares^® Quality Dividend Dynamic Index Fund			243

FlexShares^® International Quality Dividend Index Fund			248

FlexShares^® International Quality Dividend Defensive Index Fund			256

FlexShares^® International Quality Dividend Dynamic Index Fund			263

FlexShares^® iBoxx 3-Year Target Duration TIPS Index Fund			271

FlexShares^® iBoxx 5-Year Target Duration TIPS Index Fund			272

FlexShares^® Disciplined Duration MBS Index Fund			274

FlexShares^® Credit-Scored US Corporate Bond Index Fund			279

FlexShares^® Credit-Scored US Long Corporate Bond Index Fund			296

FlexShares^® High Yield Value-Scored Bond Index Fund			305

FlexShares^® Ready Access Variable Income Fund			323

FlexShares^® Core Select Bond Fund			334

Notes to the Financial Statements			336

Fund Expenses			378

Liquidity Risk Management Program			382

Supplemental Information			383

For More Information			396

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FlexShares^® Trust

Statements of Assets and Liabilities April 30, 2021 (Unaudited)


	FlexShares^® US Quality Low Volatility Index Fund		FlexShares^® Developed Markets ex-US Quality Low Volatility Index Fund		FlexShares^® Emerging Markets Quality Low Volatility Index Fund		FlexShares^® Morningstar US Market Factor Tilt Index Fund

ASSETS
Securities, at cost	$	123,131,940	$	78,264,310	$	14,593,991	$	895,894,724
Affiliate securities, at cost		—		—		—		564,869
Securities Lending Reinvestments, at cost		—		2,693,457		—		115,578,812

Securities, at value†		144,285,726		85,820,241		16,364,258		1,651,089,390
Affiliate securities, at value		—		—		—		864,880
Securities Lending Reinvestments, at value		—		2,693,457		—		115,582,271
Cash		743,243		309,905		129,092		14,363,438
Cash segregated at broker*		3,457		46,317		17,510		373,705
Foreign cash††		—		298,750		16,477		—
Restricted cash**		—		—		58,942		—
Due from Authorized Participant		—		—		—		—
Unrealized appreciation on forward foreign currency contracts		—		7,426		374		—
Receivables:
Dividends and interest		122,117		443,759		21,135		954,406
Securities lending income		—		1,707		—		20,637
Capital shares issued		—		—		—		—
Investment adviser		557		374		52		6,581
Securities sold		—		—		—		—
Variation margin on futures contracts		39,871		16,298		116		480,796

Total Assets		145,194,971		89,638,234		16,607,956		1,783,736,104


LIABILITIES
Unrealized depreciation on forward foreign currency contracts		—		8,122		16		—
Due to brokers		49,128		—		—		—
Payables:
Cash collateral received from securities loaned		—		2,693,459		—		115,578,792
Deferred compensation (Note 7)		3,960		2,373		397		131,296
Investment advisory fees (Note 4)		25,972		22,846		5,224		333,191
Trustee fees (Note 7)		1,629		1,052		159		21,345
Securities purchased		—		—		—		—
Deferred non-US capital gains taxes		—		—		30,771		—
Due to Authorized Participant		—		—		58,942		—
Variation margin on futures contracts		—		—		—		—
Capital shares redeemed		—		—		—		—
Other		4,200		9,000		8,000		12,000

Total Liabilities		84,889		2,736,852		103,509		116,076,624

Net Assets	$	145,110,082	$	86,901,382	$	16,504,447	$	1,667,659,480


NET ASSETS CONSIST OF:
Paid-in capital	$	121,083,802	$	79,135,308	$	15,170,848	$	955,495,545
Distributable earnings (loss)		24,026,280		7,766,074		1,333,599		712,163,935

Net Assets	$	145,110,082	$	86,901,382	$	16,504,447	$	1,667,659,480


Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)		2,950,001		3,200,001		600,001		10,000,001
Net Asset Value	$	49.19	$	27.16	$	27.51	$	166.77

† Securities on loan, at value	$	—	$	4,037,422	$	—	$	152,977,337
†† Cost of foreign cash	$	—	$	295,781	$	16,363	$	—

*	Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30.

**	Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units.

See Accompanying Notes to the Financial Statements.


2		FLEXSHARES SEMIANNUAL REPORT

Statements of Assets and Liabilities (cont.)


	FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund		FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund		FlexShares^® US Quality Large Cap Index Fund		FlexShares^® STOXX^® US ESG Select Index Fund

ASSETS
Securities, at cost	$	484,274,917	$	243,433,738	$	69,814,232	$	142,973,220
Affiliate securities, at cost		—		—		—		—
Securities Lending Reinvestments, at cost		18,370,885		2,462,892		263,694		57,104

Securities, at value†		617,689,622		332,668,145		94,060,732		176,634,790
Affiliate securities, at value		—		—		—		—
Securities Lending Reinvestments, at value		18,370,885		2,462,892		263,694		57,104
Cash		2,619,909		674,002		639,735		1,602,237
Cash segregated at broker*		972,240		355,657		43,555		150,741
Foreign cash††		8,762,028		2,067,259		—		—
Restricted cash**		—		—		—		—
Due from Authorized Participant		—		—		—		—
Unrealized appreciation on forward foreign currency contracts		43,535		8,464		—		—
Receivables:
Dividends and interest		4,852,464		517,294		85,127		170,728
Securities lending income		43,557		24,281		445		290
Capital shares issued		—		—		—		2,551,627
Investment adviser		2,354		1,002		379		859
Securities sold		—		—		—		—
Variation margin on futures contracts		389,500		—		38,788		85,647

Total Assets		653,746,094		338,778,996		95,132,455		181,254,023


LIABILITIES
Unrealized depreciation on forward foreign currency contracts		53,418		23,130		—		—
Payables:
Cash collateral received from securities loaned		18,370,885		2,462,892		263,694		57,104
Deferred compensation (Note 7)		80,588		40,176		4,552		4,975
Investment advisory fees (Note 4)		202,474		151,293		25,188		46,877
Trustee fees (Note 7)		9,792		4,294		1,211		1,860
Securities purchased		—		3		—		2,521,572
Deferred non-US capital gains taxes		—		861		—		—
Due to Authorized Participant		—		—		—		—
Variation margin on futures contracts		—		10,524		—		—
Capital shares redeemed		—		—		—		—
Other		60,000		75,000		6,500		7,700

Total Liabilities		18,777,157		2,768,173		301,145		2,640,088

Net Assets	$	634,968,937	$	336,010,823	$	94,831,310	$	178,613,935


NET ASSETS CONSIST OF:
Paid-in capital	$	609,467,143	$	318,315,263	$	71,479,286	$	133,179,532
Distributable earnings (loss)		25,501,794		17,695,560		23,352,024		45,434,403

Net Assets	$	634,968,937	$	336,010,823	$	94,831,310	$	178,613,935


Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)		8,800,001		5,300,001		2,075,001		1,750,001
Net Asset Value	$	72.16	$	63.40	$	45.70	$	102.07

† Securities on loan, at value	$	60,720,569	$	13,947,664	$	3,999,717	$	3,033,560
†† Cost of foreign cash	$	8,613,398	$	2,060,700	$	—	$	—

*	Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30.

**	Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			3

Statements of Assets and Liabilities (cont.)


	FlexShares^® STOXX^® Global ESG Select Index Fund		FlexShares^® Morningstar Global Upstream Natural Resources Index Fund			FlexShares^® STOXX^® Global Broad Infrastructure Index Fund		FlexShares^® Global Quality Real Estate Index Fund

ASSETS
Securities, at cost	$	121,457,437	$	4,111,739,406		$	2,134,286,524	$	309,965,609
Affiliate securities, at cost		—		—			—		—
Securities Lending Reinvestments, at cost		3,005,671		36,663,555			15,057,745		10,941,163

Securities, at value†		167,504,958		5,093,317,156			2,606,955,936		358,577,366
Affiliate securities, at value		—		—			—		—
Securities Lending Reinvestments, at value		3,005,671		36,666,781			15,057,745		10,941,163
Cash		2,072,410		14,074,053			11,326,404		3,366,869
Cash segregated at broker*		72,682		3,818,514			1,152,603		634,183
Foreign cash††		391,226		22,614,720			7,214,156		1,824,119
Restricted cash**		—		1,609,602			36,159		—
Due from Authorized Participant		—		491,217			13,756,173		—
Unrealized appreciation on forward foreign currency contracts		792		334,480			91,073		3,641
Receivables:
Dividends and interest		390,981		10,054,421			5,916,957		582,833
Securities lending income		1,219		44,931			38,816		4,556
Capital shares issued		—		26,397,959			—		—
Investment adviser		639		18,409			9,480		872
Securities sold		—		185			—		—
Variation margin on futures contracts		115,824		1,019,433			605,984		132,153

Total Assets		173,556,402		5,210,461,861			2,662,161,486		376,067,755


LIABILITIES
Unrealized depreciation on forward foreign currency contracts		707		387,889			44,841		11,755
Payables:
Cash collateral received from securities loaned		3,005,671		36,663,531			15,057,745		10,941,163
Deferred compensation (Note 7)		6,419		464,032			122,433		24,450
Investment advisory fees (Note 4)		58,371		1,873,543			981,305		121,185
Trustee fees (Note 7)		1,978		57,382			32,290		4,766
Securities purchased		—		26,276,231			14,232,367		—
Deferred non-US capital gains taxes		—		541,955			1,325,110		—
Due to Authorized Participant		—		1,609,602			36,159		—
Variation margin on futures contracts		—		—			—		—
Capital shares redeemed		—		—			—		—
Other		43,000		105,000			66,000		20,000

Total Liabilities		3,116,146		67,979,165			31,898,250		11,123,319

Net Assets	$	170,440,256	$	5,142,482,696		$	2,630,263,236	$	364,944,436


NET ASSETS CONSIST OF:
Paid-in capital	$	125,220,748	$	5,204,600,842		$	2,271,481,277	$	346,337,530
Distributable earnings (loss)		45,219,508		(62,118,146	)		358,781,959		18,606,906

Net Assets	$	170,440,256	$	5,142,482,696		$	2,630,263,236	$	364,944,436


Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)		1,250,001		136,400,001			45,500,001		5,650,001
Net Asset Value	$	136.35	$	37.70		$	57.81	$	64.59

† Securities on loan, at value	$	4,528,506	$	126,528,187		$	148,101,015	$	34,686,748
†† Cost of foreign cash	$	374,007	$	22,399,789		$	7,086,581	$	1,807,582

*	Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30.

**	Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units.

See Accompanying Notes to the Financial Statements.


4		FLEXSHARES SEMIANNUAL REPORT

Statements of Assets and Liabilities (cont.)


	FlexShares^® Real Assets Allocation Index Fund		FlexShares^® Quality Dividend Index Fund		FlexShares^® Quality Dividend Defensive Index Fund		FlexShares^® Quality Dividend Dynamic Index Fund

ASSETS
Securities, at cost	$	—	$	1,150,456,323	$	371,357,325	$	15,164,904
Affiliate securities, at cost		6,527,022		—		—		—
Securities Lending Reinvestments, at cost		—		67,036,575		15,820,569		338,785

Securities, at value†		—		1,526,753,498		477,637,708		19,939,725
Affiliate securities, at value		7,377,304		—		—		—
Securities Lending Reinvestments, at value		—		67,038,747		15,820,569		338,785
Cash		2,101		4,933,927		1,180,589		310,222
Cash segregated at broker*		—		192,995		90,252		53,154
Foreign cash††		—		—		—		—
Restricted cash**		—		—		—		—
Due from Authorized Participant		—		—		—		—
Unrealized appreciation on forward foreign currency contracts		—		—		—		—
Receivables:
Dividends and interest		—		1,882,571		494,879		23,744
Securities lending income		—		9,318		3,171		71
Capital shares issued		—		—		—		—
Investment adviser		18		5,734		1,883		55
Securities sold		557,043		151,051		—		1,954
Variation margin on futures contracts		—		246,767		55,483		12,073

Total Assets		7,936,466		1,601,214,608		495,284,534		20,679,783


LIABILITIES
Unrealized depreciation on forward foreign currency contracts		—		—		—		—
Payables:
Cash collateral received from securities loaned		—		67,036,561		15,820,569		338,785
Deferred compensation (Note 7)		553		150,246		35,139		5,726
Investment advisory fees (Note 4)		579		467,150		151,013		6,154
Trustee fees (Note 7)		83		22,486		7,234		274
Securities purchased		547,822		—		—		—
Deferred non-US capital gains taxes		—		—		—		—
Due to Authorized Participant		—		40,266		—		—
Variation margin on futures contracts		—		—		—		—
Capital shares redeemed		—		—		—		—
Other		—		11,600		8,450		1,100

Total Liabilities		549,037		67,728,309		16,022,405		352,039

Net Assets	$	7,387,429	$	1,533,486,299	$	479,262,129	$	20,327,744


NET ASSETS CONSIST OF:
Paid-in capital	$	6,764,682	$	1,088,590,340	$	368,761,428	$	16,129,883
Distributable earnings (loss)		622,747		444,895,959		110,500,701		4,197,861

Net Assets	$	7,387,429	$	1,533,486,299	$	479,262,129	$	20,327,744


Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)		225,001		27,900,001		9,100,001		350,001
Net Asset Value	$	32.83	$	54.96	$	52.67	$	58.08

† Securities on loan, at value	$	—	$	85,123,744	$	26,149,841	$	568,864
†† Cost of foreign cash	$	—	$	—	$	—	$	—

*	Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30.

**	Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			5

Statements of Assets and Liabilities (cont.)


	FlexShares^® International Quality Dividend Index Fund			FlexShares^® International Quality Dividend Defensive Index Fund			FlexShares^® International Quality Dividend Dynamic Index Fund			FlexShares^® iBoxx 3-Year Target Duration TIPS Index Fund

ASSETS
Securities, at cost	$	475,235,368		$	59,461,566		$	47,454,347		$	1,352,671,804
Affiliate securities, at cost		—			—			—			—
Securities Lending Reinvestments, at cost		23,036,738			2,428,130			2,161,098			—

Securities, at value†		570,988,369			71,139,202			55,082,684			1,430,541,496
Affiliate securities, at value		—			—			—			—
Securities Lending Reinvestments, at value		23,036,738			2,428,130			2,161,098			—
Cash		6,107,073			460,239			225,203			265,564
Cash segregated at broker*		1,369,294			99,055			32,163			—
Foreign cash††		8,981,957			767,601			123,371			—
Restricted cash**		43,703			—			—			—
Due from Authorized Participant		137,676			—			—			—
Unrealized appreciation on forward foreign currency contracts		43,618			1,857			1,886			—
Receivables:
Dividends and interest		3,936,613			456,248			322,848			1,910,510
Securities lending income		14,616			5,997			1,243			1,704
Capital shares issued		—			—			2,931			—
Investment adviser		2,154			279			173			5,739
Securities sold		—			—			141			—
Variation margin on futures contracts		334,542			32,233			9,416			—

Total Assets		614,996,353			75,390,841			57,963,157			1,432,725,013


LIABILITIES
Unrealized depreciation on forward foreign currency contracts		85,140			14,680			3,498			—
Payables:
Cash collateral received from securities loaned		23,036,738			2,428,130			2,161,098			—
Deferred compensation (Note 7)		63,291			8,552			4,753			232,236
Investment advisory fees (Note 4)		223,605			28,064			20,853			208,642
Trustee fees (Note 7)		8,353			1,071			475			21,068
Securities purchased		134,814			—			—			—
Deferred non-US capital gains taxes		—			—			19,990			—
Due to Authorized Participant		43,703			—			—			—
Variation margin on futures contracts		—			—			—			—
Capital shares redeemed		—			—			—			—
Other		32,501			5,000			32,000			—

Total Liabilities		23,628,145			2,485,497			2,242,667			461,946

Net Assets	$	591,368,208		$	72,905,344		$	55,720,490		$	1,432,263,067


NET ASSETS CONSIST OF:
Paid-in capital	$	657,552,598		$	86,546,723		$	62,075,747		$	1,386,353,138
Distributable earnings (loss)		(66,184,390	)		(13,641,379	)		(6,355,257	)		45,909,929

Net Assets	$	591,368,208		$	72,905,344		$	55,720,490		$	1,432,263,067


Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)		22,500,001			3,000,001			1,800,001			53,904,000
Net Asset Value	$	26.28		$	24.30		$	30.96		$	26.57

† Securities on loan, at value	$	45,022,886		$	7,107,596		$	3,861,859		$	54,504,147
†† Cost of foreign cash	$	8,849,453		$	757,160		$	122,784		$	—

*	Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30.

**	Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units.

See Accompanying Notes to the Financial Statements.


6		FLEXSHARES SEMIANNUAL REPORT

Statements of Assets and Liabilities (cont.)


	FlexShares^® iBoxx 5-Year Target Duration TIPS Index Fund		FlexShares^® Disciplined Duration MBS Index Fund			FlexShares^® Credit- Scored US Corporate Bond Index Fund		FlexShares^® Credit- Scored US Long Corporate Bond Index Fund

ASSETS
Securities, at cost	$	556,968,020	$	105,677,836		$	283,089,798	$	56,643,496
Affiliate securities, at cost		—		—			—		—
Securities Lending Reinvestments, at cost		3,648,356		—			—		—

Securities, at value†		599,496,820		106,867,362			286,954,476		56,487,495
Affiliate securities, at value		—		—			—		—
Securities Lending Reinvestments, at value		3,648,356		—			—		—
Cash		175,034		39,136,799			4,252,059		877,573
Cash segregated at broker*		—		—			—		—
Foreign cash††		—		—			—		—
Restricted cash**		—		—			—		—
Due from Authorized Participant		—		—			—		—
Unrealized appreciation on forward foreign currency contracts		—		—			—		—
Receivables:
Dividends and interest		886,469		217,785			2,362,724		577,525
Securities lending income		4,297		—			—		—
Capital shares issued		—		—			—		—
Investment adviser		2,447		478			1,355		170
Securities sold		—		4,233,516			11,428,312		2,864,266
Variation margin on futures contracts		—		—			—		—

Total Assets		604,213,423		150,455,940			304,998,926		60,807,029


LIABILITIES
Unrealized depreciation on forward foreign currency contracts		—		—			—		—
Payables:
Cash collateral received from securities loaned		3,648,356		—			—		—
Deferred compensation (Note 7)		82,478		5,676			11,125		2,654
Investment advisory fees (Note 4)		87,542		17,420			52,518		9,470
Trustee fees (Note 7)		9,155		1,417			3,100		693
Securities purchased		—		43,627,584			11,913,268		2,669,242
Deferred non-US capital gains taxes		—		—			—		—
Due to Authorized Participant		—		—			—		—
Variation margin on futures contracts		—		—			—		—
Capital shares redeemed		—		—			—		—
Other		—		4,400			4,000		2,500

Total Liabilities		3,827,531		43,656,497			11,984,011		2,684,559

Net Assets	$	600,385,892	$	106,799,443		$	293,014,915	$	58,122,470


NET ASSETS CONSIST OF:
Paid-in capital	$	557,987,246	$	109,150,518		$	287,150,024	$	57,717,434
Distributable earnings (loss)		42,398,646		(2,351,075	)		5,864,891		405,036

Net Assets	$	600,385,892	$	106,799,443		$	293,014,915	$	58,122,470


Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)		21,450,001		4,500,001			5,450,001		1,000,001
Net Asset Value	$	27.99	$	23.73		$	53.76	$	58.12

† Securities on loan, at value	$	115,918,300	$	—		$	—	$	—
†† Cost of foreign cash	$	—	$	—		$	—	$	—

*	Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30.

**	Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			7

Statements of Assets and Liabilities (cont.)


	FlexShares^® High Yield Value-Scored Bond Index Fund		FlexShares^® Ready Access Variable Income Fund		FlexShares^® Core Select Bond Fund

ASSETS
Securities, at cost	$	202,136,005	$	409,659,193	$	58,243,024
Affiliate securities, at cost		—		—		54,282,553
Securities Lending Reinvestments, at cost		—		—		—

Securities, at value†		207,873,474		411,809,065		58,053,728
Affiliate securities, at value		—		—		54,636,120
Securities Lending Reinvestments, at value		—		—		—
Cash		2,618,624		1,042,174		281,418
Cash segregated at broker*		—		—		—
Foreign cash††		—		—		—
Restricted cash**		—		—		—
Due from Authorized Participant		—		—		—
Unrealized appreciation on forward foreign currency contracts		—		—		—
Receivables:
Dividends and interest		3,351,651		1,398,632		—
Securities lending income		—		—		—
Capital shares issued		4,968,446		762		—
Investment adviser		937		1,879		481
Securities sold		16,809,158		4,012,453		8,127,502
Variation margin on futures contracts		—		—		—

Total Assets		235,622,290		418,264,965		121,099,249


LIABILITIES
Unrealized depreciation on forward foreign currency contracts		—		—		—
Payables:
Cash collateral received from securities loaned		—		—		—
Deferred compensation (Note 7)		7,120		25,864		4,475
Investment advisory fees (Note 4)		63,229		85,934		16,585
Trustee fees (Note 7)		2,912		6,689		1,521
Securities purchased		21,957,545		950,000		8,125,170
Deferred non-US capital gains taxes		—		—		—
Due to Authorized Participant		—		—		—
Variation margin on futures contracts		—		—		—
Capital shares redeemed		—		3,809,512		—
Other		5,500		2,275		—

Total Liabilities		22,036,306		4,880,274		8,147,751

Net Assets	$	213,585,984	$	413,384,691	$	112,951,498


NET ASSETS CONSIST OF:
Paid-in capital	$	205,273,895	$	410,551,813	$	113,118,206
Distributable earnings (loss)		8,312,089		2,832,878		(166,708	)

Net Assets	$	213,585,984	$	413,384,691	$	112,951,498


Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)		4,300,001		5,425,001		4,325,001
Net Asset Value	$	49.67	$	76.20	$	26.12

† Securities on loan, at value	$	—	$	—	$	—
†† Cost of foreign cash	$	—	$	—	$	—

*	Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30.

**	Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units.

See Accompanying Notes to the Financial Statements.


8		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Trust

Statements of Operations

For the six months ended April 30, 2021 (Unaudited)


	FlexShares^® US Quality Low Volatility Index Fund			FlexShares^® Developed Markets ex-US Quality Low Volatility Index Fund			FlexShares^® Emerging Markets Quality Low Volatility Index Fund			FlexShares^® Morningstar US Market Factor Tilt Index Fund

INVESTMENT INCOME
Dividend income	$	1,027,261		$	1,380,538		$	126,047		$	11,864,472
Dividend income received from affiliate		—			—			—			10,321
Interest income		18			—			—			—
Securities lending income (net of fees) (Note 2)		—			2,707			12			211,678
Foreign withholding tax on dividends		(1,340	)		(110,718	)		(20,144	)		(10,731	)

Total Investment Income		1,025,939			1,272,527			105,915			12,075,740


EXPENSES
Deferred compensation (Note 7)		2,310			1,391			240			25,534
Investment advisory fees		140,282			127,934			27,065			1,807,760
Trustee fees (Note 7)		4,589			2,898			493			54,674
Other expenses (Note 4)		—			—			—			315

Total Gross Expenses Before Fees Reimbursed		147,181			132,223			27,798			1,888,283


Less:
Investment advisory fees reimbursed (Note 4)		(3,501	)		(2,120	)		(358	)		(40,346	)

Total Net Expenses		143,680			130,103			27,440			1,847,937

Net Investment Income (Loss)		882,259			1,142,424			78,475			10,227,803


NET REALIZED GAIN (LOSS) FROM:
Transactions in investment securities of affiliated issuers		—			—			—			—
Transactions in investment securities		(207,374	)		1,161,701			124,784	⁽¹⁾		19,716,094
In-kind redemptions on investments in affiliated securities		—			—			—			3,297
In-kind redemptions on investments in securities		3,645,305			—			—			10,059,062
Expiration or closing of futures contracts		70,495			109,798			36,910			3,004,394
Settlement of forward foreign currency contracts		—			(8,564	)		98			—
Foreign currency transactions		—			5,957			(287	)		—

Net Realized Gain (Loss)		3,508,426			1,268,892			161,505			32,782,847


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		19,790,035			8,861,822			1,422,387	⁽²⁾		408,761,543	⁽³⁾
Securities lending		—			—			—			1,256
Futures contracts		49,377			45,689			(180	)		824,992
Forward foreign currency contracts		—			(2,417	)		358			—
Translation of other assets and liabilities denominated in foreign currencies		—			4,112			370			—

Net Change in Unrealized Appreciation (Depreciation)		19,839,412			8,909,206			1,422,935			409,587,791

Net Realized and Unrealized Gain (Loss)		23,347,838			10,178,098			1,584,440			442,370,638

Net Increase (Decrease) in Net Assets Resulting from Operations	$	24,230,097		$	11,320,522		$	1,662,915		$	452,598,441

⁽¹⁾

Net of non-US capital gains tax of $(18,661).

⁽²⁾

Net of deferred non-US capital gains tax of $30,771.

⁽³⁾

Includes $259,946 change in unrealized appreciation on investments in affiliates.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			9

Statements of Operations (cont.)


	FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund			FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund			FlexShares^® US Quality Large Cap Index Fund			FlexShares^® STOXX^® US ESG Select Index Fund

INVESTMENT INCOME
Dividend income	$	8,522,159		$	3,075,948		$	675,531		$	1,275,587
Dividend income received from affiliate		—			—			—			—
Interest income		—			654			—			—
Securities lending income (net of fees) (Note 2)		209,277			96,382			2,864			2,775
Foreign withholding tax on dividends		(841,900	)		(423,116	)		—			—

Total Investment Income		7,889,536			2,749,868			678,395			1,278,362


EXPENSES
Deferred compensation (Note 7)		10,805			4,876			1,607			2,404
Investment advisory fees		1,154,592			824,511			142,344			236,349
Trustee fees (Note 7)		22,724			10,571			3,328			5,339
Other expenses (Note 4)		—			—			—			—

Total Gross Expenses Before Fees Reimbursed		1,188,121			839,958			147,279			244,092


Less:
Investment advisory fees reimbursed (Note 4)		(16,174	)		(6,668	)		(2,433	)		(3,660	)

Total Net Expenses		1,171,947			833,290			144,846			240,432

Net Investment Income (Loss)		6,717,589			1,916,578			533,549			1,037,930


NET REALIZED GAIN (LOSS) FROM:
Transactions in investment securities of affiliated issuers		—			—			—			—
Transactions in investment securities		1,551,610			8,556,837	⁽¹⁾		524,148			931,782
In-kind redemptions on investments in affiliated securities		—			—			—			—
In-kind redemptions on investments in securities		3,586,561			—			1,841,892			13,765,161
Expiration or closing of futures contracts		2,384,258			730,771			95,629			182,593
Settlement of forward foreign currency contracts		28,430			32,497			—			—
Foreign currency transactions		72,646			(77,435	)		—			—

Net Realized Gain (Loss)		7,623,505			9,242,670			2,461,669			14,879,536


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		150,639,563			62,607,408	⁽²⁾		19,034,856			18,143,308
Securities lending		—			—			—			—
Futures contracts		975,733			(32,868	)		55,229			126,130
Forward foreign currency contracts		50,318			(26,882	)		—			—
Translation of other assets and liabilities denominated in foreign currencies		190,180			1,295			—			—

Net Change in Unrealized Appreciation (Depreciation)		151,855,794			62,548,953			19,090,085			18,269,438

Net Realized and Unrealized Gain (Loss)		159,479,299			71,791,623			21,551,754			33,148,974

Net Increase (Decrease) in Net Assets Resulting from Operations	$	166,196,888		$	73,708,201		$	22,085,303		$	34,186,904

⁽¹⁾

Net of non-US capital gains tax of $(677).

⁽²⁾

Net of deferred non-US capital gains tax of $861.

See Accompanying Notes to the Financial Statements.


10		FLEXSHARES SEMIANNUAL REPORT

Statements of Operations (cont.)


	FlexShares^® STOXX^® Global ESG Select Index Fund			FlexShares^® Morningstar Global Upstream Natural Resources Index Fund			FlexShares^® STOXX^® Global Broad Infrastructure Index Fund			FlexShares^® Global Quality Real Estate Index Fund

INVESTMENT INCOME
Dividend income	$	1,543,984		$	73,284,168		$	31,432,463		$	4,630,275
Dividend income received from affiliate		—			—			—			—
Interest income		—			—			—			—
Securities lending income (net of fees) (Note 2)		3,911			473,902			216,821			26,698
Foreign withholding tax on dividends		(86,745	)		(3,621,117	)		(1,808,134	)		(255,107	)

Total Investment Income		1,461,150			70,136,953			29,841,150			4,401,866


EXPENSES
Deferred compensation (Note 7)		2,506			68,034			39,703			5,154
Investment advisory fees		306,134			9,077,116			5,260,273			652,356
Trustee fees (Note 7)		5,270			144,908			82,703			11,019
Other expenses (Note 4)		—			—			—			—

Total Gross Expenses Before Fees Reimbursed		313,910			9,290,058			5,382,679			668,529


Less:
Investment advisory fees reimbursed (Note 4)		(3,554	)		(92,384	)		(57,910	)		(7,600	)

Total Net Expenses		310,356			9,197,674			5,324,769			660,929

Net Investment Income (Loss)		1,150,794			60,939,279			24,516,381			3,740,937


NET REALIZED GAIN (LOSS) FROM:
Transactions in investment securities of affiliated issuers		—			—			—			—
Transactions in investment securities		1,895,035			(85,535,599	)		(10,720,030	)⁽¹⁾		(2,763,203	)
In-kind redemptions on investments in affiliated securities		—			—			—			—
In-kind redemptions on investments in securities		1,734,784			18,819,343			—			2,563,098
Expiration or closing of futures contracts		250,436			6,325,267			3,745,579			1,221,303
Settlement of forward foreign currency contracts		(9,953	)		429,933			(81,179	)		(23,840	)
Foreign currency transactions		24,825			602,828			562,494			73,771

Net Realized Gain (Loss)		3,895,127			(59,358,228	)		(6,493,136	)		1,071,129


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		29,185,943			1,270,861,732	⁽²⁾		396,269,048	⁽³⁾		66,771,626
Securities lending		—			2,186			—			—
Futures contracts		162,946			2,041,353			1,464,636			157,364
Forward foreign currency contracts		(3,046	)		(129,055	)		72,607			(7,496	)
Translation of other assets and liabilities denominated in foreign currencies		18,882			389,739			84,643			26,742

Net Change in Unrealized Appreciation (Depreciation)		29,364,725			1,273,165,955			397,890,934			66,948,236

Net Realized and Unrealized Gain (Loss)		33,259,852			1,213,807,727			391,397,798			68,019,365

Net Increase (Decrease) in Net Assets Resulting from Operations	$	34,410,646		$	1,274,747,006		$	415,914,179		$	71,760,302

⁽¹⁾

Net of non-US capital gains tax of $(85,396).

⁽²⁾

Net of deferred non-US capital gains tax of $541,955.

⁽³⁾

Net of deferred non-US capital gains tax of $1,325,110.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			11

Statements of Operations (cont.)


	FlexShares^® Real Assets Allocation Index Fund			FlexShares^® Quality Dividend Index Fund			FlexShares^® Quality Dividend Defensive Index Fund			FlexShares^® Quality Dividend Dynamic Index Fund

INVESTMENT INCOME
Dividend income	$	—		$	18,651,827		$	6,128,158		$	207,328
Dividend income received from affiliate		52,227			—			—			—
Interest income		—			—			—			—
Securities lending income (net of fees) (Note 2)		—			59,338			21,012			532
Foreign withholding tax on dividends		—			—			(791	)		—

Total Investment Income		52,227			18,711,165			6,148,379			207,860


EXPENSES
Deferred compensation (Note 7)		94			25,780			8,324			288
Investment advisory fees		15,314			2,654,267			857,504			30,262
Trustee fees (Note 7)		220			54,705			17,588			636
Other expenses (Note 4)		—			—			—			—

Total Gross Expenses Before Fees Reimbursed		15,628			2,734,752			883,416			31,186


Less:
Investment advisory fees reimbursed (Note 4)		(12,615	)		(39,434	)		(12,774	)		(451	)

Total Net Expenses		3,013			2,695,318			870,642			30,735

Net Investment Income (Loss)		49,214			16,015,847			5,277,737			177,125


NET REALIZED GAIN (LOSS) FROM:
Transactions in investment securities of affiliated issuers		6,174			—			—			—
Transactions in investment securities		—			1,423,954			(997,062	)		728,264
In-kind redemptions on investments in affiliated securities		—			—			—			—
In-kind redemptions on investments in securities		—			71,082,713			23,752,355			—
Expiration or closing of futures contracts		—			1,236,691			264,512			9,621
Settlement of forward foreign currency contracts		—			—			—			—
Foreign currency transactions		—			—			—			—

Net Realized Gain (Loss)		6,174			73,743,358			23,019,805			737,885


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		1,240,211	⁽¹⁾		254,961,842			72,765,396			3,626,487
Securities lending		—			780			—			—
Futures contracts		—			448,353			97,822			12,071
Forward foreign currency contracts		—			—			—			—
Translation of other assets and liabilities denominated in foreign currencies		—			—			—			—

Net Change in Unrealized Appreciation (Depreciation)		1,240,211			255,410,975			72,863,218			3,638,558

Net Realized and Unrealized Gain (Loss)		1,246,385			329,154,333			95,883,023			4,376,443

Net Increase (Decrease) in Net Assets Resulting from Operations	$	1,295,599		$	345,170,180		$	101,160,760		$	4,553,568

⁽¹⁾

Includes $1,240,211 change in unrealized appreciation on investments in affiliates.

See Accompanying Notes to the Financial Statements.


12		FLEXSHARES SEMIANNUAL REPORT

Statements of Operations (cont.)


	FlexShares^® International Quality Dividend Index Fund			FlexShares^® International Quality Dividend Defensive Index Fund			FlexShares^® International Quality Dividend Dynamic Index Fund			FlexShares^® iBoxx 3-Year Target Duration TIPS Index Fund

INVESTMENT INCOME
Dividend income	$	11,337,373		$	1,438,492		$	792,815		$	—
Dividend income received from affiliate		—			—			—			—
Interest income		—			—			—			13,400,106
Securities lending income (net of fees) (Note 2)		50,884			11,996			4,144			24,216
Foreign withholding tax on dividends		(1,079,614	)		(141,597	)		(69,537	)		—

Total Investment Income		10,308,643			1,308,891			727,422			13,424,322


EXPENSES
Deferred compensation (Note 7)		9,552			1,222			600			24,180
Investment advisory fees		1,256,918			161,592			88,602			1,210,170
Trustee fees (Note 7)		20,371			2,617			1,337			50,435
Other expenses (Note 4)		—			—			—			—

Total Gross Expenses Before Fees Reimbursed		1,286,841			165,431			90,539			1,284,785


Less:
Investment advisory fees reimbursed (Note 4)		(13,867	)		(1,797	)		(819	)		(40,311	)

Total Net Expenses		1,272,974			163,634			89,720			1,244,474

Net Investment Income (Loss)		9,035,669			1,145,257			637,702			12,179,848


NET REALIZED GAIN (LOSS) FROM:
Transactions in investment securities of affiliated issuers		—			—			—			—
Transactions in investment securities		18,707,779			2,523,282			841,336			7,390,639
In-kind redemptions on investments in affiliated securities		—			—			—			—
In-kind redemptions on investments in securities		2,149,355			266,094			—			10,347,059
Expiration or closing of futures contracts		2,455,293			244,680			64,200			—
Settlement of forward foreign currency contracts		159,607			(22,594	)		635			—
Foreign currency transactions		79,660			22,057			(2,095	)		—

Net Realized Gain (Loss)		23,551,694			3,033,519			904,076			17,737,698


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		107,217,447			12,239,919			8,475,117	⁽¹⁾		23,624,365
Securities lending		—			—			—			—
Futures contracts		948,899			85,914			23,616			—
Forward foreign currency contracts		(76,327	)		(13,904	)		(1,804	)		—
Translation of other assets and liabilities denominated in foreign currencies		244,091			11,480			4,266			—

Net Change in Unrealized Appreciation (Depreciation)		108,334,110			12,323,409			8,501,195			23,624,365

Net Realized and Unrealized Gain (Loss)		131,885,804			15,356,928			9,405,271			41,362,063

Net Increase (Decrease) in Net Assets Resulting from Operations	$	140,921,473		$	16,502,185		$	10,042,973		$	53,541,911

⁽¹⁾

Net of deferred non-US capital gains tax of $19,990.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			13

Statements of Operations (cont.)


	FlexShares^® iBoxx 5-Year Target Duration TIPS Index Fund			FlexShares^® Disciplined Duration MBS Index Fund			FlexShares^® Credit- Scored US Corporate Bond Index Fund			FlexShares^® Credit- Scored US Long Corporate Bond Index Fund

INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	—
Dividend income received from affiliate		—			—			—			—
Interest income		6,006,565			289,917			2,622,253			845,565
Securities lending income (net of fees) (Note 2)		22,754			—			—			—
Foreign withholding tax on dividends		—			—			—			—

Total Investment Income		6,029,319			289,917			2,622,253			845,565


EXPENSES
Deferred compensation (Note 7)		10,670			1,891			5,064			946
Investment advisory fees		527,077			101,947			294,482			54,934
Trustee fees (Note 7)		22,295			3,808			9,747			1,839
Other expenses (Note 4)		—			—			—			—

Total Gross Expenses Before Fees Reimbursed		560,042			107,646			309,293			57,719


Less:
Investment advisory fees reimbursed (Note 4)		(18,043	)		(3,115	)		(8,022	)		(1,531	)

Total Net Expenses		541,999			104,531			301,271			56,188

Net Investment Income (Loss)		5,487,320			185,386			2,320,982			789,377


NET REALIZED GAIN (LOSS) FROM:
Transactions in investment securities of affiliated issuers		—			—			—			—
Transactions in investment securities		4,526,489			834,234			1,799,191			428,846
In-kind redemptions on investments in affiliated securities		—			—			—			—
In-kind redemptions on investments in securities		3,130,725			—			—			—
Expiration or closing of futures contracts		—			—			—			—
Settlement of forward foreign currency contracts		—			—			—			—
Foreign currency transactions		—			—			—			—

Net Realized Gain (Loss)		7,657,214			834,234			1,799,191			428,846


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		5,184,132			(1,065,351	)		(3,613,854	)		(2,028,239	)
Securities lending		—			—			—			—
Futures contracts		—			—			—			—
Forward foreign currency contracts		—			—			—			—
Translation of other assets and liabilities denominated in foreign currencies		—			—			—			—

Net Change in Unrealized Appreciation (Depreciation)		5,184,132			(1,065,351	)		(3,613,854	)		(2,028,239	)

Net Realized and Unrealized Gain (Loss)		12,841,346			(231,117	)		(1,814,663	)		(1,599,393	)

Net Increase (Decrease) in Net Assets Resulting from Operations	$	18,328,666		$	(45,731	)	$	506,319		$	(810,016	)

See Accompanying Notes to the Financial Statements.


14		FLEXSHARES SEMIANNUAL REPORT

Statements of Operations (cont.)


	FlexShares^® High Yield Value-Scored Bond Index Fund			FlexShares^® Ready Access Variable Income Fund			FlexShares^® Core Select Bond Fund

INVESTMENT INCOME
Dividend income	$	—		$	—		$	296,920
Dividend income received from affiliate		—			—			855,688
Interest income		6,288,388			2,036,900			—
Securities lending income (net of fees) (Note 2)		—			—			—
Foreign withholding tax on dividends		—			—			—

Total Investment Income		6,288,388			2,036,900			1,152,608


EXPENSES
Deferred compensation (Note 7)		3,639			8,199			2,073
Investment advisory fees		365,319			547,626			193,009
Trustee fees (Note 7)		7,427			16,665			4,082
Other expenses (Note 4)		—			—			—

Total Gross Expenses Before Fees Reimbursed		376,385			572,490			199,164


Less:
Investment advisory fees reimbursed (Note 4)		(5,749	)		(13,597	)		(100,970	)

Total Net Expenses		370,636			558,893			98,194

Net Investment Income (Loss)		5,917,752			1,478,007			1,054,414


NET REALIZED GAIN (LOSS) FROM:
Transactions in investment securities of affiliated issuers		—			—			(1,252,102	)
Transactions in investment securities		6,677,639			617,589			516,769
In-kind redemptions on investments in affiliated securities		—			—			496,352
In-kind redemptions on investments in securities		—			—			292,521
Expiration or closing of futures contracts		—			—			—
Settlement of forward foreign currency contracts		—			—			—
Foreign currency transactions		—			—			—

Net Realized Gain (Loss)		6,677,639			617,589			53,540


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		7,523,086			(858,943	)		(2,090,392	)⁽¹⁾
Securities lending		—			—			—
Futures contracts		—			—			—
Forward foreign currency contracts		—			—			—
Translation of other assets and liabilities denominated in foreign currencies		—			—			—

Net Change in Unrealized Appreciation (Depreciation)		7,523,086			(858,943	)		(2,090,392	)

Net Realized and Unrealized Gain (Loss)		14,200,725			(241,354	)		(2,036,852	)

Net Increase (Decrease) in Net Assets Resulting from Operations	$	20,118,477		$	1,236,653		$	(982,438	)

⁽¹⁾

Includes $(1,134,945) change in unrealized depreciation on investments in affiliates.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			15

FlexShares^® Trust

Statements of Changes in Net Assets


	FlexShares^®US Quality Low Volatility Index Fund						FlexShares^® Developed Markets ex-US Quality Low Volatility Index Fund
	Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020			Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020

OPERATIONS
Net investment income (loss)	$	882,259		$	820,548		$	1,142,424		$	1,041,274
Net realized gain (loss)		3,508,426			(694,524	)		1,268,892			(1,704,692	)
Net change in unrealized appreciation (depreciation)		19,839,412			1,304,851			8,909,206			(1,448,187	)


Net Increase (Decrease) in Net Assets
Resulting from Operations		24,230,097			1,430,875			11,320,522			(2,111,605	)


DISTRIBUTIONS TO SHAREHOLDERS
Distributable earnings		(873,640	)		(643,733	)		(698,022	)		(864,658	)
Tax return of capital		—			—			—			—

Total distributions		(873,640	)		(643,733	)		(698,022	)		(864,658	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		24,909,345			107,381,424			10,531,878			63,603,016
Cost of shares redeemed		(13,679,258	)		(3,711,596	)		—			—

Net Increase (Decrease) from Capital Transactions		11,230,087			103,669,828			10,531,878			63,603,016

Total Increase (Decrease) in Net Assets		34,586,544			104,456,970			21,154,378			60,626,753


NET ASSETS
Beginning of Period	$	110,523,538		$	6,066,568		$	65,747,004		$	5,120,251

End of Period	$	145,110,082		$	110,523,538		$	86,901,382		$	65,747,004


SHARE TRANSACTIONS
Beginning of period		2,700,001			150,001			2,800,001			200,001
Shares issued		—			—			—			—
Shares issued in-kind		550,000			2,650,000			400,000			2,600,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		(300,000	)		(100,000	)		—			—

Shares Outstanding, End of Period		2,950,001			2,700,001			3,200,001			2,800,001

⁽¹⁾

Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements.

See Accompanying Notes to the Financial Statements.


16		FLEXSHARES SEMIANNUAL REPORT

Statements of Changes in Net Assets (cont.)


	FlexShares^® Emerging Markets Quality Low Volatility Index Fund						FlexShares^®Morningstar US Market Factor Tilt Index Fund
	Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020			Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020

OPERATIONS
Net investment income (loss)	$	78,475		$	150,459		$	10,227,803		$	23,501,673
Net realized gain (loss)		161,505			(556,324	)		32,782,847			121,619,088
Net change in unrealized appreciation (depreciation)		1,422,935			322,631			409,587,791			(115,132,476	)


Net Increase (Decrease) in Net Assets
Resulting from Operations		1,662,915			(83,234	)		452,598,441			29,988,285


DISTRIBUTIONS TO SHAREHOLDERS
Distributable earnings		(13,650	)		(168,979	)		(10,271,816	)		(23,509,426	)
Tax return of capital		—			—			—			—

Total distributions		(13,650	)		(168,979	)		(10,271,816	)		(23,509,426	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		5,276,872			7,242,230			70,247,490			28,195,556
Cost of shares redeemed		—			(2,400,617	)		(19,701,064	)		(306,024,565	)

Net Increase (Decrease) from Capital Transactions		5,276,872			4,841,613			50,546,426			(277,829,009	)

Total Increase (Decrease) in Net Assets		6,926,137			4,589,400			492,873,051			(271,350,150	)


NET ASSETS
Beginning of Period	$	9,578,310		$	4,988,910		$	1,174,786,429		$	1,446,136,579

End of Period	$	16,504,447		$	9,578,310		$	1,667,659,480		$	1,174,786,429


SHARE TRANSACTIONS
Beginning of period		400,001			200,001			9,700,001			12,100,001
Shares issued		—			—			—			—
Shares issued in-kind		200,000			300,000			450,000			300,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		—			(100,000	)		(150,000	)		(2,700,000	)

Shares Outstanding, End of Period		600,001			400,001			10,000,001			9,700,001

⁽¹⁾

Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			17

Statements of Changes in Net Assets (cont.)


	FlexShares^®Morningstar Developed Markets ex-US Factor Tilt Index Fund						FlexShares^®Morningstar Emerging Markets Factor Tilt Index Fund
	Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020			Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020

OPERATIONS
Net investment income (loss)	$	6,717,589		$	16,169,983		$	1,916,578		$	6,156,347
Net realized gain (loss)		7,623,505			(29,509,439	)		9,242,670			(12,435,161	)
Net change in unrealized appreciation (depreciation)		151,855,794			(111,181,202	)		62,548,953			(13,844,715	)


Net Increase (Decrease) in Net Assets
Resulting from Operations		166,196,888			(124,520,658	)		73,708,201			(20,123,529	)


DISTRIBUTIONS TO SHAREHOLDERS
Distributable earnings		(4,023,791	)		(23,632,565	)		(1,407,331	)		(8,202,693	)
Tax return of capital		—			—			—			—

Total distributions		(4,023,791	)		(23,632,565	)		(1,407,331	)		(8,202,693	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		—			—			37,863,151			—
Cost of shares redeemed		(26,219,756	)		(317,973,662	)		—			(159,241,139	)

Net Increase (Decrease) from Capital Transactions		(26,219,756	)		(317,973,662	)		37,863,151			(159,241,139	)

Total Increase (Decrease) in Net Assets		135,953,341			(466,126,885	)		110,164,021			(187,567,361	)


NET ASSETS
Beginning of Period	$	499,015,596		$	965,142,481		$	225,846,802		$	413,414,163

End of Period	$	634,968,937		$	499,015,596		$	336,010,823		$	225,846,802


SHARE TRANSACTIONS
Beginning of period		9,200,001			15,400,001			4,700,001			8,200,001
Shares issued		—			—			—			—
Shares issued in-kind		—			—			600,000			—
Shares redeemed		—			—			—			—
Shares redeemed in-kind		(400,000	)		(6,200,000	)		—			(3,500,000	)

Shares Outstanding, End of Period		8,800,001			9,200,001			5,300,001			4,700,001

⁽¹⁾

Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements.

See Accompanying Notes to the Financial Statements.


18		FLEXSHARES SEMIANNUAL REPORT

Statements of Changes in Net Assets (cont.)


	FlexShares^®US Quality Large Cap Index Fund						FlexShares^®STOXX^® US ESG Select Index Fund
	Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020			Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020

OPERATIONS
Net investment income (loss)	$	533,549		$	1,048,649		$	1,037,930		$	1,203,766
Net realized gain (loss)		2,461,669			1,168,558			14,879,536			(2,609,895	)
Net change in unrealized appreciation (depreciation)		19,090,085			2,315,780			18,269,438			8,424,199


Net Increase (Decrease) in Net Assets
Resulting from Operations		22,085,303			4,532,987			34,186,904			7,018,070


DISTRIBUTIONS TO SHAREHOLDERS
Distributable earnings		(545,780	)		(976,050	)		(911,383	)		(1,145,374	)
Tax return of capital		—			—			—			—

Total distributions		(545,780	)		(976,050	)		(911,383	)		(1,145,374	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		6,907,970			27,538,152			88,757,564			28,636,289
Cost of shares redeemed		(5,458,623	)		(10,423,258	)		(32,470,721	)		(1,481,524	)

Net Increase (Decrease) from Capital Transactions		1,449,347			17,114,894			56,286,843			27,154,765

Total Increase (Decrease) in Net Assets		22,988,870			20,671,831			89,562,364			33,027,461


NET ASSETS
Beginning of Period	$	71,842,440		$	51,170,609		$	89,051,571		$	56,024,110

End of Period	$	94,831,310		$	71,842,440		$	178,613,935		$	89,051,571


SHARE TRANSACTIONS
Beginning of period		2,025,001			1,475,001			1,125,001			775,001
Shares issued		—			—			—			—
Shares issued in-kind		175,000			850,000			950,000			375,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		(125,000	)		(300,000	)		(325,000	)		(25,000	)

Shares Outstanding, End of Period		2,075,001			2,025,001			1,750,001			1,125,001

⁽¹⁾

Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			19

Statements of Changes in Net Assets (cont.)


	FlexShares^®STOXX^® Global ESG Select Index Fund						FlexShares^®Morningstar Global Upstream Natural Resources Index Fund
	Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020			Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020

OPERATIONS
Net investment income (loss)	$	1,150,794		$	1,657,054		$	60,939,279		$	119,595,799
Net realized gain (loss)		3,895,127			(1,568,609	)		(59,358,228	)		(39,761,254	)
Net change in unrealized appreciation (depreciation)		29,364,725			6,374,388			1,273,165,955			(779,563,599	)


Net Increase (Decrease) in Net Assets
Resulting from Operations		34,410,646			6,462,833			1,274,747,006			(699,729,054	)


DISTRIBUTIONS TO SHAREHOLDERS
Distributable earnings		(885,280	)		(1,663,474	)		(50,906,814	)		(122,625,164	)
Tax return of capital		—			—			—			—

Total distributions		(885,280	)		(1,663,474	)		(50,906,814	)		(122,625,164	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		32,068,372			14,933,528			1,079,289,082			8,825,295
Cost of shares redeemed		(6,476,774	)		—			(85,372,386	)		(1,771,946,391	)

Net Increase (Decrease) from Capital Transactions		25,591,598			14,933,528			993,916,696			(1,763,121,096	)

Total Increase (Decrease) in Net Assets		59,116,964			19,732,887			2,217,756,888			(2,585,475,314	)


NET ASSETS
Beginning of Period	$	111,323,292		$	91,590,405		$	2,924,725,808		$	5,510,201,122

End of Period	$	170,440,256		$	111,323,292		$	5,142,482,696		$	2,924,725,808


SHARE TRANSACTIONS
Beginning of period		1,050,001			900,001			109,500,001			175,500,001
Shares issued		—			—			—			—
Shares issued in-kind		250,000			150,000			29,650,000			250,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		(50,000	)		—			(2,750,000	)		(66,250,000	)

Shares Outstanding, End of Period		1,250,001			1,050,001			136,400,001			109,500,001

⁽¹⁾

Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements.

See Accompanying Notes to the Financial Statements.


20		FLEXSHARES SEMIANNUAL REPORT

Statements of Changes in Net Assets (cont.)


	FlexShares^®STOXX^® Global Broad Infrastructure Index Fund						FlexShares^®Global Quality Real Estate Index Fund
	Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020			Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020

OPERATIONS
Net investment income (loss)	$	24,516,381		$	42,348,376		$	3,740,937		$	8,457,554
Net realized gain (loss)		(6,493,136	)		(51,372,425	)		1,071,129			(20,467,829	)
Net change in unrealized appreciation (depreciation)		397,890,934			(114,928,084	)		66,948,236			(76,869,427	)


Net Increase (Decrease) in Net Assets
Resulting from Operations		415,914,179			(123,952,133	)		71,760,302			(88,879,702	)


DISTRIBUTIONS TO SHAREHOLDERS
Distributable earnings		(20,971,098	)		(40,390,855	)		(1,900,093	)		(14,558,175	)
Tax return of capital		—			—			—			(168,159	)

Total distributions		(20,971,098	)		(40,390,855	)		(1,900,093	)		(14,726,334	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		378,723,978			660,871,183			53,526,393			85,130,549
Cost of shares redeemed		—			(116,962,142	)		(23,016,531	)		(93,214,545	)

Net Increase (Decrease) from Capital Transactions		378,723,978			543,909,041			30,509,862			(8,083,996	)

Total Increase (Decrease) in Net Assets		773,667,059			379,566,053			100,370,071			(111,690,032	)


NET ASSETS
Beginning of Period	$	1,856,596,177		$	1,477,030,124		$	264,574,365		$	376,264,397

End of Period	$	2,630,263,236		$	1,856,596,177		$	364,944,436		$	264,574,365


SHARE TRANSACTIONS
Beginning of period		38,600,001			28,100,001			5,200,001			5,650,001
Shares issued		—			—			—			—
Shares issued in-kind		6,900,000			13,400,000			850,000			1,450,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		—			(2,900,000	)		(400,000	)		(1,900,000	)

Shares Outstanding, End of Period		45,500,001			38,600,001			5,650,001			5,200,001

⁽¹⁾

Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			21

Statements of Changes in Net Assets (cont.)


	FlexShares^®Real Assets Allocation Index Fund						FlexShares^®Quality Dividend Index Fund
	Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020			Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020

OPERATIONS
Net investment income (loss)	$	49,214		$	278,087		$	16,015,847		$	41,042,206
Net realized gain (loss)		6,174			(288,406	)		73,743,358			63,818,614
Net change in unrealized appreciation (depreciation)		1,240,211			(1,066,621	)		255,410,975			(185,641,841	)


Net Increase (Decrease) in Net Assets
Resulting from Operations		1,295,599			(1,076,940	)		345,170,180			(80,781,021	)


DISTRIBUTIONS TO SHAREHOLDERS
Distributable earnings		(50,028	)		(278,767	)		(15,324,600	)		(51,028,755	)
Tax return of capital		—			—			—			—

Total distributions		(50,028	)		(278,767	)		(15,324,600	)		(51,028,755	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		1,640,129			—			144,924,459			147,107,228
Cost of shares redeemed		—			(5,503,899	)		(206,460,345	)		(457,464,822	)

Net Increase (Decrease) from Capital Transactions		1,640,129			(5,503,899	)		(61,535,886	)		(310,357,594	)

Total Increase (Decrease) in Net Assets		2,885,700			(6,859,606	)		268,309,694			(442,167,370	)


NET ASSETS
Beginning of Period	$	4,501,729		$	11,361,335		$	1,265,176,605		$	1,707,343,975

End of Period	$	7,387,429		$	4,501,729		$	1,533,486,299		$	1,265,176,605


SHARE TRANSACTIONS
Beginning of period		175,001			375,001			29,150,001			36,850,001
Shares issued		—			—			—			—
Shares issued in-kind		50,000			—			2,900,000			3,250,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		—			(200,000	)		(4,150,000	)		(10,950,000	)

Shares Outstanding, End of Period		225,001			175,001			27,900,001			29,150,001

⁽¹⁾

Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements.

See Accompanying Notes to the Financial Statements.


22		FLEXSHARES SEMIANNUAL REPORT

Statements of Changes in Net Assets (cont.)


	FlexShares^®Quality Dividend Defensive Index Fund						FlexShares^®Quality Dividend Dynamic Index Fund
	Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020			Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020

OPERATIONS
Net investment income (loss)	$	5,277,737		$	12,604,759		$	177,125		$	844,204
Net realized gain (loss)		23,019,805			9,870,639			737,885			2,220,861
Net change in unrealized appreciation (depreciation)		72,863,218			(42,112,077	)		3,638,558			(6,207,406	)


Net Increase (Decrease) in Net Assets
Resulting from Operations		101,160,760			(19,636,679	)		4,553,568			(3,142,341	)


DISTRIBUTIONS TO SHAREHOLDERS
Distributable earnings		(5,274,263	)		(16,131,191	)		(171,508	)		(962,948	)
Tax return of capital		—			—			—			—

Total distributions		(5,274,263	)		(16,131,191	)		(171,508	)		(962,948	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		53,955,900			120,783,417			2,764,865			—
Cost of shares redeemed		(81,753,062	)		(124,805,477	)		—			(35,021,933	)

Net Increase (Decrease) from Capital Transactions		(27,797,162	)		(4,022,060	)		2,764,865			(35,021,933	)

Total Increase (Decrease) in Net Assets		68,089,335			(39,789,930	)		7,146,925			(39,127,222	)


NET ASSETS
Beginning of Period	$	411,172,794		$	450,962,724		$	13,180,819		$	52,308,041

End of Period	$	479,262,129		$	411,172,794		$	20,327,744		$	13,180,819


SHARE TRANSACTIONS
Beginning of period		9,650,001			9,750,001			300,001			1,150,001
Shares issued		—			—			—			—
Shares issued in-kind		1,100,000			2,800,000			50,000			—
Shares redeemed		—			—			—			—
Shares redeemed in-kind		(1,650,000	)		(2,900,000	)		—			(850,000	)

Shares Outstanding, End of Period		9,100,001			9,650,001			350,001			300,001

⁽¹⁾

Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			23

Statements of Changes in Net Assets (cont.)


	FlexShares^®International Quality Dividend Index Fund						FlexShares^® International Quality Dividend Defensive Index Fund
	Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020			Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020

OPERATIONS
Net investment income (loss)	$	9,035,669		$	21,426,092		$	1,145,257		$	2,469,326
Net realized gain (loss)		23,551,694			(49,578,473	)		3,033,519			(6,127,777	)
Net change in unrealized appreciation (depreciation)		108,334,110			(36,850,169	)		12,323,409			(2,835,580	)


Net Increase (Decrease) in Net Assets
Resulting from Operations		140,921,473			(65,002,550	)		16,502,185			(6,494,031	)


DISTRIBUTIONS TO SHAREHOLDERS
Distributable earnings		(5,278,882	)		(22,159,155	)		(816,267	)		(2,523,077	)
Tax return of capital		—			—			—			—

Total distributions		(5,278,882	)		(22,159,155	)		(816,267	)		(2,523,077	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		23,339,693			9,495,567			—			3,677,673
Cost of shares redeemed		(21,090,657	)		(243,541,907	)		(2,184,308	)		(13,975,686	)

Net Increase (Decrease) from Capital Transactions		2,249,036			(234,046,340	)		(2,184,308	)		(10,298,013	)

Total Increase (Decrease) in Net Assets		137,891,627			(321,208,045	)		13,501,610			(19,315,121	)


NET ASSETS
Beginning of Period	$	453,476,581		$	774,684,626		$	59,403,734		$	78,718,855

End of Period	$	591,368,208		$	453,476,581		$	72,905,344		$	59,403,734


SHARE TRANSACTIONS
Beginning of period		22,500,001			33,600,001			3,100,001			3,600,001
Shares issued		—			—			—			—
Shares issued in-kind		900,000			400,000			—			200,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		(900,000	)		(11,500,000	)		(100,000	)		(700,000	)

Shares Outstanding, End of Period		22,500,001			22,500,001			3,000,001			3,100,001

⁽¹⁾

Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements.

See Accompanying Notes to the Financial Statements.


24		FLEXSHARES SEMIANNUAL REPORT

Statements of Changes in Net Assets (cont.)


	FlexShares^® International Quality Dividend Dynamic Index Fund						FlexShares^® iBoxx 3-Year Target Duration TIPS Index Fund
	Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020			Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020

OPERATIONS
Net investment income (loss)	$	637,702		$	925,989		$	12,179,848		$	16,808,449
Net realized gain (loss)		904,076			(878,854	)		17,737,698			12,155,953
Net change in unrealized appreciation (depreciation)		8,501,195			(3,322,029	)		23,624,365			42,400,460


Net Increase (Decrease) in Net Assets
Resulting from Operations		10,042,973			(3,274,894	)		53,541,911			71,364,862


DISTRIBUTIONS TO SHAREHOLDERS
Distributable earnings		(277,004	)		(952,482	)		(10,194,142	)		(12,627,726	)
Tax return of capital		—			—			—			—

Total distributions		(277,004	)		(952,482	)		(10,194,142	)		(12,627,726	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		23,578,199			10,025,244			125,034,197			343,216,451
Cost of shares redeemed		—			(30,812,569	)		(165,609,506	)		(151,185,194	)

Net Increase (Decrease) from Capital Transactions		23,578,199			(20,787,325	)		(40,575,309	)		192,031,257

Total Increase (Decrease) in Net Assets		33,344,168			(25,014,701	)		2,772,460			250,768,393


NET ASSETS
Beginning of Period	$	22,376,322		$	47,391,023		$	1,429,490,607		$	1,178,722,214

End of Period	$	55,720,490		$	22,376,322		$	1,432,263,067		$	1,429,490,607


SHARE TRANSACTIONS
Beginning of period		1,000,001			1,900,001			55,554,000			47,954,000
Shares issued		—			—			—			350,000
Shares issued in-kind		800,000			400,000			4,750,000			13,350,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		—			(1,300,000	)		(6,400,000	)		(6,100,000	)

Shares Outstanding, End of Period		1,800,001			1,000,001			53,904,000			55,554,000

⁽¹⁾

Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			25

Statements of Changes in Net Assets (cont.)


	FlexShares^® iBoxx 5-Year Target Duration TIPS Index Fund						FlexShares^®Disciplined Duration MBS Index Fund
	Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020			Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020

OPERATIONS
Net investment income (loss)	$	5,487,320		$	7,386,692		$	185,386		$	1,028,489
Net realized gain (loss)		7,657,214			9,689,662			834,234			348,869
Net change in unrealized appreciation (depreciation)		5,184,132			25,429,146			(1,065,351	)		1,683,407


Net Increase (Decrease) in Net Assets
Resulting from Operations		18,328,666			42,505,500			(45,731	)		3,060,765


DISTRIBUTIONS TO SHAREHOLDERS
Distributable earnings		(4,368,797	)		(5,908,902	)		(1,538,829	)		(1,754,929	)
Tax return of capital		—			—			—			—

Total distributions		(4,368,797	)		(5,908,902	)		(1,538,829	)		(1,754,929	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		23,585,987			119,287,446			11,969,283			66,955,234
Cost of shares redeemed		(33,255,174	)		(116,973,562	)		(3,605,765	)		(3,570,206	)

Net Increase (Decrease) from Capital Transactions		(9,669,187	)		2,313,884			8,363,518			63,385,028

Total Increase (Decrease) in Net Assets		4,290,682			38,910,482			6,778,958			64,690,864


NET ASSETS
Beginning of Period	$	596,095,210		$	557,184,728		$	100,020,485		$	35,329,621

End of Period	$	600,385,892		$	596,095,210		$	106,799,443		$	100,020,485


SHARE TRANSACTIONS
Beginning of period		21,800,001			21,850,001			4,150,001			1,500,001
Shares issued		—			—			500,000			2,800,000
Shares issued in-kind		850,000			4,450,000			—			—
Shares redeemed		—			—			(150,000	)		(150,000	)
Shares redeemed in-kind		(1,200,000	)		(4,500,000	)		—			—

Shares Outstanding, End of Period		21,450,001			21,800,001			4,500,001			4,150,001

⁽¹⁾

Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements.

See Accompanying Notes to the Financial Statements.


26		FLEXSHARES SEMIANNUAL REPORT

Statements of Changes in Net Assets (cont.)


	FlexShares^®Credit-Scored US Corporate Bond Index Fund						FlexShares^® Credit-Scored US Long Corporate Bond Index Fund
	Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020			Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020

OPERATIONS
Net investment income (loss)	$	2,320,982		$	3,543,318		$	789,377		$	1,108,090
Net realized gain (loss)		1,799,191			2,972,745			428,846			1,951,533
Net change in unrealized appreciation (depreciation)		(3,613,854	)		3,098,927			(2,028,239	)		168,819


Net Increase (Decrease) in Net Assets
Resulting from Operations		506,319			9,614,990			(810,016	)		3,228,442


DISTRIBUTIONS TO SHAREHOLDERS
Distributable earnings		(5,365,229	)		(3,976,789	)		(2,538,040	)		(1,038,434	)
Tax return of capital		—			—			—			—

Total distributions		(5,365,229	)		(3,976,789	)		(2,538,040	)		(1,038,434	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		95,476,416			99,484,140			20,958,435			26,818,282
Cost of shares redeemed		—			—			(5,848,320	)		—

Net Increase (Decrease) from Capital Transactions		95,476,416			99,484,140			15,110,115			26,818,282

Total Increase (Decrease) in Net Assets		90,617,506			105,122,341			11,762,059			29,008,290


NET ASSETS
Beginning of Period	$	202,397,409		$	97,275,068		$	46,360,411		$	17,352,121

End of Period	$	293,014,915		$	202,397,409		$	58,122,470		$	46,360,411


SHARE TRANSACTIONS
Beginning of period		3,700,001			1,850,001			750,001			300,001
Shares issued		1,750,000			1,850,000			350,000			450,000
Shares issued in-kind		—			—			—			—
Shares redeemed		—			—			(100,000	)		—
Shares redeemed in-kind		—			—			—			—

Shares Outstanding, End of Period		5,450,001			3,700,001			1,000,001			750,001

⁽¹⁾

Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			27

Statements of Changes in Net Assets (cont.)


	FlexShares^®High Yield Value- Scored Bond Index Fund						FlexShares^®Ready Access Variable Income Fund
	Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020			Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020

OPERATIONS
Net investment income (loss)	$	5,917,752		$	10,800,929		$	1,478,007		$	4,996,263
Net realized gain (loss)		6,677,639			(4,005,108	)		617,589			169,631
Net change in unrealized appreciation (depreciation)		7,523,086			(1,237,194	)		(858,943	)		1,872,649


Net Increase (Decrease) in Net Assets
Resulting from Operations		20,118,477			5,558,627			1,236,653			7,038,543


DISTRIBUTIONS TO SHAREHOLDERS
Distributable earnings		(6,217,716	)		(9,992,636	)		(1,793,127	)		(5,325,015	)
Tax return of capital		—			—			—			—

Total distributions		(6,217,716	)		(9,992,636	)		(1,793,127	)		(5,325,015	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		46,999,843			93,576,705			5,727,247			218,827,724
Cost of shares redeemed		(36,937,555	)		—			(60,987,366	)		(26,436,867	)

Net Increase (Decrease) from Capital Transactions		10,062,288			93,576,705			(55,260,119	)		192,390,857

Total Increase (Decrease) in Net Assets		23,963,049			89,142,696			(55,816,593	)		194,104,385


NET ASSETS
Beginning of Period	$	189,622,935		$	100,480,239		$	469,201,284		$	275,096,899

End of Period	$	213,585,984		$	189,622,935		$	413,384,691		$	469,201,284


SHARE TRANSACTIONS
Beginning of period		4,100,001			2,100,001			6,150,001			3,625,001
Shares issued		950,000			2,000,000			75,000			2,875,000
Shares issued in-kind		—			—			—			—
Shares redeemed		(750,000	)		—			(800,000	)		(350,000	)
Shares redeemed in-kind		—			—			—			—

Shares Outstanding, End of Period		4,300,001			4,100,001			5,425,001			6,150,001

⁽¹⁾

Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements.

See Accompanying Notes to the Financial Statements.


28		FLEXSHARES SEMIANNUAL REPORT

Statements of Changes in Net Assets (cont.)


	FlexShares^®Core Select Bond Fund
	Six Months Ended April 30, 2021 (Unaudited)			Year Ended October 31, 2020

OPERATIONS
Net investment income (loss)	$	1,054,414		$	1,184,248
Net realized gain (loss)		53,540			770,397
Net change in unrealized appreciation (depreciation)		(2,090,392	)		1,203,701


Net Increase (Decrease) in Net Assets
Resulting from Operations		(982,438	)		3,158,346


DISTRIBUTIONS TO SHAREHOLDERS
Distributable earnings		(1,772,820	)		(1,218,108	)
Tax return of capital		—			—

Total distributions		(1,772,820	)		(1,218,108	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		15,966,175			80,884,377
Cost of shares redeemed		(9,382,725	)		—

Net Increase (Decrease) from Capital Transactions		6,583,450			80,884,377

Total Increase (Decrease) in Net Assets		3,828,192			82,824,615


NET ASSETS
Beginning of Period	$	109,123,306		$	26,298,691

End of Period	$	112,951,498		$	109,123,306


SHARE TRANSACTIONS
Beginning of period		4,075,001			1,025,001
Shares issued		—			—
Shares issued in-kind		600,000			3,050,000
Shares redeemed		—			—
Shares redeemed in-kind		(350,000	)		—

Shares Outstanding, End of Period		4,325,001			4,075,001

⁽¹⁾

Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			29

FlexShares^® Trust

Financial Highlights


			PER SHARE
			Investment Operations									Distributions
	Net asset value, beginning of period		Net Investment Income			Net Realized and Unrealized Gain (Loss)			Total from Operations			Net Investment Income			From Net Realized Gains		Tax return of capital		Total

FlexShares^® US Quality Low Volatility Index Fund
Six Months ended April 30, 2021 (Unaudited)	$	40.93	$	0.31	^(a)	$	8.26		$	8.57		$	(0.31	)	$	—	$	—	$	(0.31	)
Year ended October 31, 2020		40.44		0.64	^(a)		0.38			1.02			(0.53	)		—		—		(0.53	)
For the period 07/15/19* through 10/31/19		40.00		0.17	^(a)		0.35			0.52			(0.08	)		—		—		(0.08	)

FlexShares^® Developed Markets ex-US Quality Low Volatility Index Fund
Six Months ended April 30, 2021 (Unaudited)		23.48		0.37	^(a)		3.54			3.91			(0.23	)		—		—		(0.23	)
Year ended October 31, 2020		25.60		0.64	^(a)		(2.22	)		(1.58	)		(0.54	)		—		—		(0.54	)
For the period 07/15/19* through 10/31/19		25.00		0.16	^(a)		0.53			0.69			(0.09	)		—		—		(0.09	)

FlexShares^® Emerging Markets Quality Low Volatility Index Fund
Six Months ended April 30, 2021 (Unaudited)		23.95		0.15	^(a)		3.44			3.59			(0.03	)		—		—		(0.03	)
Year ended October 31, 2020		24.94		0.56	^(a)		(0.91	)		(0.35	)		(0.64	)		—		—		(0.64	)
For the period 07/15/19* through 10/31/19		25.00		0.23	^(a)		(0.18	)		0.05			(0.11	)		—		—		(0.11	)

*	Commencement of investment operations.

(a)

Net investment income per share is based on average shares outstanding.

(b)

Not annualized for periods less than one year.

(c)

Annualized for periods less than one year.

(d)

Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at adjusted net asset value.

(e)

Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at market value. Market value is determined by the mid point of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market value returns may vary from net asset value returns.

(f)

In-kind transactions are not included in portfolio turnover calculations.

(g)

The amount shown for a share outstanding throughout the period is directionally inconsistent with aggregate net realized and unrealized gain (loss) for the period as presented in the financial statements.

(h)

Per share amount is less than $0.005.

(i)

The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Fund(s) in which the Fund is invested. This ratio does not include these indirect fees and expenses.

(j)

The Expenses net of reimbursements and Net investment Income (Loss) net of reimbursement ratios include a voluntary reimbursement of advisory fees made by JPMorgan Chase Bank, N.A. Absent this additional reimbursement, Expenses net of reimbursements would have increased by 0.20% and the Net investment Income (Loss) net of reimbursement would have decreased by 0.20%.

(k)

Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Select Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower.

See Accompanying Notes to the Financial Statements.


30		FLEXSHARES SEMIANNUAL REPORT


								RATIOS/SUPPLEMENTAL DATA
		Total Return^(b)						Ratios to Average Net Assets^(c)												Supplemental Data
Net Asset Value, end of period		Net Asset Value^(d)			Market Value (Unaudited)^(e)			Expenses			Expenses net of reimbursements			Net investment Income before reimbursements			Net investment Income net of reimbursements			Portfolio Turnover Rate^(b)(f)			Net assets, end of period (thousands)


$	49.19		21.00	%		20.94	%		0.23	%		0.22	%		1.38	%		1.38	%		22	%	$	145,110
	40.93		2.63			2.60			0.23			0.22			1.55			1.56			47			110,524
	40.44		1.30			1.43			0.23			0.22			1.45			1.45			9			6,067


	27.16		16.66			16.37			0.33			0.32			2.85			2.85			26			86,901
	23.48		(6.24	)		(6.06	)		0.33			0.32			2.63			2.64			62			65,747
	25.60		2.76			3.04			0.32			0.32			2.21			2.21			14			5,120


	27.51		14.98			14.22			0.41			0.40			1.15			1.16			29			16,504
	23.95		(1.41	)		(0.59	)		0.41			0.40			2.38			2.39			81			9,578
	24.94		0.19			0.31			0.40			0.40			3.18			3.18			12			4,989

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			31

Financial Highlights (cont.)


			PER SHARE
			Investment Operations									Distributions
	Net asset value, beginning of period		Net Investment Income			Net Realized and Unrealized Gain (Loss)			Total from Operations			Net Investment Income			From Net Realized Gains		Tax return of capital		Total

FlexShares^® Morningstar US Market Factor Tilt Index Fund
Six Months ended April 30, 2021 (Unaudited)	$	121.11	$	1.05	^(a)	$	45.67		$	46.72		$	(1.06	)	$	—	$	—	$	(1.06	)
Year ended October 31, 2020		119.52		2.10	^(a)		1.60			3.70			(2.11	)		—		—		(2.11	)
Year ended October 31, 2019		110.13		1.95	^(a)		9.33			11.28			(1.89	)		—		—		(1.89	)
Year ended October 31, 2018		107.50		2.02	^(a)		2.59			4.61			(1.98	)		—		—		(1.98	)
Year ended October 31, 2017		88.32		1.74	^(a)		19.13			20.87			(1.69	)		—		—		(1.69	)
Year ended October 31, 2016		87.02		1.65	^(a)		2.33			3.98			(2.68	)		—		—		(2.68	)

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund
Six Months ended April 30, 2021 (Unaudited)		54.24		0.75	^(a)		17.63			18.38			(0.46	)		—		—		(0.46	)
Year ended October 31, 2020		62.67		1.31	^(a)		(7.88	)		(6.57	)		(1.86	)		—		—		(1.86	)
Year ended October 31, 2019		59.76		1.85	^(a)		2.89			4.74			(1.83	)		—		—		(1.83	)
Year ended October 31, 2018		67.51		1.78	^(a)		(7.39	)		(5.61	)		(2.14	)		—		—		(2.14	)
Year ended October 31, 2017		55.62		1.58	^(a)		11.91	^(k)		13.49			(1.60	)		—		—		(1.60	)
Year ended October 31, 2016		58.18		1.59	^(a)		(1.55	)		0.04			(2.60	)		—		—		(2.60	)

*	Commencement of investment operations.

(a)

Net investment income per share is based on average shares outstanding.

(b)

Not annualized for periods less than one year.

(c)

Annualized for periods less than one year.

(d)

(e)

(f)

In-kind transactions are not included in portfolio turnover calculations.

(g)

(h)

Per share amount is less than $0.005.

(i)

(j)

(k)

See Accompanying Notes to the Financial Statements.


32		FLEXSHARES SEMIANNUAL REPORT


								RATIOS/SUPPLEMENTAL DATA
		Total Return^(b)						Ratios to Average Net Assets^(c)												Supplemental Data
Net Asset Value, end of period		Net Asset Value^(d)			Market Value (Unaudited)^(e)			Expenses			Expenses net of reimbursements			Net investment Income before reimbursements			Net investment Income net of reimbursements			Portfolio Turnover Rate^(b)(f)			Net assets, end of period (thousands)


$	166.77		38.69	%		38.64	%		0.26	%		0.25	%		1.41	%		1.41	%		12	%	$	1,667,659
	121.11		3.28			3.33			0.26			0.25			1.78			1.79			26			1,174,786
	119.52		10.41			10.41			0.26			0.25			1.72			1.72			28			1,446,137
	110.13		4.22			4.19			0.25			0.25			1.77			1.77			15			1,387,665
	107.50		23.77			23.72			0.26			0.25			1.73			1.74			22			1,150,199
	88.32		4.70			4.77			0.28			0.27			1.92			1.93			26			830,253


	72.16		33.92			33.77			0.40			0.39			2.26			2.26			12			634,969
	54.24		(10.57	)		(10.23	)		0.40			0.39			2.28			2.28			21			499,016
	62.67		8.13			8.16			0.40			0.39			3.09			3.09			25			965,142
	59.76		(8.61	)		(9.48	)		0.39			0.39			2.65			2.65			34			968,096
	67.51		24.58	^(k)		25.38			0.40			0.39			2.57			2.57			22			985,608
	55.62		0.20			0.80			0.43			0.42			2.91			2.92			35			622,898

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			33

Financial Highlights (cont.)


				PER SHARE
				Investment Operations									Distributions
		Net asset value, beginning of period		Net Investment Income			Net Realized and Unrealized Gain (Loss)			Total from Operations			Net Investment Income			From Net Realized Gains		Tax return of capital		Total

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund
Six Months ended April 30, 2021 (Unaudited)	��	$	48.05	$	0.40	^(a)	$	15.25		$	15.65		$	(0.30	)	$	—	$	—	$	(0.30	)
Year ended October 31, 2020			50.42		1.02	^(a)		(1.97	)		(0.95	)		(1.42	)		—		—		(1.42	)
Year ended October 31, 2019			47.92		1.49	^(a)		2.46			3.95			(1.45	)		—		—		(1.45	)
Year ended October 31, 2018			57.38		1.46	^(a)		(9.34	)		(7.88	)		(1.58	)		—		—		(1.58	)
Year ended October 31, 2017			47.52		1.28	^(a)		9.80			11.08			(1.22	)		—		—		(1.22	)
Year ended October 31, 2016			45.02		0.97	^(a)		3.10			4.07			(1.57	)		—		—		(1.57	)

FlexShares^® US Quality Large Cap Index Fund
Six Months ended April 30, 2021 (Unaudited)			35.48		0.25	^(a)		10.22			10.47			(0.25	)		—		—		(0.25	)
Year ended October 31, 2020			34.69		0.62	^(a)		0.76			1.38			(0.59	)		—		—		(0.59	)
Year ended October 31, 2019			33.44		0.68	^(a)		1.29			1.97			(0.72	)		—		—		(0.72	)
Year ended October 31, 2018			31.83		0.54	^(a)		1.58			2.12			(0.51	)		—		—		(0.51	)
Year ended October 31, 2017			26.15		0.49	^(a)		5.65			6.14			(0.46	)		—		—		(0.46	)
Year ended October 31, 2016			26.62		0.50	^(a)		(0.47	)		0.03			(0.50	)		—		—		(0.50	)

*	Commencement of investment operations.

(a)

Net investment income per share is based on average shares outstanding.

(b)

Not annualized for periods less than one year.

(c)

Annualized for periods less than one year.

(d)

(e)

(f)

In-kind transactions are not included in portfolio turnover calculations.

(g)

(h)

Per share amount is less than $0.005.

(i)

(j)

(k)

See Accompanying Notes to the Financial Statements.


34		FLEXSHARES SEMIANNUAL REPORT


								RATIOS/SUPPLEMENTAL DATA
		Total Return^(b)						Ratios to Average Net Assets^(c)												Supplemental Data
Net Asset Value, end of period		Net Asset Value^(d)			Market Value (Unaudited)^(e)			Expenses			Expenses net of reimbursements			Net investment Income before reimbursements			Net investment Income net of reimbursements			Portfolio Turnover Rate^(b)(f)			Net assets, end of period (thousands)


$	63.40		32.62	%		33.66	%		0.60	%		0.59	%		1.36	%		1.37	%		17	%	$	336,011
	48.05		(1.86	)		(1.44	)		0.60			0.59			2.13			2.14			41			225,847
	50.42		8.29			8.08			0.60			0.59			2.92			2.93			45			413,414
	47.92		(14.05	)		(15.22	)		0.59			0.59			2.56			2.56			49			488,736
	57.38		23.56			23.47			0.60			0.59			2.44			2.44			34			568,071
	47.52		9.41			10.65			0.66			0.65			2.23			2.23			34			299,351


	45.70		29.59			29.69			0.33			0.32			1.19			1.20			18			94,831
	35.48		4.13			4.16			0.33			0.32			1.77			1.77			48			71,842
	34.69		6.04			6.01			0.33			0.32			2.04			2.05			69			51,171
	33.44		6.63			6.30			0.33			0.32			1.56			1.57			94			61,859
	31.83		23.65			24.08			0.34			0.32			1.65			1.67			64			27,055
	26.15		0.12			0.12			0.38			0.32			1.87			1.93			59			6,538

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			35

Financial Highlights (cont.)


			PER SHARE
			Investment Operations								Distributions
	Net asset value, beginning of period		Net Investment Income			Net Realized and Unrealized Gain (Loss)			Total from Operations		Net Investment Income			From Net Realized Gains		Tax return of capital		Total

FlexShares^® STOXX^® US ESG Select Index Fund
Six Months ended April 30, 2021 (Unaudited)	$	79.16	$	0.65	^(a)	$	22.85		$	23.50	$	(0.59	)	$	—	$	—	$	(0.59	)
Year ended October 31, 2020		72.29		1.27	^(a)		6.81			8.08		(1.21	)		—		—		(1.21	)
Year ended October 31, 2019		64.33		1.21	^(a)		7.83			9.04		(1.08	)		—		—		(1.08	)
Year ended October 31, 2018		60.49		1.09	^(a)		3.84			4.93		(1.09	)		—		—		(1.09	)
Year ended October 31, 2017		49.96		1.05	^(a)		10.45			11.50		(0.97	)		—		—		(0.97	)
For the period 07/13/16* through 10/31/16		50.00		0.27	^(a)		(0.15	)		0.12		(0.16	)		—		—		(0.16	)

FlexShares^® STOXX^® Global ESG Select Index Fund
Six Months ended April 30, 2021 (Unaudited)		106.02		0.99	^(a)		30.11			31.10		(0.77	)		—		—		(0.77	)
Year ended October 31, 2020		101.77		1.72	^(a)		4.26			5.98		(1.73	)		—		—		(1.73	)
Year ended October 31, 2019		91.61		2.05	^(a)		10.12			12.17		(2.01	)		—		—		(2.01	)
Year ended October 31, 2018		91.97		1.95	^(a)		(0.61	)		1.34		(1.70	)		—		—		(1.70	)
Year ended October 31, 2017		75.52		1.56	^(a)		16.67	^(k)		18.23		(1.78	)		—		—		(1.78	)
For the period 07/13/16* through 10/31/16		75.00		0.41	^(a)		0.34			0.75		(0.23	)		—		—		(0.23	)

*	Commencement of investment operations.

(a)

Net investment income per share is based on average shares outstanding.

(b)

Not annualized for periods less than one year.

(c)

Annualized for periods less than one year.

(d)

(e)

(f)

In-kind transactions are not included in portfolio turnover calculations.

(g)

(h)

Per share amount is less than $0.005.

(i)

(j)

(k)

See Accompanying Notes to the Financial Statements.


36		FLEXSHARES SEMIANNUAL REPORT


								RATIOS/SUPPLEMENTAL DATA
		Total Return^(b)						Ratios to Average Net Assets^(c)												Supplemental Data
Net Asset Value, end of period		Net Asset Value^(d)			Market Value (Unaudited)^(e)			Expenses			Expenses net of reimbursements			Net investment Income before reimbursements			Net investment Income net of reimbursements			Portfolio Turnover Rate^(b)(f)			Net assets, end of period (thousands)


$	102.07		29.77	%		29.68	%		0.33	%		0.32	%		1.40	%		1.40	%		18	%	$	178,614
	79.16		11.40			11.45			0.33			0.32			1.67			1.68			66			89,052
	72.29		14.21			14.26			0.33			0.32			1.78			1.79			75			56,024
	64.33		8.13			7.97			0.33			0.32			1.66			1.67			110			28,946
	60.49		23.19			23.30			0.35			0.32			1.82			1.85			67			13,610
	49.96		0.24			0.28			0.37			0.32			1.75			1.80			20			4,996



	136.35		29.39			29.10			0.43			0.42			1.57			1.58			22			170,440
	106.02		6.03			6.46			0.43			0.42			1.66			1.66			58			111,323
	101.77		13.49			12.96			0.43			0.42			2.15			2.16			66			91,590
	91.61		1.38			1.71			0.43			0.42			2.03			2.04			78			73,284
	91.97		24.37	^(k)		24.55			0.45			0.42			1.81			1.83			64			32,189
	75.52		1.00			1.03			0.45			0.42			1.74			1.77			22			7,552

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			37

Financial Highlights (cont.)


			PER SHARE
			Investment Operations									Distributions
	Net asset value, beginning of period		Net Investment Income			Net Realized and Unrealized Gain (Loss)			Total from Operations			Net Investment Income			From Net Realized Gains		Tax return of capital		Total

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund
Six Months ended April 30, 2021 (Unaudited)	$	26.71	$	0.53	^(a)	$	10.89		$	11.42		$	(0.43	)	$	—	$	—	$	(0.43	)
Year ended October 31, 2020		31.40		0.89	^(a)		(4.65	)		(3.76	)		(0.93	)		—		—		(0.93	)
Year ended October 31, 2019		31.51		1.08	^(a)		(0.09	)		0.99			(1.10	)		—		—		(1.10	)
Year ended October 31, 2018		31.59		0.91	^(a)		(0.13	)		0.78			(0.86	)		—		—		(0.86	)
Year ended October 31, 2017		27.40		0.70	^(a)		4.13	^(k)		4.83			(0.64	)		—		—		(0.64	)
Year ended October 31, 2016		25.52		0.55	^(a)		2.73			3.28			(1.40	)		—		—		(1.40	)

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund
Six Months ended April 30, 2021 (Unaudited)		48.10		0.59	^(a)		9.63			10.22			(0.51	)		—		—		(0.51	)
Year ended October 31, 2020		52.56		1.25	^(a)		(4.53	)		(3.28	)		(1.18	)		—		—		(1.18	)
Year ended October 31, 2019		45.09		1.35	^(a)		7.34			8.69			(1.22	)		—		—		(1.22	)
Year ended October 31, 2018		47.85		1.36	^(a)		(2.71	)		(1.35	)		(1.41	)		—		—		(1.41	)
Year ended October 31, 2017		43.49		1.37	^(a)		4.40			5.77			(1.41	)		—		—		(1.41	)
Year ended October 31, 2016		43.30		1.34	^(a)		(0.02	)^(g)		1.32			(1.13	)		—		—		(1.13	)

*	Commencement of investment operations.

(a)

Net investment income per share is based on average shares outstanding.

(b)

Not annualized for periods less than one year.

(c)

Annualized for periods less than one year.

(d)

(e)

(f)

In-kind transactions are not included in portfolio turnover calculations.

(g)

(h)

Per share amount is less than $0.005.

(i)

(j)

(k)

See Accompanying Notes to the Financial Statements.


38		FLEXSHARES SEMIANNUAL REPORT


								RATIOS/SUPPLEMENTAL DATA
		Total Return^(b)						Ratios to Average Net Assets^(c)												Supplemental Data
Net Asset Value, end of period		Net Asset Value^(d)			Market Value (Unaudited)^(e)			Expenses			Expenses net of reimbursements			Net investment Income before reimbursements			Net investment Income net of reimbursements			Portfolio Turnover Rate^(b)(f)			Net assets, end of period (thousands)


$	37.70		42.89	%		42.37	%		0.47	%		0.46	%		3.08	%		3.08	%		16	%	$	5,142,483
	26.71		(11.87	)		(11.46	)		0.47			0.46			3.03			3.04			29			2,924,726
	31.40		3.16			3.06			0.47			0.46			3.40			3.41			24			5,510,201
	31.51		2.33			2.01			0.46			0.46			2.72			2.72			30			5,435,783
	31.59		17.81	^(k)		17.97			0.47			0.46			2.36			2.36			18			4,760,397
	27.40		13.84			14.05			0.49			0.48			2.20			2.20			18			2,822,012



	57.81		21.33			21.03			0.48			0.47			2.18			2.19			9			2,630,263
	48.10		(6.23	)		(5.93	)		0.48			0.47			2.51			2.52			13			1,856,596
	52.56		19.52			19.99			0.48			0.47			2.73			2.74			12			1,477,030
	45.09		(2.90	)		(3.25	)		0.47			0.47			2.88			2.89			13			773,363
	47.85		13.44			13.23			0.48			0.47			2.97			2.98			12			875,628
	43.49		3.09			3.26			0.48			0.47			3.09			3.10			14			669,676

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			39

Financial Highlights (cont.)


			PER SHARE
			Investment Operations									Distributions
	Net asset value, beginning of period		Net Investment Income			Net Realized and Unrealized Gain (Loss)			Total from Operations			Net Investment Income			From Net Realized Gains			Tax return of capital			Total

FlexShares^® Global Quality Real Estate Index Fund
Six Months ended April 30, 2021 (Unaudited)	$	50.88	$	0.75	^(a)	$	13.34		$	14.09		$	(0.38	)	$	—		$	—		$	(0.38	)
Year ended October 31, 2020		66.60		1.43	^(a)		(14.62	)		(13.19	)		(2.50	)		—			(0.03	)		(2.53	)
Year ended October 31, 2019		57.96		1.76	^(a)		8.68			10.44			(1.80	)		—			—			(1.80	)
Year ended October 31, 2018		62.02		1.80	^(a)		(3.99	)		(2.19	)		(1.87	)		—			—			(1.87	)
Year ended October 31, 2017		57.12		0.99	^(a)		5.54			6.53			(1.63	)		—			—			(1.63	)
Year ended October 31, 2016		57.47		1.90	^(a)		(0.58	)		1.32			(1.67	)		—			—			(1.67	)

FlexShares^® Real Assets Allocation Index Fund
Six Months ended April 30, 2021 (Unaudited)		25.72		0.28	^(a)		7.12			7.40			(0.29	)		—			—			(0.29	)
Year ended October 31, 2020		30.30		0.86	^(a)		(4.58	)		(3.72	)		(0.86	)		—			—			(0.86	)
Year ended October 31, 2019		26.45		0.76	^(a)		3.85			4.61			(0.76	)		—			—			(0.76	)
Year ended October 31, 2018		28.08		0.80	^(a)		(1.64	)		(0.84	)		(0.79	)		0.00	^(h)		—			(0.79	)
Year ended October 31, 2017		25.63		0.66	^(a)		2.54			3.20			(0.75	)		—			—			(0.75	)
For the period 11/23/15* through 10/31/16		25.00		0.86	^(a)		0.51	^(g)		1.37			(0.74	)		—			—			(0.74	)

*	Commencement of investment operations.

(a)

Net investment income per share is based on average shares outstanding.

(b)

Not annualized for periods less than one year.

(c)

Annualized for periods less than one year.

(d)

(e)

(f)

In-kind transactions are not included in portfolio turnover calculations.

(g)

(h)

Per share amount is less than $0.005.

(i)

(j)

(k)

See Accompanying Notes to the Financial Statements.


40		FLEXSHARES SEMIANNUAL REPORT


								RATIOS/SUPPLEMENTAL DATA
		Total Return^(b)						Ratios to Average Net Assets^(c)												Supplemental Data
Net Asset Value, end of period		Net Asset Value^(d)			Market Value (Unaudited)^(e)			Expenses			Expenses net of reimbursements			Net investment Income before reimbursements			Net investment Income net of reimbursements			Portfolio Turnover Rate^(b)(f)			Net assets, end of period (thousands)


$	64.59		27.79	%		27.97	%		0.46	%		0.45	%		2.57	%		2.57	%		25	%	$	364,944
	50.88		(20.29	)		(20.40	)		0.46			0.45			2.53			2.54			56			264,574
	66.60		18.37			18.65			0.46			0.45			2.80			2.81			53			376,264
	57.96		(3.69	)		(3.95	)		0.46			0.45			2.92			2.92			61			275,332
	62.02		11.71			11.71			0.46			0.45			1.67			1.67			64			244,970
	57.12		2.28			2.44			0.46			0.45			3.26			3.27			57			197,049


	32.83		28.86			29.29			0.58	⁽ⁱ⁾		0.11	⁽ⁱ⁾		1.36			1.83			11			7,387
	25.72		(12.45	)		(12.54	)		0.58	⁽ⁱ⁾		0.11	⁽ⁱ⁾		2.65			3.11			14			4,502
	30.30		17.69			17.72			0.58	⁽ⁱ⁾		0.11	⁽ⁱ⁾		2.22			2.69			4			11,361
	26.45		(3.09	)		(3.32	)		0.59	⁽ⁱ⁾		0.11	⁽ⁱ⁾		2.39			2.87			5			13,887
	28.08		12.73			13.05			0.65	⁽ⁱ⁾		0.11	⁽ⁱ⁾		1.88			2.42			11			6,318
	25.63		5.56			5.60			0.72	⁽ⁱ⁾		0.11	⁽ⁱ⁾		3.03			3.64			11			1,282

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			41

Financial Highlights (cont.)


			PER SHARE
			Investment Operations									Distributions
	Net asset value, beginning of period		Net Investment Income			Net Realized and Unrealized Gain (Loss)			Total from Operations			Net Investment Income			From Net Realized Gains			Tax return of capital		Total

FlexShares^® Quality Dividend Index Fund
Six Months ended April 30, 2021 (Unaudited)	$	43.40	$	0.56	^(a)	$	11.54		$	12.10		$	(0.54	)	$	—		$	—	$	(0.54	)
Year ended October 31, 2020		46.33		1.24	^(a)		(2.67	)		(1.43	)		(1.25	)		(0.25	)		—		(1.50	)
Year ended October 31, 2019		44.53		1.24	^(a)		2.29			3.53			(1.19	)		(0.54	)		—		(1.73	)
Year ended October 31, 2018		42.57		1.20	^(a)		1.98			3.18			(1.22	)		—			—		(1.22	)
Year ended October 31, 2017		37.11		1.23	^(a)		5.43			6.66			(1.20	)		—			—		(1.20	)
Year ended October 31, 2016		35.99		1.23	^(a)		1.03			2.26			(1.14	)		—			—		(1.14	)

FlexShares^® Quality Dividend Defensive Index Fund
Six Months ended April 30, 2021 (Unaudited)		42.61		0.55	^(a)		10.06			10.61			(0.55	)		—			—		(0.55	)
Year ended October 31, 2020		46.25		1.21	^(a)		(3.28	)		(2.07	)		(1.21	)		(0.36	)		—		(1.57	)
Year ended October 31, 2019		44.46		1.22	^(a)		3.35			4.57			(1.14	)		(1.64	)		—		(2.78	)
Year ended October 31, 2018		42.04		1.21	^(a)		2.45			3.66			(1.24	)		—			—		(1.24	)
Year ended October 31, 2017		36.82		1.18	^(a)		5.18			6.36			(1.14	)		—			—		(1.14	)
Year ended October 31, 2016		35.81		1.11	^(a)		0.99			2.10			(1.09	)		—			—		(1.09	)

*	Commencement of investment operations.

(a)

Net investment income per share is based on average shares outstanding.

(b)

Not annualized for periods less than one year.

(c)

Annualized for periods less than one year.

(d)

(e)

(f)

In-kind transactions are not included in portfolio turnover calculations.

(g)

(h)

Per share amount is less than $0.005.

(i)

(j)

(k)

See Accompanying Notes to the Financial Statements.


42		FLEXSHARES SEMIANNUAL REPORT


								RATIOS/SUPPLEMENTAL DATA
		Total Return^(b)						Ratios to Average Net Assets^(c)												Supplemental Data
Net Asset Value, end of period		Net Asset Value^(d)			Market Value (Unaudited)^(e)			Expenses			Expenses net of reimbursements			Net investment Income before reimbursements			Net investment Income net of reimbursements			Portfolio Turnover Rate^(b)(f)			Net assets, end of period (thousands)


$	54.96		27.99	%		27.95	%		0.38	%		0.37	%		2.22	%		2.23	%		27	%	$	1,533,486
	43.40		(2.98	)		(2.98	)		0.38			0.37			2.79			2.79			75			1,265,177
	46.33		8.45			8.52			0.38			0.37			2.80			2.81			95			1,707,344
	44.53		7.42			7.40			0.37			0.37			2.64			2.64			76			1,759,108
	42.57		18.10			18.03			0.38			0.37			3.00			3.00			89			1,815,665
	37.11		6.41			6.43			0.38			0.37			3.38			3.38			85			1,438,149


	52.67		25.02			24.99			0.38			0.37			2.27			2.27			28			479,262
	42.61		(4.45	)		(4.43	)		0.38			0.37			2.77			2.77			76			411,173
	46.25		11.40			11.40			0.38			0.37			2.76			2.76			91			450,963
	44.46		8.69			8.74			0.38			0.37			2.70			2.71			94			320,091
	42.04		17.44			17.41			0.38			0.37			2.94			2.95			74			313,167
	36.82		5.96			5.96			0.38			0.37			3.09			3.10			72			252,223

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			43

Financial Highlights (cont.)


			PER SHARE
			Investment Operations									Distributions
	Net asset value, beginning of period		Net Investment Income			Net Realized and Unrealized Gain (Loss)			Total from Operations			Net Investment Income			From Net Realized Gains		Tax return of capital		Total

FlexShares^® Quality Dividend Dynamic Index Fund
Six Months ended April 30, 2021 (Unaudited)	$	43.94	$	0.57	^(a)	$	14.14		$	14.71		$	(0.57	)	$	—	$	—	$	(0.57	)
Year ended October 31, 2020		45.49		1.33	^(a)		(1.21	)		0.12			(1.67	)		—		—		(1.67	)
Year ended October 31, 2019		42.20		1.21	^(a)		3.26			4.47			(1.18	)		—		—		(1.18	)
Year ended October 31, 2018		41.84		1.15	^(a)		0.40			1.55			(1.19	)		—		—		(1.19	)
Year ended October 31, 2017		35.32		1.19	^(a)		6.45			7.64			(1.12	)		—		—		(1.12	)
Year ended October 31, 2016		35.14		1.11	^(a)		0.31	^(g)		1.42			(1.24	)		—		—		(1.24	)

FlexShares^® International Quality Dividend Index Fund
Six Months ended April 30, 2021 (Unaudited)		20.15		0.41	^(a)		5.96			6.37			(0.24	)		—		—		(0.24	)
Year ended October 31, 2020		23.06		0.79	^(a)		(2.86	)		(2.07	)		(0.84	)		—		—		(0.84	)
Year ended October 31, 2019		22.37		1.13	^(a)		0.70			1.83			(1.14	)		—		—		(1.14	)
Year ended October 31, 2018		26.27		1.22	^(a)		(3.86	)		(2.64	)		(1.26	)		—		—		(1.26	)
Year ended October 31, 2017		22.45		1.06	^(a)		3.69			4.75			(0.93	)		—		—		(0.93	)
Year ended October 31, 2016		23.03		0.92	^(a)		(0.68	)		0.24			(0.82	)		—		—		(0.82	)

*	Commencement of investment operations.

(a)

Net investment income per share is based on average shares outstanding.

(b)

Not annualized for periods less than one year.

(c)

Annualized for periods less than one year.

(d)

(e)

(f)

In-kind transactions are not included in portfolio turnover calculations.

(g)

(h)

Per share amount is less than $0.005.

(i)

(j)

(k)

See Accompanying Notes to the Financial Statements.


44		FLEXSHARES SEMIANNUAL REPORT


								RATIOS/SUPPLEMENTAL DATA
		Total Return^(b)						Ratios to Average Net Assets^(c)												Supplemental Data
Net Asset Value, end of period		Net Asset Value^(d)			Market Value (Unaudited)^(e)			Expenses			Expenses net of reimbursements			Net investment Income before reimbursements			Net investment Income net of reimbursements			Portfolio Turnover Rate^(b)(f)			Net assets, end of period (thousands)


$	58.08		33.62	%		33.59	%		0.38	%		0.37	%		2.16	%		2.16	%		26	%	$	20,328
	43.94		0.86			0.91			0.38			0.37			2.93			2.94			77			13,181
	45.49		10.86			10.89			0.38			0.37			2.81			2.82			77			52,308
	42.20		3.59			3.67			0.38			0.37			2.61			2.62			77			44,305
	41.84		21.81			21.59			0.38			0.37			2.99			3.00			63			58,571
	35.32		4.16			4.43			0.38			0.37			3.23			3.25			69			52,979


	26.28		31.68			31.55			0.48			0.47			3.37			3.37			34			591,368
	20.15		(8.94	)		(8.93	)		0.48			0.47			3.68			3.68			74			453,477
	23.06		8.41			9.09			0.48			0.47			4.98			4.98			71			774,685
	22.37		(10.48	)		(11.30	)		0.47			0.47			4.77			4.78			71			765,167
	26.27		21.50			21.80			0.48			0.47			4.27			4.28			69			979,701
	22.45		1.16			2.05			0.48			0.47			4.17			4.18			68			496,050

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			45

Financial Highlights (cont.)


			PER SHARE
			Investment Operations									Distributions
	Net asset value, beginning of period		Net Investment Income			Net Realized and Unrealized Gain (Loss)			Total from Operations			Net Investment Income			From Net Realized Gains		Tax return of capital			Total

FlexShares^® International Quality Dividend Defensive Index Fund
Six Months ended April 30, 2021 (Unaudited)	$	19.16	$	0.38	^(a)	$	5.03		$	5.41		$	(0.27	)	$	—	$	—		$	(0.27	)
Year ended October 31, 2020		21.87		0.74	^(a)		(2.70	)		(1.96	)		(0.75	)		—		—			(0.75	)
Year ended October 31, 2019		21.39		1.09	^(a)		0.51			1.60			(1.12	)		—		—			(1.12	)
Year ended October 31, 2018		25.06		1.14	^(a)		(3.54	)		(2.40	)		(1.27	)		—		—			(1.27	)
Year ended October 31, 2017		22.16		0.99	^(a)		2.81			3.80			(0.90	)		—		—			(0.90	)
Year ended October 31, 2016		22.54		0.83	^(a)		(0.35	)		0.48			(0.86	)		—		—			(0.86	)

FlexShares^® International Quality Dividend Dynamic Index Fund
Six Months ended April 30, 2021 (Unaudited)		22.38		0.49	^(a)		8.30			8.79			(0.21	)		—		—			(0.21	)
Year ended October 31, 2020		24.94		0.70	^(a)		(2.45	)		(1.75	)		(0.81	)		—		—			(0.81	)
Year ended October 31, 2019		23.51		1.05	^(a)		1.52			2.57			(1.14	)		—		—			(1.14	)
Year ended October 31, 2018		27.82		1.32	^(a)		(4.34	)		(3.02	)		(1.29	)		—		—			(1.29	)
Year ended October 31, 2017		23.47		1.11	^(a)		4.08			5.19			(0.84	)		—		—			(0.84	)
Year ended October 31, 2016		23.82		0.83	^(a)		(0.13	)		0.70			(0.98	)		—		(0.07	)		(1.05	)

*	Commencement of investment operations.

(a)

Net investment income per share is based on average shares outstanding.

(b)

Not annualized for periods less than one year.

(c)

Annualized for periods less than one year.

(d)

(e)

(f)

In-kind transactions are not included in portfolio turnover calculations.

(g)

(h)

Per share amount is less than $0.005.

(i)

(j)

(k)

See Accompanying Notes to the Financial Statements.


46		FLEXSHARES SEMIANNUAL REPORT


								RATIOS/SUPPLEMENTAL DATA
		Total Return^(b)						Ratios to Average Net Assets^(c)												Supplemental Data
Net Asset Value, end of period		Net Asset Value^(d)			Market Value (Unaudited)^(e)			Expenses			Expenses net of reimbursements			Net investment Income before reimbursements			Net investment Income net of reimbursements			Portfolio Turnover Rate^(b)(f)			Net assets, end of period (thousands)


$	24.30		28.32	%		28.00	%		0.48	%		0.47	%		3.32	%		3.32	%		31	%	$	72,905
	19.16		(8.92	)		(8.88	)		0.48			0.47			3.65			3.66			75			59,404
	21.87		7.66			8.12			0.48			0.47			5.02			5.03			63			78,719
	21.39		(10.03	)		(10.91	)		0.48			0.47			4.68			4.68			69			87,703
	25.06		17.45			17.69			0.48			0.47			4.18			4.19			72			95,217
	22.16		2.24			3.39			0.48			0.47			3.78			3.79			73			77,561


	30.96		39.33			38.96			0.48			0.47			3.37			3.38			29			55,720
	22.38		(6.99	)		(7.03	)		0.48			0.47			2.90			2.91			85			22,376
	24.94		11.30			12.23			0.48			0.47			4.36			4.37			88			47,391
	23.51		(11.34	)		(12.11	)		0.48			0.47			4.83			4.83			75			63,481
	27.82		22.37			22.91			0.48			0.47			4.19			4.20			76			91,796
	23.47		3.17			3.96			0.49			0.47			3.70			3.72			75			18,777

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			47

Financial Highlights (cont.)


			PER SHARE
			Investment Operations									Distributions
	Net asset value, beginning of period		Net Investment Income			Net Realized and Unrealized Gain (Loss)			Total from Operations			Net Investment Income			From Net Realized Gains		Tax return of capital			Total

FlexShares^® iBoxx 3-Year Target Duration TIPS Index Fund
Six Months ended April 30, 2021 (Unaudited)	$	25.73	$	0.23	^(a)	$	0.80		$	1.03		$	(0.19	)	$	—	$	—		$	(0.19	)
Year ended October 31, 2020		24.58		0.33	^(a)		1.09			1.42			(0.27	)		—		—			(0.27	)
Year ended October 31, 2019		23.81		0.46	^(a)		0.79			1.25			(0.48	)		—		—			(0.48	)
Year ended October 31, 2018		24.60		0.68	^(a)		(0.78	)		(0.10	)		(0.69	)		—		—			(0.69	)
Year ended October 31, 2017		24.82		0.37	^(a)		(0.27	)		0.10			(0.32	)		—		—			(0.32	)
Year ended October 31, 2016		24.38		0.15	^(a)		0.47			0.62			(0.16	)		—		(0.02	)		(0.18	)

FlexShares^® iBoxx 5-Year Target Duration TIPS Index Fund
Six Months ended April 30, 2021 (Unaudited)		27.34		0.26	^(a)		0.59			0.85			(0.20	)		—		—			(0.20	)
Year ended October 31, 2020		25.50		0.36	^(a)		1.76			2.12			(0.28	)		—		—			(0.28	)
Year ended October 31, 2019		23.95		0.44	^(a)		1.59			2.03			(0.48	)		—		—			(0.48	)
Year ended October 31, 2018		25.06		0.71	^(a)		(1.08	)		(0.37	)		(0.74	)		—		—			(0.74	)
Year ended October 31, 2017		25.45		0.47	^(a)		(0.45	)		0.02			(0.41	)		—		—			(0.41	)
Year ended October 31, 2016		24.56		0.30	^(a)		0.88			1.18			(0.27	)		—		(0.02	)		(0.29	)

*	Commencement of investment operations.

(a)

Net investment income per share is based on average shares outstanding.

(b)

Not annualized for periods less than one year.

(c)

Annualized for periods less than one year.

(d)

(e)

(f)

In-kind transactions are not included in portfolio turnover calculations.

(g)

(h)

Per share amount is less than $0.005.

(i)

(j)

(k)

See Accompanying Notes to the Financial Statements.


48		FLEXSHARES SEMIANNUAL REPORT


								RATIOS/SUPPLEMENTAL DATA
		Total Return^(b)						Ratios to Average Net Assets^(c)												Supplemental Data
Net Asset Value, end of period		Net Asset Value^(d)			Market Value (Unaudited)^(e)			Expenses			Expenses net of reimbursements			Net investment Income before reimbursements			Net investment Income net of reimbursements			Portfolio Turnover Rate^(b)(f)			Net assets, end of period (thousands)


$	26.57		4.03	%		4.10	%		0.19	%		0.18	%		1.80	%		1.81	%		30	%	$	1,432,263
	25.73		5.81			5.85			0.19			0.18			1.33			1.33			71			1,429,491
	24.58		5.30			5.35			0.19			0.18			1.89			1.89			52			1,178,722
	23.81		(0.41	)		(0.49	)		0.18			0.18			2.79			2.80			85			1,641,610
	24.60		0.42			0.46			0.21			0.20			1.49			1.50			134			2,113,130
	24.82		2.55			2.55			0.21			0.20			0.62			0.63			105			1,841,902


	27.99		3.14			3.29			0.19			0.18			1.87			1.87			24			600,386
	27.34		8.39			8.47			0.19			0.18			1.35			1.35			66			596,095
	25.50		8.53			8.45			0.19			0.18			1.77			1.78			41			557,185
	23.95		(1.51	)		(1.51	)		0.18			0.18			2.88			2.88			65			904,027
	25.06		0.08			0.08			0.21			0.20			1.86			1.87			87			819,372
	25.45		4.81			4.64			0.21			0.20			1.18			1.19			72			651,605

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			49

Financial Highlights (cont.)


			PER SHARE
			Investment Operations									Distributions
	Net asset value, beginning of period		Net Investment Income			Net Realized and Unrealized Gain (Loss)			Total from Operations			Net Investment Income			From Net Realized Gains			Tax return of capital		Total

FlexShares^® Disciplined Duration MBS Index Fund
Six Months ended April 30, 2021 (Unaudited)	$	24.10	$	0.04	^(a)	$	(0.05	)	$	(0.01	)	$	(0.36	)	$	—		$	—	$	(0.36	)
Year ended October 31, 2020		23.55		0.37	^(a)		0.85			1.22			(0.67	)		—			—		(0.67	)
Year ended October 31, 2019		22.74		0.61	^(a)		1.03			1.64			(0.83	)		—			—		(0.83	)
Year ended October 31, 2018		23.86		0.49	^(a)		(0.88	)		(0.39	)		(0.73	)		—			—		(0.73	)
Year ended October 31, 2017		24.74		0.39	^(a)		(0.50	)		(0.11	)		(0.77	)		—			—		(0.77	)
Year ended October 31, 2016		24.87		0.45	^(a)		0.29			0.74			(0.87	)		—			—		(0.87	)

FlexShares^® Credit-Scored US Corporate Bond Index Fund
Six Months ended April 30, 2021 (Unaudited)		54.70		0.47	^(a)		(0.30	)		0.17			(0.49	)		(0.62	)		—		(1.11	)
Year ended October 31, 2020		52.58		1.32	^(a)		2.39			3.71			(1.37	)		(0.22	)		��		(1.59	)
Year ended October 31, 2019		48.59		1.63	^(a)		3.94			5.57			(1.58	)		—			—		(1.58	)
Year ended October 31, 2018		50.98		1.40	^(a)		(2.43	)		(1.03	)		(1.36	)		—			—		(1.36	)
Year ended October 31, 2017		51.49		1.26	^(a)		(0.34	)		0.92			(1.23	)		(0.20	)		—		(1.43	)
Year ended October 31, 2016		50.32		1.21	^(a)		1.13			2.34			(1.17	)		—			—		(1.17	)

*	Commencement of investment operations.

(a)

Net investment income per share is based on average shares outstanding.

(b)

Not annualized for periods less than one year.

(c)

Annualized for periods less than one year.

(d)

(e)

(f)

In-kind transactions are not included in portfolio turnover calculations.

(g)

(h)

Per share amount is less than $0.005.

(i)

(j)

(k)

See Accompanying Notes to the Financial Statements.


50		FLEXSHARES SEMIANNUAL REPORT


								RATIOS/SUPPLEMENTAL DATA
		Total Return^(b)						Ratios to Average Net Assets^(c)												Supplemental Data
Net Asset Value, end of period		Net Asset Value^(d)			Market Value (Unaudited)^(e)			Expenses			Expenses net of reimbursements			Net investment Income before reimbursements			Net investment Income net of reimbursements			Portfolio Turnover Rate^(b)(f)			Net assets, end of period (thousands)


$	23.73		0.00	%		0.12	%		0.21	%		0.20	%		0.36	%		0.36	%		178	%	$	106,799
	24.10		5.19			5.19			0.21			0.20			1.54			1.54			175			100,020
	23.55		7.36			7.07			0.21			0.20			2.64			2.65			61			35,330
	22.74		(1.65	)		(1.31	)		0.21			0.20			2.09			2.10			160			71,628
	23.86		(0.44	)		(0.53	)		0.21			0.20			1.61			1.62			61			38,183
	24.74		3.02			2.69			0.21			—	^(j)		1.62			1.83	^(j)		89			42,063


	53.76		0.31			0.38			0.23			0.22			1.73			1.73			24			293,015
	54.70		7.20			7.22			0.23			0.22			2.46			2.46			62			202,397
	52.58		11.66			11.56			0.23			0.22			3.20			3.21			65			97,275
	48.59		(2.05	)		(2.23	)		0.23			0.22			2.83			2.84			76			60,736
	50.98		1.85			1.99			0.23			0.22			2.48			2.49			65			50,982
	51.49		4.71			4.70			0.24			0.22			2.34			2.36			59			36,041

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			51

Financial Highlights (cont.)


			PER SHARE
			Investment Operations									Distributions
	Net asset value, beginning of period		Net Investment Income			Net Realized and Unrealized Gain (Loss)			Total from Operations			Net Investment Income			From Net Realized Gains			Tax return of capital			Total

FlexShares^® Credit-Scored US Long Corporate Bond Index Fund
Six Months ended April 30, 2021 (Unaudited)	$	61.81	$	0.95	^(a)	$	(1.51	)	$	(0.56	)	$	(0.93	)	$	(2.20	)	$	—		$	(3.13	)
Year ended October 31, 2020		57.84		1.99	^(a)		3.90			5.89			(1.92	)		—			—			(1.92	)
Year ended October 31, 2019		48.04		2.11	^(a)		9.89			12.00			(2.20	)		—			—			(2.20	)
Year ended October 31, 2018		53.88		2.07	^(a)		(5.87	)		(3.80	)		(2.04	)		—			—			(2.04	)
Year ended October 31, 2017		53.83		2.06	^(a)		0.74			2.80			(2.07	)		(0.68	)		—			(2.75	)
Year ended October 31, 2016		50.29		2.14	^(a)		3.56			5.70			(2.16	)		—			—			(2.16	)

FlexShares^® High Yield Value-Scored Bond Index Fund
Six Months ended April 30, 2021 (Unaudited)		46.25		1.45	^(a)		3.49			4.94			(1.52	)		—			—			(1.52	)
Year ended October 31, 2020		47.85		3.12	^(a)		(1.77	)		1.35			(2.95	)		—			—			(2.95	)
Year ended October 31, 2019		48.84		2.67	^(a)		0.78			3.45			(3.57	)		—			(0.87	)		(4.44	)
For the period 07/17/18* through 10/31/18		50.00		1.68	^(a)		(1.60	)		0.08			(1.24	)		—			—			(1.24	)

*	Commencement of investment operations.

(a)

Net investment income per share is based on average shares outstanding.

(b)

Not annualized for periods less than one year.

(c)

Annualized for periods less than one year.

(d)

(e)

(f)

In-kind transactions are not included in portfolio turnover calculations.

(g)

(h)

Per share amount is less than $0.005.

(i)

(j)

(k)

See Accompanying Notes to the Financial Statements.


52		FLEXSHARES SEMIANNUAL REPORT


								RATIOS/SUPPLEMENTAL DATA
		Total Return^(b)						Ratios to Average Net Assets^(c)												Supplemental Data
Net Asset Value, end of period		Net Asset Value^(d)			Market Value (Unaudited)^(e)			Expenses			Expenses net of reimbursements			Net investment Income before reimbursements			Net investment Income net of reimbursements			Portfolio Turnover Rate^(b)(f)			Net assets, end of period (thousands)


$	58.12		(1.10	)%		(0.74	)%		0.23	%		0.22	%		3.15	%		3.16	%		39	%	$	58,122
	61.81		10.34			10.57			0.23			0.22			3.27			3.28			74			46,360
	57.84		25.57			25.51			0.23			0.22			4.06			4.07			44			17,352
	48.04		(7.24	)		(7.86	)		0.23			0.22			4.05			4.06			93			26,424
	53.88		5.58			4.25			0.24			0.22			3.92			3.94			91			18,858
	53.83		11.60			12.75			0.25			0.22			4.01			4.04			80			13,457


	49.67		10.84			10.73			0.38			0.37			5.98			5.99			81			213,586
	46.25		3.07			3.12			0.38			0.37			6.78			6.78			95			189,623
	47.85		7.48			7.64			0.38			0.37			5.56			5.57			44			100,480
	48.84		0.13			0.13			0.38			0.37			11.56			11.57			18			48,845

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			53

Financial Highlights (cont.)


			PER SHARE
			Investment Operations									Distributions
	Net asset value, beginning of period		Net Investment Income			Net Realized and Unrealized Gain (Loss)			Total from Operations			Net Investment Income			From Net Realized Gains			Tax return of capital		Total

FlexShares^® Ready Access Variable Income Fund
Six Months ended April 30, 2021 (Unaudited)	$	76.29	$	0.25	^(a)	$	(0.04	)	$	0.21		$	(0.28	)	$	(0.02	)	$	—	$	(0.30	)
Year ended October 31, 2020		75.89		1.07	^(a)		0.57			1.64			(1.23	)		(0.01	)		—		(1.24	)
Year ended October 31, 2019		75.48		1.98	^(a)		0.41			2.39			(1.98	)		—			—		(1.98	)
Year ended October 31, 2018		75.61		1.58	^(a)		(0.24	)		1.34			(1.47	)		—			—		(1.47	)
Year ended October 31, 2017		75.56		0.89	^(a)		0.00	^(h)		0.89			(0.84	)		—			—		(0.84	)
Year ended October 31, 2016		75.36		0.65	^(a)		0.23			0.88			(0.63	)		(0.05	)		—		(0.68	)

FlexShares^® Core Select Bond Fund
Six Months ended April 30, 2021 (Unaudited)		26.78		0.25	^(a)		(0.48	)		(0.23	)		(0.32	)		(0.11	)		—		(0.43	)
Year ended October 31, 2020		25.66		0.51	^(a)		1.19			1.70			(0.58	)		—			—		(0.58	)
Year ended October 31, 2019		23.74		0.73	^(a)		1.93			2.66			(0.74	)		—			—		(0.74	)
Year ended October 31, 2018		25.08		0.63	^(a)		(1.31	)		(0.68	)		(0.66	)		—			—		(0.66	)
For the period 11/18/16* through 10/31/17		25.00		0.55	^(a)		0.15			0.70			(0.62	)		—			—		(0.62	)

*	Commencement of investment operations.

(a)

Net investment income per share is based on average shares outstanding.

(b)

Not annualized for periods less than one year.

(c)

Annualized for periods less than one year.

(d)

(e)

(f)

In-kind transactions are not included in portfolio turnover calculations.

(g)

(h)

Per share amount is less than $0.005.

(i)

(j)

(k)

See Accompanying Notes to the Financial Statements.


54		FLEXSHARES SEMIANNUAL REPORT


								RATIOS/SUPPLEMENTAL DATA
		Total Return^(b)						Ratios to Average Net Assets^(c)												Supplemental Data
Net Asset Value, end of period		Net Asset Value^(d)			Market Value (Unaudited)^(e)			Expenses			Expenses net of reimbursements			Net investment Income before reimbursements			Net investment Income net of reimbursements			Portfolio Turnover Rate^(b)(f)			Net assets, end of period (thousands)


$	76.20		0.28	%		0.28	%		0.26	%		0.25	%		0.67	%		0.67	%		46	%	$	413,385
	76.29		2.18			2.17			0.26			0.25			1.41			1.41			79			469,201
	75.89		3.21			3.18			0.26			0.25			2.61			2.62			73			275,097
	75.48		1.80			1.91			0.26			0.25			2.09			2.10			131			211,350
	75.61		1.18			1.06			0.26			0.25			1.17			1.18			71			162,557
	75.56		1.19			1.18			0.26			0.25			0.86			0.87			59			109,564


	26.12		(0.89	)		(0.93	)		0.36	⁽ⁱ⁾		0.18	⁽ⁱ⁾		1.73			1.91			46			112,951
	26.78		6.69			6.57			0.36	⁽ⁱ⁾		0.20	⁽ⁱ⁾		1.76			1.93			91			109,123
	25.66		11.38			11.41			0.36	⁽ⁱ⁾		0.19	⁽ⁱ⁾		2.80			2.97			135			26,299
	23.74		(2.73	)		(2.92	)		0.36	⁽ⁱ⁾		0.16	⁽ⁱ⁾		2.41			2.61			53			38,583
	25.08		2.86			3.19			0.43	⁽ⁱ⁾		0.16	⁽ⁱ⁾		2.08			2.35			99			3,762

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			55

Schedule of Investments

FlexShares® US Quality Low Volatility Index Fund

April 30, 2021 (Unaudited)


Investments	Shares		Value

COMMON STOCKS – 99.4%

Air Freight & Logistics – 2.1%

CH Robinson Worldwide, Inc.		7,906	$	767,515

Expeditors International of Washington, Inc.		11,505		1,263,939

United Parcel Service, Inc., Class B		5,251		1,070,469
				3,101,923

Automobiles – 0.4%

Tesla, Inc.*		885		627,854

Banks – 0.1%

JPMorgan Chase & Co.		1,180		181,496

Beverages – 1.6%

Coca-Cola Co. (The)		11,623		627,410

PepsiCo, Inc.		12,095		1,743,615
				2,371,025

Biotechnology – 2.6%

Amgen, Inc.		10,266		2,460,144

Regeneron Pharmaceuticals, Inc.*		2,537		1,221,058

United Therapeutics Corp.*		590		118,921
				3,800,123

Capital Markets – 2.2%

Intercontinental Exchange, Inc.		8,083		951,450

Nasdaq, Inc.		5,251		848,246

S&P Global, Inc.		3,422		1,335,915
				3,135,611

Chemicals – 0.9%

Ecolab, Inc.		5,723		1,282,639

Commercial Services & Supplies – 2.7%

Republic Services, Inc.		8,260		878,038

Tetra Tech, Inc.		5,487		700,306

Waste Connections, Inc.		7,847		934,656

Waste Management, Inc.		10,679		1,473,382
				3,986,382

Consumer Finance – 0.1%

Credit Acceptance Corp.*		236		93,170

Diversified Financial Services – 0.4%

Berkshire Hathaway, Inc., Class B*		1,888		519,106


Investments	Shares		Value

Diversified Telecommunication Services – 6.0%

AT&T, Inc.		61,950	$	1,945,850

Cogent Communications Holdings, Inc.		11,328		855,377

Iridium Communications, Inc.*		21,299		809,149

Liberty Global plc, Class C*		11,564		312,922

Verizon Communications, Inc.		72,393		4,183,591

Vonage Holdings Corp.*		46,079		624,370
				8,731,259

Electric Utilities – 3.7%

American Electric Power Co., Inc.		8,260		732,745

Duke Energy Corp.		1,062		106,933

IDACORP, Inc.		8,496		870,670

NextEra Energy, Inc.		17,287		1,339,915

Pinnacle West Capital Corp.		9,263		784,113

PNM Resources, Inc.		826		40,771

Portland General Electric Co.		14,337		729,180

Xcel Energy, Inc.		10,856		774,033
				5,378,360

Equity Real Estate Investment Trusts (REITs) – 3.5%

Camden Property Trust		6,077		732,157

Crown Castle International Corp.		3,717		702,736

Equinix, Inc.		295		212,624

Equity LifeStyle Properties, Inc.		13,688		949,947

Extra Space Storage, Inc.		767		114,045

Life Storage, Inc.		6,844		657,435

Public Storage		4,779		1,343,663

SBA Communications Corp.		1,062		318,303
				5,030,910

Food & Staples Retailing – 5.2%

Casey’s General Stores, Inc.		3,363		747,225

Costco Wholesale Corp.		7,729		2,875,884

Kroger Co. (The)		1,298		47,429

Sprouts Farmers Market, Inc.*		32,568		834,066

Walmart, Inc.		21,771		3,045,981
				7,550,585

Food Products – 1.2%

Hershey Co. (The)		6,844		1,124,469

McCormick & Co., Inc. (Non-Voting)		7,080		639,749
				1,764,218

See Accompanying Notes to the Financial Statements.


56		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® US Quality Low Volatility Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Health Care Equipment & Supplies – 1.6%

Abbott Laboratories		10,325	$	1,239,826

Stryker Corp.		4,012		1,053,672
				2,293,498

Health Care Providers & Services – 1.3%

Chemed Corp.		2,124		1,012,319

Encompass Health Corp.		8,614		730,984

UnitedHealth Group, Inc.		236		94,117
				1,837,420

Household Durables – 0.7%

Helen of Troy Ltd.*		4,720		996,911

Household Products – 1.1%

Clorox Co. (The)		4,307		786,027

Procter & Gamble Co. (The)		354		47,231

WD-40 Co.		3,186		792,486
				1,625,744

Independent Power and Renewable Electricity Producers – 0.7%

Atlantica Sustainable Infrastructure plc		26,491		1,021,228

Insurance – 4.5%

Alleghany Corp.*		885		600,889

Allstate Corp. (The)		9,263		1,174,548

Aon plc, Class A		3,953		993,942

Arthur J Gallagher & Co.		3,717		538,779

Chubb Ltd.		5,782		992,133

Progressive Corp. (The)		295		29,718

Travelers Cos., Inc. (The)		7,906		1,222,742

W R Berkley Corp.		13,216		1,053,580
				6,606,331

Interactive Media & Services – 5.4%

Alphabet, Inc., Class A*		1,239		2,915,986

Alphabet, Inc., Class C*		1,433		3,453,702

Facebook, Inc., Class A*		4,484		1,457,659
				7,827,347

Internet & Direct Marketing Retail – 3.7%

Amazon.com, Inc.*		1,395		4,837,051


Investments	Shares		Value

Internet & Direct Marketing Retail – (continued)

Stamps.com, Inc.*		2,360	$	484,673
				5,321,724

IT Services – 10.5%

Accenture plc, Class A		8,614		2,497,802

Automatic Data Processing, Inc.		2,183		408,199

Genpact Ltd.		14,927		709,480

Globant SA*		3,245		743,689

Jack Henry & Associates, Inc.		2,714		441,921

Mastercard, Inc., Class A		15,458		5,905,883

Visa, Inc., Class A		19,234		4,492,293
				15,199,267

Life Sciences Tools & Services – 1.8%

Charles River Laboratories International, Inc.*		2,537		843,426

ICON plc*		5,074		1,100,804

QIAGEN NV*		13,393		644,605
				2,588,835

Media – 1.6%

Cable One, Inc.		354		633,660

Charter Communications, Inc., Class A*		2,478		1,668,809
				2,302,469

Metals & Mining – 2.1%

Agnico Eagle Mines Ltd.		11,505		718,372

Newmont Corp.		20,591		1,285,085

Royal Gold, Inc.		9,735		1,088,957
				3,092,414

Multiline Retail – 1.5%

Ollie’s Bargain Outlet Holdings, Inc.*		4,484		413,739

Target Corp.		8,791		1,822,022
				2,235,761

Multi-Utilities – 1.8%

Ameren Corp.		1,711		145,162

CMS Energy Corp.		7,198		463,479

Consolidated Edison, Inc.		7,788		602,869

WEC Energy Group, Inc.		13,865		1,347,262
				2,558,772

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			57

FlexShares^® US Quality Low Volatility Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Pharmaceuticals – 9.0%

Eli Lilly and Co.		14,278	$	2,609,590

Johnson & Johnson		38,232		6,221,494

Merck & Co., Inc.		44,014		3,279,043

Zoetis, Inc.		5,841		1,010,668
				13,120,795

Professional Services – 0.6%

Verisk Analytics, Inc.		4,484		843,889

Road & Rail – 2.9%

JB Hunt Transport Services, Inc.		5,074		866,183

Landstar System, Inc.		6,844		1,179,084

Old Dominion Freight Line, Inc.		5,192		1,338,549

Werner Enterprises, Inc.		16,756		774,630
				4,158,446

Software – 8.8%

Adobe, Inc.*		4,071		2,069,452

Atlassian Corp. plc, Class A*		3,186		756,866

Check Point Software Technologies Ltd.*		9,027		1,054,444

Intuit, Inc.		1,770		729,523

Microsoft Corp.		24,662		6,219,263

Tyler Technologies, Inc.*		2,301		977,603

Zoom Video Communications, Inc., Class A*		2,891		923,877
				12,731,028

Specialty Retail – 2.1%

Home Depot, Inc. (The)		5,841		1,890,557

O’Reilly Automotive, Inc.*		2,006		1,109,077
				2,999,634

Technology Hardware, Storage & Peripherals – 4.5%

Apple, Inc.		49,678		6,530,670


Investments	Shares		Value

Water Utilities – 0.5%

American Water Works Co., Inc.		4,897	$	763,883
Total Common Stocks (Cost $123,056,947)				144,210,727
	Principal Amount

SHORT-TERM INVESTMENTS – 0.0%(a)

U.S. TREASURY OBLIGATIONS – 0.0%(a)

U.S. Treasury Bills 0.05%, 7/15/2021(b) (c) (Cost $74,993)	$	75,000		74,999
Total Investments – 99.4% (Cost $123,131,940)				144,285,726

Other assets less liabilities – 0.6%				824,356
NET ASSETS – 100.0%			$	145,110,082

*	Non-income producing security.

^(a)

Represents less than 0.05% of net assets.

^(b)

All or a portion of the security pledged as collateral for Futures Contracts.

^(c)

The rate shown was the current yield as of April 30, 2021.

Percentages shown are based on Net Assets.

As of April 30, 2021, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	21,833,263
Aggregate gross unrealized depreciation		(641,645	)
Net unrealized appreciation	$	21,191,618
Federal income tax cost	$	123,137,436

Futures Contracts

FlexShares^® US Quality Low Volatility Index Fund had the following open futures contracts as of April 30, 2021:

Number of
Contracts

Expiration
Date

Trading
Currency

Notional
Amount

Value and
Unrealized
Appreciation*

Long Contracts

S&P 500 E-Mini Index

06/18/2021

USD

834,880

43,328

*	This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts.

Abbreviations:

USD – US Dollar

See Accompanying Notes to the Financial Statements.


58		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^®Developed Markets ex-US Quality Low Volatility Index Fund

April 30, 2021 (Unaudited)


Investments	Shares		Value

COMMON STOCKS – 98.8%

Air Freight & Logistics – 0.5%

DSV Panalpina A/S		768	$	171,498

SG Holdings Co. Ltd.		12,800		290,885
				462,383

Auto Components – 0.1%

Bridgestone Corp.		3,200		128,141

Automobiles – 0.3%

Toyota Motor Corp.		3,200		237,925

Banks – 10.1%

Bank Leumi Le-Israel BM*		53,984		380,827

Bank of Nova Scotia (The)		19,392		1,233,793

BOC Hong Kong Holdings Ltd.		224,000		790,230

Chiba Bank Ltd. (The)(a)		32,000		199,661

Commonwealth Bank of Australia		19,360		1,331,560

Hang Seng Bank Ltd.		35,200		691,142

Oversea-Chinese Banking Corp. Ltd.		60,800		557,547

Royal Bank of Canada		16,416		1,565,405

Shizuoka Bank Ltd. (The)		83,200		637,102

Skandinaviska Enskilda Banken AB, Class A		3,072		39,473

Sumitomo Mitsui Financial Group, Inc.		22,400		779,148

Swedbank AB, Class A		3,008		52,912

Toronto-Dominion Bank (The)		7,488		514,336
				8,773,136

Beverages – 0.4%

Carlsberg A/S, Class B		768		134,948

Suntory Beverage & Food Ltd.		6,400		216,056
				351,004

Capital Markets – 2.3%

Deutsche Boerse AG		4,288		739,699

Euronext NV(b)		864		87,055

Japan Exchange Group, Inc.		19,200		449,941

Singapore Exchange Ltd.		86,400		678,653
				1,955,348

Chemicals – 5.9%

Air Liquide SA		7,872		1,327,821


Investments	Shares		Value

Chemicals – (continued)

Akzo Nobel NV		3,808	$	458,040

Chr Hansen Holding A/S*		3,680		338,713

Croda International plc		6,528		611,353

Givaudan SA (Registered)		143		599,564

Koninklijke DSM NV		3,808		683,943

Novozymes A/S, Class B		10,656		759,486

Symrise AG		2,944		380,624
				5,159,544

Commercial Services & Supplies – 1.6%

Brambles Ltd.		62,688		503,603

Secom Co. Ltd.		7,100		589,539

Securitas AB, Class B		16,352		279,342
				1,372,484

Diversified Financial Services – 1.6%

Groupe Bruxelles Lambert SA(a)		3,552		389,021

Industrivarden AB, Class A		832		31,959

Investor AB, Class A		544		46,321

Investor AB, Class B(a)		10,432		886,919

L E Lundbergforetagen AB, Class B		352		20,140

Sofina SA		64		24,361
				1,398,721

Diversified Telecommunication Services – 6.7%

BCE, Inc.		15,136		714,844

Deutsche Telekom AG (Registered)		44,352		854,255

Elisa OYJ		11,200		636,242

HKT Trust & HKT Ltd.		448,000		650,642

Koninklijke KPN NV		93,664		323,149

Nippon Telegraph & Telephone Corp.		25,600		645,240

Proximus SADP		12,128		258,852

Singapore Telecommunications Ltd.		195,200		366,807

Spark New Zealand Ltd.		10,711		33,815

Swisscom AG (Registered)(a)		1,376		747,254

Telefonica Deutschland Holding AG		111,712		325,170

Telia Co. AB		8,128		33,682

United Internet AG (Registered)		6,016		253,545
				5,843,497

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			59

FlexShares^® Developed Markets ex-US Quality Low Volatility Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Electric Utilities – 4.2%

Chubu Electric Power Co., Inc.		25,600	$	309,270

CLP Holdings Ltd.		71,500		705,624

Emera, Inc.(a)		4,992		226,714

Fortis, Inc.(a)		7,552		336,593

Hydro One Ltd.(b)		11,616		278,267

Iberdrola SA		83,392		1,127,851

Power Assets Holdings Ltd.		64,000		393,467

Tohoku Electric Power Co., Inc.		35,200		310,119
				3,687,905

Electronic Equipment, Instruments & Components – 1.2%

Halma plc		9,504		340,549

Hamamatsu Photonics KK		6,400		371,218

Hirose Electric Co. Ltd.		2,000		318,558
				1,030,325

Food & Staples Retailing – 5.8%

Etablissements Franz Colruyt NV		10,688		634,690

ICA Gruppen AB		13,376		616,934

J Sainsbury plc		101,696		334,689

Kesko OYJ, Class B		5,664		172,776

Koninklijke Ahold Delhaize NV		27,456		740,024

Loblaw Cos. Ltd.		6,880		381,694

Metro, Inc.		8,096		370,644

Seven & i Holdings Co. Ltd.		12,800		550,269

Sundrug Co. Ltd.		12,800		436,211

Tesco plc		138,848		424,855

Tsuruha Holdings, Inc.		1,900		219,368

Welcia Holdings Co. Ltd.(a)		6,400		199,662
				5,081,816

Food Products – 4.7%

MEIJI Holdings Co. Ltd.		3,200		198,198

Nestle SA (Registered)		32,224		3,846,882
				4,045,080

Gas Utilities – 1.8%

Osaka Gas Co. Ltd.		19,200		370,281

Toho Gas Co. Ltd.(a)		9,600		533,114

Tokyo Gas Co. Ltd.		32,000		647,875
				1,551,270


Investments	Shares		Value

Health Care Equipment & Supplies – 2.5%

Coloplast A/S, Class B		4,352	$	721,030

ConvaTec Group plc(b)		51,936		156,903

DiaSorin SpA		544		92,500

Fisher & Paykel Healthcare Corp. Ltd.		3,072		79,240

Hoya Corp.		6,900		784,973

Sysmex Corp.		3,700		369,814
				2,204,460

Health Care Providers & Services – 0.1%

Sonic Healthcare Ltd.		1,856		51,440

Hotels, Restaurants & Leisure – 0.7%

McDonald’s Holdings Co. Japan Ltd.		12,800		584,347

Household Durables – 0.8%

Rinnai Corp.		1,000		100,453

SEB SA		1,760		320,981

Sekisui House Ltd.		12,800		258,682
				680,116

Household Products – 1.0%

Lion Corp.		12,800		240,062

Reckitt Benckiser Group plc		6,624		591,638
				831,700

Independent Power and Renewable Electricity Producers – 0.3%

Uniper SE		7,776		284,005

Industrial Conglomerates – 1.0%

Jardine Matheson Holdings Ltd.		12,800		860,672

Insurance – 3.4%

Admiral Group plc		14,400		623,845

Ageas SA		256		15,520

AIA Group Ltd.		12,800		162,990

Assicurazioni Generali SpA		21,024		422,276

Direct Line Insurance Group plc		152,160		600,629

Gjensidige Forsikring ASA		896		20,431

NN Group NV		320		16,013

Sampo OYJ, Class A		2,880		136,979

Tryg A/S		43,168		989,119
				2,987,802

See Accompanying Notes to the Financial Statements.


60		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Developed Markets ex-US Quality Low Volatility Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

IT Services – 2.5%

Adyen NV* (b)		64	$	157,283

CGI, Inc.*		4,000		353,601

Fujitsu Ltd.		1,800		286,620

Itochu Techno-Solutions Corp.		6,400		221,911

Nomura Research Institute Ltd.		7,900		243,205

NTT Data Corp.		6,400		99,421

Obic Co. Ltd.		3,400		657,262

Shopify, Inc., Class A*		96		113,521
				2,132,824

Leisure Products – 0.4%

Bandai Namco Holdings, Inc.		4,300		315,739

Machinery – 2.4%

Alstom SA*		7,232		395,595

Knorr-Bremse AG		5,248		644,389

Kone OYJ, Class B		9,216		724,897

Schindler Holding AG		1,056		300,805

Schindler Holding AG (Registered)		96		26,735
				2,092,421

Marine – 1.0%

Kuehne + Nagel International AG (Registered)		3,008		900,372

Metals & Mining – 1.9%

Fortescue Metals Group Ltd.		12,928		225,589

Franco-Nevada Corp.		3,520		489,944

Kinross Gold Corp.		38,592		271,355

Polymetal International plc		12,672		262,386

Wheaton Precious Metals Corp.		8,672		359,442
				1,608,716

Multiline Retail – 0.9%

Wesfarmers Ltd.		18,880		789,132

Oil, Gas & Consumable Fuels – 0.1%

Idemitsu Kosan Co. Ltd.		3,200		76,615

Personal Products – 0.7%

Kobayashi Pharmaceutical Co. Ltd.		6,400		570,880

Unilever plc		1,024		59,993
				630,873


Investments	Shares		Value

Pharmaceuticals – 11.6%

AstraZeneca plc		6,720	$	717,817

Chugai Pharmaceutical Co. Ltd.		16,000		600,302

GlaxoSmithKline plc		78,624		1,458,273

Novartis AG (Registered)		3,328		284,470

Novo Nordisk A/S, Class B		30,976		2,271,685

Ono Pharmaceutical Co. Ltd.		6,400		161,076

Roche Holding AG		11,168		3,644,095

Roche Holding AG – BR(a)		128		44,517

Sanofi(a)		3,712		389,967

Santen Pharmaceutical Co. Ltd.		35,200		450,849

UCB SA		1,024		94,991
				10,118,042

Professional Services – 1.8%

RELX plc		28,064		730,299

Wolters Kluwer NV(a)		8,704		788,565
				1,518,864

Real Estate Management & Development – 3.8%

Deutsche Wohnen SE		4,064		220,151

Hang Lung Properties Ltd.		224,000		611,419

Henderson Land Development Co. Ltd.		160,000		711,743

Hongkong Land Holdings Ltd.		73,600		364,320

New World Development Co. Ltd.		32,000		169,335

PSP Swiss Property AG (Registered)		4,224		521,487

Sun Hung Kai Properties Ltd.		48,000		724,927
				3,323,382

Road & Rail – 1.4%

Hankyu Hanshin Holdings, Inc.		1,700		53,502

Kintetsu Group Holdings Co. Ltd.*		6,400		229,230

MTR Corp. Ltd.		112,000		624,397

Nagoya Railroad Co. Ltd.*		12,800		293,461
				1,200,590

Semiconductors & Semiconductor Equipment – 0.7%

ASML Holding NV		928		604,589

Software – 1.9%

Dassault Systemes SE		2,464		572,321

Nice Ltd.*		1,376		332,953

Open Text Corp.		6,144		289,071

Oracle Corp. Japan		3,200		300,078

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			61

FlexShares^® Developed Markets ex-US Quality Low Volatility Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Software – (continued)

SAP SE		896	$	125,938
				1,620,361

Specialty Retail – 1.6%

ABC-Mart, Inc.		9,600		513,792

Nitori Holdings Co. Ltd.		3,200		574,100

Yamada Holdings Co. Ltd.		64,000		318,521
				1,406,413

Technology Hardware, Storage & Peripherals – 0.9%

Canon, Inc.		16,000		381,026

FUJIFILM Holdings Corp.		6,400		414,956
				795,982

Textiles, Apparel & Luxury Goods – 2.5%

Hermes International		704		884,764

LVMH Moet Hennessy Louis Vuitton SE		1,760		1,326,723
				2,211,487

Tobacco – 0.7%

Japan Tobacco, Inc.		32,000		598,399

Trading Companies & Distributors – 1.4%

ITOCHU Corp.		28,800		897,950

MonotaRO Co. Ltd.		12,800		326,719
				1,224,669

Transportation Infrastructure – 0.1%

Aena SME SA* (b)		544		94,759

Water Utilities – 1.3%

Pennon Group plc		26,336		377,033

Severn Trent plc		7,520		257,901

United Utilities Group plc		35,552		476,582
				1,111,516

Wireless Telecommunication Services – 2.2%

KDDI Corp.		28,800		871,074

Rogers Communications, Inc., Class B		448		22,047

Softbank Corp.		38,400		495,172

Vodafone Group plc		254,976		482,941
				1,871,234
Total Common Stocks (Cost $78,264,310)				85,810,100


Investments	Number of Rights		Value

RIGHTS – 0.0%(c)

Capital Markets – 0.0%(c)

Euronext NV, expiring 5/10/2021, price 59.65 EUR* (Cost $–)		864	$	10,141
	Principal Amount

SECURITIES LENDING REINVESTMENTS(d) – 3.1%

REPURCHASE AGREEMENTS – 3.1%

Societe Generale, New York Branch, 0.01%, dated 4/30/2021, due 5/3/2021, repurchase price $2,693,459, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 3.63%, maturing 6/17/2021 – 2/15/2044; total market value $2,737,874 (Cost $2,693,457)	$	2,693,459		2,693,457
Total Investments – 101.9% (Cost $80,957,767)				88,513,698

Liabilities in excess of other assets – (1.9%)				(1,612,316	)
NET ASSETS – 100.0%			$	86,901,382

*	Non-income producing security.

^(a)

The security or a portion of this security is on loan at April 30, 2021. The total value of securities on loan at April 30, 2021 was $4,037,422, collateralized in the form of cash with a value of $2,693,459 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $539,395 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 6.00%, and maturity dates ranging from May 13, 2021 – February 15, 2051 and $1,053,146 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 5.75%, and maturity dates ranging from July 7, 2021 – September 20, 2117; a total value of $4,286,000.

^(b)

Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale.

^(c)

Represents less than 0.05% of net assets.

^(d)

The security was purchased with cash collateral held from securities on loan at April 30, 2021. The total value of securities purchased was $2,693,457.

See Accompanying Notes to the Financial Statements.


62		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Developed Markets ex-US Quality Low Volatility Index Fund (cont.)

Percentages shown are based on Net Assets.

Abbreviations

OYJ – Public Limited Company



Aggregate gross unrealized appreciation	$	9,222,960
Aggregate gross unrealized depreciation		(1,731,069	)
Net unrealized appreciation	$	7,491,891
Federal income tax cost	$	81,037,393

Futures Contracts

FlexShares^® Developed Markets ex-US Quality Low Volatility Index Fund had the following open futures contracts as of April 30, 2021:

Number of
Contracts

Expiration
Date

Trading
Currency

Notional
Amount

Value and
Unrealized
Appreciation*

Long Contracts

MSCI EAFE E-Mini Index

06/18/2021

USD

902,920

16,282

*	This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts.


Forward Foreign Currency Contracts
FlexShares^® Developed Markets ex-US Quality Low Volatility Index Fund had the following outstanding contracts as of April 30, 2021:


Contracts to Receive		Counterparty	In Exchange For			Maturity Date		Unrealized Appreciation/ (Depreciation)
CAD	4,000	BNP Paribas SA		USD	3,180		06/16/2021	$	72
CAD	20,000	Morgan Stanley		USD	15,839		06/16/2021		420
CHF	7,000	Bank of New York		USD	7,581		06/16/2021		103
DKK	2,566,000	Bank of New York		USD	411,008		06/16/2021		4,673
DKK	80,000	Morgan Stanley		USD	12,929		06/16/2021		30
EUR	27,000	Citibank NA		USD	32,275		06/16/2021		257
JPY	3,400,000	Morgan Stanley		USD	31,030		06/16/2021		87
SEK	80,000	Morgan Stanley		USD	9,418		06/16/2021		47
USD	102,315	Morgan Stanley		AUD	132,000		06/16/2021		330
USD	36,279	Morgan Stanley		EUR	30,000		06/16/2021		133
USD	125,567	Morgan Stanley		GBP	90,000		06/16/2021		943
USD	52,982	BNP Paribas SA		JPY	5,753,000		06/16/2021		331
Total unrealized appreciation								$	7,426
AUD	9,000	Morgan Stanley		USD	6,978		06/16/2021	$	(24	)
AUD	20,000	Toronto-Dominion Bank (The)		USD	15,495		06/16/2021		(44	)
EUR	17,000	Morgan Stanley		USD	20,568		06/16/2021		(22	)
GBP	61,000	Morgan Stanley		USD	84,661		06/16/2021		(193	)
JPY	1,500,000	BNP Paribas SA		USD	13,772		06/16/2021		(44	)
JPY	1,380,000	Morgan Stanley		USD	12,675		06/16/2021		(45	)
USD	17,298	Morgan Stanley		CHF	16,000		06/16/2021		(265	)
USD	369,577	Citibank NA		DKK	2,300,000		06/16/2021		(3,013	)
USD	15,787	Morgan Stanley		DKK	100,000		06/16/2021		(413	)

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			63

FlexShares^® Developed Markets ex-US Quality Low Volatility Index Fund (cont.)


Forward Foreign Currency Contracts (cont.)


Contracts to Receive		Counterparty	In Exchange For			Maturity Date		Unrealized Appreciation/ (Depreciation)
USD	24,059	Toronto-Dominion Bank (The)		DKK	150,000		06/16/2021	$	(240	)
USD	116,102	BNP Paribas SA		EUR	97,000		06/16/2021		(772	)
USD	53,282	Morgan Stanley		EUR	45,000		06/16/2021		(939	)
USD	36,987	Toronto-Dominion Bank (The)		EUR	31,000		06/16/2021		(365	)
USD	15,267	Toronto-Dominion Bank (The)		GBP	11,000		06/16/2021		(55	)
USD	177,813	Morgan Stanley		JPY	19,600,000		06/16/2021		(1,565	)
USD	19,043	BNP Paribas SA		SEK	162,000		06/16/2021		(123	)
Total unrealized depreciation								$	(8,122	)
Net unrealized depreciation								$	(696	)

Abbreviations:

AUD – Australian Dollar

CAD – Canadian Dollar

CHF – Swiss Franc

DKK – Danish Krone

EUR – Euro

GBP – British Pound

JPY – Japanese Yen

SEK – Swedish Krona

USD – US Dollar

FlexShares^® Developed Markets ex-US Quality Low Volatility Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2021:


Australia	3.3	%
Belgium	1.6
Canada	8.7
Denmark	6.2
Finland	1.9
France	6.1
Germany	4.4
Hong Kong	7.2
Israel	0.8
Italy	0.6
Japan	24.1
Netherlands	4.4
New Zealand	0.1
Norway	0.0	^†
Singapore	3.3
Spain	1.4
Sweden	2.3
Switzerland	12.6
United Kingdom	9.8
Other¹	1.2
	100.0	%

^†	Amount represents less than 0.05%.

¹	Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities).

See Accompanying Notes to the Financial Statements.


64		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^®Emerging Markets Quality Low Volatility Index Fund

April 30, 2021 (Unaudited)


Investments	Shares		Value

COMMON STOCKS – 99.2%

Air Freight & Logistics – 0.6%

ZTO Express Cayman, Inc., ADR		3,132	$	100,725

Automobiles – 0.2%

Hero MotoCorp Ltd.		1,056		40,191

Banks – 12.4%

Al Rajhi Bank		144		3,798

Banco BBVA Peru SA		4,560		2,478

Banco de Chile		82,485		8,789

Bank Central Asia Tbk. PT		3,600		7,981

Bank of China Ltd., Class H		372,000		147,998

Bank of Communications Co. Ltd., Class H		156,000		99,824

Chang Hwa Commercial Bank Ltd.		126,000		80,743

China Construction Bank Corp., Class H		210,000		166,284

China Merchants Bank Co. Ltd., Class H		1,500		12,100

Commercial International Bank Egypt SAE*		32,778		121,944

E.Sun Financial Holding Co. Ltd.		84,709		81,728

First Financial Holding Co. Ltd.		126,000		103,297

Hong Leong Bank Bhd.		18,600		80,913

Hua Nan Financial Holdings Co. Ltd.		138,000		93,867

Industrial & Commercial Bank of China Ltd., Class H		198,000		128,994

Malayan Banking Bhd.		51,185		102,835

Masraf Al Rayan QSC		112,188		137,670

Mega Financial Holding Co. Ltd.		138,000		161,304

Postal Savings Bank of China Co. Ltd., Class H(a)		132,000		85,996

Qatar National Bank QPSC		40,626		199,727

Sberbank of Russia PJSC		13,800		54,725

SinoPac Financial Holdings Co. Ltd.		114,000		54,280

Taiwan Cooperative Financial Holding Co. Ltd.		133,890		102,576
				2,039,851

Beverages – 0.1%

Arca Continental SAB de CV		3,600		19,354


Investments	Shares		Value

Biotechnology – 1.4%

Celltrion, Inc.*		61	$	14,587

Green Cross Corp.		222		67,557

Seegene, Inc.		1,728		145,405
				227,549

Capital Markets – 0.8%

Macquarie Korea Infrastructure Fund		12,678		137,340

Chemicals – 2.7%

Asian Paints Ltd.		4,554		155,939

PhosAgro PJSC		2,592		150,770

Pidilite Industries Ltd.*		5,562		136,346
				443,055

Commercial Services & Supplies – 0.8%

S-1 Corp.		1,722		126,168

Diversified Consumer Services – 0.7%

China East Education Holdings Ltd.(a)		51,000		119,114

Diversified Telecommunication Services – 4.3%

China Tower Corp. Ltd., Class H(a)		516,000		74,408

Chunghwa Telecom Co. Ltd.		42,000		171,410

Maroc Telecom		8,388		129,501

Saudi Telecom Co.		3,936		133,296

Telefonica Brasil SA		10,800		85,998

Tower Bersama Infrastructure Tbk. PT		563,400		108,819
				703,432

Electric Utilities – 1.7%

Cia de Transmissao de Energia Eletrica Paulista (Preference)		3,600		17,916

Enel Chile SA		1,102,998		74,901

Manila Electric Co.		14,580		82,605

Transmissora Alianca de Energia Eletrica SA		13,800		106,325
				281,747

Electronic Equipment, Instruments & Components – 1.1%

Hon Hai Precision Industry Co. Ltd.		18,000		74,750

WPG Holdings Ltd.		60,000		110,622
				185,372

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			65

FlexShares^® Emerging Markets Quality Low Volatility Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Entertainment – 0.5%

NetEase, Inc., ADR		576	$	64,546

Netmarble Corp.(a)		126		14,669
				79,215

Food & Staples Retailing – 3.7%

Berli Jucker PCL, NVDR		62,400		71,142

BIM Birlesik Magazalar A/S		14,040		110,058

InRetail Peru Corp.(a)		2,130		75,402

President Chain Store Corp.		9,000		87,316

Puregold Price Club, Inc.		72,840		56,426

Sun Art Retail Group Ltd.		93,000		85,734

Wal-Mart de Mexico SAB de CV		37,200		122,270
				608,348

Food Products – 5.8%

Dali Foods Group Co. Ltd.(a)		111,000		66,027

Gruma SAB de CV, Class B		8,430		92,049

International Holdings Co. PJSC*		7,410		182,973

Nestle Malaysia Bhd.		3,600		119,256

Orion Corp.		924		97,189

PPB Group Bhd.		18,000		81,291

Tingyi Cayman Islands Holding Corp.		30,000		53,999

Uni-President China Holdings Ltd.		114,000		138,851

Uni-President Enterprises Corp.		44,000		118,297
				949,932

Gas Utilities – 2.8%

China Resources Gas Group Ltd.		26,000		141,100

ENN Energy Holdings Ltd.		7,000		119,328

Grupo Energia Bogota SA ESP		113,634		79,279

Petronas Gas Bhd.		31,800		122,188
				461,895

Health Care Equipment & Supplies – 0.6%

Hartalega Holdings Bhd.		17,400		43,666

Top Glove Corp. Bhd.		40,200		55,446
				99,112

Health Care Providers & Services – 3.8%

Apollo Hospitals Enterprise Ltd.		2,202		95,054

Bangkok Dusit Medical Services PCL, NVDR		163,800		114,154


Investments	Shares		Value

Health Care Providers & Services – (continued)

Bangkok Dusit Medical Services PCL, Class F		17,400	$	12,126

Bumrungrad Hospital PCL, NVDR		31,800		136,851

Celltrion Healthcare Co. Ltd.*		832		83,922

IHH Healthcare Bhd.		64,800		85,105

Mitra Keluarga Karyasehat Tbk. PT(a)		598,800		108,609
				635,821

Hotels, Restaurants & Leisure – 0.9%

Jubilant Foodworks Ltd.*		1,110		43,333

Yum China Holdings, Inc.		1,680		105,706
				149,039

Household Durables – 0.4%

Coway Co. Ltd.		1,062		63,872

Household Products – 0.1%

Hindustan Unilever Ltd.		528		16,778

Independent Power and Renewable Electricity Producers – 0.7%

Colbun SA		464,341		79,317

Unipro PJSC		792,000		30,298
				109,615

Industrial Conglomerates – 0.3%

Enka Insaat ve Sanayi A/S		58,200		55,098

Insurance – 0.8%

Ping An Insurance Group Co. of China Ltd., Class H		12,000		131,250

Interactive Media & Services – 6.4%

Tencent Holdings Ltd.		13,100		1,050,786

Internet & Direct Marketing Retail – 11.1%

Alibaba Group Holding Ltd., ADR*		4,830		1,115,488

JD.com, Inc., ADR*		1,284		99,330

Meituan, Class B* (a)		5,000		191,841

Naspers Ltd., Class N		456		104,053

Pinduoduo, Inc., ADR*		528		70,715

Prosus NV*		2,328		252,865
				1,834,292

IT Services – 2.9%

Infosys Ltd.		4,140		75,696

See Accompanying Notes to the Financial Statements.


66		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Emerging Markets Quality Low Volatility Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

IT Services – (continued)

Mphasis Ltd.		210	$	5,003

Samsung SDS Co. Ltd.		204		33,562

Tata Consultancy Services Ltd.		7,020		287,695

Tech Mahindra Ltd.		5,328		69,081
				471,037

Marine – 1.3%

MISC Bhd.		1,200		1,986

Orient Overseas International Ltd.		13,000		210,562
				212,548

Metals & Mining – 1.2%

Polyus PJSC		546		100,875

Vale SA		4,600		92,436
				193,311

Multiline Retail – 0.0%(b)

Robinson PCL* (c)		600		376

Multi-Utilities – 0.5%

Qatar Electricity & Water Co. QSC		18,558		87,667

Oil, Gas & Consumable Fuels – 3.1%

China Shenhua Energy Co. Ltd., Class H		69,000		143,920

LUKOIL PJSC		270		20,846

Petronas Dagangan Bhd.		15,600		76,774

Qatar Fuel QSC		18,054		90,245

Reliance Industries Ltd.		1,326		35,704

Surgutneftegas PJSC (Preference)		249,600		142,443
				509,932

Personal Products – 0.0%(b)

Hengan International Group Co. Ltd.		500		3,241

Pharmaceuticals – 2.0%

Cadila Healthcare Ltd.*		1,476		11,381

Dr Reddy’s Laboratories Ltd.		72		5,018

Lupin Ltd.		2,118		30,581

Richter Gedeon Nyrt.		3,198		91,607

Sino Biopharmaceutical Ltd.		102,000		109,921

Yuhan Corp.		1,498		86,593
				335,101


Investments	Shares		Value

Road & Rail – 1.1%

CJ Logistics Corp.*		540	$	83,256

GMexico Transportes SAB de CV(a)		56,400		91,053
				174,309

Semiconductors & Semiconductor Equipment – 8.1%

Taiwan Semiconductor Manufacturing Co. Ltd.		62,000		1,331,758

Specialty Retail – 1.2%

Home Product Center PCL		2,800		1,268

Home Product Center PCL, NVDR		251,600		113,932

Zhongsheng Group Holdings Ltd.		12,000		90,925
				206,125

Technology Hardware, Storage & Peripherals – 4.9%

Chicony Electronics Co. Ltd.		37,000		111,929

Lite-On Technology Corp.		7,000		16,013

Samsung Electronics Co. Ltd.		9,228		676,120
				804,062

Textiles, Apparel & Luxury Goods – 0.0%(b)

Page Industries Ltd.		12		4,805

Thrifts & Mortgage Finance – 0.0%(b)

Housing Development Finance Corp. Ltd.		228		7,449

Tobacco – 0.6%

KT&G Corp.		1,416		104,894

Transportation Infrastructure – 1.8%

Jiangsu Expressway Co. Ltd., Class H		72,000		84,915

Promotora y Operadora de Infraestructura SAB de CV		4,020		31,192

Shenzhen Expressway Co. Ltd., Class H		76,000		78,869

Shenzhen International Holdings Ltd.		42,000		69,974

Westports Holdings Bhd.		34,800		36,530
				301,480

Water Utilities – 0.5%

Guangdong Investment Ltd.		50,000		76,994

Wireless Telecommunication Services – 5.3%

Advanced Info Service PCL, NVDR		16,800		92,262

America Movil SAB de CV, Series L		34,200		23,987

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			67

FlexShares^® Emerging Markets Quality Low Volatility Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Wireless Telecommunication Services – (continued)

Far EasTone Telecommunications Co. Ltd.*		60,000	$	139,834

Globe Telecom, Inc.		3,090		117,632

Intouch Holdings PCL, NVDR		70,800		144,954

Maxis Bhd.		72,600		81,525

PLDT, Inc.		3,180		84,272

Taiwan Mobile Co. Ltd.		38,000		136,040

Vodacom Group Ltd.		5,736		49,711
				870,217
Total Common Stocks (Cost $14,593,990)				16,364,257
	Principal Amount

CORPORATE BONDS – 0.0%(b)

Food Products – 0.0%(b)

Britannia Industries Ltd. 8.00%, 8/28/2022 (Cost $1)		INR 78		1
Total Investments – 99.2% (Cost $14,593,991)				16,364,258

Other assets less liabilities – 0.8%				140,189
NET ASSETS – 100.0%			$	16,504,447

*	Non-income producing security.

^(a)

^(b)

Represents less than 0.05% of net assets.

^(c)

Security fair valued as of April 30, 2021 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at April 30, 2021 amounted to $376, which represents approximately 0.00% of net assets of the Fund.

Percentages shown are based on Net Assets.

Abbreviations

ADR – American Depositary Receipt

INR – Indian Rupee

NVDR – Non-Voting Depositary Receipt

PJSC – Public Joint Stock Company

Preference – A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.



Aggregate gross unrealized appreciation	$	1,970,816
Aggregate gross unrealized depreciation		(249,640	)
Net unrealized appreciation	$	1,721,176
Federal income tax cost	$	14,644,976

Futures Contracts

FlexShares^® Emerging Markets Quality Low Volatility Index Fund had the following open futures contracts as of April 30, 2021:

Number of
Contracts

Expiration
Date

Trading
Currency

Notional
Amount

Value and
Unrealized
Appreciation*

Long Contracts

MSCI Emerging Markets E-Mini Index

06/18/2021

USD

133,660

1,536

*	This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts.

See Accompanying Notes to the Financial Statements.


68		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Emerging Markets Quality Low Volatility Index Fund (cont.)

Forward Foreign Currency Contracts

FlexShares^® Emerging Markets Quality Low Volatility Index Fund had the following outstanding contracts as of April 30, 2021:


Contracts to Receive		Counterparty	In Exchange For		Maturity Date		Unrealized Appreciation/ (Depreciation)
HKD	1,100,000	BNP Paribas SA	USD	141,502		06/16/2021	$	143
HKD	460,000	Morgan Stanley	USD	59,096		06/16/2021		137
USD	167,493	Citibank NA	HKD	1,300,000		06/16/2021		94
Total unrealized appreciation							$	374
USD	15,436	Toronto-Dominion Bank (The)	HKD	120,000		06/16/2021	$	(16	)
Total unrealized depreciation							$	(16	)
Net unrealized appreciation							$	358

Abbreviations:

HKD – Hong Kong Dollar

USD – US Dollar

FlexShares^® Emerging Markets Quality Low Volatility Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2021:


Brazil	1.8	%
Chile	1.0
China	31.7
Colombia	0.5
Egypt	0.7
Hungary	0.6
India	6.2
Indonesia	1.4
Malaysia	5.4
Mexico	2.3
Morocco	0.8
Peru	0.5
Philippines	2.1
Qatar	3.1
Russia	3.0
Saudi Arabia	0.8
South Africa	2.5
South Korea	10.5
Taiwan	18.0
Thailand	4.2
Turkey	1.0
United Arab Emirates	1.1
Other¹	0.8
	100.0	%

¹	Includes any non-equity securities and net other assets (liabilities).

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			69

Schedule of Investments

FlexShares^®Morningstar US Market Factor Tilt Index Fund

April 30, 2021 (Unaudited)


Investments	Shares		Value

COMMON STOCKS – 99.1%

Aerospace & Defense – 1.4%

AAR Corp.*		3,000	$	120,720

Aerojet Rocketdyne Holdings, Inc.		5,400		252,288

AeroVironment, Inc.* (a)		800		88,296

Axon Enterprise, Inc.*		4,000		606,440

Boeing Co. (The)*		19,000		4,451,890

BWX Technologies, Inc.		3,800		254,296

Cubic Corp.(a)		1,600		119,744

Curtiss-Wright Corp.		1,600		204,640

Ducommun, Inc.*		200		11,786

General Dynamics Corp.		7,600		1,445,748

HEICO Corp.(a)		1,200		168,960

HEICO Corp., Class A(a)		2,000		252,560

Hexcel Corp.*		2,800		157,948

Howmet Aerospace, Inc.*		13,200		421,872

Huntington Ingalls Industries, Inc.		1,400		297,248

Kaman Corp.(a)		1,000		53,350

Kratos Defense & Security Solutions, Inc.*		8,200		219,268

L3Harris Technologies, Inc.		6,800		1,422,764

Lockheed Martin Corp.		8,200		3,120,592

Maxar Technologies, Inc.(a)		5,000		194,050

Mercury Systems, Inc.*		1,800		135,432

Moog, Inc., Class A		7,800		675,090

National Presto Industries, Inc.(a)		200		20,576

Northrop Grumman Corp.		5,200		1,843,088

PAE, Inc.* (a)		7,200		64,584

Parsons Corp.* (a)		600		26,598

Raytheon Technologies Corp.		50,600		4,211,944

Spirit AeroSystems Holdings, Inc., Class A		5,000		228,450

Teledyne Technologies, Inc.*		1,000		447,750

Textron, Inc.		8,400		539,616

TransDigm Group, Inc.*		1,400		859,236

Triumph Group, Inc.*		13,400		226,728

Vectrus, Inc.* (a)		1,200		62,820

Virgin Galactic Holdings, Inc.* (a)		7,200		159,480
				23,365,852


Investments	Shares		Value

Air Freight & Logistics – 0.5%

Air Transport Services Group, Inc.* (a)		2,000	$	52,640

Atlas Air Worldwide Holdings, Inc.* (a)		7,400		502,534

CH Robinson Worldwide, Inc.		4,200		407,736

Echo Global Logistics, Inc.*		3,200		104,640

Expeditors International of Washington, Inc.		4,600		505,356

FedEx Corp.		8,400		2,438,604

Forward Air Corp.		1,000		88,290

Hub Group, Inc., Class A* (a)		2,800		184,016

United Parcel Service, Inc., Class B		20,000		4,077,200

XPO Logistics, Inc.*		3,000		417,360
				8,778,376

Airlines – 0.7%

Alaska Air Group, Inc.*		30,600		2,115,684

Allegiant Travel Co.*		1,000		235,730

American Airlines Group, Inc.* (a)		151,200		3,284,064

Delta Air Lines, Inc.*		20,000		938,400

Hawaiian Holdings, Inc.* (a)		12,800		321,408

JetBlue Airways Corp.*		79,400		1,616,584

SkyWest, Inc.*		13,400		665,444

Southwest Airlines Co.*		17,600		1,104,928

Spirit Airlines, Inc.* (a)		20,600		737,892

United Airlines Holdings, Inc.* (a)		8,800		478,720
				11,498,854

Auto Components – 0.4%

Adient plc*		24,200		1,121,428

American Axle & Manufacturing Holdings, Inc.*		18,200		168,896

Aptiv plc*		7,000		1,007,230

Autoliv, Inc.* (a)		2,200		221,452

BorgWarner, Inc.		6,400		310,912

Cooper Tire & Rubber Co.		4,200		239,358

Cooper-Standard Holdings, Inc.* (a)		3,400		98,736

See Accompanying Notes to the Financial Statements.


70		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Auto Components – (continued)

Dana, Inc.		10,800	$	273,240

Dorman Products, Inc.*		1,000		99,180

Fox Factory Holding Corp.*		2,000		306,460

Gentex Corp.		7,000		246,260

Gentherm, Inc.*		1,200		85,440

Goodyear Tire & Rubber Co. (The)*		48,800		839,848

LCI Industries		1,000		146,500

Lear Corp.(a)		1,800		330,912

Motorcar Parts of America, Inc.* (a)		4,400		95,040

Patrick Industries, Inc.		1,400		125,440

Standard Motor Products, Inc.		600		25,698

Tenneco, Inc., Class A*		15,600		157,092

Veoneer, Inc.* (a)		25,400		581,660

Visteon Corp.*		1,000		121,810
				6,602,592

Automobiles – 1.3%

Ford Motor Co.*		140,000		1,615,600

General Motors Co.*		44,200		2,529,124

Harley-Davidson, Inc.(a)		9,600		464,352

Tesla, Inc.*		21,200		15,040,128

Thor Industries, Inc.		13,800		1,953,942

Winnebago Industries, Inc.(a)		6,800		543,660
				22,146,806

Banks – 7.4%

1st Source Corp.(a)		5,800		276,022

Allegiance Bancshares, Inc.		600		23,760

Ameris Bancorp		15,000		811,350

Associated Banc-Corp.		32,200		704,858

Atlantic Union Bankshares Corp.		16,600		641,922

Banc of California, Inc.(a)		4,000		71,600

BancFirst Corp.(a)		600		41,706

Bancorp, Inc. (The)*		14,200		315,311

BancorpSouth Bank		25,200		745,668

Bank of America Corp.		260,200		10,545,906

Bank of Hawaii Corp.(a)		1,400		127,246

Bank OZK		30,800		1,262,492

BankUnited, Inc.(a)		23,800		1,109,318


Investments	Shares		Value

Banks – (continued)

Banner Corp.(a)		6,800	$	386,512

Berkshire Hills Bancorp, Inc.		4,200		93,198

BOK Financial Corp.(a)		8,200		721,108

Boston Private Financial Holdings, Inc.		24,600		362,112

Brookline Bancorp, Inc.(a)		3,000		48,300

Bryn Mawr Bank Corp.		600		27,576

Cadence Bancorp		2,600		57,850

Camden National Corp.		5,400		257,688

Cathay General Bancorp		15,600		631,488

Central Pacific Financial Corp.		4,200		113,190

CIT Group, Inc.		21,600		1,151,064

Citigroup, Inc.		71,600		5,100,784

Citizens Financial Group, Inc.		16,400		758,992

City Holding Co.(a)		600		46,440

Columbia Banking System, Inc.(a)		2,400		104,472

Comerica, Inc.		34,200		2,570,472

Commerce Bancshares, Inc.(a)		2,933		228,217

Community Bank System, Inc.(a)		3,600		279,468

Community Trust Bancorp, Inc.		2,200		98,032

ConnectOne Bancorp, Inc.		5,400		146,610

CrossFirst Bankshares, Inc.*		2,800		41,272

Cullen/Frost Bankers, Inc.(a)		14,000		1,680,840

Customers Bancorp, Inc.*		4,628		159,758

CVB Financial Corp.(a)		33,600		712,656

Dime Community Bancshares, Inc.		12,200		404,064

Eagle Bancorp, Inc.(a)		6,000		320,460

East West Bancorp, Inc.		35,000		2,665,250

Eastern Bankshares, Inc.		6,400		136,512

Enterprise Financial Services Corp.(a)		6,400		314,432

FB Financial Corp.		1,400		58,744

Fifth Third Bancorp		26,600		1,078,364

First Bancorp/NC		4,800		203,520

First Bancorp/PR		59,800		751,686

First Bancshares, Inc. (The)(a)		6,600		258,192

First Busey Corp.		15,000		374,700

First Citizens BancShares, Inc., Class A(a)		1,800		1,561,428

First Commonwealth Financial Corp.		26,400		382,536

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			71

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Banks – (continued)

First Financial Bancorp(a)		19,200	$	470,592

First Financial Bankshares, Inc.		7,000		343,560

First Financial Corp.		1,800		79,632

First Foundation, Inc.		10,600		252,280

First Hawaiian, Inc.		28,000		768,880

First Horizon Corp.		126,200		2,308,198

First Interstate BancSystem, Inc., Class A		2,600		122,122

First Merchants Corp.		14,600		674,666

First Midwest Bancorp, Inc.		22,600		473,922

First Republic Bank		4,600		842,904

Flushing Financial Corp.(a)		5,600		130,312

FNB Corp.(a)		69,200		891,988

Fulton Financial Corp.(a)		33,200		566,060

German American Bancorp, Inc.(a)		800		34,664

Glacier Bancorp, Inc.(a)		3,400		200,430

Great Southern Bancorp, Inc.		400		22,564

Great Western Bancorp, Inc.		9,600		317,280

Hancock Whitney Corp.		18,400		850,816

Hanmi Financial Corp.		8,000		162,400

HarborOne Bancorp, Inc.		2,400		34,344

Heartland Financial USA, Inc.		8,000		402,160

Heritage Commerce Corp.		15,800		190,706

Hilltop Holdings, Inc.(a)		18,000		633,600

Home BancShares, Inc.		37,600		1,046,408

Hope Bancorp, Inc.		22,600		339,226

Horizon Bancorp, Inc.(a)		8,000		146,720

Huntington Bancshares, Inc.(a)		40,000		612,800

Independent Bank Corp. – MA(a)		1,200		98,280

Independent Bank Corp. – MI		8,400		197,904

Independent Bank Group, Inc.		9,800		739,998

International Bancshares Corp.		15,000		710,850

Investors Bancorp, Inc.		60,600		887,184

JPMorgan Chase & Co.		103,800		15,965,478

KeyCorp		37,400		813,824

Lakeland Bancorp, Inc.		6,600		119,658

Lakeland Financial Corp.		800		52,184

Live Oak Bancshares, Inc.		1,000		63,960

M&T Bank Corp.		4,800		756,912

Midland States Bancorp, Inc.		5,000		140,900


Investments	Shares		Value

Banks – (continued)

National Bank Holdings Corp., Class A(a)		1,200	$	47,880

NBT Bancorp, Inc.		1,400		53,046

OceanFirst Financial Corp.		17,400		397,764

OFG Bancorp		16,000		379,040

Old National Bancorp		41,600		786,240

Pacific Premier Bancorp, Inc.		7,000		308,210

PacWest Bancorp		25,000		1,085,250

Park National Corp.		400		50,036

Peoples Bancorp, Inc.(a)		6,600		220,638

People’s United Financial, Inc.		94,200		1,707,846

Pinnacle Financial Partners, Inc.		19,000		1,665,160

PNC Financial Services Group, Inc. (The)		14,800		2,766,860

Popular, Inc.(a)		21,200		1,567,952

Preferred Bank		2,400		157,296

Prosperity Bancshares, Inc.		21,000		1,540,560

QCR Holdings, Inc.(a)		1,800		86,796

Regions Financial Corp.		37,000		806,600

Renasant Corp.(a)		3,800		160,094

S&T Bancorp, Inc.		2,400		79,080

Sandy Spring Bancorp, Inc.		9,800		444,528

Seacoast Banking Corp. of Florida*		5,200		189,020

ServisFirst Bancshares, Inc.(a)		1,600		101,184

Signature Bank		13,400		3,370,234

Silvergate Capital Corp., Class A*		1,000		107,220

Simmons First National Corp., Class A		22,600		644,100

South State Corp.		2,800		236,096

Southside Bancshares, Inc.(a)		1,000		40,150

Sterling Bancorp		50,000		1,256,500

Stock Yards Bancorp, Inc.(a)		800		40,928

SVB Financial Group*		1,800		1,029,294

Synovus Financial Corp.		37,000		1,733,820

TCF Financial Corp.		38,000		1,729,760

Texas Capital Bancshares, Inc.*		3,600		247,068

Tompkins Financial Corp.(a)		400		31,260

Towne Bank		14,800		458,504

TriCo Bancshares		800		37,024

TriState Capital Holdings, Inc.* (a)		3,000		71,610

See Accompanying Notes to the Financial Statements.


72		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Banks – (continued)

Triumph Bancorp, Inc.*		600	$	53,178

Truist Financial Corp.		47,000		2,787,570

Trustmark Corp.		17,000		550,970

UMB Financial Corp.		1,400		135,842

Umpqua Holdings Corp.		47,600		887,264

United Bankshares, Inc.(a)		28,600		1,123,122

United Community Banks, Inc.		23,000		752,560

Univest Financial Corp.		6,200		173,166

US Bancorp		47,800		2,836,930

Valley National Bancorp(a)		91,200		1,255,824

Veritex Holdings, Inc.		14,600		493,188

Washington Trust Bancorp, Inc.		5,600		285,880

Webster Financial Corp.(a)		19,800		1,047,618

Wells Fargo & Co.		110,000		4,955,500

WesBanco, Inc.(a)		13,600		493,544

Westamerica Bancorp		800		50,720

Western Alliance Bancorp		25,000		2,626,750

Wintrust Financial Corp.		12,600		971,460

Zions Bancorp NA		37,200		2,075,760
				123,623,006

Beverages – 0.9%

Boston Beer Co., Inc. (The), Class A*		200		243,298

Brown-Forman Corp., Class A(a)		1,600		114,160

Brown-Forman Corp., Class B		5,000		381,400

Coca-Cola Co. (The)		103,800		5,603,124

Coca-Cola Consolidated, Inc.		200		58,650

Constellation Brands, Inc., Class A		6,000		1,441,920

Keurig Dr Pepper, Inc.		21,800		781,530

Molson Coors Beverage Co., Class B* (a)		7,600		417,620

Monster Beverage Corp.*		10,400		1,009,320

National Beverage Corp.		800		38,872

PepsiCo, Inc.		37,000		5,333,920
				15,423,814

Biotechnology – 2.4%

AbbVie, Inc.		60,400		6,734,600

ACADIA Pharmaceuticals, Inc.*		3,200		65,792


Investments	Shares		Value

Biotechnology – (continued)

Acceleron Pharma, Inc.*		3,200	$	399,904

Adverum Biotechnologies, Inc.* (a)		16,600		64,740

Agenus, Inc.* (a)		2,400		7,416

Agios Pharmaceuticals, Inc.* (a)		1,000		55,800

Akebia Therapeutics, Inc.* (a)		57,600		183,744

Alector, Inc.* (a)		5,400		105,300

Alexion Pharmaceuticals, Inc.*		7,800		1,315,704

Alkermes plc*		5,400		118,827

Alnylam Pharmaceuticals, Inc.*		4,000		562,560

Altimmune, Inc.* (a)		7,000		101,290

Amgen, Inc.		19,800		4,744,872

Amicus Therapeutics, Inc.* (a)		8,200		80,688

Anika Therapeutics, Inc.* (a)		600		24,108

Apellis Pharmaceuticals, Inc.* (a)		5,000		253,350

Arcus Biosciences, Inc.* (a)		5,200		175,500

Ardelyx, Inc.* (a)		13,000		95,030

Arena Pharmaceuticals, Inc.* (a)		4,600		315,698

Arrowhead Pharmaceuticals, Inc.*		3,600		261,936

Assembly Biosciences, Inc.* (a)		1,800		7,704

Athenex, Inc.* (a)		20,200		81,002

Avita Medical, Inc.* (a)		6,800		140,352

BioCryst Pharmaceuticals, Inc.* (a)		17,400		202,449

Biogen, Inc.*		5,000		1,336,650

BioMarin Pharmaceutical, Inc.* (a)		3,400		264,928

Bioxcel Therapeutics, Inc.* (a)		1,200		40,764

Blueprint Medicines Corp.* (a)		1,800		173,376

Cardiff Oncology, Inc.* (a)		10,200		101,286

CareDx, Inc.*		3,400		268,838

Catalyst Pharmaceuticals, Inc.*		41,400		189,612

ChemoCentryx, Inc.* (a)		1,400		67,662

Clovis Oncology, Inc.* (a)		34,800		206,712

Coherus Biosciences, Inc.* (a)		18,400		272,320

Crinetics Pharmaceuticals, Inc.* (a)		8,600		148,866

CRISPR Therapeutics AG* (a)		3,400		446,318

Cue Biopharma, Inc.* (a)		2,400		29,112

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			73

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Biotechnology – (continued)

Cytokinetics, Inc.* (a)		2,200	$	55,968

Deciphera Pharmaceuticals, Inc.*		600		27,822

Denali Therapeutics, Inc.* (a)		2,200		132,968

Dicerna Pharmaceuticals, Inc.*		2,400		74,856

Dynavax Technologies Corp.*		1,000		9,980

Editas Medicine, Inc.* (a)		1,800		66,618

Eiger BioPharmaceuticals, Inc.* (a)		4,200		35,658

Emergent BioSolutions, Inc.*		2,600		158,548

Enanta Pharmaceuticals, Inc.*		2,000		101,480

Epizyme, Inc.* (a)		2,600		20,306

Esperion Therapeutics, Inc.* (a)		5,400		145,530

Exact Sciences Corp.*		4,800		632,736

Exelixis, Inc.*		10,000		246,200

Fate Therapeutics, Inc.* (a)		4,400		384,516

FibroGen, Inc.*		600		13,392

Flexion Therapeutics, Inc.*		3,800		29,488

G1 Therapeutics, Inc.* (a)		10,400		219,128

Gilead Sciences, Inc.		40,600		2,576,882

Global Blood Therapeutics, Inc.* (a)		4,800		195,744

Halozyme Therapeutics, Inc.* (a)		8,000		399,600

Heron Therapeutics, Inc.* (a)		600		10,488

Homology Medicines, Inc.* (a)		8,000		54,160

Ideaya Biosciences, Inc.*		2,600		53,430

ImmunoGen, Inc.*		8,600		69,316

Immunovant, Inc.* (a)		4,400		68,992

Incyte Corp.*		6,600		563,508

Insmed, Inc.*		7,000		236,110

Intellia Therapeutics, Inc.* (a)		4,200		322,434

Intercept Pharmaceuticals, Inc.* (a)		4,200		83,076

Invitae Corp.* (a)		6,000		209,400

Ionis Pharmaceuticals, Inc.* (a)		6,200		265,484

Iovance Biotherapeutics, Inc.* (a)		3,800		119,472

Ironwood Pharmaceuticals, Inc.* (a)		5,400		59,616

Jounce Therapeutics, Inc.*		5,600		52,808

Kadmon Holdings, Inc.* (a)		37,200		151,032


Investments	Shares		Value

Biotechnology – (continued)

Karyopharm Therapeutics, Inc.* (a)		1,800	$	16,812

Kodiak Sciences, Inc.* (a)		800		96,672

Ligand Pharmaceuticals, Inc.*		600		87,534

Madrigal Pharmaceuticals, Inc.* (a)		600		81,660

Mersana Therapeutics, Inc.* (a)		3,600		57,348

Mirati Therapeutics, Inc.*		1,000		166,220

Moderna, Inc.*		8,600		1,537,852

Molecular Templates, Inc.* (a)		4,800		44,928

Myriad Genetics, Inc.*		3,400		102,748

Natera, Inc.* (a)		4,600		506,092

Neurocrine Biosciences, Inc.*		2,600		245,674

Nkarta, Inc.*		800		25,480

Novavax, Inc.*		3,400		805,562

OPKO Health, Inc.* (a)		33,400		136,940

Precision BioSciences, Inc.* (a)		1,000		9,290

Prothena Corp. plc* (a)		1,600		42,464

PTC Therapeutics, Inc.* (a)		2,000		82,420

Radius Health, Inc.*		7,800		173,940

Regeneron Pharmaceuticals, Inc.*		3,000		1,443,900

REVOLUTION Medicines, Inc.* (a)		3,600		119,484

Rhythm Pharmaceuticals, Inc.*		1,200		25,872

Rigel Pharmaceuticals, Inc.* (a)		37,200		138,384

Rocket Pharmaceuticals, Inc.* (a)		3,000		137,520

Sage Therapeutics, Inc.*		1,600		126,016

Sangamo Therapeutics, Inc.* (a)		4,000		47,120

Sarepta Therapeutics, Inc.* (a)		2,000		141,680

Seagen, Inc.*		4,200		603,792

Seres Therapeutics, Inc.* (a)		7,200		149,832

Sorrento Therapeutics, Inc.* (a)		21,200		174,476

Spectrum Pharmaceuticals, Inc.* (a)		8,400		26,124

Sutro Biopharma, Inc.* (a)		1,800		36,918

TG Therapeutics, Inc.* (a)		3,200		143,072

Translate Bio, Inc.*		6,600		153,252

Travere Therapeutics, Inc.*		1,200		29,664

Twist Bioscience Corp.* (a)		1,400		187,866

See Accompanying Notes to the Financial Statements.


74		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Biotechnology – (continued)

Ultragenyx Pharmaceutical, Inc.* (a)		2,200	$	245,608

United Therapeutics Corp.*		10,800		2,176,848

Vanda Pharmaceuticals, Inc.*		1,600		26,560

Veracyte, Inc.*		5,600		278,600

Vericel Corp.*		3,800		237,196

Vertex Pharmaceuticals, Inc.*		6,600		1,440,120

Viking Therapeutics, Inc.* (a)		19,400		123,966

Vir Biotechnology, Inc.* (a)		5,400		257,796

Voyager Therapeutics, Inc.* (a)		1,000		4,820

XBiotech, Inc.*		600		10,248

Xencor, Inc.*		1,400		59,584

Y-mAbs Therapeutics, Inc.*		3,000		90,210

ZIOPHARM Oncology, Inc.* (a)		5,000		17,300
				40,365,020

Building Products – 0.8%

A O Smith Corp.		3,800		257,450

AAON, Inc.(a)		1,400		91,574

Advanced Drainage Systems, Inc.		1,800		200,988

Allegion plc		3,000		403,140

American Woodmark Corp.*		4,800		477,408

Apogee Enterprises, Inc.(a)		5,400		189,702

Armstrong World Industries, Inc.		2,200		228,030

AZEK Co., Inc. (The)*		4,800		231,744

Builders FirstSource, Inc.* (a)		48,600		2,365,362

Carrier Global Corp.		29,000		1,263,820

Cornerstone Building Brands, Inc.* (a)		12,800		179,968

Fortune Brands Home & Security, Inc.		4,600		482,908

Gibraltar Industries, Inc.*		1,000		91,860

Griffon Corp.		7,200		195,264

Insteel Industries, Inc.		400		15,252

JELD-WEN Holding, Inc.*		19,000		554,230

Johnson Controls International plc		26,000		1,620,840

Lennox International, Inc.(a)		1,000		335,340

Masco Corp.		7,800		498,264


Investments	Shares		Value

Building Products – (continued)

Masonite International Corp.*		800	$	101,032

Owens Corning		4,600		445,326

PGT Innovations, Inc.* (a)		6,600		173,778

Quanex Building Products Corp.(a)		4,800		130,992

Resideo Technologies, Inc.*		29,800		894,298

Simpson Manufacturing Co., Inc.		1,600		180,320

Trane Technologies plc		6,200		1,077,746

Trex Co., Inc.*		4,000		431,960

UFP Industries, Inc.		2,000		168,080
				13,286,676

Capital Markets – 2.9%

Affiliated Managers Group, Inc.		10,800		1,740,636

Ameriprise Financial, Inc.		4,200		1,085,280

Apollo Global Management, Inc.(a)		5,400		298,998

Ares Management Corp.		4,000		210,080

Artisan Partners Asset Management, Inc., Class A		3,200		162,944

B. Riley Financial, Inc.(a)		4,200		299,418

Bank of New York Mellon Corp. (The)		26,000		1,296,880

BGC Partners, Inc., Class A		48,000		254,400

BlackRock, Inc.		4,800		3,932,640

Blackstone Group, Inc. (The), Class A		17,400		1,539,726

Blucora, Inc.*		16,600		238,957

Brightsphere Investment Group, Inc.		6,800		153,068

Carlyle Group, Inc. (The)		1,800		76,788

Charles Schwab Corp. (The)		40,317		2,838,317

CME Group, Inc.		9,800		1,979,502

Cohen & Steers, Inc.		800		54,416

Cowen, Inc., Class A(a)		8,800		347,512

Evercore, Inc., Class A		2,600		364,338

FactSet Research Systems, Inc.		1,000		336,220

Federated Hermes, Inc., Class B		20,000		576,000

Focus Financial Partners, Inc., Class A*		8,600		404,716

Franklin Resources, Inc.(a)		11,600		348,000

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			75

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Capital Markets – (continued)

Goldman Sachs Group, Inc. (The)		11,800	$	4,111,710

Hamilton Lane, Inc., Class A		1,000		90,450

Houlihan Lokey, Inc.		1,800		119,286

Interactive Brokers Group, Inc., Class A		3,000		214,560

Intercontinental Exchange, Inc.		14,800		1,742,108

Invesco Ltd.		93,200		2,516,400

Janus Henderson Group plc(a)		37,400		1,286,186

KKR & Co., Inc.		15,000		848,700

LPL Financial Holdings, Inc.		3,400		532,780

MarketAxess Holdings, Inc.		1,000		488,460

Moelis & Co., Class A		1,600		86,848

Moody’s Corp.		4,200		1,372,182

Morgan Stanley		51,497		4,251,077

Morningstar, Inc.(a)		600		159,006

MSCI, Inc.		2,200		1,068,694

Nasdaq, Inc.		3,200		516,928

Northern Trust Corp.(b)		7,600		864,880

Piper Sandler Cos.		3,600		417,564

PJT Partners, Inc., Class A(a)		400		29,412

Raymond James Financial, Inc.		4,000		523,120

S&P Global, Inc.		6,400		2,498,496

SEI Investments Co.		3,400		208,896

State Street Corp.		12,000		1,007,400

StepStone Group, Inc., Class A		600		19,980

Stifel Financial Corp.		23,400		1,619,046

StoneX Group, Inc.*		5,000		317,600

T. Rowe Price Group, Inc.		6,200		1,111,040

Tradeweb Markets, Inc., Class A		6,600		536,448

Victory Capital Holdings, Inc., Class A(a)		1,200		33,300

Virtu Financial, Inc., Class A		21,600		640,008

Virtus Investment Partners, Inc.		2,000		546,920

Waddell & Reed Financial, Inc., Class A(a)		16,000		399,680
				48,718,001

Chemicals – 1.7%

AdvanSix, Inc.* (a)		9,200		267,536

Air Products and Chemicals, Inc.		5,800		1,673,184


Investments	Shares		Value

Chemicals – (continued)

Albemarle Corp.		3,400	$	571,778

American Vanguard Corp.(a)		200		3,956

Amyris, Inc.* (a)		7,400		107,744

Ashland Global Holdings, Inc.		2,200		189,662

Avient Corp.(a)		3,000		152,310

Axalta Coating Systems Ltd.*		8,200		261,498

Balchem Corp.		2,200		279,818

Cabot Corp.		14,000		768,320

Celanese Corp.		4,000		626,600

CF Industries Holdings, Inc.		5,400		262,602

Chase Corp.(a)		400		47,376

Chemours Co. (The)		41,600		1,256,320

Corteva, Inc.		19,600		955,696

Dow, Inc.		21,600		1,350,000

DuPont de Nemours, Inc.		18,193		1,402,862

Eastman Chemical Co.		4,600		530,794

Ecolab, Inc.		6,600		1,479,192

Element Solutions, Inc.		55,600		1,216,528

Ferro Corp.*		6,800		113,288

FMC Corp.		3,600		425,664

FutureFuel Corp.(a)		1,800		22,860

Hawkins, Inc.		800		26,680

HB Fuller Co.		1,600		106,912

Huntsman Corp.		12,800		366,976

Ingevity Corp.*		1,600		124,928

Innospec, Inc.		800		77,928

International Flavors & Fragrances, Inc.		6,801		966,898

Koppers Holdings, Inc.*		7,200		239,328

Kraton Corp.*		3,800		135,888

Kronos Worldwide, Inc.		4,800		81,600

Linde plc		14,200		4,058,928

Livent Corp.* (a)		4,000		72,080

LyondellBasell Industries NV, Class A		9,400		975,156

Minerals Technologies, Inc.		9,000		703,260

Mosaic Co. (The)		9,000		316,620

NewMarket Corp.		200		69,318

Olin Corp.		36,600		1,574,898

PPG Industries, Inc.		6,000		1,027,440

PQ Group Holdings, Inc.(a)		10,600		148,400

Quaker Chemical Corp.		200		48,470

RPM International, Inc.		3,600		341,424

See Accompanying Notes to the Financial Statements.


76		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Chemicals – (continued)

Scotts Miracle-Gro Co. (The)		1,200	$	277,392

Sensient Technologies Corp.		1,400		115,136

Sherwin-Williams Co. (The)		6,600		1,807,542

Stepan Co.		600		78,396

Tredegar Corp.(a)		800		11,696

Trinseo SA		3,400		210,494

Tronox Holdings plc, Class A(a)		9,600		203,520

Valvoline, Inc.(a)		7,000		219,800

W R Grace & Co.		2,400		164,952

Westlake Chemical Corp.(a)		400		37,556
				28,555,204

Commercial Services & Supplies – 0.7%

ABM Industries, Inc.		15,000		771,150

ACCO Brands Corp.		29,200		250,536

ADT, Inc.(a)		24,600		226,320

Brady Corp., Class A		1,600		87,312

BrightView Holdings, Inc.*		8,800		157,784

Brink’s Co. (The)(a)		1,600		127,872

Casella Waste Systems, Inc., Class A*		1,400		93,954

Cimpress plc* (a)		5,400		514,404

Cintas Corp.		2,400		828,336

Clean Harbors, Inc.*		1,800		160,128

Copart, Inc.*		5,600		697,256

CoreCivic, Inc., REIT*		14,200		110,334

Covanta Holding Corp.		3,800		57,152

Deluxe Corp.(a)		7,400		325,748

Ennis, Inc.		8,200		169,986

Harsco Corp.*		1,000		17,930

Healthcare Services Group, Inc.(a)		6,400		191,680

Herman Miller, Inc.		15,600		647,400

HNI Corp.(a)		4,000		169,360

IAA, Inc.*		2,800		175,868

Interface, Inc.		16,800		215,712

KAR Auction Services, Inc.* (a)		34,200		512,658

Kimball International, Inc., Class B		1,400		20,412

Knoll, Inc.		7,400		176,860


Investments	Shares		Value

Commercial Services & Supplies – (continued)

Matthews International Corp., Class A		5,200	$	215,176

MSA Safety, Inc.(a)		2,200		353,672

Pitney Bowes, Inc.		21,400		159,858

Republic Services, Inc.		5,800		616,540

Rollins, Inc.(a)		5,400		201,312

SP Plus Corp.*		7,600		260,908

Steelcase, Inc., Class A		15,800		218,040

Stericycle, Inc.*		5,600		427,168

Tetra Tech, Inc.		2,200		280,786

UniFirst Corp.(a)		600		134,514

US Ecology, Inc.* (a)		1,000		42,460

Viad Corp.*		2,600		108,316

Waste Management, Inc.		10,600		1,462,482
				11,187,384

Communications Equipment – 0.8%

Arista Networks, Inc.*		1,400		441,238

Calix, Inc.*		4,400		186,076

Casa Systems, Inc.*		1,400		10,983

Ciena Corp.*		7,400		373,478

Cisco Systems, Inc.		141,600		7,208,856

CommScope Holding Co., Inc.* (a)		41,800		687,610

Comtech Telecommunications Corp.		9,600		230,208

EchoStar Corp., Class A*		7,400		180,930

Extreme Networks, Inc.*		16,800		191,184

F5 Networks, Inc.*		1,600		298,816

Harmonic, Inc.*		3,200		25,024

Infinera Corp.* (a)		23,000		212,060

Juniper Networks, Inc.		13,800		350,382

Lumentum Holdings, Inc.* (a)		2,600		221,130

Motorola Solutions, Inc.		5,000		941,500

NETGEAR, Inc.*		8,600		320,006

NetScout Systems, Inc.*		20,000		523,900

Plantronics, Inc.*		10,000		399,900

Ribbon Communications, Inc.*		31,800		214,650

Ubiquiti, Inc.		400		114,132

Viasat, Inc.* (a)		4,800		248,592

Viavi Solutions, Inc.*		7,600		124,336
				13,504,991

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			77

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Construction & Engineering – 0.5%

AECOM*		6,400	$	425,152

Aegion Corp.*		7,000		210,700

Ameresco, Inc., Class A* (a)		1,400		73,906

API Group Corp.* (c)		33,400		710,084

Arcosa, Inc.		1,600		96,464

Argan, Inc.		400		20,060

Comfort Systems USA, Inc.		7,400		609,464

Construction Partners, Inc., Class A*		1,200		38,076

Dycom Industries, Inc.*		1,600		150,096

EMCOR Group, Inc.		12,400		1,485,520

Fluor Corp.*		25,600		588,288

Granite Construction, Inc.		4,000		152,400

Great Lakes Dredge & Dock Corp.*		13,200		207,240

MasTec, Inc.* (a)		14,200		1,481,912

MYR Group, Inc.* (a)		3,200		249,280

Primoris Services Corp.		12,600		411,516

Quanta Services, Inc.		5,600		541,184

Sterling Construction Co., Inc.*		3,200		66,720

Tutor Perini Corp.*		12,200		196,420

Valmont Industries, Inc.		800		197,480

WillScot Mobile Mini Holdings Corp.* (a)		13,600		398,072
				8,310,034

Construction Materials – 0.1%

Eagle Materials, Inc.* (a)		2,000		276,280

Forterra, Inc.*		4,800		112,608

Martin Marietta Materials, Inc.		1,800		635,616

Summit Materials, Inc., Class A*		3,800		109,402

US Concrete, Inc.*		2,600		164,866

Vulcan Materials Co.		3,600		641,664
				1,940,436

Consumer Finance – 0.9%

Ally Financial, Inc.		14,600		751,170

American Express Co.		22,600		3,465,710

Capital One Financial Corp.		16,200		2,415,096

Credit Acceptance Corp.* (a)		600		236,874

Curo Group Holdings Corp.		4,200		60,144


Investments	Shares		Value

Consumer Finance – (continued)

Discover Financial Services		9,200	$	1,048,800

Encore Capital Group, Inc.* (a)		8,400		330,456

Enova International, Inc.*		8,200		280,768

FirstCash, Inc.		1,400		100,842

Green Dot Corp., Class A*		2,800		128,128

LendingClub Corp.* (a)		12,800		196,992

LendingTree, Inc.* (a)		600		123,894

Navient Corp.(a)		36,600		615,978

Nelnet, Inc., Class A		2,000		148,460

OneMain Holdings, Inc.		19,400		1,103,278

Oportun Financial Corp.*		1,000		21,710

PRA Group, Inc.* (a)		12,200		459,696

PROG Holdings, Inc.(a)		17,200		876,168

Santander Consumer USA Holdings, Inc.		6,800		230,792

SLM Corp.		93,200		1,832,312

Synchrony Financial		16,400		717,336

World Acceptance Corp.* (a)		400		52,296
				15,196,900

Containers & Packaging – 0.8%

Amcor plc(a)		55,800		655,650

AptarGroup, Inc.		1,600		241,296

Avery Dennison Corp.		2,000		428,340

Ball Corp.		9,000		842,760

Berry Global Group, Inc.* (a)		30,400		1,934,048

Crown Holdings, Inc.		5,200		570,960

Graphic Packaging Holding Co.		60,000		1,113,000

Greif, Inc., Class A		6,400		387,264

International Paper Co.		13,800		800,400

Myers Industries, Inc.		400		9,024

O-I Glass, Inc.*		35,400		583,746

Packaging Corp. of America		3,600		531,540

Ranpak Holdings Corp.*		14,000		269,220

Sealed Air Corp.		38,200		1,887,080

Silgan Holdings, Inc.		16,800		708,456

Sonoco Products Co.		22,800		1,492,488

Westrock Co.		10,200		568,650
				13,023,922

See Accompanying Notes to the Financial Statements.


78		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Distributors – 0.1%

Core-Mark Holding Co., Inc.		1,600	$	68,096

Genuine Parts Co.		4,400		549,868

LKQ Corp.*		11,200		523,152

Pool Corp.		1,000		422,520
				1,563,636

Diversified Consumer Services – 0.3%

Adtalem Global Education, Inc.*		12,000		411,720

American Public Education, Inc.*		400		12,184

Bright Horizons Family Solutions, Inc.*		1,600		231,728

Chegg, Inc.* (a)		3,800		343,254

frontdoor, Inc.*		3,000		160,590

Graham Holdings Co., Class B		1,000		635,610

Grand Canyon Education, Inc.*		2,000		216,580

H&R Block, Inc.		37,400		832,524

Houghton Mifflin Harcourt Co.* (a)		39,800		361,384

Laureate Education, Inc., Class A*		27,400		376,750

OneSpaWorld Holdings Ltd.* (a)		10,200		108,681

Perdoceo Education Corp.* (a)		6,400		74,624

Service Corp. International(a)		5,000		267,200

Strategic Education, Inc.(a)		4,400		330,264

Stride, Inc.* (a)		1,400		40,082

Terminix Global Holdings, Inc.*		5,400		274,806

WW International, Inc.* (a)		10,600		294,044
				4,972,025

Diversified Financial Services – 1.3%

Berkshire Hathaway, Inc., Class B*		64,800		17,816,760

Cannae Holdings, Inc.*		21,600		857,520

Equitable Holdings, Inc.(a)		16,200		554,526

Jefferies Financial Group, Inc.		51,200		1,664,512

Voya Financial, Inc.		5,400		366,228
				21,259,546


Investments	Shares		Value

Diversified Telecommunication Services – 1.1%

Anterix, Inc.*		400	$	18,928

AT&T, Inc.		237,200		7,450,452

ATN International, Inc.		400		18,232

Bandwidth, Inc., Class A*		400		52,880

Cincinnati Bell, Inc.*		11,400		175,902

Cogent Communications Holdings, Inc.		4,000		302,040

Consolidated Communications Holdings, Inc.* (a)		21,000		151,200

Iridium Communications, Inc.*		7,800		296,322

Liberty Latin America Ltd., Class A*		9,600		133,296

Liberty Latin America Ltd., Class C*		30,000		418,500

Lumen Technologies, Inc.(a)		26,600		341,278

ORBCOMM, Inc.*		29,000		332,340

Verizon Communications, Inc.		138,400		7,998,136

Vonage Holdings Corp.*		7,800		105,690
				17,795,196

Electric Utilities – 1.2%

ALLETE, Inc.		1,600		112,576

Alliant Energy Corp.		8,200		460,594

American Electric Power Co., Inc.		17,600		1,561,296

Avangrid, Inc.(a)		1,000		50,900

Duke Energy Corp.		25,600		2,577,664

Edison International		10,800		642,060

Entergy Corp.		6,200		677,598

Evergy, Inc.		6,200		396,614

Eversource Energy		8,400		724,248

Exelon Corp.		33,400		1,500,996

FirstEnergy Corp.		19,400		735,648

Hawaiian Electric Industries, Inc.(a)		7,400		318,644

IDACORP, Inc.		3,200		327,936

MGE Energy, Inc.(a)		1,200		89,772

NextEra Energy, Inc.		54,600		4,232,046

NRG Energy, Inc.		10,200		365,364

OGE Energy Corp.(a)		3,000		100,680

Otter Tail Corp.(a)		800		37,784

PG&E Corp.*		55,600		629,392

Pinnacle West Capital Corp.		3,600		304,740

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			79

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Electric Utilities – (continued)

PNM Resources, Inc.		5,400	$	266,544

Portland General Electric Co.		6,200		315,332

PPL Corp.		23,600		687,468

Southern Co. (The)		36,800		2,435,056

Xcel Energy, Inc.		14,400		1,026,720
				20,577,672

Electrical Equipment – 0.8%

Acuity Brands, Inc.(a)		9,200		1,706,784

AMETEK, Inc.		5,800		782,594

Array Technologies, Inc.*		400		11,264

Atkore, Inc.*		12,200		955,016

AZZ, Inc.		200		10,528

Bloom Energy Corp., Class A* (a)		4,800		124,656

Eaton Corp. plc		14,000		2,001,020

Emerson Electric Co.		21,000		1,900,290

Encore Wire Corp.		800		59,744

EnerSys		1,400		128,212

FuelCell Energy, Inc.* (a)		23,400		227,214

Generac Holdings, Inc.*		1,800		583,110

GrafTech International Ltd.		37,800		480,816

Hubbell, Inc.(a)		1,400		268,814

nVent Electric plc		43,200		1,315,440

Plug Power, Inc.*		22,800		650,028

Regal Beloit Corp.		2,600		375,518

Rockwell Automation, Inc.		3,200		845,632

Sensata Technologies Holding plc*		4,800		277,152

Sunrun, Inc.* (a)		3,400		166,600

Thermon Group Holdings, Inc.*		1,000		19,100

TPI Composites, Inc.*		600		31,890

Vicor Corp.* (a)		800		73,784
				12,995,206

Electronic Equipment, Instruments & Components – 1.2%

Amphenol Corp., Class A		17,200		1,158,248

Arlo Technologies, Inc.*		27,000		165,510

Arrow Electronics, Inc.*		18,600		2,121,702

Avnet, Inc.		20,400		895,968

Badger Meter, Inc.		1,000		93,390

Belden, Inc.		13,400		579,952


Investments	Shares		Value

Electronic Equipment, Instruments & Components – (continued)

Benchmark Electronics, Inc.		1,200	$	36,024

CDW Corp.		3,600		641,988

Cognex Corp.		4,600		396,152

Coherent, Inc.*		800		207,992

Corning, Inc.		27,800		1,229,038

CTS Corp.(a)		1,200		39,024

Dolby Laboratories, Inc., Class A		3,200		324,704

ePlus, Inc.*		4,000		401,440

Fabrinet*		1,200		102,744

FARO Technologies, Inc.*		600		45,507

Flex Ltd.* (a)		21,000		365,400

FLIR Systems, Inc.		8,000		479,760

II-VI, Inc.* (a)		3,600		241,704

Insight Enterprises, Inc.* (a)		9,200		923,404

IPG Photonics Corp.*		1,000		217,110

Itron, Inc.*		2,800		251,832

Jabil, Inc.		33,600		1,761,312

Keysight Technologies, Inc.*		5,000		721,750

Knowles Corp.*		3,000		62,700

Littelfuse, Inc.		1,000		265,240

Methode Electronics, Inc.(a)		10,600		476,258

National Instruments Corp.		8,200		339,562

nLight, Inc.*		400		11,736

Novanta, Inc.*		2,200		289,762

OSI Systems, Inc.* (a)		600		57,942

PC Connection, Inc.(a)		400		18,140

Plexus Corp.*		1,000		92,440

Rogers Corp.*		600		117,504

Sanmina Corp.*		17,600		718,784

ScanSource, Inc.*		3,600		108,828

SYNNEX Corp.		1,600		193,920

TE Connectivity Ltd.		9,200		1,237,124

Trimble, Inc.*		7,000		574,000

TTM Technologies, Inc.* (a)		24,800		372,000

Vishay Intertechnology, Inc.		7,200		176,904

Vontier Corp.*		5,600		175,504

Zebra Technologies Corp., Class A*		1,400		682,836
				19,372,839

See Accompanying Notes to the Financial Statements.


80		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares			Value

COMMON STOCKS – (continued)

Energy Equipment & Services – 0.4%

Archrock, Inc.		14,400		$	134,496

Baker Hughes Co.		24,400			489,952

Cactus, Inc., Class A(a)		2,000			59,620

ChampionX Corp.*		48,800			1,025,288

Core Laboratories NV		2,600			73,268

Frank’s International NV*		50,400			163,800

Halliburton Co.		24,800			485,088

Helix Energy Solutions Group, Inc.*		18,400			78,936

Helmerich & Payne, Inc.(a)		28,200			722,766

Liberty Oilfield Services, Inc., Class A* (a)		16,200			189,540

Nabors Industries Ltd.*		—	(d)		21

NexTier Oilfield Solutions, Inc.*		18,600			66,774

NOV, Inc.*		84,400			1,261,780

Oceaneering International, Inc.*		18,800			202,100

Patterson-UTI Energy, Inc.(a)		31,800			214,968

ProPetro Holding Corp.*		14,000			134,820

RPC, Inc.* (a)		15,200			73,872

Schlumberger NV		43,000			1,163,150

Transocean Ltd.* (a)		130,400			419,888
					6,960,127

Entertainment – 1.4%

Activision Blizzard, Inc.		20,800			1,896,752

Cinemark Holdings, Inc.* (a)		27,200			576,640

Electronic Arts, Inc.		7,800			1,108,224

IMAX Corp.*		2,400			49,488

Liberty Media Corp-Liberty Formula One, Class A*		2,200			91,124

Liberty Media Corp-Liberty Formula One, Class C*		6,000			281,640

Lions Gate Entertainment Corp., Class A*		18,400			266,248

Lions Gate Entertainment Corp., Class B*		35,800			451,080

Live Nation Entertainment, Inc.* (a)		3,800			311,144

Madison Square Garden Entertainment Corp.*		200			18,122

Madison Square Garden Sports Corp., Class A*		1,200			221,808


Investments	Shares		Value

Entertainment – (continued)

Netflix, Inc.*		12,000	$	6,161,640

Roku, Inc.*		2,800		960,316

Take-Two Interactive Software, Inc.*		3,800		666,444

Walt Disney Co. (The)*		49,600		9,226,592

Warner Music Group Corp., Class A		800		30,368

World Wrestling Entertainment, Inc., Class A(a)		1,600		88,176

Zynga, Inc., Class A* (a)		26,200		283,484
				22,689,290

Equity Real Estate Investment Trusts (REITs) – 3.2%

Acadia Realty Trust		4,400		91,916

Agree Realty Corp.		3,800		267,368

Alexander & Baldwin, Inc.		6,200		113,646

Alexander’s, Inc.		200		55,448

Alexandria Real Estate Equities, Inc.		3,400		615,740	��

American Assets Trust, Inc.		600		21,030

American Campus Communities, Inc.		5,400		244,134

American Finance Trust, Inc.		29,400		294,294

American Homes 4 Rent, Class A		7,000		259,280

American Tower Corp.		11,600		2,955,332

Americold Realty Trust(a)		5,200		210,028

Apartment Investment & Management Co., Class A		2,657		18,440

Apple Hospitality REIT, Inc.(a)		6,000		95,160

Armada Hoffler Properties, Inc.		2,000		27,260

AvalonBay Communities, Inc.		4,000		768,000

Boston Properties, Inc.		4,400		481,140

Brandywine Realty Trust		46,200		625,086

Brixmor Property Group, Inc.		11,600		259,144

Brookfield Property REIT, Inc., Class A(a)		13,600		244,596

Camden Property Trust		2,600		313,248

CareTrust REIT, Inc.		3,200		77,376

CatchMark Timber Trust, Inc., Class A(a)		2,200		25,586

Chatham Lodging Trust*		7,800		108,186

City Office REIT, Inc.(a)		6,600		72,138

Colony Capital, Inc.* (a)		106,000		742,000

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			81

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Equity Real Estate Investment Trusts (REITs) – (continued)

Columbia Property Trust, Inc.		6,200	$	111,662

Community Healthcare Trust, Inc.		800		40,736

CoreSite Realty Corp.		2,600		315,874

Corporate Office Properties Trust		10,200		286,008

Cousins Properties, Inc.		6,200		227,354

Crown Castle International Corp.		12,000		2,268,720

CubeSmart(a)		11,600		491,144

CyrusOne, Inc.		3,000		218,490

DiamondRock Hospitality Co.*		18,600		193,812

Digital Realty Trust, Inc.		8,600		1,327,066

Diversified Healthcare Trust		47,800		211,037

Douglas Emmett, Inc.(a)		6,200		207,948

Duke Realty Corp.		10,000		465,200

Easterly Government Properties, Inc.(a)		7,200		154,296

EastGroup Properties, Inc.		2,400		380,784

Empire State Realty Trust, Inc., Class A(a)		40,400		460,156

EPR Properties*		15,600		744,276

Equinix, Inc.		2,400		1,729,824

Equity Commonwealth		24,400		702,720

Equity LifeStyle Properties, Inc.		5,000		347,000

Equity Residential		8,200		608,686

Essential Properties Realty Trust, Inc.(a)		3,000		78,570

Essex Property Trust, Inc.		1,600		464,832

Extra Space Storage, Inc.		3,600		535,284

Federal Realty Investment Trust(a)		3,400		383,656

First Industrial Realty Trust, Inc.		8,200		408,114

Four Corners Property Trust, Inc.(a)		2,400		69,288

Franklin Street Properties Corp.(a)		29,800		157,344

Gaming and Leisure Properties, Inc.		7,963		370,200

GEO Group, Inc. (The)(a)		13,200		72,732

Getty Realty Corp.		800		25,264

Global Net Lease, Inc.		8,400		161,280


Investments	Shares			Value

Equity Real Estate Investment Trusts (REITs) – (continued)

Healthcare Realty Trust, Inc.		8,800		$	283,008

Healthcare Trust of America, Inc., Class A		12,400			364,188

Healthpeak Properties, Inc.		13,600			467,024

Highwoods Properties, Inc.(a)		24,600			1,101,834

Host Hotels & Resorts, Inc.*		19,000			345,040

Hudson Pacific Properties, Inc.		6,800			191,148

Independence Realty Trust, Inc.		3,200			53,888

Industrial Logistics Properties Trust(a)		18,400			456,320

Innovative Industrial Properties, Inc.(a)		1,000			183,130

Invitation Homes, Inc.		14,800			518,888

Iron Mountain, Inc.(a)		7,800			312,936

iStar, Inc.(a)		6,400			118,464

JBG SMITH Properties		7,800			254,358

Kilroy Realty Corp.		5,800			397,532

Kimco Realty Corp.		17,400			365,400

Kite Realty Group Trust(a)		3,600			74,916

Lamar Advertising Co., Class A		4,000			396,160

Lexington Realty Trust(a)		8,000			97,920

Life Storage, Inc.		4,497			431,982

LTC Properties, Inc.(a)		1,400			59,542

Macerich Co. (The)(a)		25,800			355,782

Medical Properties Trust, Inc.		25,400			560,070

Mid-America Apartment Communities, Inc.		3,200			503,456

Monmouth Real Estate Investment Corp.		3,600			66,528

National Health Investors, Inc.		11,600			851,556

National Retail Properties, Inc.		7,200			334,224

National Storage Affiliates Trust		2,000			90,880

NexPoint Residential Trust, Inc.		—	(d)		14

Office Properties Income Trust		1,800			49,950

Omega Healthcare Investors, Inc.		6,000			228,000

Outfront Media, Inc.*		36,400			887,068

Paramount Group, Inc.		47,200			500,792

Park Hotels & Resorts, Inc.* (a)		59,800			1,334,138

Pebblebrook Hotel Trust(a)		10,200			243,576

Physicians Realty Trust		14,400			269,712

Piedmont Office Realty Trust, Inc., Class A		31,600			588,392

See Accompanying Notes to the Financial Statements.


82		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Equity Real Estate Investment Trusts (REITs) – (continued)

Plymouth Industrial REIT, Inc.(a)		10,600	$	197,584

PotlatchDeltic Corp.		2,200		130,592

Preferred Apartment Communities, Inc., Class A		19,200		195,840

Prologis, Inc.		21,400		2,493,742

PS Business Parks, Inc.		600		97,422

Public Storage		4,400		1,237,104

QTS Realty Trust, Inc., Class A(a)		4,400		292,556

Rayonier, Inc.(a)		9,200		333,776

Realty Income Corp.		9,000		622,350

Regency Centers Corp.		3,000		190,980

Retail Opportunity Investments Corp.(a)		4,800		84,480

Retail Properties of America, Inc., Class A(a)		6,200		72,726

Rexford Industrial Realty, Inc.(a)		8,000		444,400

RLJ Lodging Trust		14,200		229,188

RPT Realty		10,000		127,100

Ryman Hospitality Properties, Inc.*		3,800		298,870

Sabra Health Care REIT, Inc.		7,400		134,458

Safehold, Inc.(a)		400		28,284

Saul Centers, Inc.		800		34,544

SBA Communications Corp.		3,000		899,160

Service Properties Trust		13,600		167,484

Simon Property Group, Inc.		10,200		1,241,748

SITE Centers Corp.		5,600		82,600

SL Green Realty Corp.(a)		2,587		191,464

Spirit Realty Capital, Inc.(a)		4,200		199,668

STAG Industrial, Inc.(a)		9,800		357,798

STORE Capital Corp.(a)		10,400		372,216

Summit Hotel Properties, Inc.* (a)		11,200		113,904

Sun Communities, Inc.		3,800		633,954

Sunstone Hotel Investors, Inc.*		10,000		131,600

Tanger Factory Outlet Centers, Inc.(a)		24,800		432,760

Terreno Realty Corp.(a)		4,600		296,792

UDR, Inc.		10,800		501,660

Uniti Group, Inc.		6,400		72,960


Investments	Shares		Value

Equity Real Estate Investment Trusts (REITs) – (continued)

Universal Health Realty Income Trust		400	$	26,780

Urban Edge Properties		5,200		98,020

Urstadt Biddle Properties, Inc., Class A(a)		6,200		112,654

Ventas, Inc.		9,000		499,140

VEREIT, Inc.		5,638		269,722

VICI Properties, Inc.(a)		17,400		551,580

Vornado Realty Trust		2,000		91,500

Washington REIT		7,200		167,184

Weingarten Realty Investors		4,600		148,764

Welltower, Inc.		10,800		810,324

Weyerhaeuser Co.		19,200		744,384

WP Carey, Inc.(a)		4,800		359,472

Xenia Hotels & Resorts, Inc.*		31,600		613,988
				53,978,025

Food & Staples Retailing – 1.1%

Andersons, Inc. (The)		3,000		86,160

BJ’s Wholesale Club Holdings, Inc.* (a)		34,400		1,536,648

Casey’s General Stores, Inc.		1,000		222,190

Chefs’ Warehouse, Inc. (The)* (a)		9,800		315,854

Costco Wholesale Corp.		11,800		4,390,662

Grocery Outlet Holding Corp.* (a)		1,600		64,624

HF Foods Group, Inc.* (a)		11,600		72,268

Ingles Markets, Inc., Class A(a)		2,400		147,096

Kroger Co. (The)		28,400		1,037,736

Performance Food Group Co.*		6,200		363,940

PriceSmart, Inc.(a)		600		50,424

Rite Aid Corp.* (a)		15,800		276,816

SpartanNash Co.(a)		11,000		213,070

Sprouts Farmers Market, Inc.* (a)		31,400		804,154

Sysco Corp.		14,800		1,254,004

United Natural Foods, Inc.* (a)		16,200		597,132

US Foods Holding Corp.*		13,200		547,272

Walgreens Boots Alliance, Inc.		22,000		1,168,200

Walmart, Inc.		37,000		5,176,670

Weis Markets, Inc.(a)		5,200		269,620
				18,594,540

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			83

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments		Shares			Value

COMMON STOCKS – (continued)

Food Products – 1.0%

Archer-Daniels-Midland Co.			20,200		$	1,275,226

B&G Foods, Inc.(a)			17,600			513,568

Beyond Meat, Inc.* (a)			1,200			158,016

Bunge Ltd.(a)			4,200			354,564

Calavo Growers, Inc.			600			46,878

Cal-Maine Foods, Inc.(a)			1,000			37,360

Campbell Soup Co.			8,200			391,550

Conagra Brands, Inc.			18,400			682,456

Darling Ingredients, Inc.*			5,400			375,030

Flowers Foods, Inc.(a)			13,000			311,480

Freshpet, Inc.*			2,600			480,532

General Mills, Inc.			21,800			1,326,748

Hain Celestial Group, Inc. (The)* (a)			2,600			106,626

Hershey Co. (The)			4,000			657,200

Hormel Foods Corp.(a)			7,600			351,120

Hostess Brands, Inc.* (a)			4,200			64,218

Ingredion, Inc.			15,000			1,401,150

J & J Snack Foods Corp.(a)			1,400			230,454

J M Smucker Co. (The)(a)			4,000			523,960

John B Sanfilippo & Son, Inc.			400			35,160

Kellogg Co.			7,000			436,940

Kraft Heinz Co. (The)			18,600			767,994

Lamb Weston Holdings, Inc.			4,400			354,200

Lancaster Colony Corp.			1,600			295,536

McCormick & Co., Inc. (Non-Voting)			6,800			614,448

Mondelez International, Inc., Class A			45,600			2,772,936

Pilgrim’s Pride Corp.*			8,000			191,680

Post Holdings, Inc.*			3,600			409,608

Sanderson Farms, Inc.			600			98,718

Seneca Foods Corp., Class A*			600			27,636

Simply Good Foods Co. (The)* (a)			2,800			96,740

Tootsie Roll Industries, Inc.			—	(d)		1

TreeHouse Foods, Inc.* (a)			15,000			714,000

Tyson Foods, Inc., Class A	��		8,400			650,580

Whole Earth Brands, Inc.* (a)			13,800			186,300
						16,940,613


Investments	Shares		Value

Gas Utilities – 0.3%

Atmos Energy Corp.		4,000	$	414,360

Chesapeake Utilities Corp.		600		71,112

National Fuel Gas Co.		20,000		993,200

New Jersey Resources Corp.(a)		3,200		134,240

Northwest Natural Holding Co.(a)		2,800		150,976

ONE Gas, Inc.		1,600		128,752

South Jersey Industries, Inc.(a)		26,800		663,300

Southwest Gas Holdings, Inc.		14,400		1,003,968

Spire, Inc.(a)		13,200		994,488

UGI Corp.		8,200		358,422
				4,912,818

Health Care Equipment & Supplies – 2.6%

Abbott Laboratories		49,200		5,907,936

ABIOMED, Inc.*		1,200		384,876

Accelerate Diagnostics, Inc.* (a)		15,000		109,650

Align Technology, Inc.*		2,000		1,191,060

AngioDynamics, Inc.*		800		19,440

Antares Pharma, Inc.* (a)		1,000		3,790

AtriCure, Inc.*		1,400		107,898

Avanos Medical, Inc.*		1,600		69,136

Baxter International, Inc.		13,800		1,182,522

Becton Dickinson and Co.		8,200		2,040,242

Boston Scientific Corp.*		41,200		1,796,320

Cantel Medical Corp.*		2,600		228,566

Cardiovascular Systems, Inc.* (a)		1,000		40,320

Cerus Corp.* (a)		18,600		113,460

Co-Diagnostics, Inc.* (a)		10,600		93,916

CONMED Corp.		1,000		140,950

Cooper Cos., Inc. (The)		1,400		575,246

CryoLife, Inc.* (a)		1,400		40,852

CryoPort, Inc.* (a)		1,200		67,884

Danaher Corp.		16,800		4,266,192

Dentsply Sirona, Inc.		6,200		418,562

DexCom, Inc.*		2,800		1,081,080

Edwards Lifesciences Corp.*		16,800		1,604,736

Envista Holdings Corp.* (a)		7,400		320,272

ESC Co.* ^‡ (e)		4,032		—

Glaukos Corp.* (a)		2,800		263,648

Globus Medical, Inc., Class A*		4,800		344,496

See Accompanying Notes to the Financial Statements.


84		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Health Care Equipment & Supplies – (continued)

Haemonetics Corp.*		3,000	$	201,780

Heska Corp.* (a)		200		36,530

Hill-Rom Holdings, Inc.		1,800		198,396

Hologic, Inc.*		7,000		458,850

ICU Medical, Inc.*		600		124,962

IDEXX Laboratories, Inc.*		2,200		1,207,778

Insulet Corp.* (a)		1,800		531,396

Integer Holdings Corp.*		1,000		93,880

Integra LifeSciences Holdings Corp.*		4,600		340,768

Intersect ENT, Inc.*		1,200		26,172

Intuitive Surgical, Inc.*		3,200		2,768,000

iRhythm Technologies, Inc.*		1,000		77,860

Lantheus Holdings, Inc.* (a)		9,600		227,520

LeMaitre Vascular, Inc.(a)		400		20,988

LivaNova plc*		3,400		288,558

Masimo Corp.*		1,400		325,738

Medtronic plc		37,400		4,896,408

Merit Medical Systems, Inc.*		1,800		114,480

Natus Medical, Inc.*		1,400		35,770

Neogen Corp.*		3,400		326,434

Nevro Corp.* (a)		1,000		172,810

Novocure Ltd.*		2,200		449,020

NuVasive, Inc.*		1,800		128,610

OraSure Technologies, Inc.* (a)		600		5,490

Orthofix Medical, Inc.*		800		35,480

Outset Medical, Inc.*		600		35,952

Penumbra, Inc.* (a)		1,000		305,990

Quidel Corp.* (a)		1,200		125,748

Quotient Ltd.* (a)		11,000		43,120

ResMed, Inc.		4,000		751,880

Shockwave Medical, Inc.* (a)		2,200		359,612

STAAR Surgical Co.*		2,400		328,824

STERIS plc		2,400		506,448

Stryker Corp.		9,200		2,416,196

Surmodics, Inc.*		400		21,396

Tactile Systems Technology, Inc.* (a)		400		22,920

Tandem Diabetes Care, Inc.*		2,000		183,800

Teleflex, Inc.		1,200		506,976

Varex Imaging Corp.* (a)		5,400		128,196


Investments	Shares		Value

Health Care Equipment & Supplies – (continued)

West Pharmaceutical Services, Inc.		2,000	$	657,040

Zimmer Biomet Holdings, Inc.		5,600		992,096

Zynex, Inc.* (a)		6,400		94,528
				42,987,450

Health Care Providers & Services – 2.6%

1Life Healthcare, Inc.*		5,600		243,656

Acadia Healthcare Co., Inc.*		22,400		1,364,608

AdaptHealth Corp.* (a)		3,800		110,428

Addus HomeCare Corp.*		400		42,320

Amedisys, Inc.*		1,000		269,850

AmerisourceBergen Corp.		5,600		676,480

AMN Healthcare Services, Inc.*		3,800		301,340

Anthem, Inc.		8,600		3,262,754

Brookdale Senior Living, Inc.*		60,200		393,708

Cardinal Health, Inc.		11,000		663,740

Castle Biosciences, Inc.* (a)		1,000		69,030

Centene Corp.*		20,600		1,271,844

Chemed Corp.		400		190,644

Cigna Corp.		12,400		3,087,724

Community Health Systems, Inc.* (a)		30,000		334,500

CorVel Corp.*		200		23,402

Covetrus, Inc.*		8,791		251,862

CVS Health Corp.		43,400		3,315,760

DaVita, Inc.*		3,000		349,590

Encompass Health Corp.		2,800		237,608

Ensign Group, Inc. (The)		2,600		223,210

Fulgent Genetics, Inc.* (a)		1,600		123,232

Guardant Health, Inc.*		1,800		286,164

HCA Healthcare, Inc.		9,200		1,849,752

HealthEquity, Inc.* (a)		4,800		364,656

Henry Schein, Inc.*		4,800		348,000

Humana, Inc.		4,600		2,048,104

Laboratory Corp. of America Holdings*		3,600		957,132

LHC Group, Inc.* (a)		1,000		208,270

Magellan Health, Inc.*		1,400		131,880

McKesson Corp.		5,800		1,087,848

MEDNAX, Inc.*		15,800		415,856

ModivCare, Inc.*		400		56,032

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			85

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Health Care Providers & Services – (continued)

Molina Healthcare, Inc.* (a)		2,200	$	561,220

National Research Corp.		400		20,520

Option Care Health, Inc.* (a)		19,200		366,336

Owens & Minor, Inc.		6,200		223,758

Patterson Cos., Inc.(a)		22,600		726,364

Premier, Inc., Class A(a)		3,400		120,190

Progyny, Inc.* (a)		3,600		204,876

Quest Diagnostics, Inc.(a)		4,600		606,648

R1 RCM, Inc.*		3,800		103,664

RadNet, Inc.* (a)		1,400		31,276

Select Medical Holdings Corp.*		23,000		867,560

Surgery Partners, Inc.*		6,200		298,840

Tenet Healthcare Corp.*		26,600		1,576,316

Tivity Health, Inc.* (a)		11,600		280,488

Triple-S Management Corp., Class B*		6,000		142,260

UnitedHealth Group, Inc.		32,200		12,841,360

Universal Health Services, Inc., Class B		2,600		385,866

US Physical Therapy, Inc.		400		44,980
				43,963,506

Health Care Technology – 0.4%

Allscripts Healthcare Solutions, Inc.* (a)		41,000		637,960

American Well Corp., Class A* (a)		8,000		123,120

Cerner Corp.		8,600		645,430

Change Healthcare, Inc.*		56,800		1,303,560

Computer Programs and Systems, Inc.(a)		4,000		120,080

Evolent Health, Inc., Class A* (a)		21,800		472,188

HealthStream, Inc.*		400		9,664

Inovalon Holdings, Inc., Class A*		7,200		217,512

Inspire Medical Systems, Inc.*		1,600		378,912

Omnicell, Inc.*		2,600		377,052

Phreesia, Inc.*		2,800		144,900

Schrodinger, Inc.* (a)		2,600		198,224

Teladoc Health, Inc.* (a)		4,000		689,400


Investments	Shares		Value

Health Care Technology – (continued)

Veeva Systems, Inc., Class A*		3,400	$	960,330

Vocera Communications, Inc.* (a)		1,000		36,170
				6,314,502

Hotels, Restaurants & Leisure – 2.1%

Aramark		7,000		272,090

BJ’s Restaurants, Inc.*		3,000		182,970

Bloomin’ Brands, Inc.* (a)		7,800		246,480

Booking Holdings, Inc.*		1,116		2,752,145

Boyd Gaming Corp.*		5,600		370,440

Brinker International, Inc.* (a)		12,000		805,560

Caesars Entertainment, Inc.*		7,800		763,152

Carnival Corp.*		26,200		732,552

Cheesecake Factory, Inc. (The)*		4,000		250,360

Chipotle Mexican Grill, Inc.*		800		1,193,624

Choice Hotels International, Inc.*		1,000		113,800

Churchill Downs, Inc.		1,600		338,400

Cracker Barrel Old Country Store, Inc.		1,600		267,952

Darden Restaurants, Inc.		3,200		469,504

Dave & Buster’s Entertainment, Inc.*		5,000		228,300

Denny’s Corp.* (a)		2,000		37,880

Dine Brands Global, Inc.* (a)		1,800		173,970

Domino’s Pizza, Inc.		1,400		591,276

DraftKings, Inc., Class A* (a)		7,400		419,284

Everi Holdings, Inc.*		9,400		166,192

Expedia Group, Inc.*		4,200		740,166

Extended Stay America, Inc.(a)		9,600		190,944

Hilton Grand Vacations, Inc.*		6,600		294,096

Hilton Worldwide Holdings, Inc.* (a)		7,800		1,003,860

Hyatt Hotels Corp., Class A* (a)		1,200		98,796

Jack in the Box, Inc.		600		72,390

Las Vegas Sands Corp.*		10,800		661,608

Marriott International, Inc., Class A*		6,800		1,009,936

Marriott Vacations Worldwide Corp.*		10,200		1,811,826

See Accompanying Notes to the Financial Statements.


86		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Hotels, Restaurants & Leisure – (continued)

McDonald’s Corp.		20,200	$	4,768,816

MGM Resorts International		13,400		545,648

Norwegian Cruise Line Holdings Ltd.* (a)		85,800		2,664,090

Papa John’s International, Inc.(a)		800		77,376

Penn National Gaming, Inc.*		5,600		499,072

Planet Fitness, Inc., Class A*		3,000		251,970

Red Rock Resorts, Inc., Class A*		2,400		87,912

Royal Caribbean Cruises Ltd.* (a)		6,400		556,480

Ruth’s Hospitality Group, Inc.* (a)		5,800		151,438

Scientific Games Corp.* (a)		15,000		877,800

SeaWorld Entertainment, Inc.*		4,000		219,040

Shake Shack, Inc., Class A* (a)		2,600		282,750

Six Flags Entertainment Corp.*		5,800		272,484

Starbucks Corp.		33,400		3,823,966

Texas Roadhouse, Inc.*		2,800		299,656

Travel + Leisure Co.		21,800		1,406,754

Vail Resorts, Inc.*		1,200		390,192

Wendy’s Co. (The)		6,000		135,420

Wingstop, Inc.		2,400		380,184

Wyndham Hotels & Resorts, Inc.		3,600		263,196

Wynn Resorts Ltd.*		2,400		308,160

Yum! Brands, Inc.		9,400		1,123,488
				35,645,445

Household Durables – 1.1%

Beazer Homes USA, Inc.*		2,400		53,544

Cavco Industries, Inc.*		200		41,886

Century Communities, Inc.* (a)		8,200		606,308

DR Horton, Inc.		12,200		1,199,138

Ethan Allen Interiors, Inc.		4,800		137,808

Garmin Ltd.		4,000		548,960

GoPro, Inc., Class A* (a)		3,200		35,936

Green Brick Partners, Inc.*		8,400		216,804

Helen of Troy Ltd.* (a)		1,000		211,210

Hooker Furniture Corp.(a)		800		30,008

Installed Building Products, Inc.		800		107,720


Investments	Shares		Value

Household Durables – (continued)

iRobot Corp.* (a)		1,800	$	195,840

KB Home		22,800		1,099,644

La-Z-Boy, Inc.		1,600		71,136

Leggett & Platt, Inc.(a)		5,000		248,350

Lennar Corp., Class A		10,200		1,056,720

Lennar Corp., Class B		600		48,342

LGI Homes, Inc.* (a)		5,800		961,524

M/I Homes, Inc.*		8,200		571,704

MDC Holdings, Inc.		14,685		861,422

Meritage Homes Corp.*		9,600		1,021,344

Mohawk Industries, Inc.*		1,800		369,900

Newell Brands, Inc.		13,600		366,656

NVR, Inc.*		88		441,593

PulteGroup, Inc.		10,600		626,672

Skyline Champion Corp.*		2,000		88,860

Sonos, Inc.*		2,400		96,072

Taylor Morrison Home Corp., Class A*		33,400		1,042,414

Tempur Sealy International, Inc.		43,000		1,640,020

Toll Brothers, Inc.		28,600		1,793,220

TopBuild Corp.*		1,400		311,332

Tri Pointe Homes, Inc.*		34,200		814,644

Tupperware Brands Corp.*		600		14,622

Universal Electronics, Inc.* (a)		3,000		170,550

Whirlpool Corp.		2,400		567,480
				17,669,383

Household Products – 0.9%

Central Garden & Pet Co.* (a)		1,800		97,452

Central Garden & Pet Co., Class A*		11,200		551,824

Church & Dwight Co., Inc.		6,400		548,736

Clorox Co. (The)		3,400		620,500

Colgate-Palmolive Co.		23,000		1,856,100

Energizer Holdings, Inc.		2,800		138,040

Kimberly-Clark Corp.		12,000		1,599,840

Procter & Gamble Co. (The)		66,600		8,885,772

Spectrum Brands Holdings, Inc.		10,000		881,400

WD-40 Co.		800		198,992
				15,378,656

Independent Power and Renewable Electricity Producers – 0.1%

AES Corp. (The)		21,800		606,476

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			87

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Independent Power and Renewable Electricity Producers – (continued)

Clearway Energy, Inc., Class A		1,200	$	31,896

Clearway Energy, Inc., Class C		2,600		74,594

Ormat Technologies, Inc.(a)		3,800		275,120

Sunnova Energy International, Inc.*		200		7,064

Vistra Corp.		18,200		307,034
				1,302,184

Industrial Conglomerates – 0.8%

3M Co.		19,200		3,785,088

Carlisle Cos., Inc.		1,600		306,640

General Electric Co.		287,200		3,768,064

Honeywell International, Inc.		19,000		4,237,760

Raven Industries, Inc.(a)		3,200		129,984

Roper Technologies, Inc.		3,200		1,428,608
				13,656,144

Insurance – 2.7%

Aflac, Inc.		23,600		1,268,028

Alleghany Corp.*		400		271,588

Allstate Corp. (The)		10,800		1,369,440

American Equity Investment Life Holding Co.		24,200		749,716

American Financial Group, Inc.		3,000		368,580

American International Group, Inc.		27,400		1,327,530

American National Group, Inc.		1,400		158,690

AMERISAFE, Inc.(a)		600		37,248

Aon plc, Class A(a)		6,000		1,508,640

Arch Capital Group Ltd.*		15,400		611,534

Argo Group International Holdings Ltd.		2,400		125,232

Arthur J Gallagher & Co.		5,200		753,740

Assurant, Inc.		2,400		373,440

Assured Guaranty Ltd.		20,600		1,047,510

Athene Holding Ltd., Class A*		31,000		1,849,770

Axis Capital Holdings Ltd.(a)		3,000		167,400

Brighthouse Financial, Inc.* (a)		19,200		898,368

Brown & Brown, Inc.		6,400		340,352

Chubb Ltd.		15,600		2,676,804

Cincinnati Financial Corp.(a)		4,400		495,792

CNO Financial Group, Inc.(a)		36,000		919,080


Investments	Shares		Value

Insurance – (continued)

Employers Holdings, Inc.		1,000	$	40,480

Enstar Group Ltd.*		400		100,472

Erie Indemnity Co., Class A(a)		200		42,804

Everest Re Group Ltd.		1,200		332,340

FBL Financial Group, Inc., Class A(a)		3,600		204,084

Fidelity National Financial, Inc.		11,629		530,515

First American Financial Corp.		27,800		1,793,100

Genworth Financial, Inc., Class A* (a)		84,000		362,880

Globe Life, Inc.		3,000		307,470

Goosehead Insurance, Inc., Class A		400		43,976

Hanover Insurance Group, Inc. (The)		8,400		1,161,804

Hartford Financial Services Group, Inc. (The)		13,600		897,056

HCI Group, Inc.(a)		1,400		102,788

Heritage Insurance Holdings, Inc.		6,000		54,660

Horace Mann Educators Corp.		11,400		457,140

James River Group Holdings Ltd.		1,000		47,110

Kemper Corp.		13,800		1,077,228

Kinsale Capital Group, Inc.(a)		600		104,406

Lemonade, Inc.* (a)		1,400		126,560

Lincoln National Corp.(a)		7,400		474,562

Loews Corp.		9,400		524,050

Markel Corp.*		353		415,276

Marsh & McLennan Cos., Inc.		13,600		1,845,520

MBIA, Inc.* (a)		6,600		66,132

Mercury General Corp.(a)		7,400		460,798

MetLife, Inc.		27,400		1,743,462

National Western Life Group, Inc., Class A		200		45,860

Old Republic International Corp.		70,600		1,738,172

Palomar Holdings, Inc.*		600		42,216

Primerica, Inc.		1,600		255,632

Principal Financial Group, Inc.(a)		10,000		638,700

ProAssurance Corp.		4,000		100,000

Progressive Corp. (The)		20,400		2,055,096

See Accompanying Notes to the Financial Statements.


88		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Insurance – (continued)

Prudential Financial, Inc.		13,800	$	1,384,968

Reinsurance Group of America, Inc.		1,800		234,954

RenaissanceRe Holdings Ltd.		1,800		303,858

RLI Corp.		1,400		156,044

Root, Inc., Class A* (a)		8,400		90,468

Safety Insurance Group, Inc.		4,200		344,526

Selective Insurance Group, Inc.		13,200		1,005,048

SiriusPoint Ltd.* (a)		7,000		74,060

Stewart Information Services Corp.		7,200		422,280

Travelers Cos., Inc. (The)		9,000		1,391,940

Trupanion, Inc.*		3,000		243,300

United Fire Group, Inc.		7,800		236,028

Universal Insurance Holdings, Inc.		2,400		33,480

Unum Group		51,400		1,452,564

W R Berkley Corp.		3,600		286,992

Watford Holdings Ltd.*		3,000		104,580

White Mountains Insurance Group Ltd.		200		233,086

Willis Towers Watson plc		3,600		931,896
				44,440,903

Interactive Media & Services – 4.0%

Alphabet, Inc., Class A*		8,200		19,298,700

Alphabet, Inc., Class C*		7,921		19,090,561

Angi, Inc., Class A*		1,800		28,818

Cars.com, Inc.*		10,800		142,668

EverQuote, Inc., Class A* (a)		600		20,322

Facebook, Inc., Class A* (a)		65,600		21,325,248

Match Group, Inc.* (a)		7,000		1,089,410

Pinterest, Inc., Class A* (a)		14,200		942,454

Snap, Inc., Class A* (a)		25,200		1,557,864

TripAdvisor, Inc.*		3,600		169,668

Twitter, Inc.*		22,600		1,247,972

Yelp, Inc.*		1,600		62,880

Zillow Group, Inc., Class A*		800		106,680

Zillow Group, Inc., Class C* (a)		3,600		468,432

ZoomInfo Technologies, Inc., Class A* (a)		5,600		290,416
				65,842,093


Investments	Shares		Value

Internet & Direct Marketing Retail – 2.9%

Amazon.com, Inc.*		11,676	$	40,485,596

Chewy, Inc., Class A* (a)		2,600		207,272

eBay, Inc.		21,800		1,216,222

Etsy, Inc.* (a)		3,200		636,128

Groupon, Inc.* (a)		3,000		151,890

GrubHub, Inc.*		3,000		204,120

Magnite, Inc.* (a)		8,600		344,430

MercadoLibre, Inc.*		1,200		1,885,176

Overstock.com, Inc.* (a)		2,800		228,200

PetMed Express, Inc.(a)		800		23,540

Quotient Technology, Inc.*		2,200		35,948

Qurate Retail, Inc., Series A(a)		98,600		1,173,340

RealReal, Inc. (The)*		6,600		163,482

Shutterstock, Inc.(a)		2,000		174,360

Stamps.com, Inc.*		1,400		287,518

Stitch Fix, Inc., Class A* (a)		1,200		51,984

Waitr Holdings, Inc.* (a)		33,000		81,180

Wayfair, Inc., Class A* (a)		2,200		650,254
				48,000,640

IT Services – 4.1%

Accenture plc, Class A		17,200		4,987,484

Akamai Technologies, Inc.*		5,600		608,720

Alliance Data Systems Corp.		10,800		1,272,780

Automatic Data Processing, Inc.		11,400		2,131,686

Black Knight, Inc.*		4,000		289,680

BM Technologies, Inc.* (e)		1,477		14,489

Broadridge Financial Solutions, Inc.		3,000		475,890

Cardtronics plc, Class A*		3,600		139,824

Cass Information Systems, Inc.(a)		200		9,178

Cognizant Technology Solutions Corp., Class A		18,800		1,511,520

Conduent, Inc.*		53,800		365,840

CSG Systems International, Inc.		1,000		45,990

DXC Technology Co.*		62,400		2,053,584

EPAM Systems, Inc.*		1,800		823,950

Euronet Worldwide, Inc.*		2,200		315,546

EVERTEC, Inc.		2,000		79,800

Evo Payments, Inc., Class A* (a)		1,600		45,616

ExlService Holdings, Inc.*		1,200		110,856

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			89

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

IT Services – (continued)

Fastly, Inc., Class A* (a)		2,800	$	178,836

Fidelity National Information Services, Inc.		16,600		2,538,140

Fiserv, Inc.*		19,400		2,330,328

FleetCor Technologies, Inc.*		2,400		690,528

Gartner, Inc.*		3,000		587,640

Genpact Ltd.(a)		4,200		199,626

Global Payments, Inc.		8,000		1,717,040

GoDaddy, Inc., Class A*		4,800		416,736

International Business Machines Corp.		29,400		4,171,272

International Money Express, Inc.*		3,000		47,340

Jack Henry & Associates, Inc.		2,200		358,226

Limelight Networks, Inc.* (a)		4,200		13,146

LiveRamp Holdings, Inc.*		2,200		107,756

Mastercard, Inc., Class A		24,000		9,169,440

MAXIMUS, Inc.		2,800		256,592

MongoDB, Inc.* (a)		1,200		356,952

Okta, Inc.* (a)		3,000		809,100

Paychex, Inc.		8,800		857,912

PayPal Holdings, Inc.*		31,800		8,340,822

Perficient, Inc.* (a)		1,200		78,732

Perspecta, Inc.		34,600		1,012,742

Repay Holdings Corp.*		200		4,570

Sabre Corp.* (a)		81,400		1,219,372

Shift4 Payments, Inc., Class A* (a)		1,400		138,446

Square, Inc., Class A*		10,400		2,546,128

Switch, Inc., Class A		1,800		33,426

Sykes Enterprises, Inc.*		10,000		438,300

TTEC Holdings, Inc.		600		61,038

Tucows, Inc., Class A* (a)		400		31,444

Twilio, Inc., Class A*		4,600		1,691,880

Unisys Corp.*		15,400		369,600

VeriSign, Inc.*		2,800		612,556

Verra Mobility Corp.* (a)		12,000		161,280

Visa, Inc., Class A(a)		47,000		10,977,320

Western Union Co. (The)		16,600		427,616

WEX, Inc.*		2,200		451,462
				68,685,777


Investments	Shares		Value

Leisure Products – 0.3%

Acushnet Holdings Corp.		1,200	$	50,772

Brunswick Corp.		3,200		342,816

Callaway Golf Co.		4,600		133,170

Hasbro, Inc.		3,400		338,130

Johnson Outdoors, Inc., Class A		400		56,724

Malibu Boats, Inc., Class A*		5,800		483,488

Mattel, Inc.* (a)		13,800		296,148

Peloton Interactive, Inc., Class A*		6,200		609,770

Polaris, Inc.		14,400		2,016,432

Smith & Wesson Brands, Inc.		9,200		160,080

Sturm Ruger & Co., Inc.(a)		600		38,964

Vista Outdoor, Inc.*		10,400		339,144

YETI Holdings, Inc.*		3,000		256,260
				5,121,898

Life Sciences Tools & Services – 1.0%

10X Genomics, Inc., Class A*		2,200		435,160

Adaptive Biotechnologies Corp.*		1,400		58,240

Agilent Technologies, Inc.		8,400		1,122,576

Avantor, Inc.*		14,000		448,560

Bio-Rad Laboratories, Inc., Class A*		600		378,078

Bio-Techne Corp.		1,000		427,490

Bruker Corp.(a)		2,800		191,856

Charles River Laboratories International, Inc.*		1,400		465,430

Codexis, Inc.* (a)		8,600		199,348

Illumina, Inc.*		4,200		1,649,928

IQVIA Holdings, Inc.*		5,000		1,173,450

Luminex Corp.(a)		1,200		44,028

Medpace Holdings, Inc.*		1,000		169,680

Mettler-Toledo International, Inc.*		600		787,992

NanoString Technologies, Inc.* (a)		3,800		302,746

NeoGenomics, Inc.*		3,400		166,566

Pacific Biosciences of California, Inc.* (a)		11,800		352,230

PerkinElmer, Inc.		3,000		388,890

PPD, Inc.*		6,400		295,680

PRA Health Sciences, Inc.*		1,800		300,402

See Accompanying Notes to the Financial Statements.


90		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Life Sciences Tools & Services – (continued)

Quanterix Corp.*		1,400	$	85,596

Repligen Corp.* (a)		1,600		338,736

Syneos Health, Inc.*		4,800		407,280

Thermo Fisher Scientific, Inc.		11,000		5,172,530

Waters Corp.*		1,800		539,766
				15,902,238

Machinery – 2.1%

AGCO Corp.		3,800		554,496

Alamo Group, Inc.		400		62,900

Albany International Corp., Class A		1,000		89,240

Allison Transmission Holdings, Inc.		7,200		298,584

Altra Industrial Motion Corp.		4,200		247,842

Astec Industries, Inc.		600		45,006

Barnes Group, Inc.		1,600		79,872

Blue Bird Corp.*		4,000		107,760

Caterpillar, Inc.		15,200		3,467,272

Chart Industries, Inc.*		2,400		385,512

CIRCOR International, Inc.*		2,800		96,236

Colfax Corp.* (a)		25,600		1,156,864

Columbus McKinnon Corp.(a)		800		39,608

Crane Co.		12,600		1,185,156

Cummins, Inc.		5,200		1,310,608

Deere & Co.		8,800		3,263,480

Donaldson Co., Inc.		5,200		326,976

Douglas Dynamics, Inc.		800		35,784

Dover Corp.		4,000		596,760

EnPro Industries, Inc.		400		34,260

ESCO Technologies, Inc.		1,000		108,760

Evoqua Water Technologies Corp.*		2,800		80,024

Federal Signal Corp.		2,000		82,860

Flowserve Corp.		4,800		190,272

Fortive Corp.		8,400		594,888

Franklin Electric Co., Inc.		1,200		97,524

Gates Industrial Corp. plc*		14,200		244,950

Gorman-Rupp Co. (The)		800		27,616

Graco, Inc.		4,600		353,280

Greenbrier Cos., Inc. (The)(a)		9,400		444,056

Helios Technologies, Inc.		400		28,912


Investments	Shares		Value

Machinery – (continued)

Hillenbrand, Inc.		19,600	$	962,164

Hyster-Yale Materials Handling, Inc.		400		32,340

IDEX Corp.(a)		1,800		403,560

Illinois Tool Works, Inc.		7,800		1,797,588

Ingersoll Rand, Inc.*		9,000		444,690

ITT, Inc.		3,600		339,516

John Bean Technologies Corp.		1,200		174,456

Kadant, Inc.		400		71,212

Kennametal, Inc.		4,200		168,672

Lincoln Electric Holdings, Inc.		2,600		332,930

Lindsay Corp.		400		66,312

Luxfer Holdings plc		10,400		229,944

Lydall, Inc.* (a)		4,200		154,770

Manitowoc Co., Inc. (The)*		3,600		82,368

Meritor, Inc.*		6,000		162,180

Middleby Corp. (The)* (a)		3,200		580,224

Miller Industries, Inc.(a)		1,600		68,832

Mueller Industries, Inc.		1,200		53,844

Mueller Water Products, Inc., Class A		5,600		80,416

Navistar International Corp.*		13,400		592,950

Nordson Corp.		1,400		295,974

Oshkosh Corp.		16,800		2,090,424

Otis Worldwide Corp.		10,200		794,274

PACCAR, Inc.		10,200		916,776

Parker-Hannifin Corp.		3,600		1,129,716

Pentair plc(a)		4,400		283,844

Proto Labs, Inc.* (a)		800		89,648

RBC Bearings, Inc.*		1,000		199,430

REV Group, Inc.* (a)		7,200		131,328

Rexnord Corp.		5,000		249,650

Snap-on, Inc.		1,800		427,680

SPX Corp.*		1,600		97,056

SPX FLOW, Inc.		1,600		106,544

Standex International Corp.		400		37,928

Stanley Black & Decker, Inc.		5,600		1,157,912

Tennant Co.(a)		400		31,564

Terex Corp.		5,400		253,746

Timken Co. (The)		17,000		1,425,790

Toro Co. (The)		2,800		320,880

TriMas Corp.*		1,600		50,944

Trinity Industries, Inc.		3,200		88,448

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			91

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Machinery – (continued)

Wabash National Corp.(a)		16,600	$	292,326

Watts Water Technologies, Inc., Class A		800		99,640

Welbilt, Inc.*		12,400		277,016

Westinghouse Air Brake Technologies Corp.		5,200		426,764

Woodward, Inc.		2,400		300,024

Xylem, Inc.		4,400		486,860
				34,498,512

Marine – 0.1%

Kirby Corp.*		13,800		879,060

Matson, Inc.(a)		1,200		78,396
				957,456

Media – 1.4%

Altice USA, Inc., Class A*		8,200		297,742

AMC Networks, Inc., Class A* (a)		5,600		281,568

Cable One, Inc.		200		358,000

Cardlytics, Inc.*		1,600		220,048

Charter Communications, Inc., Class A* (a)		4,000		2,693,800

Clear Channel Outdoor Holdings, Inc.*		75,400		189,254

Comcast Corp., Class A		155,800		8,748,170

Discovery, Inc., Class A* (a)		4,400		165,704

Discovery, Inc., Class C*		11,800		381,258

DISH Network Corp., Class A*		8,800		394,152

EW Scripps Co. (The), Class A(a)		16,200		350,244

Fox Corp., Class A		9,000		336,780

Fox Corp., Class B		3,000		109,140

Gray Television, Inc.		25,000		508,000

iHeartMedia, Inc., Class A*		20,600		394,284

Interpublic Group of Cos., Inc. (The)		12,000		381,000

John Wiley & Sons, Inc., Class A		11,800		671,892

Liberty Broadband Corp., Class A*		600		94,602

Liberty Broadband Corp., Class C*		5,000		813,600


Investments	Shares		Value

Media – (continued)

Liberty Media Corp-Liberty SiriusXM, Class A* (a)		2,200	$	99,418

Liberty Media Corp-Liberty SiriusXM, Class C*		5,000		226,150

Meredith Corp.*		9,400		292,340

MSG Networks, Inc., Class A* (a)		9,200		146,004

New York Times Co. (The), Class A		8,600		390,526

News Corp., Class A		10,600		277,667

News Corp., Class B		3,400		82,654

Nexstar Media Group, Inc., Class A		9,800		1,444,618

Omnicom Group, Inc.		6,200		510,012

Scholastic Corp.		1,000		30,330

Sinclair Broadcast Group, Inc., Class A(a)		13,600		441,592

Sirius XM Holdings, Inc.(a)		37,800		230,580

TechTarget, Inc.* (a)		200		15,340

TEGNA, Inc.		57,000		1,143,420

Tribune Publishing Co.*		5,800		101,152

ViacomCBS, Inc.(a)		18,000		738,360

ViacomCBS, Inc., Class A(a)		1,400		63,280

WideOpenWest, Inc.*		12,800		180,096
				23,802,777

Metals & Mining – 0.8%

Alcoa Corp.*		47,200		1,729,408

Allegheny Technologies, Inc.* (a)		32,400		753,624

Arconic Corp.* (a)		4,400		125,840

Carpenter Technology Corp.(a)		9,000		340,830

Century Aluminum Co.*		10,800		169,128

Cleveland-Cliffs, Inc.* (a)		25,400		453,644

Coeur Mining, Inc.*		8,000		64,640

Commercial Metals Co.(a)		31,800		929,196

Compass Minerals International, Inc.		3,600		244,512

Freeport-McMoRan, Inc.		39,200		1,478,232

Hecla Mining Co.		17,600		104,016

Kaiser Aluminum Corp.		1,400		168,658

Materion Corp.		600		42,486

McEwen Mining, Inc.* (a)		109,000		130,800

Newmont Corp.		21,800		1,360,538

See Accompanying Notes to the Financial Statements.


92		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Metals & Mining – (continued)

Nucor Corp.		9,800	$	806,148

Reliance Steel & Aluminum Co.		2,600		416,806

Royal Gold, Inc.		1,800		201,348

Schnitzer Steel Industries, Inc., Class A		3,400		160,514

Southern Copper Corp.(a)		2,000		138,820

Steel Dynamics, Inc.		49,200		2,667,624

United States Steel Corp.(a)		15,000		345,150

Warrior Met Coal, Inc.		5,800		91,930

Worthington Industries, Inc.		9,800		639,548
				13,563,440

Mortgage Real Estate Investment Trusts (REITs) – 0.6%

AGNC Investment Corp.(a)		14,000		251,020

Annaly Capital Management, Inc.		39,000		354,120

Apollo Commercial Real Estate Finance, Inc.(a)		24,600		374,166

Arbor Realty Trust, Inc.		10,600		187,408

ARMOUR Residential REIT, Inc.		20,200		251,086

Blackstone Mortgage Trust, Inc., Class A(a)		32,200		1,046,178

Capstead Mortgage Corp.(a)		32,200		208,656

Chimera Investment Corp.		44,800		588,672

Colony Credit Real Estate, Inc.		10,000		86,900

Dynex Capital, Inc.		6,200		125,240

Ellington Financial, Inc.		14,200		254,748

Granite Point Mortgage Trust, Inc.(a)		6,200		82,088

Hannon Armstrong Sustainable Infrastructure Capital, Inc.(a)		3,400		178,160

Invesco Mortgage Capital, Inc.(a)		52,800		205,920

KKR Real Estate Finance Trust, Inc.(a)		7,800		164,580

Ladder Capital Corp.(a)		21,400		254,446

MFA Financial, Inc.		77,200		339,680

New Residential Investment Corp.		105,800		1,134,176

New York Mortgage Trust, Inc.(a)		66,000		302,940

Orchid Island Capital, Inc.(a)		3,200		17,600


Investments	Shares		Value

Mortgage Real Estate Investment Trusts (REITs) – (continued)

PennyMac Mortgage Investment Trust(a)		9,000	$	180,450

Ready Capital Corp.(a)		14,800		214,748

Redwood Trust, Inc.		2,000		22,220

Starwood Property Trust, Inc.		71,000		1,833,220

TPG RE Finance Trust, Inc.(a)		13,200		164,472

Two Harbors Investment Corp.		48,200		375,960
				9,198,854

Multiline Retail – 0.7%

Big Lots, Inc.(a)		9,800		675,612

Dillard’s, Inc., Class A(a)		1,600		158,256

Dollar General Corp.		6,800		1,460,300

Dollar Tree, Inc.*		7,400		850,260

Franchise Group, Inc.(a)		8,200		315,946

Kohl’s Corp.		39,200		2,299,472

Macy’s, Inc.*		70,800		1,173,864

Nordstrom, Inc.*		28,000		1,027,040

Ollie’s Bargain Outlet Holdings, Inc.* (a)		3,600		332,172

Target Corp.		17,200		3,564,872
				11,857,794

Multi-Utilities – 0.8%

Ameren Corp.		6,800		576,912

Avista Corp.		2,200		101,244

Black Hills Corp.(a)		4,200		289,716

CenterPoint Energy, Inc.		20,400		499,596

CMS Energy Corp.		7,000		450,730

Consolidated Edison, Inc.		10,600		820,546

Dominion Energy, Inc.		28,400		2,269,160

DTE Energy Co.		7,000		980,140

MDU Resources Group, Inc.		50,200		1,679,692

NiSource, Inc.		16,000		416,320

NorthWestern Corp.(a)		13,200		897,996

Public Service Enterprise Group, Inc.		18,200		1,149,512

Sempra Energy		9,400		1,293,158

Unitil Corp.		5,200		299,676

WEC Energy Group, Inc.		8,600		835,662
				12,560,060

Oil, Gas & Consumable Fuels – 3.2%

Antero Midstream Corp.(a)		76,600		661,824

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			93

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Oil, Gas & Consumable Fuels – (continued)

Antero Resources Corp.* (a)		72,800	$	656,656

APA Corp.		91,800		1,836,000

Arch Resources, Inc.*		1,200		53,292

Bonanza Creek Energy, Inc.*		5,400		178,686

Cabot Oil & Gas Corp.(a)		13,200		220,044

Cheniere Energy, Inc.*		8,800		682,176

Chevron Corp.		65,800		6,782,006

Cimarex Energy Co.		3,600		238,320

Clean Energy Fuels Corp.*		35,600		391,600

CNX Resources Corp.*		56,400		756,888

Comstock Resources, Inc.*		3,600		19,764

ConocoPhillips		43,600		2,229,704

Continental Resources, Inc.*		10,800		294,192

CVR Energy, Inc.(a)		5,400		114,966

Delek US Holdings, Inc.		14,000		332,220

Devon Energy Corp.		142,207		3,324,800

Diamondback Energy, Inc.		41,000		3,350,930

Dorian LPG Ltd.* (a)		8,600		114,294

EOG Resources, Inc.		14,400		1,060,416

EQT Corp.*		70,400		1,344,640

Equitrans Midstream Corp.		81,000		660,960

Exxon Mobil Corp.		141,200		8,082,288

Green Plains, Inc.* (a)		7,200		214,560

Hess Corp.		6,800		506,668

HollyFrontier Corp.		32,600		1,141,000

International Seaways, Inc.		8,000		141,440

Kinder Morgan, Inc.		61,200		1,043,460

Kosmos Energy Ltd.* (a)		107,800		308,308

Magnolia Oil & Gas Corp., Class A* (a)		15,400		173,404

Marathon Oil Corp.		197,200		2,220,472

Marathon Petroleum Corp.		21,200		1,179,780

Matador Resources Co.		5,200		136,812

Murphy Oil Corp.(a)		28,600		484,198

Occidental Petroleum Corp.		24,000		608,640

ONEOK, Inc.(a)		12,600		659,484

Ovintiv, Inc.		65,600		1,569,808

Par Pacific Holdings, Inc.* (a)		11,800		179,242

PBF Energy, Inc., Class A* (a)		23,000		326,140

PDC Energy, Inc.* (a)		26,600		971,166

Phillips 66		11,000		890,010

Pioneer Natural Resources Co.		5,600		861,448


Investments	Shares		Value

Oil, Gas & Consumable Fuels – (continued)

Range Resources Corp.*		23,200	$	227,824

Renewable Energy Group, Inc.* (a)		10,200		566,304

REX American Resources Corp.*		200		16,146

Southwestern Energy Co.*		174,400		744,688

Targa Resources Corp.		56,800		1,970,392

Tellurian, Inc.* (a)		7,600		16,834

Valero Energy Corp.		12,800		946,688

Williams Cos., Inc. (The)		44,200		1,076,712

World Fuel Services Corp.		13,000		402,090
				52,970,384

Paper & Forest Products – 0.2%

Clearwater Paper Corp.* (a)		2,600		86,996

Domtar Corp.*		12,600		496,692

Glatfelter Corp.(a)		1,600		23,552

Louisiana-Pacific Corp.		24,200		1,594,296

Mercer International, Inc.		12,400		204,476

Neenah, Inc.		600		31,902

Schweitzer-Mauduit International, Inc.		7,600		347,092

Verso Corp., Class A(a)		11,400		176,016
				2,961,022

Personal Products – 0.3%

BellRing Brands, Inc., Class A*		3,800		98,002

Coty, Inc., Class A* (a)		77,400		774,774

Edgewell Personal Care Co.(a)		14,400		550,080

elf Beauty, Inc.*		1,000		30,250

Estee Lauder Cos., Inc. (The), Class A		6,000		1,882,800

Herbalife Nutrition Ltd.* (a)		18,000		823,860

Inter Parfums, Inc.		600		44,160

Medifast, Inc.		800		181,672

Nu Skin Enterprises, Inc., Class A		13,400		708,324

USANA Health Sciences, Inc.*		400		35,996
				5,129,918

Pharmaceuticals – 2.5%

Aerie Pharmaceuticals, Inc.* (a)		1,400		23,982

See Accompanying Notes to the Financial Statements.


94		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Pharmaceuticals – (continued)

Amneal Pharmaceuticals, Inc.* (a)		11,600	$	63,916

Amphastar Pharmaceuticals, Inc.* (a)		1,400		24,360

ANI Pharmaceuticals, Inc.* (a)		400		13,312

Arvinas, Inc.*		600		41,364

Axsome Therapeutics, Inc.*		4,400		266,024

Bristol-Myers Squibb Co.		76,000		4,743,920

Cara Therapeutics, Inc.* (a)		1,800		23,310

Catalent, Inc.*		4,200		472,374

Collegium Pharmaceutical, Inc.* (a)		10,800		240,840

Corcept Therapeutics, Inc.* (a)		3,400		77,486

Elanco Animal Health, Inc.*		15,200		481,992

Eli Lilly and Co.		21,600		3,947,832

Endo International plc*		65,000		372,450

Horizon Therapeutics plc* (a)		7,400		700,188

Innoviva, Inc.* (a)		10,400		119,080

Intra-Cellular Therapies, Inc.*		1,800		61,974

Jazz Pharmaceuticals plc*		2,200		361,680

Johnson & Johnson		71,200		11,586,376

Merck & Co., Inc.		84,000		6,258,000

Nektar Therapeutics* (a)		13,000		254,930

Odonate Therapeutics, Inc.*		1,600		5,360

Omeros Corp.* (a)		7,800		137,748

Pacira BioSciences, Inc.*		1,400		88,452

Perrigo Co. plc		1,600		66,608

Pfizer, Inc.		185,200		7,157,980

Prestige Consumer Healthcare, Inc.*		13,800		601,128

Reata Pharmaceuticals, Inc., Class A* (a)		2,200		223,080

Revance Therapeutics, Inc.*		8,000		232,960

Royalty Pharma plc, Class A(a)		3,800		167,200

Supernus Pharmaceuticals, Inc.* (a)		15,600		475,020

TherapeuticsMD, Inc.* (a)		56,600		68,486

Theravance Biopharma, Inc.*		5,200		102,648

Tilray, Inc., Class 2* (a)		3,400		62,356

Viatris, Inc.*		32,200		428,260

Zoetis, Inc.		13,800		2,387,814

Zogenix, Inc.*		6,200		117,118
				42,457,608


Investments	Shares		Value

Professional Services – 1.1%

ASGN, Inc.*		13,200	$	1,388,376

Booz Allen Hamilton Holding Corp.		3,800		315,210

CACI International, Inc., Class A*		5,800		1,478,188

CBIZ, Inc.*		2,000		67,180

Clarivate plc*		6,000		167,580

CoreLogic, Inc.		3,200		255,040

CoStar Group, Inc.*		1,200		1,025,316

CRA International, Inc.(a)		200		16,052

Equifax, Inc.		3,400		779,382

Exponent, Inc.		3,400		327,522

Forrester Research, Inc.*		400		17,380

FTI Consulting, Inc.* (a)		1,200		166,620

Heidrick & Struggles International, Inc.		3,200		135,360

Huron Consulting Group, Inc.*		800		45,008

ICF International, Inc.		600		54,636

IHS Markit Ltd.		11,000		1,183,380

Insperity, Inc.		1,200		105,048

Jacobs Engineering Group, Inc.		5,000		668,050

KBR, Inc.		36,200		1,432,072

Kelly Services, Inc., Class A*		9,200		230,460

Kforce, Inc.		600		33,624

Korn Ferry		4,400		298,716

Leidos Holdings, Inc.		3,600		364,608

ManpowerGroup, Inc.		14,200		1,716,638

ManTech International Corp., Class A		2,800		238,980

Nielsen Holdings plc		81,200		2,082,780

Resources Connection, Inc.(a)		6,800		95,948

Robert Half International, Inc.		4,800		420,528

Science Applications International Corp.		12,600		1,126,692

TransUnion		5,200		543,868

TriNet Group, Inc.*		1,400		110,194

TrueBlue, Inc.* (a)		2,800		79,240

Upwork, Inc.*		4,000		184,240

Verisk Analytics, Inc.		4,400		828,080
				17,981,996

Real Estate Management & Development – 0.3%

CBRE Group, Inc., Class A*		12,400		1,056,480

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			95

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Real Estate Management & Development – (continued)

Cushman & Wakefield plc* (a)		21,800	$	370,600

eXp World Holdings, Inc.* (a)		4,400		151,184

Forestar Group, Inc.*		1,400		35,476

Howard Hughes Corp. (The)*		1,400		151,116

Jones Lang LaSalle, Inc.*		11,800		2,217,338

Kennedy-Wilson Holdings, Inc.		2,800		57,540

Newmark Group, Inc., Class A		35,600		382,700

Realogy Holdings Corp.*		32,200		556,416

Redfin Corp.* (a)		5,200		368,056

St Joe Co. (The)(a)		800		36,632
				5,383,538

Road & Rail – 1.0%

AMERCO		200		119,326

ArcBest Corp.		5,400		392,904

Avis Budget Group, Inc.* (a)		11,000		985,710

CSX Corp.		20,600		2,075,450

Heartland Express, Inc.(a)		1,800		33,462

JB Hunt Transport Services, Inc.		2,400		409,704

Kansas City Southern		2,800		818,188

Knight-Swift Transportation Holdings, Inc.		5,000		235,600

Landstar System, Inc.		1,600		275,648

Lyft, Inc., Class A* (a)		5,800		322,828

Marten Transport Ltd.		3,000		50,160

Norfolk Southern Corp.		8,800		2,457,312

Old Dominion Freight Line, Inc.		2,800		721,868

Ryder System, Inc.		11,800		942,112

Saia, Inc.*		1,000		234,500

Schneider National, Inc., Class B		200		4,846

Uber Technologies, Inc.*		39,200		2,146,984

Union Pacific Corp.		18,200		4,042,038

Werner Enterprises, Inc.		2,800		129,444
				16,398,084

Semiconductors & Semiconductor Equipment – 3.9%

Advanced Energy Industries, Inc.		1,400		154,434

Advanced Micro Devices, Inc.* (a)		31,800		2,595,516

Alpha & Omega Semiconductor Ltd.*		6,000		186,600


Investments	Shares		Value

Semiconductors & Semiconductor Equipment – (continued)

Ambarella, Inc.*		1,000	$	97,490

Amkor Technology, Inc.(a)		22,200		448,884

Analog Devices, Inc.		10,000		1,531,600

Applied Materials, Inc.		31,600		4,193,636

Axcelis Technologies, Inc.*		1,200		49,836

Broadcom, Inc.		13,800		6,295,560

Brooks Automation, Inc.		2,800		283,724

CEVA, Inc.* (a)		600		33,264

Cirrus Logic, Inc.*		3,200		238,112

CMC Materials, Inc.		2,200		403,546

Cohu, Inc.*		5,200		208,052

Cree, Inc.* (a)		3,600		357,912

Diodes, Inc.*		1,400		107,534

Enphase Energy, Inc.*		3,200		445,600

Entegris, Inc.		3,800		427,804

First Solar, Inc.*		2,200		168,366

FormFactor, Inc.*		2,600		101,790

Ichor Holdings Ltd.*		800		44,616

Intel Corp.		139,400		8,019,682

KLA Corp.		4,200		1,324,470

Kulicke & Soffa Industries, Inc.		2,200		125,070

Lam Research Corp.		4,000		2,481,800

Lattice Semiconductor Corp.*		9,600		482,976

MACOM Technology Solutions Holdings, Inc.* (a)		1,600		90,576

Magnachip Semiconductor Corp.*		5,600		140,056

Marvell Technology, Inc.		22,114		999,774

Maxim Integrated Products, Inc.		6,400		601,600

MaxLinear, Inc.*		1,600		57,584

Microchip Technology, Inc.		8,200		1,232,378

Micron Technology, Inc.*		38,600		3,322,302

MKS Instruments, Inc.		3,000		537,330

Monolithic Power Systems, Inc.		1,200		433,656

NeoPhotonics Corp.*		7,200		67,392

NVIDIA Corp.		16,800		10,086,384

NXP Semiconductors NV		7,400		1,424,574

ON Semiconductor Corp.*		13,400		522,600

Onto Innovation, Inc.*		4,400		301,488

PDF Solutions, Inc.*		600		10,638

Photronics, Inc.*		16,800		213,360

Power Integrations, Inc.		3,400		281,554

Qorvo, Inc.*		3,400		639,778

See Accompanying Notes to the Financial Statements.


96		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Semiconductors & Semiconductor Equipment – (continued)

QUALCOMM, Inc.		30,600	$	4,247,280

Rambus, Inc.*		4,000		75,920

Semtech Corp.*		3,800		257,412

Silicon Laboratories, Inc.*		2,600		366,470

Skyworks Solutions, Inc.		4,600		834,118

SMART Global Holdings, Inc.* (a)		4,800		221,520

SolarEdge Technologies, Inc.* (a)		1,600		421,664

SunPower Corp.* (a)		6,800		174,692

Synaptics, Inc.* (a)		1,800		251,766

Teradyne, Inc.		4,600		575,368

Texas Instruments, Inc.		25,800		4,657,158

Ultra Clean Holdings, Inc.*		9,600		490,272

Universal Display Corp.		1,200		268,428

Veeco Instruments, Inc.* (a)		1,800		41,418

Xilinx, Inc.		6,800		870,128
				65,524,512

Software – 6.7%

2U, Inc.* (a)		6,200		243,350

8x8, Inc.*		3,400		111,826

ACI Worldwide, Inc.*		6,600		249,348

Adobe, Inc.*		13,200		6,710,088

Alarm.com Holdings, Inc.* (a)		1,200		107,712

Altair Engineering, Inc., Class A* (a)		1,200		78,000

Alteryx, Inc., Class A*		200		16,350

Anaplan, Inc.*		6,000		357,900

ANSYS, Inc.*		2,400		877,584

Appfolio, Inc., Class A* (a)		400		57,852

Appian Corp.* (a)		2,200		266,596

Aspen Technology, Inc.* (a)		1,800		235,512

Autodesk, Inc.*		5,800		1,693,078

Avalara, Inc.*		3,200		453,472

Avaya Holdings Corp.*		21,400		615,678

Bill.com Holdings, Inc.*		2,200		340,186

Blackbaud, Inc.* (a)		1,600		113,792

Blackline, Inc.*		1,600		185,696

Bottomline Technologies DE, Inc.*		1,400		67,984

Box, Inc., Class A* (a)		5,600		119,280


Investments	Shares		Value

Software – (continued)

Cadence Design Systems, Inc.*		7,600	$	1,001,452

CDK Global, Inc.		7,400		396,566

Cerence, Inc.* (a)		1,200		115,692

Ceridian HCM Holding, Inc.* (a)		2,800		264,544

ChannelAdvisor Corp.* (a)		4,000		84,600

Citrix Systems, Inc.		3,200		396,320

Cloudera, Inc.* (a)		11,400		144,666

Cloudflare, Inc., Class A*		3,600		305,064

CommVault Systems, Inc.*		1,400		97,314

Cornerstone OnDemand, Inc.*		4,600		203,619

Coupa Software, Inc.* (a)		2,400		645,696

Crowdstrike Holdings, Inc., Class A* (a)		5,000		1,042,550

Datadog, Inc., Class A* (a)		4,200		360,234

Digimarc Corp.* (a)		1,400		47,222

Digital Turbine, Inc.*		3,600		271,548

DocuSign, Inc.*		4,600		1,025,524

Domo, Inc., Class B*		2,400		154,296

Dropbox, Inc., Class A* (a)		17,800		457,460

Duck Creek Technologies, Inc.* (a)		4,400		182,952

Dynatrace, Inc.*		6,600		343,464

Ebix, Inc.(a)		6,600		198,726

Elastic NV*		1,000		120,620

Envestnet, Inc.*		1,600		118,128

Everbridge, Inc.* (a)		1,200		159,252

Fair Isaac Corp.*		800		417,128

FireEye, Inc.* (a)		14,800		294,150

Five9, Inc.*		2,000		375,940

Fortinet, Inc.*		3,800		776,074

Guidewire Software, Inc.*		3,400		358,734

HubSpot, Inc.*		1,200		631,740

InterDigital, Inc.(a)		1,000		69,420

Intuit, Inc.		7,600		3,132,416

J2 Global, Inc.* (a)		10,800		1,306,800

Jamf Holding Corp.*		4,600		167,992

LivePerson, Inc.* (a)		2,600		142,090

Manhattan Associates, Inc.*		2,800		384,272

Microsoft Corp.		206,800		52,150,824

MicroStrategy, Inc., Class A* (a)		400		262,864

Mimecast Ltd.*		1,800		78,156

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			97

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Software – (continued)

Model N, Inc.*		4,800	$	190,944

nCino, Inc.* (a)		2,200		143,858

New Relic, Inc.*		1,600		102,880

NortonLifeLock, Inc.		14,200		306,862

Nuance Communications, Inc.* (a)		9,200		489,164

Nutanix, Inc., Class A*		5,400		146,016

OneSpan, Inc.*		2,000		53,620

Oracle Corp.		64,400		4,880,876

PagerDuty, Inc.* (a)		4,400		186,824

Palantir Technologies, Inc., Class A* (a)		21,400		493,056

Palo Alto Networks, Inc.*		2,400		848,136

Paycom Software, Inc.*		1,400		538,174

Paylocity Holding Corp.* (a)		1,200		231,888

Pegasystems, Inc.(a)		1,000		126,940

Progress Software Corp.		1,600		69,856

Proofpoint, Inc.*		3,400		585,174

PROS Holdings, Inc.* (a)		4,600		197,708

PTC, Inc.*		2,800		366,632

Q2 Holdings, Inc.* (a)		1,600		166,432

QAD, Inc., Class A(a)		2,400		169,656

Qualys, Inc.* (a)		1,000		101,360

Rapid7, Inc.*		1,400		113,750

RingCentral, Inc., Class A* (a)		2,000		637,900

Sailpoint Technologies Holdings, Inc.*		5,400		263,682

salesforce.com, Inc.*		24,600		5,665,872

ServiceNow, Inc.*		5,200		2,633,124

Slack Technologies, Inc., Class A*		10,600		449,440

Smartsheet, Inc., Class A*		5,000		296,500

SolarWinds Corp.*		1,800		30,348

Splunk, Inc.* (a)		4,200		530,964

Sprout Social, Inc., Class A*		2,600		172,354

SPS Commerce, Inc.*		2,400		245,856

SS&C Technologies Holdings, Inc.		6,000		445,320

Sumo Logic, Inc.* (a)		2,600		50,674

SVMK, Inc.*		13,000		233,870

Synopsys, Inc.*		4,200		1,037,652

Tenable Holdings, Inc.*		1,600		59,992


Investments	Shares		Value

Software – (continued)

Teradata Corp.* (a)		3,800	$	187,986

Trade Desk, Inc. (The), Class A*		1,200		875,172

Tyler Technologies, Inc.*		1,400		594,804

Upland Software, Inc.*		3,800		188,328

Varonis Systems, Inc.*		6,000		317,700

Verint Systems, Inc.*		2,200		106,854

Vertex, Inc., Class A* (a)		2,600		53,118

VMware, Inc., Class A* (a)		2,000		321,660

Workday, Inc., Class A*		5,200		1,284,400

Workiva, Inc.* (a)		1,400		131,600

Xperi Holding Corp.(a)		28,600		587,730

Yext, Inc.* (a)		3,400		47,430

Zendesk, Inc.* (a)		3,200		467,680

Zoom Video Communications, Inc., Class A*		5,400		1,725,678

Zscaler, Inc.*		1,800		337,752

Zuora, Inc., Class A* (a)		14,000		226,800
				112,305,439

Specialty Retail – 3.1%

Abercrombie & Fitch Co., Class A*		11,400		427,386

Academy Sports & Outdoors, Inc.*		5,000		154,050

Advance Auto Parts, Inc.		2,000		400,320

American Eagle Outfitters, Inc.(a)		39,000		1,348,230

America’s Car-Mart, Inc.* (a)		1,200		180,996

Asbury Automotive Group, Inc.* (a)		5,000		993,050

At Home Group, Inc.*		9,600		303,168

AutoNation, Inc.*		14,400		1,475,712

AutoZone, Inc.*		800		1,171,296

Bed Bath & Beyond, Inc.*		32,600		825,432

Best Buy Co., Inc.		8,400		976,668

Boot Barn Holdings, Inc.*		600		42,324

Buckle, Inc. (The)(a)		7,400		310,356

Burlington Stores, Inc.*		1,800		587,394

Caleres, Inc.(a)		3,600		83,916

Camping World Holdings, Inc., Class A(a)		7,800		339,612

CarMax, Inc.*		5,800		772,792

Carvana Co.* (a)		1,600		456,416

See Accompanying Notes to the Financial Statements.


98		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Specialty Retail – (continued)

Children’s Place, Inc. (The)* (a)		3,200	$	250,720

Citi Trends, Inc.* (a)		1,000		104,600

Designer Brands, Inc., Class A* (a)		12,000		212,400

Dick’s Sporting Goods, Inc.(a)		16,800		1,387,344

Five Below, Inc.*		1,200		241,524

Floor & Decor Holdings, Inc., Class A*		2,200		244,024

Foot Locker, Inc.		26,400		1,557,072

GameStop Corp., Class A* (a)		12,400		2,152,516

Gap, Inc. (The)		10,400		344,240

Genesco, Inc.*		2,000		100,000

Group 1 Automotive, Inc.		4,600		755,136

GrowGeneration Corp.*		2,400		104,640

Guess?, Inc.(a)		5,600		151,424

Hibbett Sports, Inc.*		2,400		190,680

Home Depot, Inc. (The)		36,200		11,716,854

L Brands, Inc.*		9,600		632,640

Lithia Motors, Inc., Class A		6,400		2,460,032

Lowe’s Cos., Inc.		24,400		4,788,500

MarineMax, Inc.* (a)		6,400		363,520

Monro, Inc.		1,000		70,590

Murphy USA, Inc.		5,800		808,520

National Vision Holdings, Inc.* (a)		2,600		131,066

ODP Corp. (The)*		14,800		598,364

O’Reilly Automotive, Inc.*		2,000		1,105,760

Penske Automotive Group, Inc.		8,600		754,134

Rent-A-Center, Inc.		13,400		771,170

RH* (a)		800		550,416

Ross Stores, Inc.		9,200		1,204,648

Sally Beauty Holdings, Inc.* (a)		21,000		421,470

Shoe Carnival, Inc.		1,600		95,920

Signet Jewelers Ltd.* (a)		10,800		645,300

Sleep Number Corp.*		2,000		223,780

Sonic Automotive, Inc., Class A		7,000		345,380

Sportsman’s Warehouse Holdings, Inc.*		12,200		214,232

TJX Cos., Inc. (The)		32,000		2,272,000

Tractor Supply Co.		3,200		603,520

Ulta Beauty, Inc.*		1,400		461,090

Urban Outfitters, Inc.*		18,200		653,380


Investments	Shares		Value

Specialty Retail – (continued)

Vroom, Inc.* (a)		3,400	$	157,318

Williams-Sonoma, Inc.		2,600		443,950

Zumiez, Inc.*		6,200		266,414
				51,405,406

Technology Hardware, Storage & Peripherals – 3.9%

3D Systems Corp.* (a)		2,400		51,696

Apple, Inc.		431,000		56,659,259

Dell Technologies, Inc., Class C*		7,600		747,308

Diebold Nixdorf, Inc.* (a)		23,600		354,236

Hewlett Packard Enterprise Co.		48,800		781,776

HP, Inc.		46,400		1,582,704

NCR Corp.*		32,600		1,491,450

NetApp, Inc.		7,400		552,706

Pure Storage, Inc., Class A*		15,400		311,388

Seagate Technology plc		8,200		761,288

Super Micro Computer, Inc.* (a)		8,200		303,564

Western Digital Corp.*		11,400		805,182

Xerox Holdings Corp.		42,400		1,023,536
				65,426,093

Textiles, Apparel & Luxury Goods – 1.0%

Capri Holdings Ltd.*		9,400		517,752

Carter’s, Inc.*		1,600		174,064

Columbia Sportswear Co.		800		87,208

Crocs, Inc.*		2,600		260,312

Deckers Outdoor Corp.* (a)		1,000		338,200

Fossil Group, Inc.* (a)		4,200		54,180

G-III Apparel Group Ltd.*		5,200		168,948

Hanesbrands, Inc.		87,600		1,844,856

Kontoor Brands, Inc.(a)		4,000		251,320

Levi Strauss & Co., Class A		800		23,088

Lululemon Athletica, Inc.*		3,000		1,005,810

NIKE, Inc., Class B		34,000		4,509,080

Oxford Industries, Inc.		1,200		109,476

PVH Corp.*		17,600		1,991,968

Ralph Lauren Corp.*		1,800		239,922

Skechers USA, Inc., Class A*		5,200		252,148

Steven Madden Ltd.		2,600		105,742

Tapestry, Inc.*		68,000		3,253,800

Under Armour, Inc., Class A* (a)		5,600		136,136

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			99

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Textiles, Apparel & Luxury Goods – (continued)

Under Armour, Inc., Class C*		11,200	$	222,992

VF Corp.		9,000		788,940

Wolverine World Wide, Inc.(a)		6,400		267,008
				16,602,950

Thrifts & Mortgage Finance – 0.7%

Axos Financial, Inc.*		13,000		586,950

Capitol Federal Financial, Inc.(a)		12,200		157,685

Essent Group Ltd.		28,200		1,482,756

Federal Agricultural Mortgage Corp., Class C		2,600		267,436

Flagstar Bancorp, Inc.		12,000		558,480

HomeStreet, Inc.		800		32,672

Meridian Bancorp, Inc.		5,200		114,972

Meta Financial Group, Inc.		9,800		482,748

MGIC Investment Corp.		74,800		1,139,952

Mr Cooper Group, Inc.* (a)		19,400		668,912

New York Community Bancorp, Inc.		103,200		1,234,272

NMI Holdings, Inc., Class A*		22,800		589,152

Northfield Bancorp, Inc.(a)		1,400		22,652

Northwest Bancshares, Inc.		6,800		95,472

PennyMac Financial Services, Inc.(a)		10,800		650,268

Premier Financial Corp.		11,800		372,762

Provident Financial Services, Inc.(a)		15,000		353,550

Radian Group, Inc.		48,800		1,202,432

Rocket Cos., Inc., Class A(a)		2,800		62,860

TFS Financial Corp.		2,000		39,120

TrustCo Bank Corp.(a)		33,600		245,784

Walker & Dunlop, Inc.		7,600		842,460

Washington Federal, Inc.(a)		19,400		631,470

Waterstone Financial, Inc.		8,800		173,360

WSFS Financial Corp.		4,200		214,578
				12,222,755

Tobacco – 0.5%

Altria Group, Inc.		60,400		2,884,100

Philip Morris International, Inc.		52,000		4,940,000

Turning Point Brands, Inc.		200		9,764


Investments	Shares		Value

Tobacco – (continued)

Universal Corp.		6,000	$	337,380

Vector Group Ltd.		12,000		156,600
				8,327,844

Trading Companies & Distributors – 0.7%

Air Lease Corp.		27,000		1,261,170

Applied Industrial Technologies, Inc.		2,800		267,848

Beacon Roofing Supply, Inc.*		14,600		822,418

Boise Cascade Co.(a)		8,000		533,760

CAI International, Inc.(a)		1,800		76,590

Fastenal Co.		15,800		826,024

GATX Corp.(a)		9,000		879,390

GMS, Inc.*		12,000		524,520

H&E Equipment Services, Inc.		9,800		381,220

Herc Holdings, Inc.*		2,400		253,440

McGrath RentCorp		600		49,188

MRC Global, Inc.* (a)		6,800		64,056

MSC Industrial Direct Co., Inc., Class A(a)		11,600		1,045,856

NOW, Inc.*		15,400		151,228

Rush Enterprises, Inc., Class A(a)		3,000		148,080

SiteOne Landscape Supply, Inc.* (a)		2,600		466,388

Systemax, Inc.(a)		400		17,088

Triton International Ltd.		17,400		872,958

United Rentals, Inc.*		2,600		831,870

Univar Solutions, Inc.* (a)		36,400		849,940

Watsco, Inc.		800		234,288

WESCO International, Inc.*		11,200		1,027,264

WW Grainger, Inc.		1,200		520,248
				12,104,832

Transportation Infrastructure – 0.0%(f)

Macquarie Infrastructure Corp.		1,000		33,310

Water Utilities – 0.1%

American States Water Co.(a)		3,600		285,084

American Water Works Co., Inc.		4,800		748,752

Cadiz, Inc.* (a)		13,200		153,780

See Accompanying Notes to the Financial Statements.


100		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Water Utilities – (continued)

California Water Service Group		1,600	$	94,000

Essential Utilities, Inc.		5,200		245,076

Middlesex Water Co.		600		49,212

SJW Group		3,400		222,870

York Water Co. (The)(a)		600		30,984
				1,829,758

Wireless Telecommunication Services – 0.2%

Boingo Wireless, Inc.*		1,600		22,336

Gogo, Inc.* (a)		19,200		200,064

Shenandoah Telecommunications Co.		5,000		236,300

Telephone and Data Systems, Inc.		27,200		625,056

T-Mobile US, Inc.*		16,400		2,166,932

United States Cellular Corp.*		2,200		75,086
				3,325,774
Total Common Stocks (Cost $896,438,476)				1,651,880,336
	Number of Warrants

WARRANTS – 0.0%(f)

Oil, Gas & Consumable Fuels – 0.0%(f)

Occidental Petroleum Corp., expiring 8/3/2027, price 22.00* (Cost $21,117)		4,266		45,988
	Number of Rights

RIGHTS – 0.0%(f)

Biotechnology – 0.0%(f)

Achillion Pharmaceuticals, Inc., CVR* ^‡ (e)		44,344		25,720

Media – 0.0%(f)

Media General, Inc., CVR* ^‡ (e)		22,261		2,226
Total Rights (Cost $–)				27,946


Investments	Principal Amount		Value

SECURITIES LENDING REINVESTMENTS(g) – 6.9%

CERTIFICATES OF DEPOSIT – 0.9%

Bank of Nova Scotia, Houston
(ICE LIBOR USD 3 Month + 0.08%), 0.27%, 7/21/2021(h)	$	4,000,000	$	4,000,088

Cooperatieve Rabobank UA, London
(ICE LIBOR USD 3 Month + 0.08%), 0.27%, 7/30/2021(h)		5,000,000		5,001,000

Nordea Bank Abp, New York Branch
(ICE LIBOR USD 3 Month + 0.03%), 0.24%, 10/7/2021(h)		4,000,000		4,001,600

Royal Bank of Canada, New York
(ICE LIBOR USD 3 Month + 0.04%), 0.24%, 10/5/2021(h)		3,000,000		3,000,654
Total Certificates of Deposit (Cost $15,999,883)				16,003,342



REPURCHASE AGREEMENTS – 6.0%

BofA Securities, Inc., 0.50%, dated 4/30/2021, due 8/2/2021, repurchase price $6,000,000, collateralized by various Common Stocks; total market value $6,534,092		6,000,000		6,000,000

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			101

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


Investments	Principal Amount		Value

REPURCHASE AGREEMENTS – (continued)

Citigroup Global Markets Ltd., 0.05%, dated 4/30/2021, due 5/3/2021, repurchase price $35,000,000, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 3.00%, maturing 5/15/2023 – 2/15/2049; Foreign Government Fixed Income Securities, 0.45%, maturing 8/19/2027; total market value $35,612,094	$	35,000,000	$	35,000,000

Citigroup Global Markets, Inc., 0.01%, dated 4/30/2021, due 5/3/2021, repurchase price $23,828,929, collateralized by various U.S. Treasury Securities, ranging from 0.88% – 5.00%, maturing 1/15/2028 – 2/15/2047; total market value $24,043,888		23,828,929		23,828,929

Deutsche Bank AG, London Branch, 0.15%, dated 4/30/2021, due 5/3/2021, repurchase price $14,750,000, collateralized by various U.S. Treasury Securities, 0.13%, maturing 7/15/2030; Foreign Government Fixed Income Securities, ranging from 0.25% – 3.13%, maturing 7/23/2021 – 2/14/2031; total market value $14,977,560		14,750,000		14,750,000


Investments	Principal Amount		Value

REPURCHASE AGREEMENTS – (continued)

NBC Global Finance Ltd., 0.19%, dated 4/30/2021, due 5/3/2021, repurchase price $20,000,000, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 4.38%, maturing 1/31/2023 – 8/15/2050; Common Stockstotal market value $21,965,303	$	20,000,000	$	20,000,000
Total Repurchase Agreements (Cost $99,578,929)				99,578,929
Total Securities Lending Reinvestments (Cost $115,578,812)				115,582,271
Total Investments – 106.0% (Cost $1,012,038,405)				1,767,536,541

Liabilities in excess of other assets – (6.0%)				(99,877,061	)
NET ASSETS – 100.0%			$	1,667,659,480

*	Non-income producing security.

^‡	Value determined using significant unobservable inputs.

^(a)

The security or a portion of this security is on loan at April 30, 2021. The total value of securities on loan at April 30, 2021 was $152,977,337, collateralized in the form of cash with a value of $115,578,792 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $39,422,213 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 7.25%, and maturity dates ranging from May 11, 2021 – February 15, 2051 and $3,765,597 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 6.50%, and maturity dates ranging from July 7, 2021 – September 20, 2117; a total value of $158,766,602.

^(b)

Investment in affiliated company. Northern Trust Investments, Inc., the Investment Adviser of the Fund, is a subsidiary of Northern Trust Corporation.

^(c)

^(d)

Amount represents less than one share.

See Accompanying Notes to the Financial Statements.


102		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)

^(e)

Security fair valued as of April 30, 2021 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at April 30, 2021 amounted to $42,435, which represents approximately 0.00% of net assets of the Fund.

^(f)

Represents less than 0.05% of net assets.

^(g)

The security was purchased with cash collateral held from securities on loan at April 30, 2021. The total value of securities purchased was $115,582,271.

^(h)

Variable or floating rate security, linked to the referenced benchmark. The interest rate shown is the rate in effect as of April 30, 2021.

Percentages shown are based on Net Assets.

Abbreviations

CVR – Contingent Value Rights

ICE – Intercontinental Exchange

LIBOR – London Interbank Offered Rate

USD – US Dollar



Aggregate gross unrealized appreciation	$	764,147,679
Aggregate gross unrealized depreciation		(7,863,191	)
Net unrealized appreciation	$	756,284,488
Federal income tax cost	$	1,011,904,039

Investment in a company which was affiliated for the period ended April 30, 2021, was as follows:


Security	Value October 31, 2020		Purchases at Cost		Sales Proceeds		Shares April 30, 2021		Value April 30, 2021		Change in Unrealized Appreciation (Depreciation)		Dividend Income		Realized Gain
Northern Trust Corp.	$	577,006	$	34,308	$	9,677		7,600	$	864,880	$	259,946	$	10,321	$	3,297

Futures Contracts

FlexShares^® Morningstar US Market Factor Tilt Index Fund had the following open futures contracts as of April 30, 2021:


	Number of Contracts		Expiration Date		Trading Currency		Notional Amount		Value and Unrealized Appreciation*
Long Contracts
Russell 2000 E-Mini Index		18		06/18/2021		USD	$	2,035,350	$	2,361
S&P 500 E-Mini Index		43		06/18/2021		USD		8,974,960		522,698
S&P Midcap 400 E-Mini Index		16		06/18/2021		USD		4,352,480		126,927
									$	651,986

*	This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts.

Abbreviations:

USD – US Dollar

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			103

Schedule of Investments

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund

April 30, 2021 (Unaudited)


Investments	Shares		Value

COMMON STOCKS – 97.3%

Aerospace & Defense – 0.7%

Airbus SE*		10,164	$	1,222,808

Austal Ltd.(a)		121,440		226,073

Avon Rubber plc		3,300		151,600

BAE Systems plc		70,796		496,180

CAE, Inc.*		4,836		151,346

Dassault Aviation SA(a)		55		59,985

Elbit Systems Ltd.		412		56,769

Leonardo SpA		12,428		101,644

LISI		880		28,444

Meggitt plc*		22,412		144,602

MTU Aero Engines AG		792		200,121

QinetiQ Group plc		34,496		158,568

Rolls-Royce Holdings plc*		197,692		286,360

Saab AB, Class B		2,493		74,002

Safran SA		5,808		868,226

Singapore Technologies Engineering Ltd.		17,900		51,935

Thales SA		2,024		206,566

Ultra Electronics Holdings plc		1,661		46,501
				4,531,730

Air Freight & Logistics – 0.7%

bpost SA* (a)		1,452		15,460

Cia de Distribucion Integral Logista Holdings SA		2,159		44,963

Deutsche Post AG (Registered)		23,012		1,356,144

DSV Panalpina A/S		3,205		715,692

Freightways Ltd.(a)		12,987		103,711

ID Logistics Group*		81		22,427

Kerry Logistics Network Ltd.(a)		40,500		121,758

Kintetsu World Express, Inc.		1,900		45,803

Konoike Transport Co. Ltd.		10,800		113,133

Mainfreight Ltd.		3,192		165,815

PostNL NV		188,716		987,990

Royal Mail plc*		14,455		99,268

SG Holdings Co. Ltd.		9,200		209,074

Yamato Holdings Co. Ltd.		6,000		169,342
				4,170,580


Investments	Shares		Value

Airlines – 0.5%

Air Canada*		7,592	$	152,864

Air France-KLM* (a)		83,688		467,047

Air New Zealand Ltd.* (a)		11,968		14,941

ANA Holdings, Inc.* (a)		4,500		103,129

Deutsche Lufthansa AG (Registered)*		10,660		137,796

easyJet plc*		10,440		149,751

Exchange Income Corp.(a)		15,141		474,218

Finnair OYJ* (a)		289,149		250,686

Japan Airlines Co. Ltd.*		500		10,617

JET2 plc*		64,020		1,322,049

Qantas Airways Ltd.*		35,730		136,618

Singapore Airlines Ltd.*		29,999		114,097

Wizz Air Holdings plc* (b)		728		49,400
				3,383,213

Auto Components – 1.7%

Aisin Corp.		5,700		219,542

ARB Corp. Ltd.		997		30,135

Bridgestone Corp.		15,700		628,689

CIE Automotive SA		3,217		89,690

Cie Generale des Etablissements Michelin SCA		4,576		662,959

Cie Plastic Omnium SA		720		24,234

Continental AG		2,728		369,906

Denso Corp.		8,100		523,104

Dometic Group AB(c)		5,962		94,093

Exedy Corp.		13,200		189,115

Faurecia SE(a)		3,967		214,355

FCC Co. Ltd.		17,600		282,908

Freni Brembo SpA*		3,647		45,483

Futaba Industrial Co. Ltd.		25,600		121,553

Gestamp Automocion SA* (b)		65,516		338,975

G-Tekt Corp.		15,100		192,437

GUD Holdings Ltd.		4,852		50,035

Hella GmbH & Co. KGaA*		1,496		89,792

HI-LEX Corp.(a)		13,200		201,312

Ichikoh Industries Ltd.		17,400		111,591

Johnson Electric Holdings Ltd.(a)		133,278		355,209

JTEKT Corp.		2,300		20,705

Koito Manufacturing Co. Ltd.		3,200		199,369

See Accompanying Notes to the Financial Statements.


104		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Auto Components – (continued)

KYB Corp.*		3,300	$	88,338

Linamar Corp.		17,116		1,002,167

Magna International, Inc.		7,568		714,106

Musashi Seimitsu Industry Co. Ltd.		17,600		307,382

NGK Spark Plug Co. Ltd.		2,700		45,056

NHK Spring Co. Ltd.		2,900		21,437

Nifco, Inc.		2,400		81,899

Nippon Seiki Co. Ltd.		17,700		194,481

NOK Corp.		200		2,565

Nokian Renkaat OYJ		2,552		95,174

Pacific Industrial Co. Ltd.		19,900		213,556

Pirelli & C SpA* (b)		2,876		16,192

Schaeffler AG (Preference)		69,652		628,434

Stanley Electric Co. Ltd.		3,800		108,815

Sumitomo Electric Industries Ltd.		17,600		261,814

Sumitomo Riko Co. Ltd.		8,000		51,818

Sumitomo Rubber Industries Ltd.		9,300		115,032

TI Fluid Systems plc(b)		97,988		404,295

Tokai Rika Co. Ltd.		2,400		38,776

Topre Corp.		17,600		234,924

Toyo Tire Corp.		4,600		84,252

Toyoda Gosei Co. Ltd.		2,000		48,854

Toyota Boshoku Corp.		2,700		50,292

Toyota Industries Corp.		2,100		168,108

TPR Co. Ltd.		9,900		141,927

TS Tech Co. Ltd.		4,800		66,881

Valeo SA		5,588		181,221

Yokohama Rubber Co. Ltd. (The)		8,000		148,648
				10,571,635

Automobiles – 1.9%

Aston Martin Lagonda Global Holdings plc* (b)		578		15,521

Bayerische Motoren Werke AG		7,348		737,717

Bayerische Motoren Werke AG (Preference)		2,092		171,751

Daimler AG (Registered)		19,360		1,725,777

Ferrari NV		1,848		396,317

Honda Motor Co. Ltd.		39,600		1,170,918


Investments	Shares		Value

Automobiles – (continued)

Isuzu Motors Ltd.		7,800	$	78,924

Mazda Motor Corp.		17,300		133,899

Mitsubishi Motors Corp.* (a)		9,700		26,268

Nissan Motor Co. Ltd.*		57,600		288,619

Porsche Automobil Holding SE (Preference)		2,596		273,693

Renault SA*		5,764		232,620

Stellantis NV		52,120		866,885

Subaru Corp.		13,600		252,267

Suzuki Motor Corp.(a)		8,800		333,869

Toyota Motor Corp.		59,100		4,394,179

Trigano SA		352		62,967

Volkswagen AG (Preference)		4,048		1,055,975

Yamaha Motor Co. Ltd.		6,700		167,278
				12,385,444

Banks – 10.2%

77 Bank Ltd. (The)		35,200		440,865

ABN AMRO Bank NV, CVA(b)		1,848		23,910

AIB Group plc* (a)		45,372		132,942

Aktia Bank OYJ		19,932		255,778

AMCO – Asset Management Co. SpA* (d)		239		1,126

Aozora Bank Ltd.		5,300		113,947

Australia & New Zealand Banking Group Ltd.		63,668		1,413,443

Awa Bank Ltd. (The)		17,600		355,043

Banca Monte dei Paschi di Siena SpA* (a)		136,487		186,730

Banca Popolare di Sondrio SCPA* (a)		182,160		767,495

Banco Bilbao Vizcaya Argentaria SA		155,232		872,768

Banco BPM SpA(a)		32,208		91,890

Banco Comercial Portugues SA, Class R*		3,341,448		500,793

Banco de Sabadell SA*		2,106,412		1,337,328

Banco Espirito Santo SA (Registered)* ^‡ (d)		48,647		—

Banco Santander SA		402,732		1,558,660

Bank Hapoalim BM*		25,652		204,846

Bank Leumi Le-Israel BM*		33,308		234,969

Bank of East Asia Ltd. (The)		36,467		76,626

Bank of Georgia Group plc*		17,536		248,136

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			105

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Banks – (continued)

Bank of Ireland Group plc*		19,096	$	112,226

Bank of Iwate Ltd. (The)		8,800		163,272

Bank of Kyoto Ltd. (The)(a)		2,600		139,390

Bank of Montreal(a)		14,872		1,402,455

Bank of Nagoya Ltd. (The)(a)		8,800		218,581

Bank of Nova Scotia (The)		27,324		1,738,457

Bank of Okinawa Ltd. (The)		2,340		57,331

Bank of Queensland Ltd.		13,492		94,006

Bankinter SA		21,280		116,736

Banque Cantonale de Geneve		480		84,732

Banque Cantonale Vaudoise (Registered)		701		71,556

Barclays plc		355,432		863,659

BAWAG Group AG(b)		3,120		168,788

Bendigo & Adelaide Bank Ltd.		9,421		75,174

BNP Paribas SA*		25,652		1,648,677

BPER Banca		423,720		968,121

CaixaBank SA*		98,193		315,251

Canadian Imperial Bank of Commerce(a)		10,648		1,106,000

Canadian Western Bank		34,672		952,620

Chiba Bank Ltd. (The)		17,400		108,566

Close Brothers Group plc		5,588		122,861

Commerzbank AG*		27,848		184,077

Commonwealth Bank of Australia		28,996		1,994,314

Concordia Financial Group Ltd.		36,721		137,739

Credit Agricole SA(a)		24,288		376,350

Credito Emiliano SpA*		23,232		143,749

Dah Sing Banking Group Ltd.		125,040		137,487

Dah Sing Financial Holdings Ltd.		88,000		284,955

Danske Bank A/S		15,576		297,645

DBS Group Holdings Ltd.		44,409		998,401

DNB ASA		23,628		509,207

Ehime Bank Ltd. (The)		13,200		108,687

Erste Group Bank AG		6,908		246,149

FIBI Holdings Ltd.*		6,028		209,833

FinecoBank Banca Fineco SpA*		6,110		105,327

Fukuoka Financial Group, Inc.(a)		7,200		122,520


Investments	Shares		Value

Banks – (continued)

Graubuendner Kantonalbank		7	$	11,397

Gunma Bank Ltd. (The)		21,800		71,201

Hachijuni Bank Ltd. (The)		20,800		70,979

Hang Seng Bank Ltd.(a)		13,200		259,178

Hirogin Holdings, Inc.		14,000		77,233

Hokkoku Bank Ltd. (The)		7,900		175,772

Hokuhoku Financial Group, Inc.		52,400		440,562

HSBC Holdings plc		475,552		2,981,351

Hyakugo Bank Ltd. (The)		79,200		229,691

Hyakujushi Bank Ltd. (The)(a)		13,200		183,922

ING Groep NV		84,304		1,078,787

Intesa Sanpaolo SpA*		375,628		1,049,512

Israel Discount Bank Ltd., Class A*		39,662		179,518

Juroku Bank Ltd. (The)		15,000		276,657

Jyske Bank A/S (Registered)*		19,844		970,413

KBC Group NV*		7,260		564,752

Keiyo Bank Ltd. (The)		41,900		159,082

Kiyo Bank Ltd. (The)		28,600		375,996

Kyushu Financial Group, Inc.		7,600		29,550

Laurentian Bank of Canada		16,676		576,652

Liberbank SA		913,132		323,393

Lloyds Banking Group plc		1,649,472		1,037,634

Luzerner Kantonalbank AG (Registered)(a)		204		96,403

Mebuki Financial Group, Inc.		4,610		10,038

Mediobanca Banca di Credito Finanziario SpA*		14,784		167,327

Mitsubishi UFJ Financial Group, Inc.		299,200		1,582,156

Mizrahi Tefahot Bank Ltd.*		1,889		53,292

Mizuho Financial Group, Inc.		57,229		803,683

Musashino Bank Ltd. (The)		16,300		242,327

Nanto Bank Ltd. (The)		46		768

National Australia Bank Ltd.		80,916		1,666,345

National Bank of Canada		8,272		600,866

Natwest Group plc		61,468		167,317

Nishi-Nippon Financial Holdings, Inc.		52,800		338,619

Nordea Bank Abp		82,984		863,232

North Pacific Bank Ltd.(a)		118,800		306,497

Ogaki Kyoritsu Bank Ltd. (The)		1,200		21,562

See Accompanying Notes to the Financial Statements.


106		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Banks – (continued)

Oversea-Chinese Banking Corp. Ltd.		66,070	$	605,873

Raiffeisen Bank International AG		6,028		131,996

Resona Holdings, Inc.		61,600		253,039

Ringkjoebing Landbobank A/S		1,100		112,179

Royal Bank of Canada		33,440		3,188,788

San-In Godo Bank Ltd. (The)		52,800		242,009

Sbanken ASA(b)		31,592		393,940

Senshu Ikeda Holdings, Inc.		79,200		122,454

Seven Bank Ltd.		3,800		8,170

Shiga Bank Ltd. (The)		1,000		19,715

Shinsei Bank Ltd.		5,200		75,689

Shizuoka Bank Ltd. (The)		8,400		64,323

Skandinaviska Enskilda Banken AB, Class A		34,408		442,117

Skandinaviska Enskilda Banken AB, Class C		684		8,736

Societe Generale SA*		18,348		522,807

Spar Nord Bank A/S		34,364		381,040

SpareBank 1 Nord Norge		40,216		403,215

Sparebank 1 Oestlandet		14,784		206,416

SpareBank 1 SMN		46,552		629,793

SpareBank 1 SR-Bank ASA		8,041		104,333

Sparebanken Vest		37,576		384,887

St Galler Kantonalbank AG (Registered)		110		51,560

Standard Chartered plc		53,636		385,864

Sumitomo Mitsui Financial Group, Inc.		30,800		1,071,329

Sumitomo Mitsui Trust Holdings, Inc.		8,800		299,492

Suruga Bank Ltd.		81,800		292,611

Svenska Handelsbanken AB, Class A		36,608		425,057

Svenska Handelsbanken AB, Class B		908		11,114

Swedbank AB, Class A		22,044		387,763

Sydbank A/S		25,432		759,957

TBC Bank Group plc*		18,480		249,212

Toho Bank Ltd. (The)		13,600		26,502

TOMONY Holdings, Inc.(a)		79,200		213,026


Investments	Shares		Value

Banks – (continued)

Toronto-Dominion Bank (The)		42,372	$	2,910,449

Unicaja Banco SA(b)		390,632		385,834

UniCredit SpA		53,284		549,195

United Overseas Bank Ltd.		37,426		748,014

Valiant Holding AG (Registered)		6,468		717,682

Van Lanschot Kempen NV, CVA		14,784		433,356

Virgin Money UK plc*		489,808		1,357,006

Walliser Kantonalbank (Registered)		485		56,899

Westpac Banking Corp.		80,608		1,555,396

Yamagata Bank Ltd. (The)		2,200		20,208

Yamaguchi Financial Group, Inc.		13,300		78,482
				64,533,385

Beverages – 1.1%

AG Barr plc*		4,785		33,655

Anheuser-Busch InBev SA/NV		13,860		981,559

Asahi Group Holdings Ltd.		12,700		530,401

Britvic plc		7,320		89,441

Budweiser Brewing Co. APAC Ltd.(a) (b)		39,600		125,170

C&C Group plc* (a)		18,656		76,509

Carlsberg A/S, Class B		1,716		301,525

Coca-Cola Amatil Ltd.(d)		11,076		113,790

Coca-Cola Bottlers Japan Holdings, Inc.(a)		3,354		53,545

Coca-Cola European Partners plc		3,487		198,131

Coca-Cola HBC AG, DI		4,000		138,566

Davide Campari-Milano NV		13,420		158,513

Diageo plc		40,040		1,802,269

Fevertree Drinks plc		2,199		76,359

Heineken Holding NV		1,496		148,753

Heineken NV		3,212		372,896

Ito En Ltd.(a)		800		44,280

Kirin Holdings Co. Ltd.		13,238		248,337

Molson Coors Canada, Inc., Class B*		156		8,623

Pernod Ricard SA		3,608		741,403

Primo Water Corp.(a)		5,512		92,031

Remy Cointreau SA(a)		584		116,842

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			107

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Beverages – (continued)

Royal Unibrew A/S		1,210	$	147,880

Sapporo Holdings Ltd.		1,800		35,801

Suntory Beverage & Food Ltd.		3,000		101,276

Takara Holdings, Inc.		8,600		110,859

Treasury Wine Estates Ltd.		14,352		111,306
				6,959,720

Biotechnology – 0.6%

Abcam plc*		4,545		96,154

Argenx SE*		704		203,733

Aurinia Pharmaceuticals, Inc.* (a)		4,368		57,946

Bavarian Nordic A/S*		2,132		98,047

BioGaia AB, Class B		1,134		54,315

Clinuvel Pharmaceuticals Ltd.		1,368		30,729

CSL Ltd.		7,964		1,668,120

Galapagos NV*		924		72,178

Genmab A/S*		1,320		485,039

Genus plc		520		36,610

Grifols SA		3,564		96,747

Grifols SA (Preference), Class B		5,680		100,854

Hansa Biopharma AB* (a)		2,660		52,959

HEALIOS KK* (a)		1,100		16,615

Mesoblast Ltd.* (a)		16,640		25,129

MorphoSys AG*		880		83,201

PeptiDream, Inc.*		2,500		107,154

Pharma Mar SA(a)		414		47,345

PureTech Health plc*		5,168		29,695

SanBio Co. Ltd.* (a)		2,200		30,211

Swedish Orphan Biovitrum AB*		5,369		91,465

Vitrolife AB		1,652		62,089

Zealand Pharma A/S*		4,664		153,261
				3,699,596

Building Products – 1.1%

AGC, Inc.		4,400		200,467

Aica Kogyo Co. Ltd.(a)		1,500		53,246

Assa Abloy AB, Class B(a)		15,928		454,534

Bunka Shutter Co. Ltd.		28,100		245,767

Central Glass Co. Ltd.		200		4,121

Cie de Saint-Gobain		11,088		700,756


Investments	Shares		Value

Building Products – (continued)

Daikin Industries Ltd.		4,500	$	902,841

dormakaba Holding AG		132		86,837

Geberit AG (Registered)		484		318,616

Genuit Group plc		15,664		122,535

GWA Group Ltd.		17,760		41,019

Inwido AB*		22,836		400,236

James Halstead plc		4,686		32,829

Kingspan Group plc		2,641		235,454

Lindab International AB		3,680		74,856

Lixil Corp.(a)		4,400		119,193

Munters Group AB* (b)		10,384		102,050

Nibe Industrier AB, Class B		8,458		309,882

Nichias Corp.(a)		800		20,866

Nichiha Corp.		13,200		382,819

Reliance Worldwide Corp. Ltd.		23,739		90,402

ROCKWOOL International A/S, Class A		220		86,360

ROCKWOOL International A/S, Class B		174		78,217

Sanwa Holdings Corp.		9,800		126,327

Schweiter Technologies AG		56		90,995

Sekisui Jushi Corp.		3,600		69,757

Shin Nippon Air Technologies Co. Ltd.(a)		8,800		173,335

Takara Standard Co. Ltd.		19,776		278,443

Takasago Thermal Engineering Co. Ltd.		22,000		331,092

Tarkett SA*		13,722		331,197

TOTO Ltd.		3,900		202,306

Tyman plc		76,560		447,855

Uponor OYJ		4,092		119,405
				7,234,615

Capital Markets – 3.2%

3i Group plc		22,528		399,870

Amundi SA* (b)		1,440		128,450

Anima Holding SpA(b)		116,996		606,034

Ashmore Group plc		9,588		53,100

ASX Ltd.		2,104		118,610

Avanza Bank Holding AB		2,704		97,406

Azimut Holding SpA		5,680		136,170

Banca Generali SpA		1,397		53,512

Brederode SA		80		9,804

Brewin Dolphin Holdings plc		17,746		83,539

See Accompanying Notes to the Financial Statements.


108		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Capital Markets – (continued)

Brookfield Asset Management, Inc., Class A		23,584	$	1,074,121

Bure Equity AB		1,980		90,714

CI Financial Corp.		5,304		85,195

Credit Suisse Group AG (Registered)		49,544		518,554

Daiwa Securities Group, Inc.		22,000		117,160

Deutsche Bank AG (Registered)*		31,504		440,152

Deutsche Boerse AG		2,684		463,002

Draper Esprit plc*		49,588		578,779

EFG International AG* (a)		34,100		298,359

EQT AB		6,188		209,517

Euronext NV(a) (b)		1,402		141,263

Fairfax India Holdings Corp.* (a) (b)		42,724		515,679

flatexDEGIRO AG*		2,024		259,974

Flow Traders(b)		2,452		101,362

Gimv NV		9,152		575,097

GMO Financial Holdings, Inc.(a)		15,200		117,228

Haitong International Securities Group Ltd.(a)		792,000		249,831

Hargreaves Lansdown plc		5,061		120,489

Hong Kong Exchanges & Clearing Ltd.		17,658		1,068,549

IG Group Holdings plc		673		8,535

IGM Financial, Inc.(a)		2,200		78,472

Intermediate Capital Group plc		6,864		207,748

Investec plc		292,776		1,181,633

IOOF Holdings Ltd.		258,148		727,833

IP Group plc*		139,744		248,432

JAFCO Group Co. Ltd.		300		21,573

Japan Exchange Group, Inc.		7,400		173,415

Julius Baer Group Ltd.		5,720		360,742

Jupiter Fund Management plc		215,116		769,616

London Stock Exchange Group plc		5,060		518,431

Macquarie Group Ltd.		5,984		741,839

Magellan Financial Group Ltd.		2,640		98,904

Man Group plc		61,623		143,466

Monex Group, Inc.(a)		9,200		71,206


Investments	Shares		Value

Capital Markets – (continued)

Natixis SA		27,241	$	133,269

Ninety One plc		39,732		134,447

Nomura Holdings, Inc.		83,000		445,658

Okasan Securities Group, Inc.(a)		82,900		344,326

Partners Group Holding AG		308		439,011

Pendal Group Ltd.		6,964		39,646

Perpetual Ltd.(a)		3,971		106,285

Platinum Asset Management Ltd.		16		58

Quilter plc(b)		80,080		181,280

Rathbone Brothers plc		2,584		60,534

Ratos AB, Class B		80,872		476,868

Rothschild & Co.		12,584		448,399

Sanne Group plc		9,329		83,440

SBI Holdings, Inc.		4,800		135,694

Schroders plc		960		47,956

Schroders plc (Non-Voting)		96		3,502

Singapore Exchange Ltd.		7,600		59,696

St James’s Place plc		8,712		164,227

Standard Life Aberdeen plc		36,296		139,454

TMX Group Ltd.(a)		1,313		144,567

Tokai Tokyo Financial Holdings, Inc.		26,400		99,026

TP ICAP Group plc		299,437		985,677

UBS Group AG (Registered)		89,188		1,361,705

Value Partners Group Ltd.* (a)		8,000		5,686

VNV Global AB*		4,708		58,128

Vontobel Holding AG (Registered)		339		25,516

VP Bank AG (Registered)*		1,760		221,918

VZ Holding AG		285		24,561
				20,433,899

Chemicals – 3.1%

ADEKA Corp.		4,200		81,806

Air Liquide SA		7,304	��	1,232,013

Air Water, Inc.		6,000		99,355

Akzo Nobel NV		3,344		402,229

Arkema SA		1,716		214,835

Asahi Kasei Corp.		35,200		370,823

BASF SE		21,384		1,726,777

Borregaard ASA		6,375		140,725

C Uyemura & Co. Ltd.		2,200		151,558

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			109

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Chemicals – (continued)

Chr Hansen Holding A/S*		1,584	$	145,794

Chugoku Marine Paints Ltd.		9,500		85,522

CI Takiron Corp.		26,400		163,996

Clariant AG (Registered)		2,836		59,438

Corbion NV		1,352		79,294

Covestro AG(b)		2,948		193,126

Croda International plc		2,552		238,997

Daicel Corp.		100		773

DIC Corp.		2,899		74,076

Elkem ASA(b)		7		26

EMS-Chemie Holding AG (Registered)(a)		156		145,814

Evonik Industries AG		4,160		145,827

FUCHS PETROLUB SE		55		2,387

FUCHS PETROLUB SE (Preference)		1,182		63,091

Fuso Chemical Co. Ltd.		1,100		39,651

Givaudan SA (Registered)		132		553,443

Hexpol AB		5,784		71,173

ICL Group Ltd.		5,140		33,043

Incitec Pivot Ltd.*		54,091		110,724

Israel Corp. Ltd. (The)*		1,485		392,478

JCU Corp.		500		17,566

Johnson Matthey plc		3,360		151,193

JSP Corp.		2,300		37,476

JSR Corp.		3,100		95,435

K+S AG (Registered)		9,758		108,375

Kansai Paint Co. Ltd.		5,300		133,488

Koninklijke DSM NV		2,908		522,297

Konishi Co. Ltd.(a)		12,500		191,551

Kumiai Chemical Industry Co. Ltd.(a)		8,000		64,992

Kuraray Co. Ltd.		6,700		72,759

Kureha Corp.(a)		6,500		440,053

LANXESS AG		2,156		158,890

Lenzing AG*		485		64,106

Lintec Corp.		1,800		39,243

Methanex Corp.(a)		23,892		871,625

Mitsubishi Chemical Holdings Corp.(a)		27,100		201,691

Mitsubishi Gas Chemical Co., Inc.		6,200		143,337


Investments	Shares		Value

Chemicals – (continued)

Mitsui Chemicals, Inc.		5,600	$	176,241

Nihon Parkerizing Co. Ltd.(a)		1,900		18,356

Nippon Kayaku Co. Ltd.		8,100		74,994

Nippon Paint Holdings Co. Ltd.		16,000		228,645

Nippon Sanso Holdings Corp.		7,200		135,298

Nippon Shokubai Co. Ltd.(a)		400		21,005

Nippon Soda Co. Ltd.		12,039		349,699

Nissan Chemical Corp.(a)		3,800		195,380

Nitto Denko Corp.		3,300		273,528

NOF Corp.		2,000		105,759

Novozymes A/S, Class B		3,828		272,833

Nufarm Ltd.*		23,520		95,019

Nutrien Ltd.		9,152		504,766

OCI NV*		1,318		30,796

Okamoto Industries, Inc.(a)		5,000		185,261

Orica Ltd.		4,722		49,460

Osaka Soda Co. Ltd.(a)		9,600		216,846

Sakata INX Corp.(a)		18,000		167,312

Sanyo Chemical Industries Ltd.		3,400		161,438

Shikoku Chemicals Corp.		7,600		85,314

Shin-Etsu Chemical Co. Ltd.		6,600		1,114,039

Shin-Etsu Polymer Co. Ltd.		4,800		45,495

Showa Denko KK		1,700		51,480

Sika AG (Registered)		2,728		814,766

SOL SpA		3,009		59,694

Solvay SA		1,584		201,741

Sumitomo Bakelite Co. Ltd.		3,000		121,312

Sumitomo Chemical Co. Ltd.		38,200		194,661

Symrise AG		1,980		255,990

Synthomer plc		26,532		186,797

T Hasegawa Co. Ltd.		900		16,814

Taiyo Holdings Co. Ltd.		900		43,557

Teijin Ltd.		3,000		49,348

Tenma Corp.		1,100		23,096

Tessenderlo Group SA*	��	9,856		421,195

Toagosei Co. Ltd.		5,300		59,398

Tokai Carbon Co. Ltd.		11,000		178,931

Tokuyama Corp.		3,200		72,311

Tokyo Ohka Kogyo Co. Ltd.		700		46,494

Toray Industries, Inc.		39,600		246,067

Tosoh Corp.		12,200		216,308

Toyo Ink SC Holdings Co. Ltd.		14,800		272,968

Toyobo Co. Ltd.(a)		39,600		478,946

See Accompanying Notes to the Financial Statements.


110		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Chemicals – (continued)

Ube Industries Ltd.		3,900	$	78,817

Umicore SA		3,256		198,174

Victrex plc		2,830		92,001

Wacker Chemie AG		786		118,746

Yara International ASA		3,432		179,568

Zeon Corp.		8,000		127,496
				19,647,031

Commercial Services & Supplies – 1.3%

Aggreko plc		97,240		1,161,215

Babcock International Group plc*		193,644		772,424

Befesa SA(b)		2,288		160,300

Bell System24 Holdings, Inc.		5,600		84,483

Biffa plc* (b)		5,928		22,694

Bilfinger SE		12,100		452,711

Boyd Group Services, Inc.		208		38,599

Brambles Ltd.		25,652		206,075

Bravida Holding AB(b)		988		14,722

Cleanaway Waste Management Ltd.		56,747		124,928

Coor Service Management Holding AB(b)		6,692		56,665

Dai Nippon Printing Co. Ltd.		3,900		77,461

Daiseki Co. Ltd.		2,500		94,003

Downer EDI Ltd.		34,707		150,937

Duskin Co. Ltd.		3,700		87,774

Elis SA*		2,812		50,370

Elis SA—XLON*		4,520		81,346

HomeServe plc		7,771		117,707

Intrum AB		4,732		163,129

ISS A/S*		3,956		75,212

Kokuyo Co. Ltd.		5,600		86,481

Lassila & Tikanoja OYJ(a)		960		16,711

Loomis AB		2,271		74,637

Mitsubishi Pencil Co. Ltd.(a)		1,800		23,862

Nippon Kanzai Co. Ltd.		1,300		25,797

Okamura Corp.		41,400		512,458

Park24 Co. Ltd.		2,200		42,488

Pilot Corp.		500		15,919

Prestige International, Inc.		4,000		26,568

Prosegur Cash SA(a) (b)		156,640		141,422


Investments	Shares		Value

Commercial Services & Supplies – (continued)

Prosegur Cia de Seguridad SA(a)		101,332	$	315,449

Relia, Inc.		2,100		25,014

Rentokil Initial plc		32,208		223,146

Ritchie Bros Auctioneers, Inc.(a)		2,886		183,431

Sato Holdings Corp.		1,100		26,950

Secom Co. Ltd.		4,400		365,348

Securitas AB, Class B		7,047		120,384

Serco Group plc*		57,046		110,655

Smart Metering Systems plc		5,165		58,068

Societe BIC SA(a)		770		54,457

Sohgo Security Services Co. Ltd.		2,900		127,085

SPIE SA*		1,216		30,769

TOMRA Systems ASA		2,590		129,933

Toppan Printing Co. Ltd.		4,400		74,994

Transcontinental, Inc., Class A(a)		29,040		549,546

Waste Connections, Inc.		5,368		638,906
				7,993,233

Communications Equipment – 0.3%

BATM Advanced Communications Ltd.*		10,755		14,882

Evertz Technologies Ltd.		1,712		21,459

Gilat Satellite Networks Ltd.		21,780		226,238

Nokia OYJ*		97,636		463,379

Spirent Communications plc		5,928		20,880

Telefonaktiebolaget LM Ericsson, Class A		3,789		52,069

Telefonaktiebolaget LM Ericsson, Class B		40,139		550,361

VTech Holdings Ltd.		66,000		605,458
				1,954,726

Construction & Engineering – 2.0%

ACS Actividades de Construccion y Servicios SA(a)		7,849		256,341

AF Gruppen ASA		2,860		69,708

Arcadis NV(a)		4,708		198,362

Ashtrom Group Ltd.		4,545		98,186

Badger Daylighting Ltd.(a)		2,812		95,044

Balfour Beatty plc		6,760		29,202

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			111

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Construction & Engineering – (continued)

Boskalis Westminster*		218	$	6,965

Bouygues SA(a)		5,676		243,520

Chiyoda Corp.* (a)		43,600		202,633

Cie d’Entreprises CFE(a)		2,156		218,532

CIMIC Group Ltd.* (a)		5,661		84,833

COMSYS Holdings Corp.		4,300		133,361

Dai-Dan Co. Ltd.(a)		8,900		222,205

Eiffage SA*		1,760		193,055

Elco Ltd.		2,552		135,337

Elecnor SA		20,900		261,658

Electra Ltd.		103		57,236

Ferrovial SA		4,889		139,130

Fomento de Construcciones y Contratas SA		3,696		48,497

GOLD FIN HLDG* ^‡ (d)		89,827		416

Hazama Ando Corp.		15,600		118,886

Hibiya Engineering Ltd.		8,800		149,344

HOCHTIEF AG*		442		41,491

Instalco AB(b)		4,092		174,118

JDC Corp.(a)		22,000		120,360

JGC Holdings Corp.(a)		5,400		61,606

John Laing Group plc(b)		31,724		134,933

Kajima Corp.		12,300		169,919

Kandenko Co. Ltd.		3,000		25,635

Kinden Corp.		2,300		39,096

Kumagai Gumi Co. Ltd.		14,000		389,369

Kyowa Exeo Corp.		3,900		103,722

Kyudenko Corp.		2,100		73,007

Maeda Corp.		8,100		69,139

Maeda Road Construction Co. Ltd.		1,200		23,055

Meisei Industrial Co. Ltd.		15,600		109,181

Mirait Holdings Corp.		6,700		108,249

Monadelphous Group Ltd.(a)		9,080		89,426

Morgan Sindall Group plc		17,556		559,065

NCC AB, Class B		246		4,652

Nichireki Co. Ltd.		8,800		115,288

Nippo Corp.		2,000		52,367

Nippon Densetsu Kogyo Co. Ltd.		1,700		27,560

Nippon Koei Co. Ltd.		4,400		118,670

Nippon Road Co. Ltd. (The)		1,900		138,017


Investments	Shares		Value

Construction & Engineering – (continued)

Nishimatsu Construction Co. Ltd.(a)		24,600	$	653,569

NRW Holdings Ltd.		182,424		274,077

Obayashi Corp.		8,900		81,179

Okumura Corp.		16,200		405,204

Peab AB, Class B*		3,999		57,840

Penta-Ocean Construction Co. Ltd.		1,500		11,692

Raito Kogyo Co. Ltd.		7,600		122,095

Raiznext Corp.(a)		13,200		138,998

Sacyr SA—BATE(a)		156,741		435,107

Sanki Engineering Co. Ltd.(a)		19,200		244,161

Shapir Engineering and Industry Ltd.		7,497		53,881

Shikun & Binui Ltd.*		10,568		71,325

Shimizu Corp.		9,000		73,693

Shinnihon Corp.		5,400		41,696

SHO-BOND Holdings Co. Ltd.		1,200		50,062

Skanska AB, Class B		5,096		138,372

SNC-Lavalin Group, Inc.(a)		6,208		138,724

Sumitomo Densetsu Co. Ltd.(a)		8,800		186,619

Sumitomo Mitsui Construction Co. Ltd.		76,440		325,887

Sweco AB, Class B		7,413		132,379

Taihei Dengyo Kaisha Ltd.		4,600		111,691

Taikisha Ltd.		15,200		408,838

Taisei Corp.		3,500		129,043

Takamatsu Construction Group Co. Ltd.		8,900		167,814

Toda Corp.		14,000		99,776

Toenec Corp.		4,400		153,168

Tokyu Construction Co. Ltd.		36,000		186,085

Totetsu Kogyo Co. Ltd.		10,600		245,059

Veidekke ASA		3,088		47,575

Vinci SA		7,920		871,416

Webuild SpA(a)		114,004		246,068

WSP Global, Inc.		1,210		125,534

YIT OYJ		62,832		389,531

Yokogawa Bridge Holdings Corp.		18,000		339,070

Yurtec Corp.		17,800		127,021
				12,994,625

See Accompanying Notes to the Financial Statements.


112		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Construction Materials – 0.8%

Adbri Ltd.(a)		8,796	$	21,878

Boral Ltd.* (a)		35,620		170,591

Breedon Group plc*		45,296		64,722

Brickworks Ltd.		3,147		49,347

Buzzi Unicem SpA		3,148		84,166

Cementir Holding NV		19,404		216,767

CRH plc		12,981		615,929

CSR Ltd.		42,536		196,156

Fletcher Building Ltd.(a)		17,649		92,061

HeidelbergCement AG		3,300		302,787

Ibstock plc(b)		9,600		29,348

Imerys SA		1,103		57,414

James Hardie Industries plc, CHDI		6,640		220,037

LafargeHolcim Ltd. (Registered)*		11,880		733,341

Marshalls plc*		18,348		184,685

Mitani Sekisan Co. Ltd.(a)		100		3,486

RHI Magnesita NV		12,848		807,607

Sumitomo Osaka Cement Co. Ltd.(a)		14,900		472,334

Taiheiyo Cement Corp.		100		2,506

Titan Cement International SA*		13,420		272,050

Vicat SA		12,760		642,069

Wienerberger AG		3,846		151,025
				5,390,306

Consumer Finance – 0.3%

Acom Co. Ltd.(a)		24,400		104,694

AEON Financial Service Co. Ltd.		4,800		54,453

Aiful Corp.		8,800		25,280

Cembra Money Bank AG		726		79,004

Credit Corp. Group Ltd.		3,350		75,121

Credit Saison Co. Ltd.		6,200		71,186

Hong Leong Finance Ltd.		110,000		208,359

Isracard Ltd.*		77,440		290,100

Jaccs Co. Ltd.		13,200		257,708

Provident Financial plc*		11,220		38,029

Resurs Holding AB(b)		62,594		324,083

Sun Hung Kai & Co. Ltd.		105,996		54,589

Zip Co. Ltd.* (a)		14,040		87,412
				1,670,018


Investments	Shares		Value

Containers & Packaging – 0.3%

BillerudKorsnas AB		2,965	$	60,627

Cascades, Inc.(a)		27,764		325,440

CCL Industries, Inc., Class B		2,960		167,874

DS Smith plc		27,632		160,989

FP Corp.		1,200		46,604

Fuji Seal International, Inc.		2,000		44,408

Huhtamaki OYJ		2,051		97,426

Mayr Melnhof Karton AG		275		57,138

Orora Ltd.		35,495		87,190

Pack Corp. (The)		1,200		29,905

Pact Group Holdings Ltd.		77,704		217,882

Rengo Co. Ltd.(a)		700		5,809

SIG Combibloc Group AG*		9,988		244,868

Smurfit Kappa Group plc		5,148		263,751

Toyo Seikan Group Holdings Ltd.		5,600		65,476

Vidrala SA		396		44,620

Winpak Ltd.		74		2,567
				1,922,574

Distributors – 0.1%

Arata Corp.		7,900		320,900

Bapcor Ltd.(a)		16,060		95,771

Doshisha Co. Ltd.		7,000		117,835

Inchcape plc*		8,938		96,712

Jardine Cycle & Carriage Ltd.		4,422		77,046

PALTAC Corp.		800		41,645
				749,909

Diversified Consumer Services – 0.1%

AcadeMedia AB(b)		28,644		298,440

Benesse Holdings, Inc.		2,000		44,152

IDP Education Ltd.(a)		2,501		43,893

InvoCare Ltd.(a)		4,432		38,685
				425,170

Diversified Financial Services – 1.3%

Ackermans & van Haaren NV		454		72,688

Aker ASA, Class A		760		56,852

AMP Ltd.(a)		89,503		77,087

Banca Mediolanum SpA		9,158		85,682

Banque Nationale de Belgique		84		186,565

BFF Bank SpA(b)		55,308		496,019

Burford Capital Ltd.*		82,104		1,089,027

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			113

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Diversified Financial Services – (continued)

Cerved Group SpA*		10,505	$	123,361

Challenger Ltd.		11,680		46,104

Creades AB, Class A		18,920		281,929

ECN Capital Corp.		100,540		673,427

Element Fleet Management Corp.(a)		13,936		170,490

Eurazeo SE		1,664		138,816

EXOR NV		2,816		231,598

First Pacific Co. Ltd.		968,000		331,522

Fuyo General Lease Co. Ltd.		700		46,558

GRENKE AG		495		20,105

Groupe Bruxelles Lambert SA(a)		880		96,379

HAL Trust		1,010		181,160

Industrivarden AB, Class A(a)		1,496		57,464

Industrivarden AB, Class C		250		9,035

Investor AB, Class A		2,092		178,132

Investor AB, Class B(a)		7,379		627,356

Japan Securities Finance Co. Ltd.(a)		22,000		162,225

KBC Ancora*		1,377		60,205

Kinnevik AB, Class B* (a)		4,796		265,444

L E Lundbergforetagen AB, Class B		1,348		77,127

M&G plc		72,688		218,691

Mitsubishi HC Capital, Inc.		33,229		190,306

Mizuho Leasing Co. Ltd.		13,338		398,413

Omni Bridgeway Ltd.(a)		113,564		328,959

Onex Corp.		157		10,502

ORIX Corp.		27,900		448,600

PEUGEOT INVEST		308		41,600

Plus500 Ltd.		4,264		83,833

Ricoh Leasing Co. Ltd.		4,400		139,481

Sofina SA		330		125,612

SRH NV* ^‡ (d)		2,857		—

Tokyo Century Corp.(a)		600		37,052

Wendel SE		497		66,231

Zenkoku Hosho Co. Ltd.		1,600		71,799
				8,003,436


Investments	Shares		Value

Diversified Telecommunication Services – 1.2%

ARTERIA Networks Corp.(a)		1,900	$	26,978

BCE, Inc.		3,652		172,477

Bezeq The Israeli Telecommunication Corp. Ltd.*		52,780		57,559

BT Group plc*		226,248		516,709

Cellnex Telecom SA(a) (b)		11,395		645,262

Chorus Ltd.		13,242		64,513

Deutsche Telekom AG (Registered)		77,396		1,490,709

Elisa OYJ		1,820		103,389

Euskaltel SA(b)		8,683		115,606

Gamma Communications plc		1,701		42,816

HKBN Ltd.(a)		51,500		75,458

HKT Trust & HKT Ltd.		53,400		77,554

Iliad SA		646		117,426

Infrastrutture Wireless Italiane SpA(b)		5,179		60,474

Internet Initiative Japan, Inc.		4,600		102,559

Koninklijke KPN NV		57,464		198,256

Nippon Telegraph & Telephone Corp.		31,800		801,509

NOS SGPS SA		1,360		5,164

Orange SA		49,280		613,996

PCCW Ltd.		127,035		73,602

Proximus SADP(a)		4,056		86,569

Singapore Telecommunications Ltd.		211,200		396,873

Spark New Zealand Ltd.		3,270		10,323

Swisscom AG (Registered)(a)		352		191,158

Telecom Italia SpA		255,816		140,518

Telecom Italia SpA (Retirement Savings Plan)		178,600		104,919

Telefonica Deutschland Holding AG		14,053		40,905

Telefonica SA(a)		134,062		621,893

Telekom Austria AG		1,426		11,673

Telenor ASA		5,588		99,846

Telia Co. AB		49,764		206,218

Telstra Corp. Ltd.		52,988		138,755

TELUS Corp.		10,203		211,491

United Internet AG (Registered)		1,560		65,746

Vocus Group Ltd.*		38,775		163,836
				7,852,739

See Accompanying Notes to the Financial Statements.


114		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Electric Utilities – 1.3%

Acciona SA		857	$	149,281

AusNet Services		46,020		67,364

BKW AG		773		86,619

Chubu Electric Power Co., Inc.		17,600		212,623

Chugoku Electric Power Co., Inc. (The)		4,206		46,945

CK Infrastructure Holdings Ltd.		500		3,064

CLP Holdings Ltd.		22,500		222,050

Contact Energy Ltd.		20,140		108,956

EDP—Energias de Portugal SA		32,564		181,185

Electricite de France SA*		11,915		173,841

Elia Group SA/NV(a)		794		86,024

Emera, Inc.(a)		2,950		133,975

Endesa SA		4,476		117,786

Enel SpA		181,676		1,808,006

EVN AG		2,240		51,180

Fortis, Inc.		6,132		273,303

Fortum OYJ		9,900		260,400

Genesis Energy Ltd.		14,326		35,359

HK Electric Investments & HK Electric Investments Ltd.(b)		500		501

Hokkaido Electric Power Co., Inc.(a)		86,100		408,818

Hokuriku Electric Power Co.		9,300		56,325

Hydro One Ltd.(b)		9,680		231,889

Iberdrola SA		96,867		1,310,096

Kansai Electric Power Co., Inc. (The)		21,700		214,806

Kyushu Electric Power Co., Inc.(a)		4,400		40,174

Mercury NZ Ltd.		17,270		85,995

Okinawa Electric Power Co., Inc. (The)		18,370		243,522

Orsted A/S(b)		3,080		449,811

Power Assets Holdings Ltd.		17,000		104,515

Red Electrica Corp. SA		3,432		63,108

Romande Energie Holding SA (Registered)		21		29,702

Shikoku Electric Power Co., Inc.		8,600		62,943

Spark Infrastructure Group		1,271		2,150

SSE plc		17,380		353,252

Terna Rete Elettrica Nazionale SpA		22,982		169,591


Investments	Shares		Value

Electric Utilities – (continued)

Tohoku Electric Power Co., Inc.		5,600	$	49,337

Tokyo Electric Power Co. Holdings, Inc.*		31,200		92,197

Trustpower Ltd.		5,123		32,494

Verbund AG(a)		1,385		113,874
				8,133,061

Electrical Equipment – 1.4%

ABB Ltd. (Registered)		31,768		1,032,752

Ballard Power Systems, Inc.* (a)		1,824		39,795

Denyo Co. Ltd.(a)		8,800		160,937

Fagerhult AB		31,408		216,178

Fuji Electric Co. Ltd.		4,500		204,817

Fujikura Ltd.*		110,000		566,580

Huber + Suhner AG (Registered)		867		69,584

ITM Power plc*		10,192		73,449

Legrand SA		4,972		484,809

Mabuchi Motor Co. Ltd.(a)		2,000		80,051

Mitsubishi Electric Corp.		32,700		503,192

NEL ASA*		12,688		36,927

Nexans SA*		10,340		850,772

Nidec Corp.		8,910		1,031,573

Nissin Electric Co. Ltd.(a)		1,200		13,229

Nitto Kogyo Corp.		1,800		31,700

NKT A/S*		2,904		120,905

Nordex SE*		3,040		88,049

OSRAM Licht AG*		880		55,139

Prysmian SpA		5,460		171,220

Schneider Electric SE		8,888		1,423,231

Siemens Energy AG*		6,952		232,653

Siemens Gamesa Renewable Energy SA*		6,044		219,001

Signify NV* (b)		3,848		219,150

Somfy SA		275		48,664

TKH Group NV, CVA		2,194		105,012

Ushio, Inc.		5,900		78,213

Vestas Wind Systems A/S		18,920		790,777
				8,948,359

Electronic Equipment, Instruments & Components – 1.8%

Alps Alpine Co. Ltd.		5,348		64,780

ALSO Holding AG (Registered)*		52		15,765

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			115

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Electronic Equipment, Instruments & Components – (continued)

Amano Corp.		2,600	$	70,623

Anritsu Corp.(a)		500		9,734

Azbil Corp.		3,000		121,312

Barco NV		2,608		66,495

Canon Electronics, Inc.		2,800		44,777

Canon Marketing Japan, Inc.		3,700		89,263

Carel Industries SpA(a) (b)		4,028		90,287

Citizen Watch Co. Ltd.		106,000		355,903

Comet Holding AG (Registered)		352		90,311

CONEXIO Corp.		2,200		27,876

Daiwabo Holdings Co. Ltd.(a)		44,000		687,947

FIH Mobile Ltd.* (a)		1,208,000		171,086

Fingerprint Cards AB, Class B*		10,108		41,588

FIT Hon Teng Ltd.* (a) (b)		44,000		13,540

Halma plc		8,140		291,674

Hamamatsu Photonics KK		3,400		197,210

Hexagon AB, Class B		4,972		474,753

Hirose Electric Co. Ltd.		782		124,556

Hitachi Ltd.		22,000		1,083,043

Horiba Ltd.		800		52,038

Hosiden Corp.		17,600		166,975

Ibiden Co. Ltd.		4,400		208,517

Inficon Holding AG (Registered)		110		117,833

Iriso Electronics Co. Ltd.		1,200		56,759

Japan Aviation Electronics Industry Ltd.		2,044		36,521

Jenoptik AG		2,585		79,289

Kaga Electronics Co. Ltd.		8,900		196,312

Keyence Corp.		3,200		1,537,569

Kyocera Corp.		5,300		321,816

Lagercrantz Group AB, Class B		5,832		60,246

Landis+Gyr Group AG*		1,102		76,604

LEM Holding SA (Registered)		27		50,622

Macnica Fuji Electronics Holdings, Inc.		22,100		446,226

Murata Manufacturing Co. Ltd.		10,700		851,947

Mycronic AB		3,001		88,585

Nichicon Corp.		7,600		74,675

Nippon Ceramic Co. Ltd.		900		21,235

Nippon Signal Co. Ltd.		23,500		199,300


Investments	Shares			Value

Electronic Equipment, Instruments & Components – (continued)

Nissha Co. Ltd.		4,400		$	51,606

Nohmi Bosai Ltd.		2,500			47,207

Oki Electric Industry Co. Ltd.		39,600			418,444

Omron Corp.		4,400			333,708

Optex Group Co. Ltd.		1,000			15,260

Oxford Instruments plc		4,444			134,134

Renishaw plc		1,617			140,262

Restar Holdings Corp.(a)		13,200			233,314

Shimadzu Corp.		6,200			216,962

Siix Corp.		3,628			48,426

Spectris plc		3,026			136,331

Taiyo Yuden Co. Ltd.		2,500			114,816

TDK Corp.		2,900			393,989

Topcon Corp.		2,200			30,030

Venture Corp. Ltd.		4,500			68,156

VSTECS Holdings Ltd.		356,000			352,478

Yokogawa Electric Corp.		1,600			29,042
					11,539,757

Energy Equipment & Services – 0.4%

BW Offshore Ltd.		42,284			170,394

Drilling Co. of 1972 A/S (The)*		5,984			252,819

John Wood Group plc*		264,792			1,032,396

Modec, Inc.		10,400			198,761

Ocean Yield ASA(a)		30,348			109,072

Saipem SpA(a)		199,716			461,963

SBM Offshore NV		5,113			89,094

Subsea 7 SA		26			264

TechnipFMC plc* (a)		12,457			92,521

Tenaris SA		6,336			68,325

TGS NOPEC Geophysical Co. ASA		1,140			17,392

Vallourec SA*		—	(e)		4

Worley Ltd.		10,916			91,572
					2,584,577

Entertainment – 0.6%

Bollore SA		12,858			65,010

Capcom Co. Ltd.		5,200			168,885

CTS Eventim AG & Co. KGaA*		1,375			95,142

Daiichikosho Co. Ltd.		1,100			40,959

DeNA Co. Ltd.		4,000			81,716

See Accompanying Notes to the Financial Statements.


116		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Entertainment – (continued)

Embracer Group AB*		8,008	$	246,801

EVENT Hospitality and Entertainment Ltd.*		2,282		22,563

IGG, Inc.(a)		308,000		521,076

Kinepolis Group NV*		1,030		55,995

Koei Tecmo Holdings Co. Ltd.		2,246		100,377

Konami Holdings Corp.		2,200		131,229

Modern Times Group MTG AB, Class B*		586		9,009

Nexon Co. Ltd.		8,800		291,844

Nintendo Co. Ltd.		2,100		1,204,419

Paradox Interactive AB		952		22,315

Shochiku Co. Ltd.		300		33,649

Square Enix Holdings Co. Ltd.		1,800		100,123

Toei Animation Co. Ltd.		900		102,758

Toho Co. Ltd.		4,100		163,167

Ubisoft Entertainment SA*		1,425		107,145

Vivendi SE*		15,180		529,937
				4,094,119

Equity Real Estate Investment Trusts (REITs) – 2.5%

Activia Properties, Inc.(a)		15		69,164

Advance Residence Investment Corp.		18		57,390

Aedifica SA		1,039		127,076

AEON REIT Investment Corp.		29		39,930

ALE Property Group		9,620		33,216

Allied Properties REIT(a)		1,540		53,391

alstria office REIT-AG		6,756		121,098

Altarea SCA		1,188		239,973

ARGAN SA		1,898		189,182

Argosy Property Ltd.		67,002		71,390

Artis REIT(a)		22,836		201,778

Ascendas REIT		68,635		160,444

Ascott Residence Trust		30,164		24,033

Assura plc		57,957		59,742

Aventus Group		20,768		47,645

Befimmo SA		657		27,958

Big Yellow Group plc		7,176		118,829

Boardwalk REIT(a)		616		18,357

British Land Co. plc (The)		16,528		118,630

BWP Trust		12,444		39,699


Investments	Shares		Value

Equity Real Estate Investment Trusts (REITs) – (continued)

Capital & Counties Properties plc*		43,340	$	109,092

CapitaLand China Trust		3,414		3,541

CapitaLand Integrated Commercial Trust		37,044		59,865

Carmila SA		17,512		294,290

CDL Hospitality Trusts		36,800		34,576

Centuria Office REIT		160,732		273,146

Champion REIT		68,000		39,573

Charter Hall Group		5,096		55,110

Charter Hall Long Wale REIT		3,602		13,606

Charter Hall Retail REIT		25,935		74,525

Charter Hall Social Infrastructure REIT		31		78

Choice Properties REIT		3,957		44,839

Cofinimmo SA		507		77,817

Comforia Residential REIT, Inc.		34		108,870

Cominar REIT(a)		36,168		286,945

Covivio(a)		1,449		129,428

Cromwell European REIT(b)		115,868		66,254

Cromwell Property Group(a)		48,403		32,715

Daiwa House REIT Investment Corp.		42		112,622

Daiwa Securities Living Investments Corp.		26		26,689

Derwent London plc		1,508		69,506

Dexus		8,888		69,823

Dream Office REIT(a)		3,966		68,120

ESR-REIT		1,044,000		325,661

Far East Hospitality Trust		53,976		25,560

First Capital REIT(a)		39,688		571,350

Fortune REIT		48,000		48,390

Frasers Centrepoint Trust		33,249		60,730

Frasers Hospitality Trust		39,200		16,353

Frasers Logistics & Commercial Trust(b)		4,239		4,684

Frontier Real Estate Investment Corp.		12		52,477

Fukuoka REIT Corp.		26		42,626

Gecina SA		352		51,548

Global One Real Estate Investment Corp.		48		55,551

GLP J-REIT		74		124,027

Goodman Group		30,052		438,970

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			117

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Equity Real Estate Investment Trusts (REITs) – (continued)

Goodman Property Trust(a)		19,085	$	30,537

GPT Group (The)		41,404		147,759

Granite REIT(a)		1,072		68,571

Great Portland Estates plc		14,916		143,118

Growthpoint Properties Australia Ltd.(a)		19,121		55,240

H&R REIT(a)		5,632		69,725

Hamborner REIT AG		6,058		66,465

Hammerson plc(a)		1,687,382		930,768

Hankyu Hanshin REIT, Inc.		26		36,417

Heiwa Real Estate REIT, Inc.		87		131,091

Hibernia REIT plc		34,222		46,882

Hoshino Resorts REIT, Inc.		24		140,963

Hulic Reit, Inc.(a)		23		36,739

ICADE		154		11,994

Ichigo Office REIT Investment Corp.(a)		40		34,948

Ingenia Communities Group		35,948		146,615

Inmobiliaria Colonial Socimi SA		7,185		72,957

InterRent REIT(a)		28,380		354,116

Invincible Investment Corp.		121		43,450

Irongate Group(a)		174,504		188,040

Japan Hotel REIT Investment Corp.		77		44,099

Japan Logistics Fund, Inc.		19		54,407

Japan Metropolitan Fund Invest		147		144,842

Japan Prime Realty Investment Corp.		25		101,665

Japan Real Estate Investment Corp.(a)		24		148,868

Kenedix Office Investment Corp.		9		66,365

Kenedix Residential Next Investment Corp.		34		70,237

Kenedix Retail REIT Corp.		31		79,354

Keppel DC REIT		47,500		96,043

Keppel Pacific Oak US REIT(b)		154,000		114,730

Keppel REIT		80,733		75,247

Kiwi Property Group Ltd.		3,973		3,620

Klepierre SA		5,108		135,647

Land Securities Group plc		13,636		136,085


Investments	Shares		Value

Equity Real Estate Investment Trusts (REITs) – (continued)

LaSalle Logiport REIT		44	$	71,451

Link REIT		36,774		347,767

LondonMetric Property plc		31,548		98,454

LXI REIT plc(b)		81,418		153,986

Mapletree Commercial Trust		34,368		56,574

Mapletree Industrial Trust		33,416		71,082

Mapletree Logistics Trust		73,207		109,502

Mapletree North Asia Commercial Trust(b)		49,500		40,555

Merlin Properties Socimi SA		10,940		121,081

Mirvac Group		45,364		94,261

Mori Hills REIT Investment Corp.		16		23,230

Mori Trust Hotel Reit, Inc.(a)		132		164,842

National Storage REIT		70,798		109,923

Nippon Accommodations Fund, Inc.		8		47,500

Nippon Building Fund, Inc.		17		111,669

Nippon Prologis REIT, Inc.		41		131,659

NIPPON REIT Investment Corp.		23		89,218

Nomura Real Estate Master Fund, Inc.		51		80,626

NTT UD REIT Investment Corp.(a)		67		99,423

One REIT, Inc.		14		39,321

Orix JREIT, Inc.		49		86,430

OUE Commercial REIT		82,177		25,016

Parkway Life REIT		12,500		39,180

Precinct Properties New Zealand Ltd.		22,735		26,915

Primary Health Properties plc		6,188		12,954

Property for Industry Ltd.(a)		26,317		53,815

Reit 1 Ltd.		69,740		370,487

Retail Estates NV		3,784		291,076

Safestore Holdings plc		6,952		81,960

Sasseur REIT(b)		277,200		192,732

Scentre Group		122,012		256,355

Secure Income REIT plc(a)		14,030		73,330

Segro plc		19,096		265,848

Sekisui House Reit, Inc.		55		45,789

Shaftesbury plc* (a)		14,432		125,586

Shopping Centres Australasia Property Group		54,215		104,277

See Accompanying Notes to the Financial Statements.


118		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Equity Real Estate Investment Trusts (REITs) – (continued)

Societe Fonciere Lyonnaise SA		516	$	37,518

SPH REIT		44,800		29,802

Star Asia Investment Corp.		156		79,923

Starhill Global REIT		600,800		255,150

Stockland		57,904		209,327

Summit Industrial Income REIT(a)		14,652		185,919

Sunlight REIT		55,000		30,237

Suntec REIT		3,900		4,485

Tokyu REIT, Inc.		21		35,677

Tritax Big Box REIT plc		47,975		126,404

UK Commercial Property REIT Ltd.		18,880		21,017

Unibail-Rodamco-Westfield* (a)		3,476		287,009

Unibail-Rodamco-Westfield, CHDI* (a)		5		20

UNITE Group plc (The)		9,194		148,299

United Urban Investment Corp.		84		125,572

Vicinity Centres		98,852		121,028

Vital Healthcare Property Trust(a)		45,502		95,984

Warehouses De Pauw CVA		4,239		149,617

Waypoint REIT		46,112		88,692

Workspace Group plc		8,954		101,658

WPT Industrial REIT(a)		7,436		124,330
				16,087,028

Food & Staples Retailing – 1.4%

Aeon Co. Ltd.		14,713		401,459

Ain Holdings, Inc.		800		44,426

Alimentation Couche-Tard, Inc.		608		20,639

Alimentation Couche-Tard, Inc., Class B		12,408		420,089

Arcs Co. Ltd.		2,818		60,534

Axfood AB		3,184		79,828

Belc Co. Ltd.		800		42,377

Carrefour SA(a)		10,949		212,271

Casino Guichard Perrachon SA* (a)		2,142		74,907

Cawachi Ltd.		5,400		116,097

Coles Group Ltd.		24,728		311,731

Cosmos Pharmaceutical Corp.		200		28,709


Investments	Shares		Value

Food & Staples Retailing – (continued)

Create SD Holdings Co. Ltd.		2,000	$	60,656

Daikokutenbussan Co. Ltd.		400		29,861

Dairy Farm International Holdings Ltd.		7,600		33,136

Distribuidora Internacional de Alimentacion SA*		37,128		3,647

Empire Co. Ltd., Class A		1,666		52,355

Etablissements Franz Colruyt NV		1,044		61,996

George Weston Ltd.		1,629		143,713

GrainCorp Ltd., Class A		10,837		42,692

Heiwado Co. Ltd.		18,800		382,003

ICA Gruppen AB		1,916		88,371

Inageya Co. Ltd.		2,398		34,970

Itochu-Shokuhin Co. Ltd.		400		18,041

J Sainsbury plc		16,852		55,461

Jeronimo Martins SGPS SA		988		18,066

Kato Sangyo Co. Ltd.		1,400		40,986

Kesko OYJ, Class A		2,248		64,406

Kesko OYJ, Class B		7,848		239,398

Kobe Bussan Co. Ltd.(a)		3,200		85,544

Koninklijke Ahold Delhaize NV		25,960		699,702

Kusuri no Aoki Holdings Co. Ltd.		600		42,157

Loblaw Cos. Ltd.		2,640		146,464

MARR SpA*		1,155		25,875

Matsumotokiyoshi Holdings Co. Ltd.(a)		3,600		144,422

Maxvalu Nishinihon Co. Ltd.(a)		8,800		144,513

Maxvalu Tokai Co. Ltd.		2,400		54,453

Metcash Ltd.(a)		43,474		119,214

METRO AG		8,528		93,421

Metro, Inc.		4,532		207,480

Nihon Chouzai Co. Ltd.		1,600		25,909

North West Co., Inc. (The)		95		2,734

Olam International Ltd.		35,100		45,907

Qol Holdings Co. Ltd.		10,300		129,192

Rami Levy Chain Stores Hashikma Marketing 2006 Ltd.		243		17,082

Seven & i Holdings Co. Ltd.		17,900		769,517

Sheng Siong Group Ltd.		51,500		60,001

Shufersal Ltd.		3,578		29,036

Sligro Food Group NV* (a)		10,032		318,820

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			119

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Food & Staples Retailing – (continued)

Sonae SGPS SA		301,268	$	282,880

Sugi Holdings Co. Ltd.		800		61,479

Sundrug Co. Ltd.		1,600		54,526

Tesco plc		110,011		336,618

Tsuruha Holdings, Inc.		900		103,911

United Super Markets Holdings, Inc.		2,000		20,219

Valor Holdings Co. Ltd.(a)		20,400		436,163

Welcia Holdings Co. Ltd.(a)		3,600		112,310

Wm Morrison Supermarkets plc		55,924		134,611

Woolworths Group Ltd.		19,272		585,046

Yokohama Reito Co. Ltd.		22,100		176,913

Zur Rose Group AG* (a)		260		86,662
				8,735,606

Food Products – 2.5%

a2 Milk Co. Ltd. (The)* (a)		8,840		48,522

AAK AB		5,004		114,866

Agrana Beteiligungs AG		6,028		130,617

Ajinomoto Co., Inc.		7,900		158,029

Ariake Japan Co. Ltd.		800		46,329

Associated British Foods plc*		4,888		156,198

Austevoll Seafood ASA		8,913		114,145

Bakkafrost P/F		1,281		101,855

Barry Callebaut AG (Registered)		38		83,995

Bega Cheese Ltd.(a)		8,671		42,800

Bell Food Group AG (Registered)		320		99,995

Bonduelle SCA		3,784		99,986

Calbee, Inc.		3,200		76,674

Chocoladefabriken Lindt & Spruengli AG*		24		222,883

Chocoladefabriken Lindt & Spruengli AG (Registered)*		4		395,592

Chubu Shiryo Co. Ltd.(a)		13,200		164,479

Costa Group Holdings Ltd.		13,860		49,891

Danone SA		10,692		754,628

DyDo Group Holdings, Inc.		500		23,192

Ebro Foods SA		1,618		33,151

Elders Ltd.		1,508		14,176


Investments	Shares			Value

Food Products – (continued)

Emmi AG (Registered)		41		$	42,616

First Resources Ltd.		5,100			5,865

Freedom Foods Group Ltd.* (a)		4,368			1,383

Fuji Oil Holdings, Inc.		3,400			87,562

Fujicco Co. Ltd.		2,000			35,149

Fujiya Co. Ltd.		400			7,842

Glanbia plc(a)		7,586			111,776

Golden Agri-Resources Ltd.		213,400			40,101

Grieg Seafood ASA*		20,900			208,165

House Foods Group, Inc.		2,400			74,544

Inghams Group Ltd.(a)		151,800			383,433

Itoham Yonekyu Holdings, Inc.		6,500			41,805

Japfa Ltd.		201,820			138,804

J-Oil Mills, Inc.		8,800			148,539

Kagome Co. Ltd.		900			25,813

Kameda Seika Co. Ltd.		900			37,793

Kerry Group plc, Class A		2,244			291,203

Kikkoman Corp.(a)		4,000			245,551

Kotobuki Spirits Co. Ltd.(a)		1,000			59,833

Leroy Seafood Group ASA		11,649			107,177

Lotus Bakeries NV		13			70,892

Maple Leaf Foods, Inc.		301			6,941

Maruha Nichiro Corp.(a)		17,600			402,221

Mehadrin Ltd.*		—	(e)		16

MEIJI Holdings Co. Ltd.		1,600			99,099

Mitsui DM Sugar Holdings Co. Ltd.		3,400			56,239

Morinaga & Co. Ltd.		1,100			36,631

Morinaga Milk Industry Co. Ltd.		1,200			65,651

Mowi ASA		3,640			90,078

Nestle SA (Registered)		48,312			5,767,458

Neto Malinda Trading Ltd.*		2,288			53,663

Nichirei Corp.		3,500			88,441

Nippn Corp.		1,500			21,408

Nippon Suisan Kaisha Ltd.		123,200			575,959

Nisshin Oillio Group Ltd. (The)		9,900			278,057

Nisshin Seifun Group, Inc.		7,090			114,291

Nissin Foods Holdings Co. Ltd.		1,500			106,354

Norway Royal Salmon ASA		2,651			63,115

Orkla ASA		13,798			141,099

Premier Foods plc*		280,104			378,123

Premium Brands Holdings Corp.		1,100			106,915

See Accompanying Notes to the Financial Statements.


120		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Food Products – (continued)

Riken Vitamin Co. Ltd.(a)		400	$	4,981

S&B Foods, Inc.		4,400		196,441

Sakata Seed Corp.		2,800		98,751

Salmar ASA		52		3,616

Saputo, Inc.		4,455		141,450

Savencia SA		1,716		151,624

Schouw & Co. A/S		1,160		124,306

Showa Sangyo Co. Ltd.		4,400		118,871

Societe LDC SA(a)		1,734		199,972

Strauss Group Ltd.		952		27,882

Suedzucker AG		1,979		32,447

Synlait Milk Ltd.* (a)		1,760		4,142

Tate & Lyle plc		3,262		36,131

Toyo Suisan Kaisha Ltd.		2,800		114,121

Vilmorin & Cie SA		1,612		113,133

Viscofan SA		825		56,509

Vitasoy International Holdings Ltd.(a)		16,000		61,904

WH Group Ltd.(b)		154,000		134,631

Wilmar International Ltd.		74,800		293,488

Yakult Honsha Co. Ltd.		1,700		82,741

Yamazaki Baking Co. Ltd.		2,900		45,926
				15,592,675

Gas Utilities – 0.3%

AltaGas Ltd.		6,799		126,949

APA Group		16,324		126,473

Enagas SA(a)		5,500		119,971

Hong Kong & China Gas Co. Ltd.(a)		151,340		242,788

Naturgy Energy Group SA(a)		6,820		175,118

Nippon Gas Co. Ltd.		6,000		105,503

Osaka Gas Co. Ltd.		5,700		109,927

Rubis SCA		2,653		124,713

Saibu Gas Holdings Co. Ltd.(a)		3,600		83,821

Shizuoka Gas Co. Ltd.		26,400		223,653

Snam SpA		23,751		133,808

Superior Plus Corp.		14,520		177,280

Toho Gas Co. Ltd.		2,000		111,065

Tokyo Gas Co. Ltd.		6,800		137,674
				1,998,743


Investments	Shares		Value

Health Care Equipment & Supplies – 1.3%

Alcon, Inc.*		7,832	$	588,226

Ambu A/S, Class B(a)		3,172		177,967

Ansell Ltd.		52		1,697

Arjo AB, Class B		4,131		40,842

Asahi Intecc Co. Ltd.		3,200		86,130

BioMerieux		825		98,241

Carl Zeiss Meditec AG		715		126,138

Cochlear Ltd.		848		145,746

Coloplast A/S, Class B		1,496		247,854

ConvaTec Group plc(b)		5,396		16,302

CYBERDYNE, Inc.* (a)		4,500		25,772

Demant A/S*		2,796		140,396

DiaSorin SpA		293		49,821

Draegerwerk AG & Co. KGaA		1,496		132,185

Draegerwerk AG & Co. KGaA (Preference)		2,816		263,226

Eiken Chemical Co. Ltd.		1,600		31,881

Elekta AB, Class B		6,069		81,320

Fisher & Paykel Healthcare Corp. Ltd.		10,847		279,789

Getinge AB, Class B		3,120		105,713

GN Store Nord A/S		1,976		178,611

Hogy Medical Co. Ltd.		1,200		36,229

Hoya Corp.		6,900		784,973

Japan Lifeline Co. Ltd.		3,000		42,267

Koninklijke Philips NV*		14,516		819,198

Mani, Inc.(a)		3,900		91,912

Menicon Co. Ltd.		1,600		97,489

Nagaileben Co. Ltd.		1,500		35,117

Nakanishi, Inc.		5,100		104,608

Nanosonics Ltd.* (a)		16,777		78,145

Nihon Kohden Corp.		2,300		69,544

Nipro Corp.		5,200		62,606

Olympus Corp.		22,000		452,358

Paramount Bed Holdings Co. Ltd.		1,600		31,764

PolyNovo Ltd.* (a)		32,604		75,555

Revenio Group OYJ		3,036		218,370

Sartorius AG (Preference)		612		345,672

Sectra AB, Class B*		1,100		78,704

Siemens Healthineers AG(b)		3,085		176,328

Smith & Nephew plc		15,444		335,820

Sonova Holding AG (Registered)*		842		249,355

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			121

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Health Care Equipment & Supplies – (continued)

Straumann Holding AG (Registered)		187	$	267,465

Sysmex Corp.		2,400		239,879

Terumo Corp.		11,800		446,069

Ypsomed Holding AG (Registered)		81		13,020
				7,970,304

Health Care Providers & Services – 0.7%

AEVIS VICTORIA SA* (a)		15,004		222,087

Alfresa Holdings Corp.		5,500		98,472

Ambea AB* (b)		20,095		188,931

Amplifon SpA*		3,067		129,702

As One Corp.		700		87,416

BML, Inc.		3,300		114,272

CareTech Holdings plc(a)		55,704		433,442

Chartwell Retirement Residences		5,472		55,645

China Evergrande New Energy Vehicle Group Ltd.* (a)		40,000		309,263

CVS Group plc*		8,404		259,477

EBOS Group Ltd.(a)		2,014		42,990

Fagron		2,504		56,247

Fresenius Medical Care AG & Co. KGaA		2,728		217,267

Fresenius SE & Co. KGaA		9,504		467,705

Galenica AG(b)		132		8,944

Healius Ltd.		27,458		87,809

Korian SA		2,644		106,053

Mediclinic International plc*		22,600		96,000

Medipal Holdings Corp.		700		12,859

NMC Health plc* (d)		2,074		1,120

Orpea SA		950		122,423

Raffles Medical Group Ltd.		4,124		3,565

Ramsay Health Care Ltd.		2,240		116,483

Ryman Healthcare Ltd.(a)		2,860		29,119

Ship Healthcare Holdings, Inc.		1,800		47,163

Sonic Healthcare Ltd.		9,467		262,383

Summerset Group Holdings Ltd.		11,568		100,929

Suzuken Co. Ltd.(a)		3,380		121,681

Toho Holdings Co. Ltd.		4,200		70,855

Town Health International Medical Group Ltd.*		398,000		16,654


Investments	Shares		Value

Health Care Providers & Services – (continued)

UDG Healthcare plc		11,405	$	135,327

Vital KSK Holdings, Inc.		18,000		115,603
				4,137,886

Health Care Technology – 0.1%

AGFA-Gevaert NV*		15,224		75,048

CompuGroup Medical SE & Co. KGaA		624		57,164

M3, Inc.		6,800		471,374
				603,586

Hotels, Restaurants & Leisure – 2.1%

Accor SA*		4,180		168,417

Arcland Service Holdings Co. Ltd.		1,400		28,012

Aristocrat Leisure Ltd.		8,932		256,455

Atom Corp.(a)		5,800		39,797

Autogrill SpA* (a)		49,852		413,122

Basic-Fit NV* (b)		1,196		54,019

Betsson AB*		46,024		420,194

Carnival plc*		5,876		136,792

Colowide Co. Ltd.(a)		3,500		58,790

Compass Group plc*		30,272		659,083

Corporate Travel Management Ltd.*		3,366		48,127

Create Restaurants Holdings, Inc.* (a)		4,400		31,318

Crown Resorts Ltd.*		11,014		103,965

Domino’s Pizza Enterprises Ltd.(a)		1,460		120,277

Domino’s Pizza Group plc(a)		15,345		81,287

Doutor Nichires Holdings Co. Ltd.		11,500		171,282

Entain plc*		12,408		290,591

Evolution Gaming Group AB(b)		2,640		522,021

Flight Centre Travel Group Ltd.* (a)		4,910		63,528

Flutter Entertainment plc*		1,493		306,763

Flutter Entertainment plc—XDUB*		1,009		206,306

Fuji Kyuko Co. Ltd.		1,000		47,756

Galaxy Entertainment Group Ltd.*		36,000		317,040

Gamesys Group plc		2,860		76,622

See Accompanying Notes to the Financial Statements.


122		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Hotels, Restaurants & Leisure – (continued)

Genting Singapore Ltd.		144,000	$	93,626

Great Canadian Gaming Corp.*		2,860		103,106

Greggs plc*		6,556		214,220

Hiday Hidaka Corp.(a)		2,191		33,555

HIS Co. Ltd.* (a)		14,000		288,184

Hongkong & Shanghai Hotels Ltd. (The)		24,307		24,379

Ichibanya Co. Ltd.(a)		1,000		44,051

InterContinental Hotels Group plc*		2,200		156,930

J D Wetherspoon plc*		3,795		70,198

Kindred Group plc, SDR		7,392		128,070

Kisoji Co. Ltd.(a)		1,700		35,694

KOMEDA Holdings Co. Ltd.		1,200		22,352

Kyoritsu Maintenance Co. Ltd.(a)		1,600		50,794

La Francaise des Jeux SAEM(b)		3,300		169,310

Mandarin Oriental International Ltd.* (a)		8,000		15,600

McDonald’s Holdings Co. Japan Ltd.		1,100		50,217

Melco International Development Ltd.(a)		21,000		41,909

Melia Hotels International SA* (a)		44,792		367,523

MGM China Holdings Ltd.(a)		32,400		53,480

Miramar Hotel & Investment		132,000		258,329

Mitchells & Butlers plc*		126,927		554,274

MOS Food Services, Inc.(a)		2,100		57,483

NagaCorp Ltd.(a)		90,000		96,410

Ohsho Food Service Corp.		1,504		77,054

Oriental Land Co. Ltd.		3,900		552,148

Pandox AB*		5,720		100,252

Playtech plc*		127,644		822,499

Plenus Co. Ltd.		14,200		262,811

PointsBet Holdings Ltd.*		13,992		146,990

Restaurant Brands International, Inc.		4,048		277,753

Restaurant Brands New Zealand Ltd.*		1,154		10,847

Ringer Hut Co. Ltd.		1,700		34,418


Investments	Shares		Value

Hotels, Restaurants & Leisure – (continued)

Round One Corp.		5,100	$	56,363

Royal Holdings Co. Ltd.* (a)		1,600		27,797

Saizeriya Co. Ltd.		1,800		39,457

Sands China Ltd.*		40,400		191,939

Scandic Hotels Group AB* (a) (b)		51,304		232,137

Shangri-La Asia Ltd.* (a)		32,000		30,489

SJM Holdings Ltd.		76,000		98,635

SkiStar AB*		2,828		42,876

Skylark Holdings Co. Ltd.* (a)		3,700		54,905

Sodexo SA*		988		98,835

SSP Group plc*		332,567		1,473,458

Star Entertainment Grp Ltd. (The)*		11,421		35,112

Tabcorp Holdings Ltd.		42,680		163,852

Toridoll Holdings Corp.		3,200		50,501

Trainline plc* (b)		29,876		189,285

TUI AG, DI*		25,756		153,590

Webjet Ltd.*		5,413		20,906

Whitbread plc*		1,820		81,745

Wynn Macau Ltd.* (a)		12,800		24,622

Yoshinoya Holdings Co. Ltd.		4,900		90,644

Zensho Holdings Co. Ltd.		3,600		90,243
				13,083,421

Household Durables – 1.9%

Azorim-Investment Development & Construction Co. Ltd.*		34,650		143,478

Barratt Developments plc		28,996		309,930

Bellway plc		3,680		184,037

Berkeley Group Holdings plc		1,456		93,276

Bonava AB, Class B		32,392		385,375

Breville Group Ltd.(a)		4,514		90,902

Cairn Homes plc*		38,456		51,274

Casio Computer Co. Ltd.		3,600		63,598

Countryside Properties plc* (b)		13,624		97,900

Crest Nicholson Holdings plc*		118,404		670,171

De’ Longhi SpA		2,352		103,004

DFS Furniture plc*		105,952		390,211

Electra Consumer Products 1970 Ltd.		4,888		229,680

Electrolux AB, Series B		7,237		203,354

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			123

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Household Durables – (continued)

ES-Con Japan Ltd.		18,000	$	121,367

Fiskars OYJ Abp		574		11,968

Forbo Holding AG (Registered)		24		45,997

Fujitsu General Ltd.(a)		2,100		55,716

Haseko Corp.		3,500		46,910

Hunter Douglas NV*		1,352		110,673

Husqvarna AB, Class B		10,433		145,407

Iida Group Holdings Co. Ltd.		5,400		131,560

JM AB		1,842		68,336

Kaufman & Broad SA		6,468		294,318

Man Wah Holdings Ltd.(a)		54,400		114,447

Nagawa Co. Ltd.		500		37,830

Neinor Homes SA(a) (b)		16,280		215,577

Nikon Corp.		1,400		13,167

Nobia AB(a)		53,372		464,557

Open House Co. Ltd.		4,000		166,324

Panasonic Corp.		52,800		622,654

Persimmon plc		7,436		322,455

Pressance Corp.		17,600		258,916

Redrow plc		99,220		949,536

Rinnai Corp.		100		10,045

Sangetsu Corp.		2,256		31,785

SEB SA		616		112,343

Sekisui Chemical Co. Ltd.		8,500		147,907

Sekisui House Ltd.		16,600		335,478

Sharp Corp.(a)		6,200		104,766

Sony Group Corp.		20,900		2,084,168

Sumitomo Forestry Co. Ltd.		7,700		178,226

Taylor Wimpey plc		87,516		217,622

Token Corp.(a)		3,100		276,803

TomTom NV*		25		220

Vistry Group plc		85,830		1,470,595

Zojirushi Corp.		1,300		20,706
				12,204,569

Household Products – 0.4%

Earth Corp.		600		33,100

Essity AB, Class A		616		20,398

Essity AB, Class B		9,592		313,428

Henkel AG & Co. KGaA		1,694		168,645

Henkel AG & Co. KGaA (Preference)		2,288		263,200


Investments	Shares		Value

Household Products – (continued)

Lion Corp.(a)		2,400	$	45,012

Pigeon Corp.		2,400		81,350

PZ Cussons plc		28,228		103,179

Reckitt Benckiser Group plc		11,484		1,025,720

Unicharm Corp.		9,600		372,741
				2,426,773

Independent Power and Renewable Electricity Producers – 0.4%

Albioma SA		3,476		157,334

Boralex, Inc., Class A		2,081		66,649

Brookfield Renewable Corp.		2,992		123,917

Capital Power Corp.(a)		8,536		271,928

ContourGlobal plc(b)		17,776		49,224

Doral Group Renewable Energy Resources Ltd.*		2,244		9,832

Drax Group plc		168,036		950,625

EDP Renovaveis SA*		26		620

Electric Power Development Co. Ltd.(a)		7,500		119,802

Encavis AG		3,696		71,233

Enlight Renewable Energy Ltd.*		32,188		67,485

ERG SpA		2,090		62,546

Innergex Renewable Energy, Inc.		559		9,542

Meridian Energy Ltd.		28,875		110,426

Northland Power, Inc.(a)		2,116		72,827

Scatec ASA(b)		988		26,697

Solaria Energia y Medio Ambiente SA*		7,392		151,764

TransAlta Corp.		3,496		34,329

Uniper SE		2,028		74,069
				2,430,849

Industrial Conglomerates – 0.9%

Arad Investment & Industrial Development Ltd.		1,408		149,076

Bonheur ASA		8,448		227,769

CK Hutchison Holdings Ltd.		64,356		527,817

DCC plc		988		85,961

Guoco Group Ltd.		4,000		48,411

Indus Holding AG		7,285		303,431

Investment AB Latour, Class B(a)		3,256		99,731

See Accompanying Notes to the Financial Statements.


124		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Industrial Conglomerates – (continued)

Italmobiliare SpA		245	$	8,700

Jardine Matheson Holdings Ltd.		4,400		295,856

Keppel Corp. Ltd.		26,400		107,553

Lifco AB, Class B		1,696		182,723

Melrose Industries plc		81,356		183,493

Mie Kotsu Group Holdings, Inc.		700		3,016

Nisshinbo Holdings, Inc.(a)		47,400		361,230

Nolato AB, Class B*		710		70,238

Noritsu Koki Co. Ltd.		800		18,912

NWS Holdings Ltd.		53,401		59,061

Rheinmetall AG		1,144		119,399

Shun Tak Holdings Ltd.(a)		880,000		282,122

Siemens AG (Registered)		13,068		2,183,813

Smiths Group plc		2,860		64,367

TOKAI Holdings Corp.		2,795		22,860

Toshiba Corp.(a)		8,800		363,497
				5,769,036

Insurance – 4.3%

Admiral Group plc		4,708		203,963

Aegon NV		38,669		179,961

Ageas SA		5,544		336,096

AIA Group Ltd.		204,800		2,607,842

Allianz SE (Registered)		9,284		2,418,504

Alm Brand A/S		8,488		96,591

ASR Nederland NV		4,759		208,589

Assicurazioni Generali SpA		28,512		572,675

AUB Group Ltd.		2,255		35,534

Aviva plc		91,212		505,529

AXA SA(a)		48,400		1,370,659

Baloise Holding AG (Registered)*		1,056		178,769

Beazley plc*		12,948		60,737

Clal Insurance Enterprises Holdings Ltd.*		24,068		433,741

CNP Assurances		5,980		104,849

Coface SA*		35,640		435,470

Dai-ichi Life Holdings, Inc.		24,400		438,756

Direct Line Insurance Group plc		46,112		182,020

E-L Financial Corp. Ltd.		704		537,929

Fairfax Financial Holdings Ltd.(a)		660		301,287


Investments	Shares		Value

Insurance – (continued)

Gjensidige Forsikring ASA		945	$	21,549

Great Eastern Holdings Ltd.		2,400		41,419

Great-West Lifeco, Inc.(a)		6,344		183,791

Grupo Catalana Occidente SA		2,102		88,057

Hannover Rueck SE		1,232		228,098

Harel Insurance Investments & Financial Services Ltd.		8,005		84,163

Helvetia Holding AG (Registered)*		1,265		152,291

Hiscox Ltd.*		9,568		107,569

iA Financial Corp., Inc.		4,092		230,246

IDI Insurance Co. Ltd.		4,420		171,711

Insurance Australia Group Ltd.		31,768		120,242

Intact Financial Corp.		2,816		373,986

Japan Post Holdings Co. Ltd.*		38,100		319,844

Just Group plc*		493,026		744,738

Lancashire Holdings Ltd.		15,268		150,300

Legal & General Group plc		125,576		473,612

Linea Directa Aseguradora SA Cia de Seguros y Reaseguros*		21,280		41,755

Manulife Financial Corp.		45,012		982,053

Mapfre SA		37,752		81,371

Medibank Pvt Ltd.		52,475		124,846

Menora Mivtachim Holdings Ltd.		13,157		288,019

Migdal Insurance & Financial Holdings Ltd.*		90,400		108,006

MS&AD Insurance Group Holdings, Inc.		13,200		373,761

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered)		3,080		892,259

nib holdings Ltd.		11,260		53,752

NN Group NV		6,282		314,364

Phoenix Group Holdings plc		13,544		133,404

Phoenix Holdings Ltd. (The)		5,085		45,310

Poste Italiane SpA(b)		12,259		160,855

Power Corp. of Canada(a)		12,945		376,712

Prudential plc		58,564		1,244,246

QBE Insurance Group Ltd.(a)		33,264		253,350

RSA Insurance Group plc		21,516		203,287

Sabre Insurance Group plc(b)		21,200		76,463

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			125

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Insurance – (continued)

Sagicor Financial Co. Ltd.		44,055	$	218,091

Sampo OYJ, Class A		11,792		560,853

SCOR SE(a)		5,676		183,870

Societa Cattolica Di Assicurazione SpA* (a)		52,835		313,943

Sompo Holdings, Inc.		8,500		315,722

Steadfast Group Ltd.		30,934		99,642

Storebrand ASA(a)		17,930		172,131

Sun Life Financial, Inc.		15,620		841,946

Suncorp Group Ltd.		23,188		188,251

Swiss Life Holding AG (Registered)		704		343,413

Swiss Re AG		6,248		581,471

T&D Holdings, Inc.		13,200		161,702

Tokio Marine Holdings, Inc.		17,600		842,121

Topdanmark A/S		1,650		80,662

Tryg A/S		5,124		117,407

Unipol Gruppo SpA		6,080		33,339

UnipolSai Assicurazioni SpA(a)		27,841		86,670

UNIQA Insurance Group AG		39,072		314,193

Wuestenrot & Wuerttembergische AG		7,744		168,732

Yunfeng Financial Group Ltd.* (a)		136,000		52,006

Zurich Insurance Group AG		3,300		1,355,748
				27,486,843

Interactive Media & Services – 0.2%

Adevinta ASA*		470		8,627

Auto Trader Group plc* (b)		15,928		125,747

carsales.com Ltd.(a)		11,484		176,440

Dip Corp.		1,400		38,681

Kakaku.com, Inc.		1,600		43,475

LIFULL Co. Ltd.		7,600		27,186

New Work SE		159		48,330

REA Group Ltd.(a)		1,596		195,219

Rightmove plc		17,688		150,368

Scout24 AG(b)		1,879		156,390

SEEK Ltd.*		5,653		135,235

Z Holdings Corp.		37,200		171,868
				1,277,566


Investments	Shares		Value

Internet & Direct Marketing Retail – 0.5%

ASKUL Corp.		500	$	18,297

ASOS plc*		1,370		99,015

Belluna Co. Ltd.		15,600		165,412

boohoo Group plc*		15,511		73,039

Delivery Hero SE* (b)		2,112		335,727

Dustin Group AB(b)		3,680		46,001

HelloFresh SE*		1,596		132,567

Just Eat Takeaway.com NV* (a) (b)		1,629		169,041

Moneysupermarket.com Group plc		22,168		83,853

Ocado Group plc*		10,340		300,212

Prosus NV*		7,964		865,041

Rakuten Group, Inc.		7,000		88,953

Shop Apotheke Europe NV* (a) (b)		1,276		263,740

Zalando SE* (b)		3,740		389,621

ZOZO, Inc.		2,800		94,525
				3,125,044

IT Services – 1.8%

AddNode Group AB*		5,148		175,948

Adyen NV* (b)		528		1,297,590

Afterpay Ltd.*		4,356		395,868

Alten SA*		1,130		141,607

Amadeus IT Group SA*		7,832		534,577

Atea ASA*		4,972		95,512

Atos SE		1,804		122,959

Bechtle AG		673		137,200

CANCOM SE		1,981		122,480

Capgemini SE		2,552		468,188

CGI, Inc.*		4,532		400,630

Computacenter plc		1,092		40,489

Computershare Ltd.		15,875		173,148

Digital Garage, Inc.		1,300		53,579

DTS Corp.(a)		4,000		93,866

Edenred		3,202		181,743

FDM Group Holdings plc		3,850		54,478

Formula Systems 1985 Ltd.		829		79,645

Fujitsu Ltd.		3,900		621,010

GMO internet, Inc.		1,200		35,735

Indra Sistemas SA* (a)		47,080		491,088

Infocom Corp.		1,600		41,015

See Accompanying Notes to the Financial Statements.


126		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

IT Services – (continued)

Infomart Corp.		5,300	$	49,991

Itochu Techno-Solutions Corp.		2,400		83,217

Keywords Studios plc*		6,556		245,627

Link Administration Holdings Ltd.		6,885		26,485

Matrix IT Ltd.		2,464		64,879

Megaport Ltd.* (a)		7,072		78,555

NEC Corp.		2,900		168,739

NEC Networks & System Integration Corp.		2,400		41,345

NET One Systems Co. Ltd.		3,800		124,807

Nexi SpA* (b)		8,052		154,506

NEXTDC Ltd.*		16,647		149,035

Nihon Unisys Ltd.		2,600		82,421

Nomura Research Institute Ltd.		5,745		176,862

NS Solutions Corp.		800		24,189

NSD Co. Ltd.		5,160		84,076

NTT Data Corp.		10,400		161,559

Nuvei Corp.* (b)		4,136		290,650

Obic Co. Ltd.		1,500		289,968

Otsuka Corp.		3,400		171,392

Reply SpA		880		119,812

S&T AG* (a)		228		6,197

SCSK Corp.		900		52,203

Shopify, Inc., Class A*		1,892		2,231,428

Softcat plc		364		9,661

Sopra Steria Group SACA*		884		164,732

SUNeVision Holdings Ltd.		90,000		92,818

TietoEVRY OYJ		1,598		55,402

TIS, Inc.		6,100		151,516

Transcosmos, Inc.		2,100		59,942

Worldline SA* (b)		3,094		304,036
				11,474,405

Leisure Products – 0.3%

Bandai Namco Holdings, Inc.		4,500		330,424

BRP, Inc.		1,664		152,738

Games Workshop Group plc		684		102,753

Heiwa Corp.		2,450		41,489

MIPS AB(b)		2,948		238,643

Sega Sammy Holdings, Inc.		5,300		76,078

Shimano, Inc.		1,700		389,364


Investments	Shares		Value

Leisure Products – (continued)

Technogym SpA* (b)		4,905	$	65,837

Thule Group AB(b)		2,805		127,516

Tomy Co. Ltd.		9,300		79,808

Universal Entertainment Corp.*		300		7,279

Yamaha Corp.		4,400		239,513

Yonex Co. Ltd.		10,000		54,984
				1,906,426

Life Sciences Tools & Services – 0.3%

Clinigen Group plc		5,270		62,276

EPS Holdings, Inc.		1,900		20,338

Eurofins Scientific SE(a)		2,200		218,092

Evotec SE*		3,180		132,567

Gerresheimer AG		755		81,298

Lonza Group AG (Registered)		1,188		756,527

QIAGEN NV*		4,369		210,280

Sartorius Stedim Biotech		260		119,561

Siegfried Holding AG (Registered)*		165		151,875

Tecan Group AG (Registered)		303		147,771
				1,900,585

Machinery – 3.8%

Aalberts NV		1,404		76,141

Aida Engineering Ltd.(a)		17,600		147,814

Alfa Laval AB(a)		5,280		178,836

Alstom SA*		4,401		240,738

Amada Co. Ltd.		7,200		77,925

ANDRITZ AG(a)		2,081		113,231

Atlas Copco AB, Class A		9,328		565,918

Atlas Copco AB, Class B(a)		6,952		361,340

ATS Automation Tooling Systems, Inc.*		1,400		33,743

Beijer Alma AB		2,304		51,934

Bobst Group SA (Registered)*		52		3,461

Bodycote plc		11,283		118,101

Bucher Industries AG (Registered)		275		144,488

Bystronic AG		55		67,299

Cargotec OYJ, Class B		684		39,704

CKD Corp.		2,500		52,697

CNH Industrial NV		22,220		330,878

Concentric AB		914		20,581

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			127

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Machinery – (continued)

Construcciones y Auxiliar de Ferrocarriles SA		720	$	34,713

Daetwyler Holding AG		352		114,239

Daifuku Co. Ltd.		2,800		277,169

Daiwa Industries Ltd.		1,600		16,292

Danieli & C Officine Meccaniche SpA		2,024		49,704

Danieli & C Officine Meccaniche SpA (Retirement Savings Plan)		18,815		301,691

DMG Mori AG		1,007		50,792

DMG Mori Co. Ltd.		2,100		33,871

Duerr AG		2,684		112,956

Epiroc AB, Class A		10,130		219,833

Epiroc AB, Class B		7,876		154,712

FANUC Corp.		3,100		713,988

Fincantieri SpA* (a)		213,096		164,689

FLSmidth & Co. A/S(a)		18,216		718,302

Fluidra SA		912		31,728

Fuji Corp.		1,000		26,632

Fujitec Co. Ltd.		2,400		54,234

Furukawa Co. Ltd.		17,600		199,501

GEA Group AG		4,200		184,593

Georg Fischer AG (Registered)		133		186,656

Glory Ltd.		100		2,145

Harmonic Drive Systems, Inc.		1,500		101,139

Hino Motors Ltd.		10,300		86,222

Hitachi Construction Machinery Co. Ltd.		4,400		135,053

Hitachi Zosen Corp.		70,400		532,001

Hoshizaki Corp.		1,200		106,491

IHI Corp.		2,500		50,226

IMI plc		1,824		40,255

Interpump Group SpA		2,231		118,976

Interroll Holding AG (Registered)		34		116,309

Japan Steel Works Ltd. (The)		2,200		53,377

Jungheinrich AG (Preference)		3,036		159,054

Kawasaki Heavy Industries Ltd.*		2,800		66,936

KION Group AG		1,848		184,510

Kitz Corp.		30,700		192,674


Investments	Shares		Value

Machinery – (continued)

Komatsu Ltd.		21,300	$	624,551

Kone OYJ, Class B		6,336		498,366

Konecranes OYJ		2,273		104,853

Krones AG		926		80,817

Kubota Corp.		17,600		413,815

Kurita Water Industries Ltd.		3,400		156,772

Kyokuto Kaihatsu Kogyo Co. Ltd.		17,700		267,998

Makita Corp.		5,800		260,802

Manitou BF SA		6,888		231,341

Max Co. Ltd.		2,800		42,856

Meidensha Corp.		16,700		354,458

Metso Outotec OYJ		17,994		202,402

MINEBEA MITSUMI, Inc.		8,811		220,950

MISUMI Group, Inc.		2,900		81,716

Mitsubishi Heavy Industries Ltd.		8,800		261,412

Mitsuboshi Belting Ltd.		8,800		134,530

Miura Co. Ltd.(a)		3,300		172,993

Morgan Advanced Materials plc		109,472		449,403

Morita Holdings Corp.		2,600		37,821

Nachi-Fujikoshi Corp.		8,700		331,906

Neles OYJ		989		14,424

NFI Group, Inc.(a)		24,860		557,137

NGK Insulators Ltd.		7,900		143,899

Nikkiso Co. Ltd.		31,200		320,549

Nitta Corp.		3,400		81,808

Noritake Co. Ltd.		4,400		145,519

Norma Group SE		12,892		720,100

NSK Ltd.(a)		17,600		161,983

NTN Corp.*		206,800		586,506

Obara Group, Inc.(a)		4,400		149,142

OC Oerlikon Corp. AG (Registered)		469		5,487

Oiles Corp.		2,920		41,567

OKUMA Corp.		1,000		53,886

Organo Corp.		4,400		294,662

OSG Corp.		1,500		24,962

Palfinger AG		5,409		244,176

Pfeiffer Vacuum Technology AG		398		77,329

Rational AG		55		45,923

Rotork plc		23,256		110,958

See Accompanying Notes to the Financial Statements.


128		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Machinery – (continued)

Sandvik AB(a)		16,280	$	402,969

Schindler Holding AG		706		201,106

Sembcorp Marine Ltd.*		3,528,569		556,975

SFS Group AG		593		76,462

Shibaura Machine Co. Ltd.(a)		4,449		106,152

Shima Seiki Manufacturing Ltd.		1,300		26,130

Shinmaywa Industries Ltd.		21,400		191,475

SKF AB, Class A		2,427		63,863

SKF AB, Class B		3,728		96,377

SMC Corp.		1,100		638,534

Spirax-Sarco Engineering plc		1,437		235,071

Stabilus SA		582		45,540

Sumitomo Heavy Industries Ltd.		5,200		150,570

Tadano Ltd.(a)		8,900		90,380

Takeuchi Manufacturing Co. Ltd.		4,400		118,549

Takuma Co. Ltd.(a)		4,600		94,310

Techtronic Industries Co. Ltd.		22,000		401,089

Tocalo Co. Ltd.		8,200		111,404

Trelleborg AB, Class B		6,432		167,803

Tsubakimoto Chain Co.		11,000		294,863

Tsugami Corp.		3,400		54,310

Tsukishima Kikai Co. Ltd.		13,200		146,003

Union Tool Co.		500		15,827

Valmet OYJ		4,237		177,293

VAT Group AG(b)		660		188,727

Vesuvius plc		85,888		639,769

Volvo AB, Class A		5,280		133,003

Volvo AB, Class B(a)		36,872		901,987

Wacker Neuson SE*		11,924		321,245

Wartsila OYJ Abp		8,141		105,205

Weir Group plc (The)*		3,920		104,044

Yaskawa Electric Corp.		4,400		202,882
				23,986,188

Marine – 0.3%

AP Moller – Maersk A/S, Class A		52		122,474

AP Moller – Maersk A/S, Class B		104		258,752

Dfds A/S*		1,804		106,879

Golden Ocean Group Ltd.*		40,668		351,945


Investments	Shares		Value

Marine – (continued)

Kawasaki Kisen Kaisha Ltd.*		1,300	$	36,215

Kuehne + Nagel International AG (Registered)		748		223,896

Nippon Yusen KK		4,400		172,691

SITC International Holdings Co. Ltd.		49,000		187,058

Stolt-Nielsen Ltd.		12,056		181,677

Wallenius Wilhelmsen ASA*		71,008		238,283

Wilh Wilhelmsen Holding ASA, Class A		2,468		51,688
				1,931,558

Media – 1.2%

Ascential plc*		19,337		93,384

Cogeco, Inc.		3,080		241,803

CyberAgent, Inc.		8,800		180,983

Daily Mail & General Trust plc, Class A		6,037		75,060

Dentsu Group, Inc.		2,100		64,553

Euromoney Institutional Investor plc		4,083		56,192

Eutelsat Communications SA		9,280		117,466

Future plc		3,420		111,750

Hakuhodo DY Holdings, Inc.		7,400		124,637

Informa plc*		34,584		269,200

IPSOS		16,412		683,584

ITV plc*		91,152		152,707

JCDecaux SA*		968		24,681

Lagardere SCA* (a)		4,213		113,503

Mediaset Espana Comunicacion SA*		67,232		429,759

Mediaset SpA* (a)		113,520		363,230

Metropole Television SA*		22,704		505,078

Nine Entertainment Co. Holdings Ltd.		10,556		23,239

Nippon Television Holdings, Inc.		2,400		31,398

Pearson plc		15,708		180,513

ProSiebenSat.1 Media SE*		9,500		206,364

Publicis Groupe SA		5,315		344,607

Quebecor, Inc., Class B		4,781		128,444

RAI Way SpA(b)		8,120		47,750

Schibsted ASA, Class A*		2,349		118,578

Schibsted ASA, Class B*		2,493		109,524

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			129

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Media – (continued)

SES SA, Receipts(a)		6,561	$	49,790

Shaw Communications, Inc., Class B		6,892		199,443

Singapore Press Holdings Ltd.		613,900		849,050

SKY Perfect JSAT Holdings, Inc.		57,200		240,198

Storytel AB* (a)		4,092		102,981

Stroeer SE & Co. KGaA		620		52,954

Telenet Group Holding NV		1,273		54,585

Television Francaise 1*		37,972		375,056

TX Group AG*		1,188		91,570

Wowow, Inc.		3,630		88,338

WPP plc		31,504		425,546

Zenrin Co. Ltd.		2,400		25,316
				7,352,814

Metals & Mining – 4.9%

Acerinox SA		69,652		968,015

Agnico Eagle Mines Ltd.		2,999		187,273

Aichi Steel Corp.		6,100		186,675

Alamos Gold, Inc., Class A		3,943		31,571

Alumina Ltd.(a)		7,644		10,215

Anglo American plc		34,672		1,473,757

Antofagasta plc		7,124		184,004

Aperam SA		18,172		942,613

ArcelorMittal SA		17,556		512,497

Asahi Holdings, Inc.(a)		36,800		746,740

Aura Minerals, Inc.		17,996		201,288

Aurubis AG		1,848		159,150

B2Gold Corp.		13,052		62,809

Barrick Gold Corp.		4,064		86,519

Barrick Gold Corp. – XLON		22,380		478,861

Bekaert SA		13,288		584,497

BHP Group Ltd.(a)		48,136		1,773,613

BHP Group plc		49,984		1,511,791

BlueScope Steel Ltd.		14,740		246,163

Boliden AB(a)		5,544		216,233

Centamin plc		110,748		164,683

Centerra Gold, Inc.		10,411		95,969

Champion Iron Ltd.*		128,876		677,937

Daido Steel Co. Ltd.(a)		2,000		94,781

Dowa Holdings Co. Ltd.		2,200		91,780

Eldorado Gold Corp.*		7,220		71,249


Investments	Shares		Value

Metals & Mining – (continued)

Endeavour Mining Corp.		2,501	$	52,025

Eramet SA*		4,664		336,591

Evolution Mining Ltd.		35,786		127,987

Evraz plc		23,537		209,346

Ferrexpo plc		117,568		714,273

First Majestic Silver Corp.* (a)		7,676		116,182

First Quantum Minerals Ltd.(a)		13,936		320,929

Fortescue Metals Group Ltd.		40,568		707,897

Franco-Nevada Corp.		2,575		358,411

Glencore plc*		250,360		1,023,269

Granges AB*		35,024		470,535

Greatland Gold plc*		392,436		119,536

Hill & Smith Holdings plc		3,264		66,522

Hitachi Metals Ltd.		4,740		91,934

Hochschild Mining plc		14,099		36,270

Hudbay Minerals, Inc.(a)		19,756		147,423

IAMGOLD Corp.* (a)		214,764		670,374

IGO Ltd.		19,186		111,003

Iluka Resources Ltd.(a)		6,916		41,349

Ivanhoe Mines Ltd., Class A*		21,170		149,198

JFE Holdings, Inc.		17,600		231,543

Kinross Gold Corp.		23,033		161,954

Kirkland Lake Gold Ltd.		3,432		127,410

Kobe Steel Ltd.		15,800		113,905

Kyoei Steel Ltd.		12,700		177,652

Labrador Iron Ore Royalty Corp.(a)		27,985		955,885

Lundin Gold, Inc.*		6,342		61,451

Lundin Mining Corp.		8,112		97,922

Lynas Rare Earths Ltd.*		39,248		166,744

MAG Silver Corp.*		4,656		80,085

Mineral Resources Ltd.		1,300		47,950

Mitsubishi Materials Corp.		5,300		118,942

Mount Gibson Iron Ltd.		218,737		156,291

New Gold, Inc.*		63,184		103,749

Newcrest Mining Ltd.		10,692		219,030

Nippon Light Metal Holdings Co. Ltd.		26,400		514,450

Nippon Steel Corp.		10,915		190,430

Norsk Hydro ASA		42,080		269,249

Northern Star Resources Ltd.		25,378		206,030

Novagold Resources, Inc.*		7,962		71,452

OceanaGold Corp.* (a)		288,728		481,135

See Accompanying Notes to the Financial Statements.


130		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Metals & Mining – (continued)

Osaka Steel Co. Ltd.(a)		1,000	$	11,445

Osisko Gold Royalties Ltd.		5,548		66,926

Outokumpu OYJ* (a)		14,960		97,428

OZ Minerals Ltd.		11,440		211,554

Pan American Silver Corp.(a)		4,082		129,674

Perseus Mining Ltd.*		23,104		21,862

Petropavlovsk plc*		1,133,396		402,982

Polymetal International plc		5,376		111,315

Pretium Resources, Inc.*		5,096		53,479

Ramelius Resources Ltd.(a)		7,332		9,628

Regis Resources Ltd.		7,828		15,722

Resolute Mining Ltd.* (a)		454,036		170,099

Rio Tinto Ltd.		9,548		893,524

Rio Tinto plc		24,552		2,065,443

Salzgitter AG*		988		31,494

Sandfire Resources Ltd.		77,088		400,153

Sandstorm Gold Ltd.*		13,772		101,874

Sanyo Special Steel Co. Ltd.*		4,800		72,633

Sims Ltd.		5,980		72,938

South32 Ltd.		117,172		260,667

SSAB AB, Class A*		13,394		73,039

SSR Mining, Inc.(a)		8,601		136,405

St Barbara Ltd.		306,324		436,564

Sumitomo Metal Mining Co. Ltd.		5,100		216,448

Teck Resources Ltd., Class B		12,320		260,481

thyssenkrupp AG*		3,839		51,390

Toho Titanium Co. Ltd.		200		1,835

Tokyo Steel Manufacturing Co. Ltd.(a)		35,200		341,035

Torex Gold Resources, Inc.* (a)		40,392		488,565

Turquoise Hill Resources Ltd.* (a)		39,732		698,265

UACJ Corp.* (a)		9,600		221,765

voestalpine AG		1,880		81,700

Westgold Resources Ltd.* (a)		158,576		264,583

Wheaton Precious Metals Corp.		6,328		262,286

Yamana Gold, Inc.		24,430		111,804

Yodogawa Steel Works Ltd.		2,900		63,993
				31,095,994


Investments	Shares		Value

Multiline Retail – 0.5%

B&M European Value Retail SA		23,980	$	187,854

Canadian Tire Corp. Ltd., Class A(a)		1,248		198,755

Dollarama, Inc.(a)		4,444		206,919

Europris ASA(b)		5,876		40,137

Fuji Co. Ltd.(a)		13,200		249,134

H2O Retailing Corp.		36,415		284,177

Harvey Norman Holdings Ltd.(a)		5,610		22,837

Isetan Mitsukoshi Holdings Ltd.		300		2,091

Izumi Co. Ltd.(a)		1,300		51,677

J Front Retailing Co. Ltd.		300		2,854

Lifestyle International Holdings Ltd.* (a)		132,000		107,240

Marks & Spencer Group plc*		57,720		126,268

Marui Group Co. Ltd.		5,500		102,951

Next plc*		2,420		261,415

Pan Pacific International Holdings Corp.		11,900		256,388

Ryohin Keikaku Co. Ltd.		6,000		126,252

Seria Co. Ltd.		1,000		36,275

Takashimaya Co. Ltd.		9,100		100,237

Warehouse Group Ltd. (The)(a)		11,552		28,264

Wesfarmers Ltd.		21,560		901,149
				3,292,874

Multi-Utilities – 0.6%

A2A SpA		75,020		146,933

ACEA SpA		1,552		35,292

AGL Energy Ltd.		12,320		84,983

Algonquin Power & Utilities Corp.(a)		8,846		142,591

Atco Ltd., Class I		1,064		36,490

Centrica plc* (a)		173,334		135,978

E.ON SE		29,984		361,886

Engie SA		40,656		605,409

Hera SpA		30,628		123,330

Iren SpA		34,534		103,099

Keppel Infrastructure Trust		170,047		70,299

National Grid plc		59,195		746,313

REN – Redes Energeticas Nacionais SGPS SA		13,606		39,883

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			131

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Multi-Utilities – (continued)

RWE AG		9,680	$	367,529

Sembcorp Industries Ltd.		17,200		27,408

Suez SA		9,640		230,468

Telecom Plus plc		4,843		87,170

Veolia Environnement SA		8,976		286,233
				3,631,294

Oil, Gas & Consumable Fuels – 3.8%

Aker BP ASA		4,404		126,583

Ampol Ltd.		6,084		120,262

ARC Resources Ltd.(a)		265,441		1,667,907

Beach Energy Ltd.(a)		90,532		89,163

BP plc		451,792		1,895,352

BRIGHTOIL* ^‡ (d)		50,147		—

BW LPG Ltd.(b)		36,652		271,972

Cairn Energy plc		23,656		55,614

Cameco Corp.		9,372		157,393

Canadian Natural Resources Ltd.		18,172		551,128

Cenovus Energy, Inc.		32,051		249,332

China Aviation Oil Singapore Corp. Ltd.		96,000		81,539

Cosmo Energy Holdings Co. Ltd.		27,000		580,239

Crescent Point Energy Corp.(a)		227,040		895,093

Diversified Gas & Oil plc(b)		286,352		483,692

DNO ASA* (a)		22,960		27,088

Enbridge, Inc.		34,760		1,339,596

ENEOS Holdings, Inc.		74,850		322,669

Energean plc*		3,432		39,582

Eni SpA		58,740		702,162

Equinor ASA		22,924		467,685

Equital Ltd.*		8,140		213,103

Euronav NV		6,241		53,822

Galp Energia SGPS SA		7,324		84,728

Gaztransport Et Technigaz SA		660		56,450

Gibson Energy, Inc.(a)		7,625		139,149

Hafnia Ltd.		46,860		100,847

Idemitsu Kosan Co. Ltd.		4,282		102,520

Imperial Oil Ltd.		7,476		215,736

Inpex Corp.		24,000		163,798

Inter Pipeline Ltd.		11,856		172,703


Investments	Shares		Value

Oil, Gas & Consumable Fuels – (continued)

Itochu Enex Co. Ltd.		17,700	$	168,571

Iwatani Corp.		2,197		137,683

Japan Petroleum Exploration Co. Ltd.		14,900		276,721

Keyera Corp.(a)		1,840		42,044

Koninklijke Vopak NV		1,558		71,457

Lundin Energy AB		4,170		133,744

Mitsuuroko Group Holdings Co. Ltd.(a)		1,200		15,666

Naphtha Israel Petroleum Corp. Ltd.*		20,959		99,000

Neste OYJ		7,656		464,501

New Hope Corp. Ltd.		29,304		26,371

Oil Refineries Ltd.*		656,568		182,192

OMV AG		5,148		254,146

Origin Energy Ltd.		32,516		104,487

Parex Resources, Inc.*		52,272		983,659

Parkland Corp.		2,207		70,828

Paz Oil Co. Ltd.		3,916		432,609

Pembina Pipeline Corp.		12,848		396,239

PrairieSky Royalty Ltd.(a)		9,460		101,352

Repsol SA		40,403		483,356

Royal Dutch Shell plc, Class A		95,568		1,806,150

Royal Dutch Shell plc, Class B		83,160		1,495,658

San-Ai Oil Co. Ltd.(a)		26,100		292,030

Santos Ltd.		38,368		206,869

Suncor Energy, Inc.		24,948		533,151

TC Energy Corp.		16,060		793,862

TOTAL SE		57,992		2,570,782

Tourmaline Oil Corp.(a)		3,328		71,743

United Energy Group Ltd.* (a)		198,000		39,259

Washington H Soul Pattinson & Co. Ltd.		3,009		70,357

Whitehaven Coal Ltd.* (a)		362,824		358,737

Woodside Petroleum Ltd.		14,125		249,422

Z Energy Ltd.*		38,324		73,693
				24,433,246

Paper & Forest Products – 0.5%

Canfor Corp.* (a)		23,364		583,055

Daiken Corp.		6,500		122,382

Daio Paper Corp.		3,745		61,329

Hokuetsu Corp.		66,100		341,672

Holmen AB, Class B(a)		1,540		72,668

See Accompanying Notes to the Financial Statements.


132		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Paper & Forest Products – (continued)

Metsa Board OYJ		6,595	$	84,075

Mondi plc		11,176		304,059

Navigator Co. SA (The)		79,552		268,716

Nippon Paper Industries Co. Ltd.(a)		3,700		45,427

Oji Holdings Corp.		26,000		163,890

Stella-Jones, Inc.		4,576		191,194

Stora Enso OYJ, Class R		10,208		195,754

Svenska Cellulosa AB SCA, Class A		3,160		57,028

Svenska Cellulosa AB SCA, Class B		6,688		117,455

UPM-Kymmene OYJ		10,208		399,987

West Fraser Timber Co. Ltd.(a)		2,747		211,909
				3,220,600

Personal Products – 1.0%

Beiersdorf AG		1,320		149,209

Blackmores Ltd.(a)		46		2,546

Fancl Corp.		400		13,064

Interparfums SA*		654		45,269

Jamieson Wellness, Inc.(a) (b)		6,072		190,422

Kao Corp.		7,800		500,019

Kobayashi Pharmaceutical Co. Ltd.		1,400		124,880

Kose Corp.(a)		700		105,411

L’Occitane International SA		15,500		44,603

L’Oreal SA(a)		3,749		1,541,882

Mandom Corp.		2,600		48,667

Milbon Co. Ltd.		1,000		53,245

Noevir Holdings Co. Ltd.		1,900		83,697

Ontex Group NV* (a)		23,804		310,910

Pola Orbis Holdings, Inc.		2,000		51,837

Rohto Pharmaceutical Co. Ltd.		2,000		51,288

Shiseido Co. Ltd.		6,700		485,958

Unilever plc		20,736		1,214,865

Unilever plc		23,440		1,370,785
				6,388,557

Pharmaceuticals – 4.1%

ALK-Abello A/S*		208		90,302

Almirall SA		4,342		68,263


Investments	Shares		Value

Pharmaceuticals – (continued)

Aphria, Inc.* (a)		15,976	$	245,185

Astellas Pharma, Inc.		30,600		459,259

AstraZeneca plc		22,440		2,396,997

Bausch Health Cos., Inc.*		7,348		236,352

Bayer AG (Registered)		22,836		1,479,511

Canopy Growth Corp.* (a)		6,156		165,885

Chugai Pharmaceutical Co. Ltd.		9,200		345,174

COSMO Pharmaceuticals NV* (a)		413		39,849

Cronos Group, Inc.*		15,356		125,200

Daiichi Sankyo Co. Ltd.		30,300		772,573

Dechra Pharmaceuticals plc		3,080		172,026

Eisai Co. Ltd.		5,500		358,716

Faes Farma SA		16,374		68,318

Financiere de Tubize SA(a)		751		73,771

GlaxoSmithKline plc		116,864		2,167,527

GW Pharmaceuticals plc* (d)		1		18

H Lundbeck A/S		1,852		57,200

Haw Par Corp. Ltd.		3,200		31,750

Hikma Pharmaceuticals plc		2,900		97,971

Hisamitsu Pharmaceutical Co., Inc.		1,900		110,553

Hutchison China MediTech Ltd.*		7,150		41,875

Ipsen SA		770		74,562

JCR Pharmaceuticals Co. Ltd.		2,400		65,322

Kaken Pharmaceutical Co. Ltd.		1,500		61,754

Kissei Pharmaceutical Co. Ltd.		1,400		28,409

Kyowa Kirin Co. Ltd.		4,400		133,644

Merck KGaA		2,508		441,246

Mochida Pharmaceutical Co. Ltd.		900		31,330

Nichi-iko Pharmaceutical Co. Ltd.(a)		26,400		221,721

Nippon Shinyaku Co. Ltd.		2,000		134,669

Novartis AG (Registered)		41,712		3,565,449

Novo Nordisk A/S, Class B		28,908		2,120,024

Ono Pharmaceutical Co. Ltd.		9,400		236,580

Orion OYJ, Class A		1,474		65,298

Orion OYJ, Class B		1,404		62,248

Otsuka Holdings Co. Ltd.		10,100		388,181

Recordati Industria Chimica e Farmaceutica SpA		2,359		130,175

Roche Holding AG		11,792		3,847,705

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			133

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Pharmaceuticals – (continued)

Roche Holding AG – BR		496	$	172,503

Sanofi(a)		19,360		2,033,877

Santen Pharmaceutical Co. Ltd.		8,900		113,993

Seikagaku Corp.		1,800		16,534

Shionogi & Co. Ltd.(a)		4,100		215,568

Sosei Group Corp.*		1,200		18,817

Sumitomo Dainippon Pharma Co. Ltd.		3,600		62,412

Taisho Pharmaceutical Holdings Co. Ltd.		600		35,351

Takeda Pharmaceutical Co. Ltd.		35,217		1,171,161

Teva Pharmaceutical Industries Ltd.*		25,916		270,478

Torii Pharmaceutical Co. Ltd.		800		18,868

Towa Pharmaceutical Co. Ltd.		10,000		206,944

Tsumura & Co.		900		29,971

UCB SA		2,200		204,083

Vifor Pharma AG(a)		837		120,725

Virbac SA*		212		68,905

ZERIA Pharmaceutical Co. Ltd.(a)		1,800		32,178
				26,004,960

Professional Services – 1.3%

Adecco Group AG (Registered)		3,960		268,501

AF Poyry AB, Class B		4,429		145,089

ALS Ltd.		13,503		109,936

Applus Services SA*		59,004		624,700

Benefit One, Inc.		2,000		50,190

Bureau Veritas SA*		4,296		128,616

DKSH Holding AG		660		53,152

en-japan, Inc.		1,700		51,558

Experian plc		15,972		617,424

Funai Soken Holdings, Inc.		2,700		47,872

Hays plc*		34,264		77,517

Intertek Group plc		2,376		201,921

Intertrust NV* (b)		35,860		664,791

IPH Ltd.(a)		21,158		115,712

JAC Recruitment Co. Ltd.		1,300		20,219

Meitec Corp.		1,500		83,299

Morneau Shepell, Inc.		2,428		60,986


Investments	Shares		Value

Professional Services – (continued)

Nihon M&A Center, Inc.		4,800	$	125,769

Nomura Co. Ltd.		6,000		43,639

Outsourcing, Inc.		4,800		73,819

Pagegroup plc*		20,728		160,858

Persol Holdings Co. Ltd.		5,700		104,765

Randstad NV		2,596		187,754

Recruit Holdings Co. Ltd.		28,100		1,269,712

RELX plc		32,560		847,296

RWS Holdings plc		22,176		210,935

SGS SA (Registered)		88		260,512

SmartGroup Corp. Ltd.(a)		54,824		298,136

SMS Co. Ltd.		3,200		87,359

Stantec, Inc.		1,027		48,044

Synergie SE		3,124		142,905

TechnoPro Holdings, Inc.		1,900		139,582

Teleperformance		924		357,163

Thomson Reuters Corp.		2,072		191,991

Wolters Kluwer NV(a)		5,324		482,344
				8,354,066

Real Estate Management & Development – 2.7%

ADLER Group SA(a) (b)		33,264		984,262

Aedas Homes SA* (b)		9,152		236,869

Aeon Mall Co. Ltd.		1,990		31,569

AFI Properties Ltd.*		3,784		157,037

Airport City Ltd.*		1,928		32,100

Allreal Holding AG (Registered)		366		74,159

Alrov Properties and Lodgings Ltd.*		2,548		132,846

Altus Group Ltd.		1,792		90,474

Amot Investments Ltd.		11,168		73,171

Aroundtown SA		23,027		177,518

Atrium Ljungberg AB, Class B		2,912		60,921

Azrieli Group Ltd.		1,016		71,579

Bayside Land Corp. Ltd.		9,800		90,013

Big Shopping Centers Ltd.*		16		1,936

Blue Square Real Estate Ltd.		2,385		175,822

Bukit Sembawang Estates Ltd.		70,400		249,236

CA Immobilien Anlagen AG(a)		1,760		77,226

CapitaLand Ltd.		60,131		168,135

Castellum AB		6,732		164,085

Catena AB		1,676		81,305

See Accompanying Notes to the Financial Statements.


134		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Real Estate Management & Development – (continued)

Cibus Nordic Real Estate AB		17,380	$	367,096

City Developments Ltd.		600		3,558

CK Asset Holdings Ltd.		66,000		414,261

CLS Holdings plc		14,403		49,655

Colliers International Group, Inc.		1,142		123,502

Corem Property Group AB, Class B(a)		61,048		137,319

Daibiru Corp.		3,300		38,493

Daito Trust Construction Co. Ltd.		1,900		201,985

Daiwa House Industry Co. Ltd.		16,200		479,457

Deutsche EuroShop AG*		19,844		458,654

Deutsche Wohnen SE		5,720		309,858

Dios Fastigheter AB		40,744		388,130

Fabege AB		8,276		123,566

Far East Consortium International Ltd.		504,358		178,578

Fastighets AB Balder, Class B*		2,816		162,418

FastPartner AB, Class A		6,642		73,052

FirstService Corp.		676		109,714

Gazit-Globe Ltd.		23,040		150,600

Goldcrest Co. Ltd.(a)		1,000		14,519

Grand City Properties SA		2,508		67,508

Great Eagle Holdings Ltd.		140,776		496,632

GuocoLand Ltd.		36,400		45,418

Henderson Land Development Co. Ltd.		33,239		147,860

Hiag Immobilien Holding AG		355		41,259

Ho Bee Land Ltd.		78,800		161,699

Hufvudstaden AB, Class A		2,610		41,639

Hulic Co. Ltd.		4,900		55,767

Hysan Development Co. Ltd.		19,000		71,554

Ichigo, Inc.		14,300		44,612

Immobel SA(a)		1,100		86,866

IMMOFINANZ AG(a)		2,253		46,948

Intershop Holding AG		76		50,914

Israel Canada T.R Ltd.		26,616		101,266

Isras Investment Co. Ltd.		312		68,309

IWG plc*		18,668		94,780

Jeudan A/S		560		22,118

K Wah International Holdings Ltd.		613,089		305,485


Investments	Shares		Value

Real Estate Management & Development – (continued)

Kerry Properties Ltd.		38,500	$	129,873

Klovern AB, Class B		28,607		55,484

Kowloon Development Co. Ltd.(a)		180,000		211,360

Kungsleden AB		208		2,422

LEG Immobilien SE		1,144		159,336

Lendlease Corp. Ltd.		14,937		146,649

Mega Or Holdings Ltd.		3,373		112,005

Melisron Ltd.*		944		57,222

Mitsubishi Estate Co. Ltd.		20,400		335,101

Mitsui Fudosan Co. Ltd.		21,900		474,846

Mivne Real Estate KD Ltd.		14,248		39,229

Mobimo Holding AG (Registered)		232		73,768

New World Development Co. Ltd.		33,590		177,749

Nexity SA(a)		18,436		1,000,472

Nomura Real Estate Holdings, Inc.		5,800		142,738

NP3 Fastigheter AB		1,584		29,073

OUE Ltd.		41,600		45,965

Oxley Holdings Ltd.		467,080		89,526

PATRIZIA AG		3,248		88,951

Property & Building Corp. Ltd.*		480		57,348

PSP Swiss Property AG (Registered)		531		65,556

Real Matters, Inc.*		423		5,539

Relo Group, Inc.		2,270		46,727

S IMMO AG		2,564		66,669

Sagax AB, Class B		3,740		99,076

Samhallsbyggnadsbolaget i Norden AB		36,868		140,744

SAMTY Co. Ltd.		13,500		247,015

Savills plc		10,452		172,932

Sella Capital Real Estate Ltd., REIT		65,936		168,329

Selvaag Bolig ASA		21,356		157,056

Singapore Land Group Ltd.		5,656		11,946

Sino Land Co. Ltd.		31,136		46,262

Sirius Real Estate Ltd.		94,543		132,994

St Modwen Properties plc		1,373		8,250

Starts Corp., Inc.		13,200		322,679

Sumitomo Realty & Development Co. Ltd.		11,800		392,848

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			135

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Real Estate Management & Development – (continued)

Summit Real Estate Holdings Ltd.*		14,606	$	238,634

Sun Hung Kai Properties Ltd.		31,500		475,733

Swire Pacific Ltd., Class A		3,500		28,322

Swire Properties Ltd.		24,800		74,079

Swiss Prime Site AG (Registered)		1,314		127,863

TAG Immobilien AG		4,270		132,155

Tokyo Tatemono Co. Ltd.		9,600		141,666

Tokyu Fudosan Holdings Corp.		20,000		111,065

Tosei Corp.		10,400		102,854

Tricon Residential, Inc.		13,948		147,847

UOL Group Ltd.		15,599		90,283

Vonovia SE		9,122		600,005

Wallenstam AB, Class B		7,068		109,333

Wharf Real Estate Investment Co. Ltd.(a)		25,000		143,881

Wihlborgs Fastigheter AB		5,830		119,279

Wing Tai Holdings Ltd.		59,200		85,436

YH Dimri Construction & Development Ltd.		1,596		95,218
				17,202,704

Road & Rail – 1.4%

Aurizon Holdings Ltd.		31,840		92,231

Canadian National Railway Co.		11,528		1,240,042

Canadian Pacific Railway Ltd.(a)		2,376		885,949

Central Japan Railway Co.		2,700		394,854

ComfortDelGro Corp. Ltd.		18,400		23,788

East Japan Railway Co.		9,000		615,809

Firstgroup plc*		532,136		547,419

Fukuyama Transporting Co. Ltd.		1,000		38,287

Hamakyorex Co. Ltd.		6,800		191,300

Hankyu Hanshin Holdings, Inc.		4,600		144,769

Hitachi Transport System Ltd.		2,700		83,862

Keikyu Corp.(a)		1,300		16,627

Keio Corp.(a)		2,800		181,876

Keisei Electric Railway Co. Ltd.(a)		4,500		140,387

Kintetsu Group Holdings Co. Ltd.*		3,900		139,687


Investments	Shares		Value

Road & Rail – (continued)

Kyushu Railway Co.		2,100	$	47,109

Maruzen Showa Unyu Co. Ltd.		7,900		229,834

MTR Corp. Ltd.		25,764		143,634

Mullen Group Ltd.		36,168		396,019

Nagoya Railroad Co. Ltd.*		4,400		100,877

Nankai Electric Railway Co. Ltd.(a)		3,000		66,200

National Express Group plc*		226,688		940,327

Nikkon Holdings Co. Ltd.		2,600		54,400

Nippon Express Co. Ltd.		1,600		122,227

Nishi-Nippon Railroad Co. Ltd.		1,000		25,809

Nobina AB* (b)		29,304		259,918

Odakyu Electric Railway Co. Ltd.(a)		4,600		124,358

Sankyu, Inc.		2,333		99,463

SBS Transit Ltd.		30,400		72,207

Seibu Holdings, Inc.		2,600		27,973

Seino Holdings Co. Ltd.		7,500		103,060

Senko Group Holdings Co. Ltd.(a)		3,600		33,100

Sixt SE*		550		76,405

Sixt SE (Preference)		298		24,645

Stef SA		1,320		148,096

TFI International, Inc.		3,696		323,573

Tobu Railway Co. Ltd.		4,000		102,832

Tokyu Corp.		8,900		114,400

Tonami Holdings Co. Ltd.		4,400		213,348

Trancom Co. Ltd.		600		46,549

Transport International Holdings Ltd.		105,600		220,531

West Japan Railway Co.		4,400		242,814
				9,096,595

Semiconductors & Semiconductor Equipment – 1.6%

Advantest Corp.		3,100		294,387

AIXTRON SE*		7,964		170,314

ams AG* (a)		8,459		146,819

ASM International NV		1,012		308,094

ASM Pacific Technology Ltd.		5,000		75,835

ASML Holding NV		7,128		4,643,868

BE Semiconductor Industries NV		2,618		212,162

Dialog Semiconductor plc*		720		56,459

Disco Corp.		700		226,705

See Accompanying Notes to the Financial Statements.


136		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Semiconductors & Semiconductor Equipment – (continued)

Infineon Technologies AG		22,616	$	913,812

Japan Material Co. Ltd.		3,900		45,349

Lasertec Corp.		1,000		176,936

Melexis NV		495		53,987

Mimasu Semiconductor Industry Co. Ltd.		200		5,136

Nordic Semiconductor ASA*		8,272		205,102

Renesas Electronics Corp.*		15,600		181,968

Rohm Co. Ltd.		2,000		198,161

SCREEN Holdings Co. Ltd.		1,800		172,252

Shinko Electric Industries Co. Ltd.		1,400		45,213

Siltronic AG		396		66,834

SOITEC*		816		165,125

STMicroelectronics NV		11,836		443,973

SUMCO Corp.		7,600		196,910

Tokyo Electron Ltd.		2,500		1,105,165

Tower Semiconductor Ltd.*		3,423		100,157

Ulvac, Inc.		1,700		77,764
				10,288,487

Software – 1.2%

Altium Ltd.		1,716		39,302

Avast plc(b)		17,028		112,623

AVEVA Group plc		3,926		189,164

BlackBerry Ltd.* (a)		8,682		76,714

Blue Prism Group plc* (a)		4,832		81,620

Bravura Solutions Ltd.(a)		5,168		11,258

Constellation Software, Inc.		356		522,028

Dassault Systemes SE		2,264		525,867

Descartes Systems Group, Inc. (The)*		832		53,178

Enghouse Systems Ltd.		1,300		61,523

Fuji Soft, Inc.		1,600		80,216

GB Group plc		1,064		13,236

Hilan Ltd.		1,569		82,239

IRESS Ltd.		19,140		149,030

Kinaxis, Inc.*		520		67,014

Lightspeed POS, Inc.* (a)		2,184		152,376

Micro Focus International plc		140,536		1,007,920

Miroku Jyoho Service Co. Ltd.		1,000		16,724

Nemetschek SE		884		65,978


Investments	Shares		Value

Software – (continued)

Nice Ltd.*		1,189	$	287,705

Open Text Corp.		3,696		173,894

Oracle Corp. Japan		800		75,019

Sage Group plc (The)		16,500		145,752

SAP SE		18,392		2,585,100

SimCorp A/S		1,100		145,583

Sinch AB* (b)		780		123,378

Software AG		1,320		57,268

Systena Corp.		5,200		106,992

TeamViewer AG* (b)		2,080		99,054

Technology One Ltd.		7,884		57,733

Temenos AG (Registered)		765		112,479

Trend Micro, Inc.		2,500		118,933

Vitec Software Group AB, Class B		4,356		206,319

WiseTech Global Ltd.		4,953		120,249
				7,723,468

Specialty Retail – 1.8%

ABC-Mart, Inc.		700		37,464

Alpen Co. Ltd.		200		4,261

Arcland Sakamoto Co. Ltd.		16,700		228,106

Aritzia, Inc.*		2,860		71,302

AT-Group Co. Ltd.		10,400		158,704

Autobacs Seven Co. Ltd.		2,100		28,088

Bic Camera, Inc.		4,100		42,311

Bilia AB, Class A(a)		36,564		639,543

CECONOMY AG*		64,548		378,413

Clas Ohlson AB, Class B*		13,508		144,813

DCM Holdings Co. Ltd.		2,400		23,933

Delek Automotive Systems Ltd.		17,264		214,353

Dixons Carphone plc*		410,916		792,525

Dufry AG (Registered)*		1,188		78,206

Dunelm Group plc		2,604		53,143

Eagers Automotive Ltd.		4,180		50,564

EDION Corp.		30,800		327,147

Fast Retailing Co. Ltd.		1,100		902,804

Fenix Outdoor International AG		369		54,810

Fielmann AG*		607		46,254

Fnac Darty SA*		8,932		630,625

Fox Wizel Ltd.		855		99,410

GrandVision NV* (b)		1,506		48,768

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			137

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Specialty Retail – (continued)

H & M Hennes & Mauritz AB, Class B*		11,440	$	282,491

Hikari Tsushin, Inc.		600		120,653

Hornbach Baumarkt AG		3,608		144,415

Hornbach Holding AG & Co. KGaA		3,784		354,165

IDOM, Inc.		20,800		120,456

Industria de Diseno Textil SA(a)		17,072		608,729

JB Hi-Fi Ltd.(a)		2,881		102,993

JD Sports Fashion plc*		8,827		112,241

JINS Holdings, Inc.(a)		900		63,153

Joshin Denki Co. Ltd.(a)		8,800		221,882

Joyful Honda Co. Ltd.		2,000		24,610

Kathmandu Holdings Ltd.*		266,816		277,589

Kingfisher plc*		45,013		222,679

Kohnan Shoji Co. Ltd.		13,200		356,975

Kojima Co. Ltd.		13,200		107,237

K’s Holdings Corp.		6,100		83,320

Leon’s Furniture Ltd.		12,116		216,969

Luk Fook Holdings International Ltd.		148,672		372,118

Mekonomen AB*		16,060		275,778

Nafco Co. Ltd.		4,400		88,962

Nick Scali Ltd.(a)		30,272		262,598

Nishimatsuya Chain Co. Ltd.		1,300		20,385

Nitori Holdings Co. Ltd.		1,600		287,050

PAL GROUP Holdings Co. Ltd.		8,800		123,822

Pets at Home Group plc		11,308		69,546

Premier Investments Ltd.		6,508		132,163

Super Retail Group Ltd.(a)		5,324		49,062

T-Gaia Corp.		9,800		167,839

United Arrows Ltd.		8,800		153,933

USS Co. Ltd.		1,000		18,124

Vivo Energy plc(b)		154,220		213,525

Watches of Switzerland Group plc* (c)		10,868		110,297

WH Smith plc*		3,950		98,961

Wickes Group plc*		8,632		29,873

World Co. Ltd.		9,000		115,027

Yamada Holdings Co. Ltd.		7,800		38,820

Yellow Hat Ltd.		17,800		299,150
				11,403,137


Investments	Shares		Value

Technology Hardware, Storage & Peripherals – 0.4%

Brother Industries Ltd.		7,400	$	156,456

Canon, Inc.(a)		16,800		400,077

Eizo Corp.		1,400		52,001

Elecom Co. Ltd.		1,600		33,667

FUJIFILM Holdings Corp.		6,700		434,407

Konica Minolta, Inc.		18,900		106,859

Logitech International SA (Registered)		3,109		349,062

MCJ Co. Ltd.(a)		30,800		280,090

Ricoh Co. Ltd.		16,600		176,471

Riso Kagaku Corp.(a)		1,700		20,530

Seiko Epson Corp.(a)		8,300		141,086

Toshiba TEC Corp.*		1,100		43,877

Wacom Co. Ltd.		13,200		84,655
				2,279,238

Textiles, Apparel & Luxury Goods – 2.0%

adidas AG*		3,036		938,719

Asics Corp.		5,200		82,540

Brunello Cucinelli SpA* (a)		1,368		69,758

Burberry Group plc*		7,700		219,724

Canada Goose Holdings, Inc.* (a)		1,100		46,443

Chow Sang Sang Holdings International Ltd.		196,000		334,117

Cie Financiere Richemont SA (Registered)		8,888		912,529

Coats Group plc		98,856		79,933

Crystal International Group Ltd.(b)		397,500		209,834

Delta Galil Industries Ltd.*		4,626		127,012

Descente Ltd.*		2,400		41,542

EssilorLuxottica SA – IM		2,578		429,138

EssilorLuxottica SA – MO		1,910		318,217

Gildan Activewear, Inc.*		2,703		93,733

Goldwin, Inc.(a)		1,900		113,508

Gunze Ltd.		700		24,784

Hermes International		529		664,830

HUGO BOSS AG		1,980		91,480

Japan Wool Textile Co. Ltd. (The)		24,400		217,648

Kering SA		1,232		988,474

Kurabo Industries Ltd.		6,800		112,789

See Accompanying Notes to the Financial Statements.


138		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Textiles, Apparel & Luxury Goods – (continued)

LVMH Moet Hennessy Louis Vuitton SE		4,488	$	3,383,142

Moncler SpA*		3,061		188,000

Pacific Textiles Holdings Ltd.		308,000		197,089

Pandora A/S		1,848		209,998

Puma SE*		1,760		185,851

Samsonite International SA* (a) (b)		593,400		1,101,711

Seiko Holdings Corp.		13,500		237,876

Seiren Co. Ltd.(a)		25,600		443,120

Stella International Holdings Ltd.		110,500		136,580

Swatch Group AG (The)		364		111,589

Swatch Group AG (The) (Registered)		8		480

Tod’s SpA*		245		11,544

Wacoal Holdings Corp.		1,500		33,800

Yondoshi Holdings, Inc.		1,400		23,734

Yue Yuen Industrial Holdings Ltd.		22,000		55,235
				12,436,501

Thrifts & Mortgage Finance – 0.6%

Aareal Bank AG		24,552		691,603

Deutsche Pfandbriefbank AG* (b)		59,004		680,742

Equitable Group, Inc.		4,532		491,476

Home Capital Group, Inc.*		22,616		597,296

OSB Group plc		145,376		964,536

Paragon Banking Group plc		101,332		659,968
				4,085,621

Tobacco – 0.6%

British American Tobacco plc		52,756		1,959,022

Imperial Brands plc		24,376		508,778

Japan Tobacco, Inc.		26,400		493,679

Scandinavian Tobacco Group A/S(a) (b)		20,153		367,329

Swedish Match AB		3,300		271,001
				3,599,809


Investments	Shares		Value

Trading Companies & Distributors – 1.6%

AddTech AB, Class B		2,196	$	38,436

Advan Co. Ltd.		1,200		10,221

Ashtead Group plc		6,424		413,676

Beijer Ref AB		2,340		36,391

Brenntag SE		2,205		198,229

Bunzl plc		5,984		192,795

Electrocomponents plc		2,548		37,607

Ferguson plc		3,564		450,622

Finning International, Inc.(a)		4,111		106,902

Grafton Group plc		11,760		194,248

Hanwa Co. Ltd.(a)		17,600		522,501

Howden Joinery Group plc*		15,972		178,858

IMCD NV		1,360		198,016

Inaba Denki Sangyo Co. Ltd.		19,200		448,975

Inabata & Co. Ltd.(a)		13,000		195,883

Indutrade AB		6,594		172,497

ITOCHU Corp.(a)		31,900		994,604

Japan Pulp & Paper Co. Ltd.		5,900		195,668

Kanamoto Co. Ltd.(a)		14,323		350,786

Kanematsu Corp.		30,800		405,764

Marubeni Corp.		47,000		390,688

Mitsubishi Corp.		30,800		850,977

Mitsui & Co. Ltd.(a)		36,000		758,666

MonotaRO Co. Ltd.		5,600		142,940

Nagase & Co. Ltd.		4,900		73,788

Nippon Steel Trading Corp.		5,000		176,570

Nishio Rent All Co. Ltd.		9,900		273,075

Reece Ltd.		5,999		93,930

Rexel SA*		4,641		91,457

Richelieu Hardware Ltd.		1,340		46,773

Russel Metals, Inc.(a)		21,692		496,895

Seven Group Holdings Ltd.(a)		104		1,730

Sojitz Corp.		43,300		129,141

Sumitomo Corp.		24,200		329,442

Toromont Industries Ltd.		2,360		188,002

Toyota Tsusho Corp.		5,300		224,015

Travis Perkins plc*		7,704		163,937

Yamazen Corp.(a)		33,000		294,662

Yuasa Trading Co. Ltd.		8,800		239,111
				10,308,478

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			139

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Transportation Infrastructure – 0.4%

Aena SME SA* (b)		1,100	$	191,609

Aeroports de Paris* (a)		555		71,287

ASTM SpA*		1,668		51,805

Atlantia SpA*		10,824		211,411

Atlas Arteria Ltd.(a)		25,621		119,537

Auckland International Airport Ltd.* (a)		22,876		124,579

Enav SpA(b)		12,657		58,843

Flughafen Zurich AG (Registered)* (a)		320		57,611

Fraport AG Frankfurt Airport Services Worldwide*		890		59,162

Getlink SE		8,876		141,362

Hamburger Hafen und Logistik AG		1,220		30,078

James Fisher & Sons plc		1,322		19,036

Kamigumi Co. Ltd.		800		15,553

Port of Tauranga Ltd.		5,225		27,742

Qube Holdings Ltd.		55,759		129,644

SATS Ltd.*		19,000		57,982

Signature Aviation plc*		24,573		137,553

Sumitomo Warehouse Co. Ltd. (The)		26,400		341,276

Sydney Airport*		7,964		38,079

Transurban Group		45,276		495,574

Westshore Terminals Investment Corp.(a)		16,456		268,336
				2,648,059

Water Utilities – 0.1%

Pennon Group plc		4,356		62,362

Severn Trent plc		5,280		181,079

United Utilities Group plc		11,220		150,406
				393,847

Wireless Telecommunication Services – 1.0%

1&1 Drillisch AG		987		29,704

Airtel Africa plc(b)		34,804		36,623

Cellcom Israel Ltd.*		33,968		131,647

Freenet AG		2,198		53,581

KDDI Corp.		37,000		1,119,089


Investments	Shares		Value

Wireless Telecommunication Services – (continued)

Millicom International Cellular SA, SDR*		1,924	$	76,225

Orange Belgium SA		11,176		295,308

Rogers Communications, Inc., Class B		6,820		335,622

Softbank Corp.(a)		35,300		455,197

SoftBank Group Corp.		27,882		2,521,509

StarHub Ltd.		17,700		17,961

Tele2 AB, Class B		11,244		145,408

VEON Ltd.* (a)		19,670		33,387

Vodafone Group plc		600,468		1,137,325
				6,388,586
Total Common Stocks (Cost $484,188,004)				617,565,483



CLOSED END FUNDS – 0.0%(f)

Independent Power and Renewable Electricity Producers – 0.0%(f)

Renewables Infrastructure Group Ltd. (The) (Cost $86,913)		57,872		100,799
	Number of Rights

RIGHTS – 0.0%(f)

Capital Markets – 0.0%(f)

Credit Suisse Group AG, expiring 5/6/2021, price 1,000 CHF*‡ ^(d)		49,544		—

Euronext NV, expiring 5/10/2021, price 59.65 EUR*		1,402		16,455
				16,455

Metals & Mining – 0.0%

Regis Resources Ltd., expiring 4/15/2021, price 2.70 AUD* ^‡ (d)		2,541		—
Total Rights (Cost $—)				16,455

See Accompanying Notes to the Financial Statements.


140		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Investments	Number of Warrants		Value

WARRANTS – 0.0%(f)

Textiles, Apparel & Luxury Goods – 0.0%(f)

Cie Financiere Richemont SA, expiring 11/22/2023, price 67.00 CHF* (Cost $—)		16,100	$	6,885


	Principal Amount

SECURITIES LENDING REINVESTMENTS(g) – 2.9%

REPURCHASE AGREEMENTS – 2.9%

Citigroup Global Markets Ltd., 0.05%, dated 4/30/2021, due 5/3/2021, repurchase price $3,300,000, collateralized by various U.S. Treasury Securities, ranging from 0.00% –3.00%, maturing 5/15/2023 – 2/15/2049; Foreign Government Fixed Income Securities, 0.45%, maturing 8/19/2027; total market value $3,357,712	$	3,300,000		3,300,000

Citigroup Global Markets, Inc., 0.01%, dated 4/30/2021, due 5/3/2021, repurchase price $9,570,885, collateralized by various U.S. Treasury Securities, ranging from 0.88% –5.00%, maturing 1/15/2028 – 2/15/2047; total market value $9,657,223		9,570,885		9,570,885


Investments	Principal Amount		Value

REPURCHASE AGREEMENTS – (continued)

Deutsche Bank AG, London Branch, 0.15%, dated 4/30/2021, due 5/3/2021, repurchase price $4,700,000, collateralized by various U.S. Treasury Securities, 0.13%, maturing 7/15/2030; Foreign Government Fixed Income Securities, ranging from 0.25% – 3.13%, maturing 7/23/2021 –2/14/2031; total market value $4,772,511	$	4,700,000	$	4,700,000

NBC Global Finance Ltd., 0.19%, dated 4/30/2021, due 5/3/2021, repurchase price $800,000, collateralized by various U.S. Treasury Securities, ranging from 0.13% –4.38%, maturing 1/31/2023 – 8/15/2050; Common Stocks; total market value $878,612		800,000		800,000
				18,370,885
Total Securities Lending Reinvestments (Cost $18,370,885)				18,370,885
Total Investments –100.2% (Cost $502,645,802)				636,060,507

Liabilities in excess of other assets – (0.2%)				(1,091,570	)
NET ASSETS – 100.0%			$	634,968,937

*	Non-income producing security.

^‡	Value determined using significant unobservable inputs.

^(a)

The security or a portion of this security is on loan at April 30, 2021. The total value of securities on loan at April 30, 2021 was $60,720,569, collateralized in the form of cash with a value of $18,370,885 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $20,925,197 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.00%, and maturity dates ranging from May 13, 2021 – February 15, 2051 and $26,162,769 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			141

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)

0.00% – 8.50%, and maturity dates ranging from July 7, 2021 – September 20, 2117; a total value of $65,458,851.

^(b)

^(c)

Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees.

^(d)

Security fair valued as of April 30, 2021 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at April 30, 2021 amounted to $116,470, which represents approximately 0.02% of net assets of the Fund.

^(e)

Amount represents less than one share.

^(f)

Represents less than 0.05% of net assets.

^(g)

The security was purchased with cash collateral held from securities on loan at April 30, 2021. The total value of securities purchased was $18,370,885.

Percentages shown are based on Net Assets.

Abbreviations

CHDI – Clearing House Electronic Subregister System (CHESS) Depository Interest

CVA – Dutch Certification

DI – Depositary Interest

OYJ – Public Limited Company

SCA – Limited partnership with share capital

SDR – Swedish Depositary Receipt



Aggregate gross unrealized appreciation	$	166,745,506
Aggregate gross unrealized depreciation		(34,703,298	)
Net unrealized appreciation	$	132,042,208
Federal income tax cost	$	504,405,741

Futures Contracts

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund had the following open futures contracts as of April 30, 2021:


	Number of Contracts		Expiration Date		Trading Currency		Notional Amount		Value and Unrealized Appreciation/ (Depreciation)*
Long Contracts
EURO STOXX 50 Index		127		06/18/2021		EUR	$	6,023,574	$	195,135
FTSE 100 Index		35		06/18/2021		GBP		3,361,861		95,410
Nikkei 225 Index		25		06/10/2021		JPY		3,307,260		(9,766	)
S&P/TSX 60 Index		14		06/17/2021		CAD		2,584,230		56,949
SPI 200 Index		12		06/17/2021		AUD		1,622,608		59,597
									$	397,325

*	This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts.

Forward Foreign Currency Contracts

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund had the following outstanding contracts as of April 30, 2021:

Contracts to Receive

Counterparty

In Exchange For

Maturity Date

Unrealized
Appreciation/
(Depreciation)

CAD

604,150

Toronto-Dominion Bank (The)

USD

480,226

06/16/2021

10,917

EUR

1,317,687

Morgan Stanley

USD

1,578,356

06/16/2021

9,316

GBP

680,000

Morgan Stanley

USD

932,624

06/16/2021

8,980

See Accompanying Notes to the Financial Statements.


142		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


Forward Foreign Currency Contracts (cont.)


Contracts to Receive		Counterparty	In Exchange For		Maturity Date		Unrealized Appreciation/ (Depreciation)
ILS	796,970	Morgan Stanley	USD	240,382		06/16/2021	$	5,459
NOK	1,450,557	BNP Paribas SA	USD	171,311		06/16/2021		3,294
SEK	554,576	Morgan Stanley	USD	65,186		06/16/2021		426
USD	1,248,777	Toronto-Dominion Bank (The)	GBP	900,000		06/16/2021		2,537
USD	219,985	Toronto-Dominion Bank (The)	HKD	1,707,402		06/16/2021		127
USD	551,596	Toronto-Dominion Bank (The)	JPY	60,000,000		06/16/2021		2,479
Total unrealized appreciation							$	43,535
AUD	568,763	JPMorgan Chase Bank	USD	441,703		06/16/2021	$	(2,272	)
GBP	983,203	Citibank NA	USD	1,372,316		06/16/2021		(10,863	)
JPY	249,660,889	Morgan Stanley	USD	2,300,230		06/16/2021		(15,343	)
USD	498,799	Morgan Stanley	CHF	460,788		06/16/2021		(7,021	)
USD	427,492	Bank of New York	DKK	2,668,253		06/16/2021		(4,752	)
USD	1,176,742	Morgan Stanley	JPY	129,710,000		06/16/2021		(10,360	)
USD	509,732	BNP Paribas SA	NZD	711,055		06/16/2021		(362	)
USD	220,083	Goldman Sachs & Co.	SGD	296,100		06/16/2021		(2,445	)
Total unrealized depreciation							$	(53,418	)
Net unrealized depreciation							$	(9,883	)

Abbreviations:

AUD – Australian Dollar

CAD – Canadian Dollar

CHF – Swiss Franc

DKK – Danish Krone

EUR – Euro

GBP – British Pound

HKD – Hong Kong Dollar

ILS – Israeli Shekel

JPY – Japanese Yen

NOK – Norwegian Krone

NZD – New Zealand Dollar

SEK – Swedish Krona

SGD – Singapore Dollar

USD – US Dollar

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			143

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2021:


Australia	5.5	%
Austria	0.4
Belgium	1.2
Canada	9.7
Denmark	1.9
Finland	0.9
France	7.3
Germany	6.5
Hong Kong	2.8
Ireland	0.4
Israel	1.4
Italy	2.6
Japan	24.1
Netherlands	3.0
New Zealand	0.3
Norway	1.2
Portugal	0.2
Singapore	1.4
Spain	2.7
Sweden	3.8
Switzerland	5.2
United Kingdom	14.8
Other¹	2.7
	100.0	%

¹	Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities).

See Accompanying Notes to the Financial Statements.


144		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^®Morningstar Emerging Markets Factor Tilt Index Fund

April 30, 2021 (Unaudited)


Investments	Shares		Value

COMMON STOCKS – 99.0%

Aerospace & Defense – 0.2%

AECC Aviation Power Co. Ltd., Class A		4,700	$	27,518

Aselsan Elektronik Sanayi ve Ticaret A/S		24,132		43,654

AVIC Xi’an Aircraft Industry Group Co. Ltd., Class A		4,700		17,467

AviChina Industry & Technology Co. Ltd., Class H(a)		94,000		60,514

Bharat Electronics Ltd.		17,280		30,735

China Aerospace Times Electronics Co. Ltd., Class A		14,100		14,881

Hanwha Aerospace Co. Ltd.		899		31,196

Hindustan Aeronautics Ltd.(b)		2,256		29,155

Korea Aerospace Industries Ltd.		1,608		47,126

LIG Nex1 Co. Ltd.		5,890		209,686

United Aircraft Corp. PJSC* ^		25,155,036		177,079
				689,011

Air Freight & Logistics – 0.3%

Agility Public Warehousing Co. KSC		50,933		160,254

Hanjin Transportation Co. Ltd.		4,823		170,833

Hyundai Glovis Co. Ltd.		742		128,075

Kerry TJ Logistics Co. Ltd.		4,000		6,444

SF Holding Co. Ltd., Class A		5,300		52,701

Sinotrans Ltd., Class A		23,500		17,721

Sinotrans Ltd., Class H		83,000		37,937

STO Express Co. Ltd., Class A		4,700		6,246

YTO Express Group Co. Ltd., Class A		4,700		8,555

ZTO Express Cayman, Inc., ADR		10,335		332,373
				921,139

Airlines – 0.8%

Aeroflot PJSC*		530,859		453,671

Air Arabia PJSC*		8		3

AirAsia Group Bhd.*		927,500		196,984

Asiana Airlines, Inc.*		18,786		252,484

Azul SA (Preference)*		143,800		1,020,469

China Airlines Ltd.*		137,000		103,977


Investments	Shares		Value

Airlines – (continued)

China Eastern Airlines Corp. Ltd., Class A		14,300	$	11,535

China Southern Airlines Co. Ltd., Class A*		14,100		13,835

Eva Airways Corp.		127,798		86,471

Hanjin Kal Corp.*		273		13,621

InterGlobe Aviation Ltd.* (b)		3,087		68,489

Jeju Air Co. Ltd.*		6,519		141,240

Korean Air Lines Co. Ltd.*		6,844		165,509

Pegasus Hava Tasimaciligi A/S*		17,867		158,480

Turk Hava Yollari AO*		16,292		24,029
				2,710,797

Auto Components – 1.2%

Balkrishna Industries Ltd.		938		22,413

Bharat Forge Ltd.*		6,239		51,413

Bosch Ltd.		208		37,934

Cheng Shin Rubber Industry Co. Ltd.		53,000		102,649

Endurance Technologies Ltd.* (b)		1,456		25,405

Exide Industries Ltd.		5,676		13,636

Fuyao Glass Industry Group Co. Ltd., Class A		4,800		38,072

Fuyao Glass Industry Group Co. Ltd., Class H(b)		8,400		48,831

Hankook & Co. Co Ltd.		907		15,166

Hankook Tire & Technology Co. Ltd.		2,692		116,407

Hanon Systems		5,467		79,620

Hota Industrial Manufacturing Co. Ltd.*		134		496

Huayu Automotive Systems Co. Ltd., Class A		9,400		37,940

Hyundai Mobis Co. Ltd.		2,385		578,910

Hyundai Wia Corp.		8,745		547,177

Kumho Tire Co., Inc.*		3,552		12,901

Mando Corp.*		1,537		80,280

Minth Group Ltd.		12,000		48,746

Motherson Sumi Systems Ltd.*		27,268		79,037

MRF Ltd.		38		41,411

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			145

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Auto Components – (continued)

Nan Kang Rubber Tire Co. Ltd.		14,000	$	21,752

Nexen Tire Corp.		18,247		144,027

Nexteer Automotive Group Ltd.		424,000		475,487

Ningbo Joyson Electronic Corp., Class A		4,700		13,167

S&T Motiv Co. Ltd.		4,240		233,279

Sri Trang Agro-Industry PCL, NVDR		28,200		42,792

Sundram Fasteners Ltd.		3,224		30,406

Tianneng Power International Ltd.(a)		366,000		671,979

Tong Yang Industry Co. Ltd.		212,000		288,784

Tube Investments of India Ltd.		1,200		20,003

Weifu High-Technology Group Co. Ltd., Class A		4,700		17,706
				3,937,826

Automobiles – 2.4%

Astra International Tbk. PT		720,800		274,448

BAIC Motor Corp. Ltd., Class H(a) (b)		798,000		288,712

Bajaj Auto Ltd.*		1,243		64,334

Brilliance China Automotive Holdings Ltd.(c)		96,000		87,072

BYD Co. Ltd., Class A		2,400		58,807

BYD Co. Ltd., Class H		12,500		257,987

China Motor Corp.*		111,400		285,948

Chongqing Changan Automobile Co. Ltd., Class A		9,400		23,778

Chongqing Changan Automobile Co. Ltd., Class B		31,800		25,712

Dongfeng Motor Group Co. Ltd., Class H		1,278,000		1,110,682

DRB-Hicom Bhd.		9,600		4,476

Eicher Motors Ltd.*		2,670		87,290

Ford Otomotiv Sanayi A/S		3,254		68,988

Geely Automobile Holdings Ltd.		212,000		550,004

Great Wall Motor Co. Ltd., Class A		4,700		24,279

Great Wall Motor Co. Ltd., Class H(a)		53,000		131,155

Guangzhou Automobile Group Co. Ltd., Class H		106,000		90,484


Investments	Shares		Value

Automobiles – (continued)

Hero MotoCorp Ltd.		2,173	$	82,703

Hyundai Motor Co.		5,141		979,810

Hyundai Motor Co. (2nd Preference)		1,484		141,416

Hyundai Motor Co. (3rd Preference)		54		4,854

Hyundai Motor Co. (Preference)		848		81,190

Kia Corp.		9,752		675,061

Mahindra & Mahindra Ltd.		16,748		170,154

Maruti Suzuki India Ltd.		2,385		207,860

NIO, Inc., ADR* (a)		21,889		872,058

Niu Technologies, ADR* (a)		564		21,071

Oriental Holdings Bhd.		147,100		187,448

SAIC Motor Corp. Ltd., Class A		26,500		82,143

Sanyang Motor Co. Ltd.		318,000		368,285

Tata Motors Ltd.*		67,522		267,864

Tata Motors Ltd., Class A*		27,570		47,605

Tofas Turk Otomobil Fabrikasi A/S		6,639		23,891

TVS Motor Co. Ltd.		3,564		30,356

UMW Holdings Bhd.		129,200		104,082

XPeng, Inc., ADR* (a)		3,021		90,358

Yadea Group Holdings Ltd.(b)		16,000		35,021

Yulon Motor Co. Ltd.*		26,986		43,861
				7,951,247

Banks – 14.2%

Absa Group Ltd.*		26,011		219,545

Abu Dhabi Commercial Bank PJSC		105,298		179,742

Abu Dhabi Islamic Bank PJSC		19,571		25,735

AFFIN Bank Bhd.		205,627		87,845

Agricultural Bank of China Ltd., Class A		488,700		241,650

Agricultural Bank of China Ltd., Class H		1,060,000		412,162

Akbank TAS		86,903		51,144

Akbank TAS, ADR		20,016		25,020

Al Khalij Commercial Bank PQSC		890,848		530,937

Al Rajhi Bank		19,632		517,747

Alinma Bank		20,140		106,551

Alliance Bank Malaysia Bhd.*		558,300		354,355

See Accompanying Notes to the Financial Statements.


146		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Banks – (continued)

Alpha Services and Holdings SA* (a)		646,565	$	1,027,402

AMMB Holdings Bhd.		79,500		57,834

AU Small Finance Bank Ltd.* (b)		2,288		31,021

Axis Bank Ltd.*		39,220		378,526

Banco Bradesco SA*		52,476		199,932

Banco Bradesco SA (Preference)*		175,120		769,847

Banco de Bogota SA		4,558		95,644

Banco de Chile		1,485,272		158,257

Banco de Credito e Inversiones SA		1,590		73,476

Banco del Bajio SA* (b)		368,000		585,896

Banco do Brasil SA*		53,000		289,557

Banco do Estado do Rio Grande do Sul SA (Preference), Class B		96,400		217,667

Banco Inter SA*		2,400		102,499

Banco Santander Chile		2,045,959		111,720

Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand*		11,800		13,371

Bancolombia SA		10,998		82,081

Bancolombia SA (Preference)		17,464		130,711

Bandhan Bank Ltd.* (b)		13,866		61,728

Bangkok Bank PCL, NVDR		21,200		82,723

Bank Al Habib Ltd.		503,500		217,117

Bank AlBilad*		8,427		84,155

Bank Al-Jazira*		14,175		72,272

Bank Central Asia Tbk. PT		195,000		432,321

Bank Handlowy w Warszawie SA*		15,529		166,395

Bank Mandiri Persero Tbk. PT		689,000		294,536

Bank Millennium SA*		308,369		336,931

Bank Negara Indonesia Persero Tbk. PT		302,100		119,209

Bank of Ayudhya PCL, NVDR*		63,600		76,596

Bank of Baroda*		41,116		37,051

Bank of Beijing Co. Ltd., Class A		74,200		54,577

Bank of Changsha Co. Ltd., Class A		9,400		13,087

Bank of Chengdu Co. Ltd., Class A		18,800		34,657


Investments	Shares		Value

Banks – (continued)

Bank of China Ltd., Class A		270,300	$	135,745

Bank of China Ltd., Class H		2,756,000		1,096,460

Bank of Chongqing Co. Ltd., Class H		265,000		178,103

Bank of Communications Co. Ltd., Class A		127,200		94,543

Bank of Communications Co. Ltd., Class H		796,000		509,360

Bank of Hangzhou Co. Ltd., Class A		18,800		48,049

Bank of India*		179,723		160,986

Bank of Jiangsu Co. Ltd., Class A		53,880		58,863

Bank of Nanjing Co. Ltd., Class A		42,400		60,080

Bank of Ningbo Co. Ltd., Class A		21,200		138,341

Bank of Shanghai Co. Ltd., Class A		47,700		60,293

Bank of the Philippine Islands		59,360		102,077

Bank of Zhengzhou Co. Ltd., Class A		51,700		29,399

Bank Pan Indonesia Tbk. PT*		1,833,800		114,255

Bank Polska Kasa Opieki SA*		5,724		120,914

Bank Rakyat Indonesia Persero Tbk. PT		1,867,800		523,682

Bank Tabungan Negara Persero Tbk. PT*		2,263,100		249,106

Banque Saudi Fransi		18,868		196,222

BDO Unibank, Inc.		56,180		120,294

BIMB Holdings Bhd.		15,880		15,041

BNK Financial Group, Inc.		13,038		89,901

BOC Hong Kong Holdings Ltd.		132,500		467,435

Boubyan Bank KSCP*		10,735		23,337

Burgan Bank SAK*		27,216		20,324

Canara Bank*		168,063		314,810

Capitec Bank Holdings Ltd.*		1,506		154,301

Chang Hwa Commercial Bank Ltd.		120,517		77,230

China Bohai Bank Co. Ltd., Class H* (b)		132,500		59,880

China CITIC Bank Corp. Ltd., Class H		477,000		249,959

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			147

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Banks – (continued)

China Construction Bank Corp., Class A		28,200	$	29,326

China Construction Bank Corp., Class H		3,551,000		2,811,777

China Everbright Bank Co. Ltd., Class A		127,200		74,297

China Everbright Bank Co. Ltd., Class H		159,000		66,533

China Merchants Bank Co. Ltd., Class A		63,600		517,920

China Merchants Bank Co. Ltd., Class H		135,000		1,088,955

China Minsheng Banking Corp. Ltd., Class A		121,900		88,531

China Minsheng Banking Corp. Ltd., Class H(a)		212,000		108,909

China Zheshang Bank Co. Ltd., Class A		47,000		28,687

Chong Hing Bank Ltd.		106,000		140,026

Chongqing Rural Commercial Bank Co. Ltd., Class A		18,800		12,056

Chongqing Rural Commercial Bank Co. Ltd., Class H		94,000		39,939

CIMB Group Holdings Bhd.		265,448		268,273

City Union Bank Ltd.*		9,675		21,780

Commercial Bank PSQC (The)		75,925		112,605

Commercial International Bank Egypt SAE*		55,840		207,742

Credicorp Ltd.*		2,385		284,769

Credit Agricole Egypt SAE*		63,761		91,977

Credit Bank of Moscow PJSC*		4,509,090		407,508

CTBC Financial Holding Co. Ltd.		742,000		605,649

DGB Financial Group, Inc.		85,417		680,357

Doha Bank QPSC		41,736		30,147

Dubai Islamic Bank PJSC		79,500		96,314

E.Sun Financial Holding Co. Ltd.		212,645		205,162

Emirates NBD Bank PJSC		48,366		163,935

EnTie Commercial Bank Co. Ltd.		53,000		28,840

Eurobank Ergasias Services and Holdings SA*		106,636		100,872

Far Eastern International Bank		163,000		65,065

Federal Bank Ltd.*		751,419		812,564

First Abu Dhabi Bank PJSC		154,389		598,532


Investments	Shares		Value

Banks – (continued)

First Financial Holding Co. Ltd.		379,473	$	311,099

Grupo Aval Acciones y Valores SA (Preference)		162,021		47,857

Grupo Elektra SAB de CV		1,325		99,949

Grupo Financiero Banorte SAB de CV, Class O		90,100		514,710

Grupo Financiero Inbursa SAB de CV, Class O*		68,900		64,274

Habib Bank Ltd.		32,200		26,199

Hana Financial Group, Inc.		10,812		443,716

Hong Leong Bank Bhd.		26,500		115,279

Hong Leong Financial Group Bhd.		5,000		20,237

Hua Nan Financial Holdings Co. Ltd.		163,166		110,985

Huaxia Bank Co. Ltd., Class A		47,000		45,319

Huishang Bank Corp. Ltd., Class H(a)		469,000		154,585

ICICI Bank Ltd.		85,648		694,342

IDFC First Bank Ltd.*		42,452		31,349

Industrial & Commercial Bank of China Ltd., Class A		307,400		243,678

Industrial & Commercial Bank of China Ltd., Class H		2,703,000		1,760,969

Industrial Bank Co. Ltd., Class A		58,300		195,850

Industrial Bank of Korea		10,547		91,878

ING Bank Slaski SA*		707		32,355

Intercorp Financial Services, Inc.(b)		1,040		26,884

Itau CorpBanca Chile SA*		1,015,777		3,442

Itau Unibanco Holding SA (Preference)		174,900		887,516

Itausa SA		27,109		55,215

Itausa SA (Preference)		164,300		304,660

JB Financial Group Co. Ltd.		80,576		528,795

Jiangsu Changshu Rural Commercial Bank Co. Ltd., Class A		6,700		7,185

Kasikornbank PCL, NVDR		44,800		189,919

KB Financial Group, Inc.		13,833		680,240

Kiatnakin Phatra Bank PCL, NVDR		20,800		38,911

King’s Town Bank Co. Ltd.		53,000		82,062

Komercni banka A/S* (a)		2,544		77,244

See Accompanying Notes to the Financial Statements.


148		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Banks – (continued)

Kotak Mahindra Bank Ltd.*		17,596	$	415,429

Krung Thai Bank PCL, NVDR		153,700		55,779

Kuwait Finance House KSCP		96,195		230,830

Kuwait International Bank KSCP*		402,217		289,682

Malayan Banking Bhd.		233,200		468,518

Malaysia Building Society Bhd.		1,358,317		208,900

Masraf Al Rayan QSC		60,981		74,832

mBank SA*		532		32,995

MCB Bank Ltd.		16,300		17,232

Meezan Bank Ltd.		185,500		130,859

Mega Financial Holding Co. Ltd.		178,000		208,059

Metropolitan Bank & Trust Co.		38,560		35,237

Moneta Money Bank A/S* (b)		224,889		837,192

National Bank of Greece SA* (a)		280,813		873,840

National Bank of Kuwait SAKP		127,768		348,998

National Bank of Pakistan*		318,000		68,097

Nedbank Group Ltd.*		15,423		157,191

O-Bank Co. Ltd.		106,000		28,689

OTP Bank Nyrt.*		7,950		357,936

Philippine National Bank*		298,400		193,046

Ping An Bank Co. Ltd., Class A		53,000		190,739

Postal Savings Bank of China Co. Ltd., Class H(a) (b)		318,000		207,173

Powszechna Kasa Oszczednosci Bank Polski SA*		33,477		311,617

Public Bank Bhd.		530,000		536,935

Qatar International Islamic Bank QSC		9,789		24,869

Qatar Islamic Bank SAQ		20,065		95,889

Qatar National Bank QPSC		72,610		356,968

Qingdao Rural Commercial Bank Corp., Class A		18,800		12,463

RBL Bank Ltd.* (b)		226,576		568,180

RHB Bank Bhd.		71,800		91,319

Riyad Bank		51,686		367,305

Santander Bank Polska SA*		1,131		66,982

Saudi British Bank (The)*		14,469		118,643

Saudi Investment Bank (The)		5,844		29,204


Investments	Shares		Value

Banks – (continued)

Saudi National Bank*		72,603	$	1,099,664

Sberbank of Russia PJSC		387,960		1,538,482

Sberbank of Russia PJSC (Preference)		38,268		144,455

Security Bank Corp.		154,660		370,991

Shanghai Commercial & Savings Bank Ltd. (The)		159,000		247,326

Shanghai Pudong Development Bank Co. Ltd., Class A		100,700		156,383

Shengjing Bank Co. Ltd., Class H* (b)		238,500		216,487

Shinhan Financial Group Co. Ltd.		18,497		665,150

Siam Commercial Bank PCL (The), NVDR		58,600		197,607

SinoPac Financial Holdings Co. Ltd.		477,000		227,118

Standard Bank Group Ltd.(a)		49,572		403,239

State Bank of India*		68,847		328,562

Taichung Commercial Bank Co. Ltd.		83,794		35,848

Taishin Financial Holding Co. Ltd.		452,422		228,373

Taiwan Business Bank		190,035		69,393

Taiwan Cooperative Financial Holding Co. Ltd.		203,020		155,537

Thanachart Capital PCL, NVDR		282,000		321,509

Tisco Financial Group PCL, NVDR		9,900		29,410

TMB Bank PCL, NVDR		1,807,700		67,925

Turkiye Garanti Bankasi A/S		86,337		75,071

Turkiye Halk Bankasi A/S*		28,578		14,785

Turkiye Is Bankasi A/S, Class C		67,999		39,937

Turkiye Vakiflar Bankasi TAO, Class D*		51,728		21,335

Union Bank of India*		342,221		158,007

Union Bank of Taiwan		116,946		50,240

United Bank Ltd.		209,742		172,509

VTB Bank PJSC		232,781,531		159,433

Woori Financial Group, Inc.		20,988		201,889

Yapi ve Kredi Bankasi A/S		80,342		20,347

Yes Bank Ltd.*		38,361		7,535
				47,742,143

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			149

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Beverages – 0.7%

Ambev SA		74,200	$	204,331

Anadolu Efes Biracilik ve Malt Sanayii A/S		9,872		27,764

Arca Continental SAB de CV		15,900		85,480

Becle SAB de CV		10,700		25,622

Carabao Group PCL, NVDR		13,400		48,414

China Resources Beer Holdings Co. Ltd.		21,107		170,528

Cia Cervecerias Unidas SA		1,212		11,098

Coca-Cola Femsa SAB de CV		15,900		74,738

Coca-Cola Icecek A/S		2,875		27,339

Distell Group Holdings Ltd.*		3,420		29,750

Embotelladora Andina SA (Preference), Class B		9,513		22,577

Emperador, Inc.		55,200		11,350

Fomento Economico Mexicano SAB de CV		31,800		247,297

Fraser & Neave Holdings Bhd.		3,700		27,097

Heineken Malaysia Bhd.		3,800		23,933

Hite Jinro Co. Ltd.		348		10,903

Jiangsu King’s Luck Brewery JSC Ltd., Class A		5,300		43,758

Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A		2,100		62,466

Kweichow Moutai Co. Ltd., Class A		1,700		527,162

Lotte Chilsung Beverage Co. Ltd.		150		18,879

Luzhou Laojiao Co. Ltd., Class A		2,400		94,784

Nongfu Spring Co. Ltd., Class H* (a) (b)		24,800		131,394

Osotspa PCL, NVDR		20,400		23,422

Shanxi Xinghuacun Fen Wine Factory Co. Ltd., Class A		1,000		63,393

Tsingtao Brewery Co. Ltd., Class H		8,000		72,616

United Breweries Ltd.		1,379		22,562

United Spirits Ltd.*		6,036		42,337

Varun Beverages Ltd.		1,161		14,899

Vina Concha y Toro SA		1,616		2,808

Wuliangye Yibin Co. Ltd., Class A		5,300		233,408

Yantai Changyu Pioneer Wine Co. Ltd., Class B		15,000		30,012
				2,432,121


Investments	Shares		Value

Biotechnology – 0.5%

3SBio, Inc.* (b)		18,480	$	17,512

ABLBio, Inc.*		437		8,427

Akeso, Inc.* (b)		11,000		75,417

Alteogen, Inc.*		780		56,588

Amicogen, Inc.*		514		15,803

BeiGene Ltd.*		8,600		231,419

Biocon Ltd.*		6,644		34,053

Celltrion, Inc.*		1,642		392,657

CStone Pharmaceuticals* (b)		25,000		35,793

Da An Gene Co. Ltd. of Sun Yat-Sen University, Class A		5,000		25,906

GeneOne Life Science, Inc.*		752		11,763

Genexine, Inc.*		282		25,859

Green Cross Cell Corp.		258		9,730

Green Cross Corp.		163		49,603

Green Cross Holdings Corp.		631		20,762

G-treeBNT Co. Ltd.*		525		6,254

Helixmith Co. Ltd.*		553		15,486

Hualan Biological Engineering, Inc., Class A*		5,300		34,462

Hugel, Inc.*		126		20,899

I-Mab, ADR*		350		21,389

Innovent Biologics, Inc.* (b)		13,500		146,700

Jinyu Bio-Technology Co. Ltd., Class A		4,700		15,847

MedPacto, Inc.*		235		16,690

Medy-Tox, Inc.		115		18,123

Pharmicell Co. Ltd.*		799		11,888

Seegene, Inc.		664		55,873

Shanghai RAAS Blood Products Co. Ltd., Class A		9,400		11,606

SillaJen, Inc.* ^‡ (c)		2,522		20,576

TaiMed Biologics, Inc.*		1,000		2,581

Zai Lab Ltd., ADR*		1,440		239,342
				1,649,008

Building Products – 0.2%

Astral Poly Technik Ltd.		886		18,888

China Lesso Group Holdings Ltd.		33,000		83,192

Kajaria Ceramics Ltd.		2,608		32,144

Kyung Dong Navien Co. Ltd.		208		10,322

LG Hausys Ltd.		2,862		234,137

Xinyi Glass Holdings Ltd.		40,000		141,885
				520,568

See Accompanying Notes to the Financial Statements.


150		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Capital Markets – 2.1%

B3 SA – Brasil Bolsa Balcao		31,800	$	301,866

Banco BTG Pactual SA*		5,300		105,262

Bangkok Commercial Asset Management PCL, NVDR*		25,000		16,540

Bolsa Mexicana de Valores SAB de CV		6,900		15,370

Bursa Malaysia Bhd.		8,000		16,463

Caitong Securities Co. Ltd., Class A		9,400		14,511

Capital Securities Corp.		1,166,000		805,635

Changjiang Securities Co. Ltd., Class A		14,100		15,774

China Bills Finance Corp.		53,000		31,402

China Cinda Asset Management Co. Ltd., Class H		318,000		62,643

China Everbright Ltd.		424,000		507,696

China Galaxy Securities Co. Ltd., Class A		5,200		8,019

China Galaxy Securities Co. Ltd., Class H		61,000		36,364

China Huarong Asset Management Co. Ltd., Class H(b) (c)		208,000		27,316

China International Capital Corp. Ltd., Class H* (a) (b)		19,200		48,254

China Merchants Securities Co. Ltd., Class A		12,220		35,349

China Merchants Securities Co. Ltd., Class H(a) (b)		16,600		23,254

China Renaissance Holdings Ltd.* (b)		5,000		16,158

CITIC Securities Co. Ltd., Class A		15,900		58,598

CITIC Securities Co. Ltd., Class H(a)		29,000		69,972

Coronation Fund Managers Ltd.		7,009		26,683

CSC Financial Co. Ltd., Class H(a) (b)		401,000		468,281

Daishin Securities Co. Ltd.		16,377		285,624

Daishin Securities Co. Ltd. (2nd Preference)		4,418		63,151

Daishin Securities Co. Ltd. (Preference)		10,123		148,339


Investments	Shares		Value

Capital Markets – (continued)

Daou Technology, Inc.		12,006	$	287,104

Dubai Financial Market PJSC*		67,052		19,350

Egyptian Financial Group-Hermes Holding Co.*		291,118		261,188

Everbright Securities Co. Ltd., Class A		9,400		21,773

Founder Securities Co. Ltd., Class A*		14,100		20,067

GF Securities Co. Ltd., Class A		14,100		32,355

GF Securities Co. Ltd., Class H		46,400		67,268

Guangzhou Yuexiu Financial Holdings Group Co. Ltd., Class A		6,400		12,748

Guosen Securities Co. Ltd., Class A*		14,100		22,877

Guotai Junan International Holdings Ltd.(a)		1,307,000		237,274

Guotai Junan Securities Co. Ltd., Class A		14,100		36,081

Haitong Securities Co. Ltd., Class A		18,800		32,159

Haitong Securities Co. Ltd., Class H		106,000		94,852

HDFC Asset Management Co. Ltd.(b)		782		29,311

Huatai Securities Co. Ltd., Class A		9,400		23,124

Huatai Securities Co. Ltd., Class H(b)		28,200		40,302

IBF Financial Holdings Co. Ltd.		48,206		30,546

ICICI Securities Ltd.(b)		1,880		11,522

Investec Ltd.		162,843		620,616

Is Yatirim Menkul Degerler A/S		61,374		113,688

Jih Sun Financial Holdings Co. Ltd.		50,000		23,091

JSE Ltd.		2,795		22,663

KIWOOM Securities Co. Ltd.		618		73,614

Korea Investment Holdings Co. Ltd.		1,575		158,583

Macquarie Korea Infrastructure Fund		6,081		65,875

Meritz Securities Co. Ltd.		6,708		29,127

Mirae Asset Securities Co. Ltd.		13,992		125,788

Mirae Asset Securities Co. Ltd. (2nd Preference)		6,840		30,069

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			151

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Capital Markets – (continued)

Moscow Exchange MICEX-RTS PJSC		28,831	$	67,957

Nanjing Securities Co. Ltd., Class A		9,400		14,249

NH Investment & Securities Co. Ltd.		5,459		63,063

Nippon Life India Asset Management Ltd.(b)		5,244		24,191

Orient Securities Co. Ltd., Class A		9,400		12,797

President Securities Corp.		484,520		518,639

PSG Konsult Ltd.		3,256		2,408

Reinet Investments SCA		4,187		80,796

Samsung Securities Co. Ltd.		2,968		113,800

SDIC Capital Co. Ltd., Class A		9,400		18,810

Shenwan Hongyuan Group Co. Ltd., Class A		18,800		13,131

Shenwan Hongyuan Group Co. Ltd., Class H(b)		75,200		20,526

Sinolink Securities Co. Ltd., Class A		9,400		17,561

Tata Liquid Fund* ^‡ (c)		5,000		—

Warsaw Stock Exchange		1,040		12,796

Yuanta Securities Korea Co. Ltd.		42,752		166,996

Zheshang Securities Co. Ltd., Class A		4,700		8,265
				6,907,524

Chemicals – 3.8%

Aarti Industries Ltd.		893		19,348

Advanced Petrochemical Co.		1,686		36,507

Alpek SAB de CV		194,000		216,939

Asian Paints Ltd.		7,526		257,706

Atul Ltd.*		259		28,283

Barito Pacific Tbk. PT*		474,700		32,863

Batu Kawan Bhd.		6,300		28,452

Bayer CropScience Ltd.		141		10,178

Berger Paints India Ltd.		5,557		52,815

Boubyan Petrochemicals Co. KSCP		7,344		22,546

Braskem SA (Preference), Class A*		5,300		51,288

Castrol India Ltd.		9,090		15,432


Investments	Shares		Value

Chemicals – (continued)

Chandra Asri Petrochemical Tbk. PT		28,800	$	20,087

China Lumena New Materials Corp.* ^‡ (c)		22,200		—

China Man-Made Fiber Corp.		742,425		342,866

China Petrochemical Development Corp.		76,000		43,261

China Risun Group Ltd.(b)		494,000		325,651

Chunbo Co. Ltd.		141		22,994

Coromandel International Ltd.		1,898		19,010

D&L Industries, Inc.		110,800		16,614

Deepak Nitrite Ltd.*		1,219		30,702

Dongjin Semichem Co. Ltd.		206		5,713

Ecopro Co. Ltd.(c)		292		19,636

Egypt Kuwait Holding Co. SAE*		34,010		34,010

Engro Corp. Ltd.		11,270		21,739

Engro Fertilizers Ltd.		258,792		112,961

Fauji Fertilizer Co. Ltd.		303,520		208,340

Foosung Co. Ltd.*		1,768		16,371

Formosa Chemicals & Fibre Corp.		72,000		234,303

Formosa Plastics Corp.		78,000		295,994

Grupa Azoty SA*		35		344

Hansol Chemical Co. Ltd.		224		49,840

Hanwha Solutions Corp.*		4,441		183,852

HDC Holdings Co. Ltd.		17,796		194,383

Hengli Petrochemical Co. Ltd., Class A		15,900		72,848

Hengyi Petrochemical Co. Ltd., Class A		14,100		28,695

Huafon Chemical Co. Ltd., Class A		14,100		27,910

Huchems Fine Chemical Corp.		9,138		178,677

Indorama Ventures PCL, NVDR		79,500		122,553

Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., Class A		23,500		21,025

International CSRC Investment Holdings Co.		371,000		403,102

Jiangsu Eastern Shenghong Co. Ltd., Class A(c)		10,000		23,194

Kansai Nerolac Paints Ltd.		2,196		16,476

KCC Corp.		170		47,836

See Accompanying Notes to the Financial Statements.


152		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Chemicals – (continued)

Kolon Industries, Inc.		9,260	$	503,645

Korea Petrochemical Ind Co. Ltd.		135		38,230

Kumho Petrochemical Co. Ltd.		689		161,046

LG Chem Ltd.		795		666,103

LG Chem Ltd. (Preference)		170		68,086

Linde India Ltd.		11,183		276,991

Lomon Billions Group Co. Ltd., Class A		4,700		24,584

Lotte Chemical Corp.		530		144,846

LOTTE Fine Chemical Co. Ltd.		397		24,269

Mesaieed Petrochemical Holding Co.		76,751		40,684

Miwon Commercial Co. Ltd.		1,219		237,258

Nan Ya Plastics Corp.		106,000		334,701

National Industrialization Co.*		5,584		28,589

National Petrochemical Co.		1,669		21,607

Navin Fluorine International Ltd.		517		23,928

Ningxia Baofeng Energy Group Co. Ltd., Class A		10,600		26,551

Nizhnekamskneftekhim PJSC		145,750		182,488

Nizhnekamskneftekhim PJSC (Preference)		118,720		123,027

OCI Co. Ltd.*		333		37,421

Orbia Advance Corp. SAB de CV		32,333		90,551

Oriental Union Chemical Corp.		356,000		298,865

Petkim Petrokimya Holding A/S*		57,016		46,138

Petronas Chemicals Group Bhd.		53,000		106,093

PhosAgro PJSC		1,235		71,837

PI Advanced Materials Co. Ltd.		520		22,486

PI Industries Ltd.		1,268		42,995

Pidilite Industries Ltd.*		2,650		64,962

PTT Global Chemical PCL, NVDR		53,000		115,319

Qurain Petrochemical Industries Co.		15,408		21,989

Rongsheng Petrochemical Co. Ltd., Class A		9,400		41,150

SABIC Agri-Nutrients Co.		3,975		111,297

Sahara International Petrochemical Co.		5,715		41,452


Investments	Shares		Value

Chemicals – (continued)

Sasa Polyester Sanayi A/S*		7,379	$	31,858

Sasol Ltd.*		21,454		360,832

Saudi Basic Industries Corp.		15,211		502,964

Saudi Industrial Investment Group		10,759		101,849

Saudi Kayan Petrochemical Co.*		17,278		83,854

Scientex Bhd.		26,100		26,696

Shandong Hualu Hengsheng Chemical Co. Ltd., Class A		4,700		28,331

Shinkong Synthetic Fibers Corp.		742,000		641,510

SK Chemicals Co. Ltd.		144		34,500

SK Materials Co. Ltd.		65		19,663

SKC Co. Ltd.		279		33,861

Sociedad Quimica y Minera de Chile SA (Preference), Class B		2,663		139,631

Solar Industries India Ltd.		1,040		17,158

Soulbrain Co. Ltd.		141		45,101

SRF Ltd.		401		34,815

Sumitomo Chemical India Ltd.		2,585		10,442

Supreme Industries Ltd.		1,204		33,314

Taekwang Industrial Co. Ltd.		159		149,087

Tata Chemicals Ltd.		86,231		922,525

TOA Paint Thailand PCL, NVDR		12,000		13,296

Tongkun Group Co. Ltd., Class A		9,400		33,248

TSRC Corp.		7,000		9,047

UPC Technology Corp.		424,000		460,688

UPL Ltd.		19,663		161,105

USI Corp.		408,000		603,974

Vinythai PCL, NVDR		111,300		138,511

Wanhua Chemical Group Co. Ltd., Class A		5,300		84,142

Yanbu National Petrochemical Co.		5,883		114,676

Zhejiang Longsheng Group Co. Ltd., Class A		9,400		19,740

Zhejiang Satellite Petrochemical Co. Ltd., Class A		1,700		10,734
				12,819,684

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			153

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Commercial Services & Supplies – 0.2%

A-Living Smart City Services Co. Ltd.(b)		13,250	$	61,074

China Everbright Environment Group Ltd.		159,000		100,106

Country Garden Services Holdings Co. Ltd.		26,887		282,134

Dynagreen Environmental Protection Group Co. Ltd., Class H(b)		50,000		24,205

Ever Sunshine Lifestyle Services Group Ltd.(a) (b)		10,000		24,746

Frontken Corp. Bhd.		28,800		22,076

Greentown Service Group Co. Ltd.(b)		30,000		47,819

Indian Railway Catering & Tourism Corp. Ltd.		1,166		28,199

S-1 Corp.		347		25,424

Taiwan Secom Co. Ltd.*		3,165		10,832
				626,615

Communications Equipment – 0.1%

Accton Technology Corp.		10,000		113,844

Ace Technologies Corp.*		705		11,377

Advanced Ceramic X Corp.		2,000		38,234

BYD Electronic International Co. Ltd.(a)		10,000		53,239

Comba Telecom Systems Holdings Ltd.(a)		94,000		24,326

KMW Co. Ltd.*		563		29,052

Seojin System Co. Ltd.*		188		7,369

Tianjin 712 Communication & Broadcasting Co. Ltd., Class A		900		4,292

Wistron NeWeb Corp.		20,093		53,518

ZTE Corp., Class A		4,700		21,025

ZTE Corp., Class H(a)		20,000		50,059
				406,335

Construction & Engineering – 0.8%

BES Engineering Corp.		105,000		40,597

China Communications Services Corp. Ltd., Class H		1,212,000		525,881


Investments	Shares		Value

Construction & Engineering – (continued)

China Conch Venture Holdings Ltd.		26,500	$	125,389

China Railway Group Ltd., Class A		47,000		39,145

China Railway Group Ltd., Class H		159,000		82,296

CTCI Corp.*		22,000		31,110

Daewoo Engineering & Construction Co. Ltd.*		3,901		25,917

DL Construction Co. Ltd.		4,134		131,934

DL Holdings Co. Ltd.		397		33,763

Gamuda Bhd.*		48,221		41,554

GEK Terna Holding Real Estate Construction SA*		1,216		14,697

GS Engineering & Construction Corp.		2,650		105,180

HDC Hyundai Development Co-Engineering & Construction, Class E		1,236		31,112

Hyundai Engineering & Construction Co. Ltd.		2,994		135,657

IJM Corp. Bhd.		78,400		37,321

IS Dongseo Co. Ltd.		7,486		449,557

KEPCO Engineering & Construction Co., Inc.		602		20,782

Larsen & Toubro Ltd.		12,032		217,737

Larsen & Toubro Ltd., GDR(b)		296		5,310

Malaysian Resources Corp. Bhd.		83,200		9,140

Metallurgical Corp. of China Ltd., Class A		65,800		31,316

Metallurgical Corp. of China Ltd., Class H		118,000		27,803

Power Construction Corp. of China Ltd., Class A		37,600		22,195

Samsung Engineering Co. Ltd.*		6,078		94,802

Shanghai Construction Group Co. Ltd., Class A		23,500		10,531

Shanghai Tunnel Engineering Co. Ltd., Class A		14,100		11,482

Suzhou Gold Mantis Construction Decoration Co. Ltd., Class A		9,400		13,436

Tekfen Holding A/S		101,442		196,840

See Accompanying Notes to the Financial Statements.


154		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Construction & Engineering – (continued)

United Integrated Services Co. Ltd.		6,000	$	52,304

Voltas Ltd.		2,990		38,636

Waskita Karya Persero Tbk. PT		9,600		738

Wijaya Karya Persero Tbk. PT		1,648,600		164,346
				2,768,508

Construction Materials – 1.1%

ACC Ltd.		1,404		35,686

Ambuja Cements Ltd.		11,177		46,633

Anhui Conch Cement Co. Ltd., Class A		10,600		80,309

Anhui Conch Cement Co. Ltd., Class H		42,000		251,183

Asia Cement China Holdings Corp.(c)		193,000		198,048

Asia Cement Corp.		86,000		153,786

BBMG Corp., Class A		42,300		18,171

Beijing Oriental Yuhong Waterproof Technology Co. Ltd., Class A		3,000		26,776

Cementos Argos SA		5,520		7,570

Cementos Argos SA (Preference)		10,296		10,568

Cemex SAB de CV*		579,400		462,096

Chia Hsin Cement Corp.		318,000		295,994

China Jushi Co. Ltd., Class A		4,500		12,530

China National Building Material Co. Ltd., Class H		142,050		205,937

China Resources Cement Holdings Ltd.		68,000		74,156

China Shanshui Cement Group Ltd.*		621,000		166,307

Dalmia Bharat Ltd.*		1,648		33,514

Gansu Shangfeng Cement Co. Ltd., Class A		4,700		14,039

Grasim Industries Ltd.		6,466		122,363

Grupo Argos SA		7,993		22,626

Grupo Argos SA (Preference)		5,396		12,556

Grupo Cementos de Chihuahua SAB de CV		2,300		16,410

Guangdong Tapai Group Co. Ltd., Class A		9,400		16,254


Investments	Shares		Value

Construction Materials – (continued)

Huaxin Cement Co. Ltd., Class A		3,700	$	12,555

Huaxin Cement Co. Ltd., Class B		10,400		22,152

Indocement Tunggal Prakarsa Tbk. PT		32,900		29,267

Lucky Cement Ltd.*		5,787		31,608

POSCO Chemical Co. Ltd.		520		69,654

Ramco Cements Ltd. (The)		2,289		30,454

Saudi Cement Co.		2,022		34,885

Semen Indonesia Persero Tbk. PT		57,600		41,570

Shree Cement Ltd.*		212		79,882

Siam Cement PCL (The), NVDR		10,600		157,277

Southern Province Cement Co.		1,634		36,731

SSANGYONG C&E Co. Ltd.		290		2,023

Taiwan Cement Corp.		175,452		327,249

Tangshan Jidong Cement Co. Ltd., Class A		4,700		10,182

Tipco Asphalt PCL, NVDR		312,700		202,860

TPI Polene PCL, NVDR		2,229,200		156,071

UltraTech Cement Ltd.		2,281		193,355

Yanbu Cement Co.		2,888		33,038
				3,754,325

Consumer Finance – 0.9%

360 DigiTech, Inc., ADR* (a)		34,397		880,907

AEON Credit Service M Bhd.		47,700		144,390

Bajaj Finance Ltd.*		4,558		335,479

Cholamandalam Investment and Finance Co. Ltd.		4,975		38,401

Krungthai Card PCL, NVDR		21,200		51,915

LexinFintech Holdings Ltd., ADR* (a)		56,763		515,976

Mahindra & Mahindra Financial Services Ltd.*		303,373		662,877

Manappuram Finance Ltd.		6,929		13,943

Muangthai Capital PCL, NVDR		20,600		42,341

Muthoot Finance Ltd.		2,892		45,188

Samsung Card Co. Ltd.		1,140		36,177

SBI Cards & Payment Services Ltd.		2,239		29,750

Shriram Transport Finance Co. Ltd.		7,314		132,812

Srisawad Corp. PCL, NVDR		15,203		40,647

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			155

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Consumer Finance – (continued)

Sundaram Finance Ltd.		1,445	$	48,401

Transaction Capital Ltd.*		17,028		38,604

Woori Financial Capital Co. Ltd.		7,292		78,010

Yixin Group Ltd.* (a) (b)		47,000		16,157

Yulon Finance Corp.		1,210		5,913
				3,157,888

Containers & Packaging – 0.2%

Cheng Loong Corp.		14,000		22,354

Klabin SA*		15,900		81,650

Polyplex Thailand PCL, NVDR		233,200		211,575

SCG Packaging PCL, NVDR		42,400		75,915

Taiwan Hon Chuan Enterprise Co. Ltd.		134,000		377,059

Ton Yi Industrial Corp.		53,000		29,220
				797,773

Distributors – 0.1%

Inter Cars SA*		4,646		382,563

Wuchan Zhongda Group Co. Ltd., Class A		13,800		9,852

Xinhua Winshare Publishing and Media Co. Ltd., Class H(a)		50,000		35,471

Zhejiang Orient Financial Holdings Group Co. Ltd., Class A		14,100		12,158
				440,044

Diversified Consumer Services – 0.4%

Cairo Investment & Real Estate Development Co. SAE		14,617		11,416

China Education Group Holdings Ltd.(a) (b)		26,000		62,800

Cogna Educacao*		31,200		22,256

GSX Techedu, Inc., ADR* (a)		2,271		72,558

Hope Education Group Co. Ltd.(a) (b)		96,000		32,384

Lung Yen Life Service Corp.		108,000		201,439

New Oriental Education & Technology Group, Inc., ADR*		26,257		400,682

Offcn Education Technology Co. Ltd., Class A		4,700		18,520


Investments	Shares		Value

Diversified Consumer Services – (continued)

TAL Education Group, ADR*		6,678	$	380,312

YDUQS Participacoes SA		5,200		28,045
				1,230,412

Diversified Financial Services – 0.9%

Avic Capital Co. Ltd., Class A		23,500		14,089

Bajaj Holdings & Investment Ltd.*		750		34,640

Chailease Holding Co. Ltd.		21,460		155,190

Corp. Financiera Colombiana SA*		46,447		397,549

CSSC Hong Kong Shipping Co. Ltd.(b)		468,000		79,538

Far East Horizon Ltd.(a)		106,000		121,465

FirstRand Ltd.		189,157		665,488

Grupo de Inversiones Suramericana SA		11,024		56,461

Grupo de Inversiones Suramericana SA (Preference)		4,992		22,605

Haci Omer Sabanci Holding A/S		54,484		53,157

Haitong UniTrust International Leasing Co. Ltd., Class H(b)		530,000		86,663

L&T Finance Holdings Ltd.*		395,844		465,196

Meritz Financial Group, Inc.		947		15,239

Metro Pacific Investments Corp.		381,000		32,047

NICE Holdings Co. Ltd.		728		12,631

Piramal Enterprises Ltd.		2,238		50,765

Power Finance Corp. Ltd.		38,732		56,682

REC Ltd.		37,683		65,169

Remgro Ltd.		22,525		170,760

Turkiye Sinai Kalkinma Bankasi A/S		671,510		102,038

Yuanta Financial Holding Co. Ltd.		438,920		408,546
				3,065,918

Diversified Telecommunication Services – 1.0%

Asia Pacific Telecom Co. Ltd.*		68,164		24,525

China Tower Corp. Ltd., Class H(b)		848,000		122,284

Chunghwa Telecom Co. Ltd.		62,000		253,034

CITIC Telecom International Holdings Ltd.		774,000		280,028

See Accompanying Notes to the Financial Statements.


156		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Diversified Telecommunication Services – (continued)

Emirates Telecommunications Group Co. PJSC		34,768	$	200,478

Hellenic Telecommunications Organization SA(a)		8,003		135,936

Indus Towers Ltd.		18,232		62,150

Jasmine International PCL, NVDR		1,973,200		183,774

LG Uplus Corp.		8,073		95,800

Magyar Telekom Telecommunications plc(a)		215,903		299,487

O2 Czech Republic A/S*		2,797		34,426

Oi SA*		61,100		19,146

Ooredoo QPSC		36,676		71,619

Orange Polska SA*		14,014		25,206

Rostelecom PJSC*		51,492		71,186

Rostelecom PJSC (Preference)*		15,392		18,544

Sarana Menara Nusantara Tbk. PT		315,700		24,915

Saudi Telecom Co.		10,695		362,194

Tata Communications Ltd.		1,646		24,448

Telefonica Brasil SA		16,089		128,113

Telekom Malaysia Bhd.		46,400		64,677

Telesites SAB de CV* (a)		22,200		21,051

Telkom Indonesia Persero Tbk. PT		1,680,100		372,192

Telkom SA SOC Ltd.		154,878		418,595

TIME dotCom Bhd.		3,000		10,165

Tower Bersama Infrastructure Tbk. PT		121,300		23,429

True Corp. PCL, NVDR		542,100		56,756

Turk Telekomunikasyon A/S		19,746		15,169
				3,419,327

Electric Utilities – 1.9%

Adani Transmission Ltd.*		5,461		77,404

Alupar Investimento SA		3,500		17,335

Celsia SA ESP		256,997		296,085

Centrais Eletricas Brasileiras SA		12,500		84,766

Centrais Eletricas Brasileiras SA (Preference), Class B		10,600		72,252

CESC Ltd.		32,811		269,296

CEZ A/S		6,307		175,946


Investments	Shares		Value

Electric Utilities – (continued)

Cia de Transmissao de Energia Eletrica Paulista (Preference)		5,200	$	25,879

Cia Energetica de Minas Gerais		6,455		20,096

Cia Energetica de Minas Gerais (Preference)		34,794		88,761

Cia Paranaense de Energia (Preference)		53,000		61,155

CPFL Energia SA		4,700		25,426

EDP – Energias do Brasil SA		9,400		32,556

Enea SA*		114,480		254,548

Enel Americas SA		966,565		136,916

Enel Chile SA		730,608		49,613

Energisa SA		4,800		38,982

Enerjisa Enerji A/S(b)		7,676		9,535

Engie Energia Chile SA		266,311		279,654

Equatorial Energia SA		15,900		73,532

Federal Grid Co. Unified Energy System PJSC		12,705,298		36,029

Holding Co. ADMIE IPTO SA		57,409		185,558

Inter RAO UES PJSC		1,538,292		100,533

Interconexion Electrica SA ESP		13,992		79,965

Korea Electric Power Corp.		9,222		196,072

Light SA		153,700		496,350

Manila Electric Co.		11,910		67,478

Mosenergo PJSC		4,293,000		127,516

Neoenergia SA		4,700		13,861

PGE Polska Grupa Energetyczna SA*		24,534		65,397

Power Grid Corp. of India Ltd.		98,142		291,554

Public Power Corp. SA*		4,670		52,929

ROSSETI PJSC		1,466,436		27,846

RusHydro PJSC		5,066,324		55,349

Saudi Electricity Co.		16,801		116,484

SJVN Ltd.		245,443		83,501

Tata Power Co. Ltd. (The)		861,250		1,149,341

Tauron Polska Energia SA*		552,313		492,396

Tenaga Nasional Bhd.		97,300		236,575

Torrent Power Ltd.		86,019		460,216

Transmissora Alianca de Energia Eletrica SA		5,800		44,687
				6,469,374

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			157

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Electrical Equipment – 0.8%

ABB India Ltd.		427	$	7,962

AcBel Polytech, Inc.		202,000		212,970

Amara Raja Batteries Ltd.		1,222		13,375

Bharat Heavy Electricals Ltd.*		697,533		454,836

Chicony Power Technology Co. Ltd.		69,000		183,783

CS Wind Corp.		342		23,674

Dongfang Electric Corp. Ltd., Class A		9,400		16,544

Doosan Fuel Cell Co. Ltd.*		690		27,976

Doosan Heavy Industries & Construction Co. Ltd.*		8,114		101,758

Ecopro BM Co. Ltd.		198		32,218

ElSewedy Electric Co.*		255,397		130,960

Fangda Carbon New Material Co. Ltd., Class A*		14,100		19,370

Gotion High-tech Co. Ltd., Class A*		4,800		25,767

Havells India Ltd.		4,452		59,517

Hyosung Heavy Industries Corp.*		2,597		163,662

Hyundai Electric & Energy System Co. Ltd.*		11,819		234,287

Kung Long Batteries Industrial Co. Ltd.		1,000		5,388

LS Corp.		1,272		83,821

LS Electric Co. Ltd.		456		23,326

Ming Yang Smart Energy Group Ltd., Class A		10,000		27,413

NARI Technology Co. Ltd., Class A		10,000		49,417

Shanghai Electric Group Co. Ltd., Class A		24,000		18,951

Shanghai Electric Group Co. Ltd., Class H		94,000		32,677

Shanghai Liangxin Electrical Co. Ltd., Class A		6,500		25,572

Ta Ya Electric Wire & Cable		50,000		61,755

Taihan Electric Wire Co. Ltd.*		7,800		8,029

TBEA Co. Ltd., Class A		14,400		27,436

Teco Electric and Machinery Co. Ltd.		22,000		27,487


Investments	Shares		Value

Electrical Equipment – (continued)

V-Guard Industries Ltd.*		1,032	$	3,108

Voltronic Power Technology Corp.*		1,458		66,550

Walsin Lihwa Corp.		106,000		115,741

WEG SA		21,200		136,807

Xinjiang Goldwind Science & Technology Co. Ltd., Class A		14,100		26,559

Xinjiang Goldwind Science & Technology Co. Ltd., Class H(a)		28,200		46,475

Zhejiang Chint Electrics Co. Ltd., Class A		4,700		24,177

Zhuzhou CRRC Times Electric Co. Ltd., Class H		6,700		26,742
				2,546,090

Electronic Equipment, Instruments & Components – 3.3%

AAC Technologies Holdings, Inc.(a)		14,000		77,960

AU Optronics Corp.		318,000		377,392

Aurora Corp.*		8,900		29,377

Avary Holding Shenzhen Co. Ltd., Class A		4,700		22,638

BH Co. Ltd.		11,448		185,251

BOE Technology Group Co. Ltd., Class A		64,100		72,603

Career Technology MFG. Co. Ltd.*		22,556		28,182

Chang Wah Electromaterials, Inc.		138,000		196,628

Cheng Uei Precision Industry Co. Ltd.		174,000		288,723

Chilisin Electronics Corp.		109,490		435,091

Chroma ATE, Inc.		8,000		55,562

Compeq Manufacturing Co. Ltd.		40,000		62,077

Concraft Holding Co. Ltd.		8,038		18,992

Coretronic Corp.*		212,000		465,242

Daeduck Electronics Co. Ltd.		17,702		243,485

Delta Electronics Thailand PCL, NVDR		7,600		86,404

Delta Electronics, Inc.		31,000		335,714

Dynapack International Technology Corp.		64,000		270,361

E Ink Holdings, Inc.		11,000		26,148

See Accompanying Notes to the Financial Statements.


158		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Electronic Equipment, Instruments & Components – (continued)

Elite Material Co. Ltd.		5,000	$	31,862

FLEXium Interconnect, Inc.*		10,000		42,602

Foxconn Technology Co. Ltd.		32,000		79,046

General Interface Solution Holding Ltd.		5,000		22,106

Genius Electronic Optical Co. Ltd.		2,237		44,046

GoerTek, Inc., Class A		4,700		27,380

Hana Microelectronics PCL, NVDR		17,100		30,479

Hannstar Board Corp.		159,000		282,902

HannStar Display Corp.		39,000		40,699

Hengdian Group DMEGC Magnetics Co. Ltd., Class A		15,900		33,267

Holy Stone Enterprise Co. Ltd.		67,000		322,611

Hon Hai Precision Industry Co. Ltd.		448,000		1,860,452

Honeywell Automation India Ltd.		32		18,626

Huagong Tech Co. Ltd., Class A		4,700		14,656

Iljin Materials Co. Ltd.		477		29,632

Inari Amertron Bhd.		69,000		58,112

Innolux Corp.*		371,000		399,782

JNTC Co. Ltd.*		8,904		80,447

KCE Electronics PCL, NVDR		18,900		35,357

Kingboard Holdings Ltd.		27,000		159,910

Kingboard Laminates Holdings Ltd.		10,000		25,004

L&F Co. Ltd.		288		23,509

Largan Precision Co. Ltd.		2,000		222,676

LG Display Co. Ltd.		2,954		64,532

LG Innotek Co. Ltd.		542		97,939

Lingyi iTech Guangdong Co., Class A		9,400		11,969

Lotes Co. Ltd.		2,256		43,855

Luxshare Precision Industry Co. Ltd., Class A		10,600		60,539

Mcnex Co. Ltd.		6,761		291,142

Merry Electronics Co. Ltd.		4,161		18,844

MH Development Ltd.* ^‡ (c)		22,000		1,643

Nan Ya Printed Circuit Board Corp.		2,000		22,805


Investments	Shares		Value

Electronic Equipment, Instruments & Components – (continued)

OFILM Group Co. Ltd., Class A		4,700	$	6,159

Partron Co. Ltd.		22,439		214,838

Samsung Electro-Mechanics Co. Ltd.		1,007		162,047

Samsung SDI Co. Ltd.		954		560,899

Shengyi Technology Co. Ltd., Class A		4,700		16,944

Shenzhen Fastprint Circuit Tech Co. Ltd., Class A		9,400		13,276

Shenzhen Kinwong Electronic Co. Ltd., Class A		5,000		21,656

Simplo Technology Co. Ltd.		5,200		69,810

Sinbon Electronics Co. Ltd.		3,000		27,924

Solus Advanced Materials Co. Ltd.		329		14,907

Sunny Optical Technology Group Co. Ltd.		11,800		287,751

Supreme Electronics Co. Ltd.		226,000		339,813

Synnex Technology International Corp.		59,000		117,649

Telcon RF Pharmaceutical, Inc.*		2,328		10,349

Tianma Microelectronics Co. Ltd., Class A		9,400		20,190

Tong Hsing Electronic Industries Ltd.		3,022		20,880

Tripod Technology Corp.		14,000		69,667

Unimicron Technology Corp.		24,000		98,808

Unisplendour Corp. Ltd., Class A		6,580		18,576

Unitech Printed Circuit Board Corp.		318,000		245,903

Universal Scientific Industrial Shanghai Co. Ltd., Class A		4,700		11,765

VS Industry Bhd.		22,800		15,473

Wah Lee Industrial Corp.		82,000		241,893

Walsin Technology Corp.		9,378		81,415

Wintek Corp.* ^‡ (c)		64,000		—

WPG Holdings Ltd.		53,440		98,527

WT Microelectronics Co. Ltd.		212,000		416,668

Wuhan Guide Infrared Co. Ltd., Class A		4,700		25,325

WUS Printed Circuit Kunshan Co. Ltd., Class A		4,700		10,516

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			159

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Electronic Equipment, Instruments & Components – (continued)

Yageo Corp.		6,575	$	127,814

Zhejiang Crystal-Optech Co. Ltd., Class A		4,700		8,650

Zhejiang Dahua Technology Co. Ltd., Class A		2,900		10,513

Zhen Ding Technology Holding Ltd.		23,150		87,849
				11,250,715

Energy Equipment & Services – 0.0%(d)

China Oilfield Services Ltd., Class A		9,400		19,260

China Oilfield Services Ltd., Class H		18,000		16,594

Dialog Group Bhd.		51,700		38,367

Serba Dinamik Holdings Bhd.		54,180		21,956
				96,177

Entertainment – 0.8%

Alibaba Pictures Group Ltd.* (a)		160,000		23,278

Bilibili, Inc., ADR* (a)		3,763		417,166

CD Projekt SA*		1,356		62,313

CJ CGV Co. Ltd.*		10,212		239,613

CMGE Technology Group Ltd.*		424,000		195,982

Com2uSCorp		133		17,636

DouYu International Holdings Ltd., ADR*		1,081		9,848

HUYA, Inc., ADR* (a)		611		10,766

HYBE Co. Ltd.*		235		51,337

International Games System Co. Ltd.		1,000		27,673

iQIYI, Inc., ADR* (a)		4,876		71,726

JYP Entertainment Corp.		423		12,511

Kakao Games Corp.*		611		29,771

NCSoft Corp.		301		224,597

NetDragon Websoft Holdings Ltd.		116,500		326,992

NetEase, Inc.		32,800		739,883

Netmarble Corp.(b)		410		47,732

NHN Corp.*		315		20,672

Pearl Abyss Corp.*		540		27,380


Investments	Shares		Value

Entertainment – (continued)

Perfect World Co. Ltd., Class A		4,100	$	13,501

PlayWay SA		96		11,959

SM Entertainment Co. Ltd.*		198		5,376

SMI Holdings Group Ltd.* ^‡ (c)		72,000		—

Tencent Music Entertainment Group, ADR*		7,452		129,814

Webzen, Inc.*		474		14,787

Wemade Co. Ltd.		299		14,005

Wuhu Sanqi Interactive Entertainment Network Technology Group Co. Ltd., Class A		4,700		16,021

XPEC Entertainment, Inc.* ^‡ ( c)		14,800		—

Zhejiang Century Huatong Group Co. Ltd., Class A*		11,280		11,556
				2,773,895

Equity Real Estate Investment Trusts (REITs) – 1.1%

Concentradora Fibra Danhos SA de CV(a)		428,600		508,172

CPN Retail Growth Leasehold REIT		44,100		27,759

Embassy Office Parks REIT		9,600		40,515

Emlak Konut Gayrimenkul Yatirim Ortakligi A/S		1,014,420		222,654

Equites Property Fund Ltd.		11,527		16,090

Fibra Uno Administracion SA de CV(a)		127,200		157,688

Fortress REIT Ltd., Class A		599,367		611,451

Growthpoint Properties Ltd.(a)		110,175		110,270

IGB REIT		6,200		2,649

KLCCP Stapled Group		6,900		11,690

Pavilion REIT		15,000		5,090

PLA Administradora Industrial S de RL de CV		399,100		609,891

Prologis Property Mexico SA de CV		10,400		22,388

Redefine Properties Ltd.*		2,827,683		842,019

Resilient REIT Ltd.		146,928		506,184

Sunway REIT		39,400		14,427
				3,708,937

See Accompanying Notes to the Financial Statements.


160		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Food & Staples Retailing – 0.7%

Abdullah Al Othaim Markets Co.		944	$	33,832

Al Meera Consumer Goods Co. QSC		1,990		10,521

Atacadao SA		7,700		30,827

Avenue Supermarts Ltd.* (b)		2,279		87,776

Berli Jucker PCL		500		570

Berli Jucker PCL, NVDR		27,700		31,581

BGF retail Co. Ltd.		239		32,874

Bid Corp. Ltd.*		5,936		116,989

BIM Birlesik Magazalar A/S		7,345		57,577

Cencosud SA		47,859		98,872

Cia Brasileira de Distribuicao		1,130		8,483

Clicks Group Ltd.		4,505		75,210

Cosco Capital, Inc.		1,614,400		168,313

CP ALL PCL, NVDR*		84,800		170,213

Dino Polska SA* (b)		903		58,674

Dis-Chem Pharmacies Ltd.* (b)		17,784		28,795

Dongsuh Cos., Inc.		859		24,287

E-MART, Inc.		848		128,075

Eurocash SA*		592		2,289

Focus Dynamics Group Bhd.*		94,000		2,639

Grupo Comercial Chedraui SA de CV		112,300		175,009

GS Retail Co. Ltd.		575		18,506

Hyundai Greenfood Co. Ltd.		26,217		229,327

InRetail Peru Corp.(b)		848		30,019

Magnit PJSC		1,366		93,048

Migros Ticaret A/S*		152		665

Organizacion Soriana SAB de CV, Class B*		130,700		115,770

Philippine Seven Corp.		5,321		11,824

President Chain Store Corp.		8,000		77,614

Puregold Price Club, Inc.		26,060		20,188

Raia Drogasil SA*		20,300		98,408

Shoprite Holdings Ltd.		9,646		96,138

Sok Marketler Ticaret A/S*		7,298		10,650

SPAR Group Ltd. (The)		3,102		39,227

Sun Art Retail Group Ltd.(a)		24,000		22,125

Wal-Mart de Mexico SAB de CV		84,800		278,723


Investments	Shares		Value

Food & Staples Retailing – (continued)

Yonghui Superstores Co. Ltd., Class A		26,500	$	22,808
				2,508,446

Food Products – 2.5%

Alicorp SAA		237,387		432,159

Almarai Co. JSC		5,777		82,879

Astra Agro Lestari Tbk. PT		20,800		13,428

Avanti Feeds Ltd.		507		3,332

AVI Ltd.		6,909		33,780

Beijing Dabeinong Technology Group Co. Ltd., Class A		19,200		24,180

Binggrae Co. Ltd.		321		17,892

Bombay Burmah Trading Co.		8,986		140,845

BRF SA*		16,500		63,229

Britannia Industries Ltd.		2,105		98,014

Century Pacific Food, Inc.		17,700		7,352

Charoen Pokphand Foods PCL, NVDR		116,600		108,596

Charoen Pokphand Indonesia Tbk. PT		129,500		63,204

Cherkizovo Group PJSC		2,500		74,674

China Feihe Ltd.(b)		53,000		151,149

China Huiyuan Juice Group Ltd.*^‡ (c)		24,000		—

China Mengniu Dairy Co. Ltd.*		42,000		224,956

Chongqing Fuling Zhacai Group Co. Ltd., Class A		5,000		30,866

CJ CheilJedang Corp.		337		119,822

CJ CheilJedang Corp. (Preference)		104		17,344

COFCO Joycome Foods Ltd.(a) (b)		954,000		485,177

CP Pokphand Co. Ltd.		2,772,000		349,763

Daesang Corp.		10,918		253,724

Dali Foods Group Co. Ltd.(b)		45,500		27,065

Dongwon F&B Co. Ltd.		562		102,816

Dongwon Industries Co. Ltd.		682		165,541

Edita Food Industries SAE		17,343		8,162

Foshan Haitian Flavouring & Food Co. Ltd., Class A		3,500		91,671

Fujian Sunner Development Co. Ltd., Class A		10,600		43,307

Genting Plantations Bhd.		10,400		22,164

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			161

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Food Products – (continued)

Gruma SAB de CV, Class B		5,035	$	54,978

Grupo Bimbo SAB de CV, Series A		31,800		63,901

Grupo Lala SAB de CV		16,800		12,433

Grupo Nutresa SA		3,592		20,644

Harim Holdings Co. Ltd.		17,469		148,094

Heilongjiang Agriculture Co. Ltd., Class A		10,600		24,815

Henan Shuanghui Investment & Development Co. Ltd., Class A		4,700		26,610

HUISHAN DAIRY* ^‡ (c)		158,000		—

Indofood CBP Sukses Makmur Tbk. PT		51,800		31,198

Indofood Sukses Makmur Tbk. PT		100,800		45,533

Industrias Bachoco SAB de CV, Series B		3,000		11,113

Inner Mongolia Yili Industrial Group Co. Ltd., Class A		8,200		51,888

International Holdings Co. PJSC*		5,636		139,168

IOI Corp. Bhd.		63,600		63,501

Japfa Comfeed Indonesia Tbk. PT		2,766,600		404,121

JBS SA		31,900		177,103

Jiangxi Zhengbang Technology Co. Ltd., Class A		4,700		10,698

Kernel Holding SA		25,884		348,394

Kuala Lumpur Kepong Bhd.		10,831		58,169

Lien Hwa Industrial Holdings Corp.		14,000		24,684

Lotte Confectionery Co. Ltd.		954		116,640

M Dias Branco SA*		5,300		26,005

Maeil Dairies Co. Ltd.		2,173		146,123

Marfrig Global Foods SA		185,500		662,982

Mayora Indah Tbk. PT		83,900		14,288

Muyuan Foods Co. Ltd., Class A		5,300		92,634

Namchow Holdings Co. Ltd.		72,000		149,501

Naturecell Co. Ltd.*		782		6,854

Nestle India Ltd.		583		128,365

Nestle Malaysia Bhd.		900		29,814


Investments	Shares		Value

Food Products – (continued)

New Hope Liuhe Co. Ltd., Class A		20,000	$	51,364

NongShim Co. Ltd.		56		14,348

Orion Corp.		530		55,747

Orion Holdings Corp.		12,362		195,596

Ottogi Corp.		15		7,484

PPB Group Bhd.		14,080		63,588

QL Resources Bhd.		25,395		37,506

Samyang Corp.		1,908		100,687

Samyang Foods Co. Ltd.		86		7,159

Samyang Holdings Corp.		3,392		426,916

San Miguel Food and Beverage, Inc.		15,960		22,092

Sanquan Food Co. Ltd., Class A		5,000		15,375

Sao Martinho SA*		5,300		30,450

Sarawak Oil Palms Bhd.		79,500		72,971

Savola Group (The)		5,989		63,801

Sime Darby Plantation Bhd.		58,500		64,835

Standard Foods Corp.		14,652		29,846

Taiwan TEA Corp.*		8,000		6,788

Tata Consumer Products Ltd.		11,255		101,728

Tech-Bank Food Co. Ltd., Class A		5,000		10,948

Thai Union Group PCL, NVDR		98,100		47,573

Thai Vegetable Oil PCL, NVDR		15,570		17,751

Tiger Brands Ltd.		1,924		25,861

Tingyi Cayman Islands Holding Corp.(a)		28,000		50,399

Tongwei Co. Ltd., Class A		5,500		29,941

Ulker Biskuvi Sanayi A/S*		84,005		222,879

Uni-President China Holdings Ltd.		3,000		3,654

Uni-President Enterprises Corp.		80,000		215,086

Universal Robina Corp.		16,800		47,766

Want Want China Holdings Ltd.		106,000		76,837

Yihai International Holding Ltd.* (a)		7,000		68,226

Zhou Hei Ya International Holdings Co. Ltd.* (a) (b)		14,000		17,160
				8,549,704

Gas Utilities – 0.5%

Adani Total Gas Ltd.*		5,195		80,707

Beijing Enterprises Holdings Ltd.		16,000		52,325

See Accompanying Notes to the Financial Statements.


162		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Gas Utilities – (continued)

China Gas Holdings Ltd.		31,800	$	114,846

China Resources Gas Group Ltd.		12,000		65,123

ENN Energy Holdings Ltd.		12,600		214,790

GAIL India Ltd.		64,872		120,158

Grupo Energia Bogota SA ESP		54,757		38,202

Gujarat Gas Ltd.		2,679		19,203

Gujarat State Petronet Ltd.		2,352		8,562

Indraprastha Gas Ltd.		4,564		31,359

Infraestructura Energetica Nova SAB de CV*		9,400		40,429

Korea Gas Corp.*		999		31,344

Kunlun Energy Co. Ltd.		126,000		135,298

Mahanagar Gas Ltd.(b)		1,456		22,120

Perusahaan Gas Negara Tbk. PT		435,600		36,941

Petronas Gas Bhd.		15,900		61,094

Promigas SA ESP		139,208		276,109

Towngas China Co. Ltd.*		477,000		235,219
				1,583,829

Health Care Equipment & Supplies – 0.2%

Blue Sail Medical Co. Ltd., Class A		4,700		17,140

DIO Corp.*		520		19,096

Hartalega Holdings Bhd.		31,800		79,803

Kangji Medical Holdings Ltd.* (a)		25,000		41,716

Kossan Rubber Industries		22,800		24,712

Lifetech Scientific Corp.* (a)		82,000		44,237

Microport Scientific Corp.(a)		11,098		80,161

Osstem Implant Co. Ltd.		318		25,386

Shandong Weigao Group Medical Polymer Co. Ltd., Class H(a)		36,000		80,743

Sri Trang Gloves Thailand PCL, NVDR		18,800		26,717

St Shine Optical Co. Ltd.		2,000		23,019

Supermax Corp. Bhd.		64,124		94,392

Top Glove Corp. Bhd.		78,800		108,686

Venus MedTech Hangzhou, Inc., Class H* (b)		4,000		35,510
				701,318


Investments	Shares		Value

Health Care Providers & Services – 0.5%

Apollo Hospitals Enterprise Ltd.		1,736	$	74,938

Bangkok Chain Hospital PCL, NVDR		4,800		2,790

Bangkok Dusit Medical Services PCL, NVDR		84,800		59,098

Bumrungrad Hospital PCL, NVDR		6,600		28,403

Celltrion Healthcare Co. Ltd.*		1,446		145,854

Chabiotech Co. Ltd.*		427		7,255

China National Accord Medicines Corp. Ltd., Class B		9,964		29,019

Chularat Hospital PCL, NVDR		183,100		18,347

Cleopatra Hospital*		33,041		9,663

Dr Lal PathLabs Ltd.(b)		430		17,025

Dr Sulaiman Al Habib Medical Services Group Co.		1,128		45,480

Fleury SA		3,600		16,954

Fortis Healthcare Ltd.*		9,651		27,452

Genertec Universal Medical Group Co. Ltd.(b)		518,500		431,925

Hapvida Participacoes e Investimentos SA* (b)		26,100		69,469

Huadong Medicine Co. Ltd., Class A		5,300		43,111

IHH Healthcare Bhd.		63,600		83,529

Jinxin Fertility Group Ltd.(b)		12,000		30,901

KPJ Healthcare Bhd.		14,124		3,517

Life Healthcare Group Holdings Ltd.*		30,687		40,274

Medipost Co. Ltd.*		446		13,632

Meinian Onehealth Healthcare Holdings Co. Ltd., Class A*		9,400		17,866

Metro Healthcare Indonesia TBK PT*		1,107,700		24,079

Mitra Keluarga Karyasehat Tbk. PT(b)		100,200		18,174

Mouwasat Medical Services Co.*		688		32,546

Netcare Ltd.*		31,067		32,250

Notre Dame Intermedica Participacoes SA		7,200		107,856

Odontoprev SA		4,900		11,534

Qualicorp Consultoria e Corretora de Seguros SA		4,100		20,442

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			163

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Health Care Providers & Services – (continued)

Selcuk Ecza Deposu Ticaret ve Sanayi A/S		58,470	$	70,866

Shanghai Pharmaceuticals Holding Co. Ltd., Class A		4,700		16,254

Shanghai Pharmaceuticals Holding Co. Ltd., Class H		23,500		53,494

Sinopharm Group Co. Ltd., Class H		42,400		131,564
				1,735,561

Health Care Technology – 0.1%

Alibaba Health Information Technology Ltd.* (a)		68,000		207,497

Ping An Healthcare and Technology Co. Ltd.* (a) (b)		10,600		124,195
				331,692

Hotels, Restaurants & Leisure – 0.6%

AmRest Holdings SE*		36,206		301,952

Ananti, Inc.*		1,058		7,581

Berjaya Sports Toto Bhd.		394,213		196,317

Bloomberry Resorts Corp.*		22,900		3,091

Central Plaza Hotel PCL*		1,600		1,631

Central Plaza Hotel PCL, NVDR*		8,600		8,769

DoubleUGames Co. Ltd.		312		17,867

Genting Bhd.		95,400		115,978

Genting Malaysia Bhd.		61,100		42,957

Grand Korea Leisure Co. Ltd.*		1,040		15,333

Haidilao International Holding Ltd.(a) (b)		13,164		85,338

Hana Tour Service, Inc.*		403		23,875

Huazhu Group Ltd., ADR* (a)		2,871		169,274

Indian Hotels Co. Ltd. (The)		9,131		13,745

Jiumaojiu International Holdings Ltd.* (b)		6,000		25,107

Jollibee Foods Corp.		10,380		37,941

Jubilant Foodworks Ltd.*		987		38,531

Kangwon Land, Inc.*		1,536		34,936

Magnum Bhd.		19,594		10,093

Minor International PCL, NVDR*		90,100		86,809


Investments	Shares		Value

Hotels, Restaurants & Leisure – (continued)

MK Restaurants Group PCL, NVDR		10,400	$	17,034

OPAP SA		4,228		64,893

Paradise Co. Ltd.*		421		6,813

Shanghai Jinjiang International Hotels Co. Ltd., Class B		15,900		33,915

Shenzhen Overseas Chinese Town Co. Ltd., Class A		22,200		31,937

Travellers International Hotel Group, Inc.* ^‡ (c)		209,900		11,814

Yum China Holdings, Inc.(a)		7,632		480,205
				1,883,736

Household Durables – 0.8%

Arcelik A/S		12,380		51,330

Coway Co. Ltd.		1,962		118,000

Crompton Greaves Consumer Electricals Ltd.		8,173		42,469

Cyrela Brazil Realty SA Empreendimentos e Participacoes		4,900		21,252

Dixon Technologies India Ltd.* (b)		705		39,992

Dom Development SA		3,992		158,877

Haier Smart Home Co. Ltd., Class A		21,200		108,531

Haier Smart Home Co. Ltd., Class H*		31,800		137,569

Hang Zhou Great Star Industrial Co. Ltd., Class A*		5,000		29,669

Hanssem Co. Ltd.		303		30,508

Hisense Home Appliances Group Co. Ltd., Class A		10,000		26,254

Kinpo Electronics		50,000		32,130

LG Electronics, Inc.		4,136		585,625

LG Electronics, Inc. (Preference)		584		38,904

Lock&Lock Co. Ltd.*		728		10,046

MRV Engenharia e Participacoes SA		133,500		426,934

NavInfo Co. Ltd., Class A		4,700		10,335

Nien Made Enterprise Co. Ltd.		2,000		32,363

PIK Group PJSC		6,174		75,139

Tatung Co. Ltd.*		46,000		44,464

TCL Electronics Holdings Ltd.		424,000		313,352

See Accompanying Notes to the Financial Statements.


164		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Household Durables – (continued)

TCL Technology Group Corp., Class A		28,200	$	39,218

Vestel Elektronik Sanayi ve Ticaret A/S*		37,269		129,444

Whirlpool of India Ltd.		674		20,213
				2,522,618

Household Products – 0.2%

C&S Paper Co. Ltd., Class A		5,000		23,828

Hindustan Unilever Ltd.		15,534		493,613

Kimberly-Clark de Mexico SAB de CV, Class A(a)		27,000		46,841

Unilever Indonesia Tbk. PT		75,200		31,236

Vinda International Holdings Ltd.		3,000		10,680
				606,198

Independent Power and Renewable Electricity Producers – 2.0%

Aboitiz Power Corp.		34,200		16,336

Adani Green Energy Ltd.*		6,243		85,879

Adani Power Ltd.*		382,728		489,567

AES Brasil Energia SA		76,400		193,350

AES Gener SA		88,486		14,469

B Grimm Power PCL, NVDR		15,300		21,006

Banpu Power PCL, NVDR		11,700		6,801

Canvest Environmental Protection Group Co. Ltd.(b)		318,000		164,592

CGN Power Co. Ltd., Class H(b)		465,000		107,167

China Longyuan Power Group Corp. Ltd., Class H		1,618,000		2,383,195

China National Nuclear Power Co. Ltd., Class A		42,300		34,120

China Power International Development Ltd.		2,226,000		510,153

China Resources Power Holdings Co. Ltd.		54,000		70,917

China Yangtze Power Co. Ltd., Class A		31,800		98,130

Cia Energetica de Sao Paulo (Preference), Class B		90,100		420,170

Colbun SA		238,159		40,682


Investments	Shares		Value

Independent Power and Renewable Electricity Producers – (continued)

Datang International Power Generation Co. Ltd., Class H		212,000	$	31,390

Electricity Generating PCL, NVDR		4,700		26,642

Energy Absolute PCL, NVDR		37,100		72,681

Eneva SA*		21,200		57,325

Engie Brasil Energia SA		4,700		35,233

First Gen Corp.		29,500		19,054

Global Power Synergy PCL, NVDR		9,968		23,289

Guangxi Guiguan Electric Power Co. Ltd., Class A		15,000		12,006

Gulf Energy Development PCL, NVDR		82,180		91,055

Huadian Power International Corp. Ltd., Class A		51,700		27,162

Huaneng Lancang River Hydropower, Inc., Class A		23,500		21,279

Huaneng Power International, Inc., Class A		18,800		12,259

Huaneng Power International, Inc., Class H		112,000		40,377

Hub Power Co. Ltd. (The)		371,000		181,233

Hubei Energy Group Co. Ltd., Class A		23,500		16,849

JSW Energy Ltd.		207,058		306,370

NHPC Ltd.		79,420		26,001

NTPC Ltd.		185,625		256,739

OGK-2 PJSC		15,681,280		165,008

Ratch Group PCL, NVDR		9,300		15,083

SDIC Power Holdings Co. Ltd., Class A		23,500		35,950

Shanghai Electric Power Co. Ltd., Class A		14,100		15,339

Shenergy Co. Ltd., Class A		14,100		12,354

Shenzhen Energy Group Co. Ltd., Class A		23,500		30,757

Sichuan Chuantou Energy Co. Ltd., Class A		9,400		16,355

SPCG PCL, NVDR		245,500		150,592

Super Energy Corp. PCL, NVDR*		7,128,500		217,489

Taiwan Cogeneration Corp.		3,000		4,291

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			165

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Independent Power and Renewable Electricity Producers – (continued)

Terna Energy SA		933	$	14,039

TPI Polene Power PCL, NVDR		156,000		21,844

Unipro PJSC		5,143,000		196,743
				6,809,322

Industrial Conglomerates – 1.6%

3M India Ltd.*		69		23,789

Aamal Co.		21,949		5,697

Aboitiz Equity Ventures, Inc.		81,230		59,889

AG Anadolu Grubu Holding A/S		66,780		173,151

Alfa SAB de CV, Class A		111,300		78,174

Alliance Global Group, Inc.		1,832,500		398,849

AntarChile SA		6,235		68,965

Ayala Corp.		5,300		81,564

Bidvest Group Ltd. (The)		11,713		135,227

CJ Corp.		564		48,422

DMCI Holdings, Inc.		1,913,300		211,000

Doosan Co. Ltd.		6,172		350,672

Dubai Investments PJSC		1,052,192		441,141

Enka Insaat ve Sanayi A/S		48,962		46,352

Far Eastern New Century Corp.		129,000		153,555

Fosun International Ltd.		106,000		152,582

Godrej Industries Ltd.*		3,377		23,249

Grupo Carso SAB de CV, Series A1*		11,100		31,774

GT Capital Holdings, Inc.		2,280		24,860

Hanwha Corp.		1,692		46,850

Hanwha Corp. (3rd Preference)		1,425		19,152

HAP Seng Consolidated Bhd.		11,900		23,327

Hong Leong Industries Bhd.		33,000		76,128

Hyosung Corp.		201		17,961

Industries Qatar QSC		36,093		133,626

JG Summit Holdings, Inc.		63,711		69,798

KOC Holding A/S		48,442		106,967

LG Corp.(c)		4,505		512,323

Lotte Corp.		1,392		45,801

LT Group, Inc.		131,600		36,679

Mytilineos SA		4,802		89,542

National Industries Group Holding SAK		637,113		458,857


Investments	Shares		Value

Industrial Conglomerates – (continued)

PSG Group Ltd.		3,290	$	16,979

Quinenco SA		12,939		26,631

Samsung C&T Corp.		1,564		191,220

San Miguel Corp.		13,510		32,267

Shanghai Industrial Holdings Ltd.		201,000		311,068

Siemens Ltd.		1,416		35,967

Sigdo Koppers SA		141,150		171,479

Sime Darby Bhd.		54,600		30,123

SK Holdings Co. Ltd.		1,315		326,282

SM Investments Corp.		8,190		163,460

Turkiye Sise ve Cam Fabrikalari A/S		49,404		44,745
				5,496,144

Insurance – 3.2%

Allianz Malaysia Bhd.		26,500		85,392

Bajaj Finserv Ltd.*		680		101,364

Bangkok Insurance PCL, NVDR		10,600		91,915

Bangkok Life Assurance PCL, NVDR*		215,200		172,782

BB Seguridade Participacoes SA		15,900		65,443

Bupa Arabia for Cooperative Insurance Co.*		262		8,076

Cathay Financial Holding Co. Ltd.		318,000		595,403

China Development Financial Holding Corp.		530,000		247,610

China Life Insurance Co. Ltd.		79,440		75,365

China Life Insurance Co. Ltd., Class H		131,000		266,829

China Pacific Insurance Group Co. Ltd., Class A		20,400		103,679

China Pacific Insurance Group Co. Ltd., Class H		106,000		383,502

China Taiping Insurance Holdings Co. Ltd.		53,000		98,537

Co. for Cooperative Insurance (The)*		974		20,155

DB Insurance Co. Ltd.		1,942		85,459

Discovery Ltd.*		6,980		63,509

Fubon Financial Holding Co. Ltd.		265,000		609,065

See Accompanying Notes to the Financial Statements.


166		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Insurance – (continued)

General Insurance Corp. of India* (b)		8,949	$	24,737

Hanwha Life Insurance Co. Ltd.		12,318		38,703

HDFC Life Insurance Co. Ltd.* (b)		14,049		126,147

Hyundai Marine & Fire Insurance Co. Ltd.		2,862		62,651

ICICI Lombard General Insurance Co. Ltd.(b)		3,903		74,506

ICICI Prudential Life Insurance Co. Ltd.(b)		5,812		40,954

IRB Brasil Resseguros S/A		31,951		35,866

Korean Reinsurance Co.		38,294		315,688

Liberty Holdings Ltd.*		66,484		264,195

Max Financial Services Ltd.*		2,721		32,910

Mercuries & Associates Holding Ltd.		252,500		212,428

Mercuries Life Insurance Co. Ltd.*		583,000		214,975

Meritz Fire & Marine Insurance Co. Ltd.		2,444		43,833

Mirae Asset Life Insurance Co. Ltd.		29,498		106,737

Momentum Metropolitan Holdings		471,329		628,330

New China Life Insurance Co. Ltd., Class A		4,700		35,304

New China Life Insurance Co. Ltd., Class H		30,100		116,070

Old Mutual Ltd.		165,852		144,617

People’s Insurance Co. Group of China Ltd. (The), Class H		241,000		82,538

PICC Property & Casualty Co. Ltd., Class H		264,000		259,348

Ping An Insurance Group Co. of China Ltd., Class A		31,900		357,375

Ping An Insurance Group Co. of China Ltd., Class H		198,500		2,171,096

Porto Seguro SA		4,800		43,680

Powszechny Zaklad Ubezpieczen SA*		23,479		202,441

Qatar Insurance Co. SAQ*		8,178		5,656


Investments	Shares		Value

Insurance – (continued)

Qualitas Controladora SAB de CV(a)		87,400	$	476,802

Rand Merchant Investment Holdings Ltd.		31,940		64,904

Samsung Fire & Marine Insurance Co. Ltd.		1,234		219,654

Samsung Life Insurance Co. Ltd.		3,249		238,633

Sanlam Ltd.(a)		69,814		269,583

Santam Ltd.*		723		12,781

SBI Life Insurance Co. Ltd.(b)		5,434		68,130

Shin Kong Financial Holding Co. Ltd.		490,007		177,176

Shinkong Insurance Co. Ltd.		124,000		184,670

Sul America SA*		5,077		30,610

Syarikat Takaful Malaysia Keluarga BHD		169,600		184,654

Turkiye Sigorta A/S		113,738		77,362

ZhongAn Online P&C Insurance Co. Ltd., Class H* (a) (b)		8,100		47,973
				10,767,802

Interactive Media & Services – 3.3%

Autohome, Inc., ADR		954		88,464

Baidu, Inc., ADR*		4,529		952,585

Info Edge India Ltd.*		1,422		94,350

JOYY, Inc., ADR		1,166		110,840

Kakao Corp.		5,358		546,710

Momo, Inc., ADR(a)		6,478		94,967

NAVER Corp.		2,438		787,936

Sogou, Inc., ADR*		2,750		23,238

Tencent Holdings Ltd.		101,600		8,149,610

Tongdao Liepin Group* (b)		10,000		33,540

Weibo Corp., ADR* (a)		752		37,901
				10,920,141

Internet & Direct Marketing Retail – 4.4%

Alibaba Group Holding Ltd.*		248,000		7,184,380

Allegro.eu SA* (b)		3,339		51,234

B2W Cia Digital*		5,300		65,766

Baozun, Inc., Class A* (a)		2,500		29,259

CJ ENM Co. Ltd.		140		18,124

GS Home Shopping, Inc.		1,626		217,365

HengTen Networks Group Ltd.* (a)		30,799		36,482

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			167

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Internet & Direct Marketing Retail – (continued)

Hyundai Home Shopping Network Corp.		2,969	$	210,327

JD.com, Inc., Class A*		29,750		1,144,518

Maoyan Entertainment* (a) (b)		11,400		22,721

Meituan, Class B* (b)		70,100		2,689,610

Naspers Ltd., Class N		7,314		1,668,953

PChome Online, Inc.		2,763		8,339

Pinduoduo, Inc., ADR*		5,936		795,009

Tongcheng-Elong Holdings Ltd.* (a) (b)		18,800		47,152

Trip.com Group Ltd., ADR*		8,239		321,980

Vipshop Holdings Ltd., ADR*		6,254		192,436
				14,703,655

IT Services – 1.2%

21Vianet Group, Inc., ADR*		1,563		43,623

China TransInfo Technology Co. Ltd., Class A		4,700		10,872

Chinasoft International Ltd.*		22,000		24,757

Chindata Group Holdings Ltd., ADR*		1,855		24,467

Cielo SA		617,600		392,741

Coforge Ltd.		245		9,490

DHC Software Co. Ltd., Class A		9,400		9,921

Fawry for Banking & Payment Technology Services SAE*		18,921		24,261

GDS Holdings Ltd., ADR*		2,279		189,089

HCL Technologies Ltd.		18,338		222,552

Infosys Ltd.		61,692		1,127,984

Kginicis Co. Ltd.		8,298		149,198

Kingsoft Cloud Holdings Ltd., ADR* (a)		564		24,771

Larsen & Toubro Infotech Ltd.(b)		721		37,867

Locaweb Servicos de Internet SA* (b)		4,800		25,454

Mindtree Ltd.		610		17,343

Mphasis Ltd.		1,034		24,635

My EG Services Bhd.		42,717		20,335

Posco ICT Co. Ltd.		2,080		13,463

Samsung SDS Co. Ltd.		742		122,071

Systex Corp.		106,000		347,983

Tata Consultancy Services Ltd.		17,172		703,745


Investments	Shares		Value

IT Services – (continued)

Tech Mahindra Ltd.		10,600	$	137,436

TravelSky Technology Ltd., Class H(a)		8,000		17,572

Wipro Ltd.		27,601		183,609

Yeahka Ltd.* (a)		2,400		19,807
				3,925,046

Leisure Products – 0.1%

Giant Manufacturing Co. Ltd.		5,000		63,724

HLB, Inc.*		1,346		40,053

Merida Industry Co. Ltd.		5,350		63,779
				167,556

Life Sciences Tools & Services – 0.4%

Cellivery Therapeutics, Inc.*		188		19,403

Divi’s Laboratories Ltd.*		2,528		138,643

Eubiologics Co. Ltd.*		954		26,029

Genscript Biotech Corp.* (a)		12,000		27,810

Hangzhou Tigermed Consulting Co. Ltd., Class H* (b)		1,000		19,648

LegoChem Biosciences, Inc.*		270		12,428

Pharmaron Beijing Co. Ltd., Class H(a) (b)		1,400		29,039

Samsung Biologics Co. Ltd.* (b)		301		217,561

ST Pharm Co. Ltd.*		344		35,286

Viva Biotech Holdings(a) (b)		23,500		20,272

WuXi AppTec Co. Ltd., Class A		2,300		56,420

WuXi AppTec Co. Ltd., Class H(a) (b)		4,099		96,949

Wuxi Biologics Cayman, Inc.* (b)		53,000		747,214
				1,446,702

Machinery – 0.7%

AIA Engineering Ltd.*		972		24,443

Airtac International Group		1,784		75,363

Ashok Leyland Ltd.*		32,990		50,194

China International Marine Containers Group Co. Ltd., Class H		5,880		11,083

China Shipbuilding Industry Co. Ltd., Class A*		18,800		11,882

CIMC Enric Holdings Ltd.(a)		298,000		259,369

See Accompanying Notes to the Financial Statements.


168		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Machinery – (continued)

CNHTC Jinan Truck Co. Ltd., Class A		900	$	4,699

CNPC Capital Co. Ltd., Class A		29,200		26,757

Cummins India Ltd.		2,280		25,782

Daewoo Shipbuilding & Marine Engineering Co. Ltd.*		705		23,260

Doosan Bobcat, Inc.*		1,908		78,303

Doosan Infracore Co. Ltd.*		4,413		42,847

Escorts Ltd.		930		14,044

Estun Automation Co. Ltd., Class A*		5,000		24,886

Haitian International Holdings Ltd.		16,000		65,200

Hangzhou Oxygen Plant Group Co. Ltd.		5,000		26,524

Hiwin Technologies Corp.		5,216		79,361

Hyundai Elevator Co. Ltd.		208		8,471

Hyundai Heavy Industries Holdings Co. Ltd.		2,120		134,174

Hyundai Mipo Dockyard Co. Ltd.*		602		46,435

Hyundai Rotem Co. Ltd.*		1,766		31,991

Infore Environment Technology Group Co. Ltd., Class A		9,400		11,446

Korea Shipbuilding & Offshore Engineering Co. Ltd.*		530		73,138

Lonking Holdings Ltd.		1,007,000		427,857

Pentamaster Corp. Bhd.		21,200		30,172

Riyue Heavy Industry Co. Ltd., Class A		5,000		22,205

Samsung Heavy Industries Co. Ltd.*		5,565		37,522

Sany Heavy Equipment International Holdings Co. Ltd.(a)		12,000		14,570

Sany Heavy Industry Co. Ltd., Class A		10,600		50,580

SFA Engineering Corp.		1,089		41,020

Shanghai Mechanical and Electrical Industry Co. Ltd., Class B		21,200		29,086

Sinotruk Hong Kong Ltd.		30,500		75,083

SKF India Ltd.		624		18,841


Investments	Shares		Value

Machinery – (continued)

Weichai Power Co. Ltd., Class A		17,300	$	48,413

Weichai Power Co. Ltd., Class H		72,000		167,048

XCMG Construction Machinery Co. Ltd., Class A		18,800		21,439

Yangzijiang Shipbuilding Holdings Ltd.		100,700		108,239

Zhejiang Sanhua Intelligent Controls Co. Ltd., Class A		9,400		31,113

Zhengzhou Coal Mining Machinery Group Co. Ltd., Class A		9,400		17,024

Zhengzhou Coal Mining Machinery Group Co. Ltd., Class H(a)		10,000		12,154

Zoomlion Heavy Industry Science and Technology Co. Ltd., Class A		17,700		32,301

Zoomlion Heavy Industry Science and Technology Co. Ltd., Class H(a)		60,200		83,400
				2,417,719

Marine – 1.1%

Cia Sud Americana de Vapores SA*		636,473		38,320

COSCO SHIPPING Holdings Co. Ltd., Class H*		43,500		77,850

Evergreen Marine Corp. Taiwan Ltd.*		98,558		278,741

HMM Co. Ltd.*		10,017		353,006

MISC Bhd.		58,300		96,493

Pan Ocean Co. Ltd.		5,613		37,038

Qatar Navigation QSC		284,177		585,603

Transcoal Pacific Tbk. PT		32,900		16,456

U-Ming Marine Transport Corp.		2,000		5,026

Wan Hai Lines Ltd.		53,000		179,684

Wisdom Marine Lines Co. Ltd.*		27,898		70,711

Yang Ming Marine Transport Corp.*		642,000		1,834,089
				3,573,017

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			169

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Media – 0.3%

Astro Malaysia Holdings Bhd.		1,379,400	$	333,367

Cheil Worldwide, Inc.		1,074		21,193

China Literature Ltd.* (a) (b)		6,200		64,660

Cyfrowy Polsat SA		9,434		73,499

Focus Media Information Technology Co. Ltd., Class A		23,500		39,146

Grupo Televisa SAB, Series CPO* (a)		53,000		132,037

Innocean Worldwide, Inc.		71		3,823

Leo Group Co. Ltd., Class A		18,800		7,146

Media Nusantara Citra Tbk. PT*		3,148,700		213,619

MultiChoice Group		7,367		63,369

NanJi E-Commerce Co. Ltd., Class A		4,700		5,868

Oriental Pearl Group Co. Ltd., Class A		19,200		26,108

Plan B Media PCL, NVDR		72,800		14,496

Saudi Research & Marketing Group*		1,030		24,829

Sun TV Network Ltd.		1,889		13,857

Surya Citra Media Tbk. PT*		85,400		9,312

Zee Entertainment Enterprises Ltd.		12,540		31,421
				1,077,750

Metals & Mining – 5.8%

African Rainbow Minerals Ltd.		4,134		77,254

Alrosa PJSC		101,760		147,321

Aluminum Corp. of China Ltd., Class H* (a)		60,000		31,287

Aneka Tambang Tbk.		269,910		46,527

Angang Steel Co. Ltd., Class H(a)		38,000		26,273

Anglo American Platinum Ltd.(a)		2,014		275,542

AngloGold Ashanti Ltd.		14,575		301,597

Baoshan Iron & Steel Co. Ltd., Class A		63,600		84,813

Beijing Shougang Co. Ltd., Class A*		28,200		21,962

Bradespar SA (Preference)		5,300		69,371

CAP SA		38,372		680,710


Investments	Shares		Value

Metals & Mining – (continued)

Century Iron & Steel Industrial Co. Ltd.		6,000	$	24,917

Chifeng Jilong Gold Mining Co. Ltd., Class A*		10,000		23,426

China Hongqiao Group Ltd.(a)		79,500		125,900

China Metal Recycling Holdings Ltd.* ^‡ (c)		51,000		—

China Molybdenum Co. Ltd., Class A		22,500		20,200

China Molybdenum Co. Ltd., Class H(a)		57,000		38,676

China Northern Rare Earth Group High-Tech Co. Ltd., Class A		9,400		29,559

China Steel Corp.		212,000		298,271

China Zhongwang Holdings Ltd.* (a)		699,600		162,135

Chung Hung Steel Corp.*		477,000		727,462

Cia Siderurgica Nacional SA		26,500		240,272

Citic Pacific Special Steel Group Co. Ltd., Class A		4,700		18,796

Dongkuk Steel Mill Co. Ltd.		31,641		681,262

DRDGOLD Ltd.(a)		20,448		20,353

Eregli Demir ve Celik Fabrikalari TAS		43,672		100,279

Feng Hsin Steel Co. Ltd.		16,000		50,578

Ganfeng Lithium Co. Ltd., Class H(a) (b)		3,400		45,789

Gerdau SA (Preference)		18,600		113,892

Gold Fields Ltd.		31,352		296,501

Grupa Kety SA		151		24,509

Grupo Mexico SAB de CV, Series B		116,600		529,236

Harmony Gold Mining Co. Ltd.		8,695		39,599

Hesteel Co. Ltd., Class A		37,600		14,816

Hindalco Industries Ltd.		56,445		277,681

Hunan Valin Steel Co. Ltd., Class A		23,500		28,542

Hyundai Steel Co.		1,128		56,281

Impala Platinum Holdings Ltd.		29,922		560,036

Industrias Penoles SAB de CV*		4,365		56,442

Inner Mongolia BaoTou Steel Union Co. Ltd., Class A*		70,500		16,014

See Accompanying Notes to the Financial Statements.


170		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Metals & Mining – (continued)

Inner Mongolia Eerduosi Resources Co. Ltd., Class B		137,800	$	183,136

Jastrzebska Spolka Weglowa SA*		27,030		216,152

Jiangsu Shagang Co. Ltd., Class A		9,400		14,293

Jiangxi Copper Co. Ltd., Class A		9,400		38,579

Jiangxi Copper Co. Ltd., Class H		53,000		129,654

Jinchuan Group International Resources Co. Ltd.		144,000		25,029

Jindal Steel & Power Ltd.*		13,959		83,201

JSW Steel Ltd.		37,047		359,029

Kardemir Karabuk Demir Celik Sanayi ve Ticaret A/S, Class D*		394,024		340,233

KGHM Polska Miedz SA*		4,717		242,258

Korea Zinc Co. Ltd.		424		170,004

Koza Altin Isletmeleri A/S*		2,182		29,735

Koza Anadolu Metal Madencilik Isletmeleri A/S*		92,803		154,112

Kumba Iron Ore Ltd.		2,385		108,228

Maanshan Iron & Steel Co. Ltd., Class A		51,700		33,793

Magnitogorsk Iron & Steel Works PJSC		90,224		78,331

Merdeka Copper Gold Tbk. PT*		326,300		59,184

Metalurgica Gerdau SA (Preference)		11,600		31,773

MMC Norilsk Nickel PJSC		2,173		742,701

Nickel Asia Corp.		233,200		26,928

NMDC Ltd.		35,033		73,663

Northam Platinum Ltd.*		12,473		214,932

Novolipetsk Steel PJSC		50,432		178,442

Polyus PJSC		1,113		205,629

Poongsan Corp.		9,036		305,438

POSCO		2,862		936,547

Press Metal Aluminium Holdings Bhd.		63,600		80,734

Qatar Aluminum Manufacturing Co.		42,858		18,386


Investments	Shares		Value

Metals & Mining – (continued)

Raspadskaya OJSC		42,598	$	134,711

Royal Bafokeng Platinum Ltd.(a)		80,878		613,240

Sansteel Minguang Co. Ltd. Fujian, Class A		14,100		17,844

Saudi Arabian Mining Co.*		7,226		110,410

Severstal PAO		6,784		160,319

Shandong Gold Mining Co. Ltd., Class A		5,100		15,257

Shandong Gold Mining Co. Ltd., Class H(a) (b)		13,650		25,062

Shanxi Taigang Stainless Steel Co. Ltd., Class A		23,500		23,131

Shougang Fushan Resources Group Ltd.		1,702,000		444,847

Sibanye Stillwater Ltd.		97,523		455,231

Steel Authority of India Ltd.		734,435		1,184,852

TA Chen Stainless Pipe		53,793		92,438

Tata Steel Ltd.		28,242		394,238

Tung Ho Steel Enterprise Corp.		15,000		31,790

United Co. RUSAL International PJSC*		72,380		48,773

Usinas Siderurgicas de Minas Gerais SA		400		1,710

Usinas Siderurgicas de Minas Gerais SA (Preference), Class A		12,400		51,312

Vale Indonesia Tbk. PT*		6,000		1,915

Vale SA		123,896		2,489,681

Vedanta Ltd.		62,858		218,303

Volcan Cia Minera SAA, Class B*		1,233,830		244,149

VSMPO-AVISMA Corp. PJSC*		848		272,214

Xiamen Tungsten Co. Ltd., Class A		9,400		28,048

Yieh Phui Enterprise Co. Ltd.*		689,000		535,256

Young Poong Corp.		336		205,101

Yunnan Copper Co. Ltd., Class A		9,400		20,219

Zhaojin Mining Industry Co. Ltd., Class H		21,000		19,062

Zijin Mining Group Co. Ltd., Class A		34,700		59,143

Zijin Mining Group Co. Ltd., Class H		106,000		149,306
				19,511,767

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			171

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Multiline Retail – 0.3%

Central Retail Corp. PCL, NVDR		72,775	$	81,803

El Puerto de Liverpool SAB de CV, Class C1		2,700		11,468

Falabella SA		27,985		125,777

Golden Eagle Retail Group Ltd.		217,000		195,295

Hyundai Department Store Co. Ltd.		760		63,405

Lojas Americanas SA*		5,349		19,571

Lojas Americanas SA (Preference)*		16,274		62,573

Lojas Renner SA		15,900		118,402

Lotte Shopping Co. Ltd.		211		23,521

Magazine Luiza SA*		46,800		172,785

MINISO Group Holding Ltd., ADR*		954		25,663

Mitra Adiperkasa Tbk. PT*		154,600		8,562

Shinsegae, Inc.		318		87,051

Woolworths Holdings Ltd.*		21,836		73,993
				1,069,869

Multi-Utilities – 0.0%(d)

Qatar Electricity & Water Co. QSC		9,684		45,747

SPIC Dongfang New Energy Corp., Class A		25,000		16,225

YTL Corp. Bhd.*		78,870		13,766

YTL Power International Bhd.*		128,031		22,660
				98,398

Oil, Gas & Consumable Fuels – 4.0%

Adaro Energy Tbk. PT		428,300		36,915

AKR Corporindo Tbk. PT		796,200		180,240

Bangchak Corp. PCL, NVDR		170,800		141,248

Banpu PCL, NVDR		30,000		11,851

Bashneft PJSC		1,305		27,143

Bashneft PJSC (Preference)		1,163		18,272

Bharat Petroleum Corp. Ltd.		30,726		174,967

Bukit Asam Tbk. PT		210,300		34,504

China Coal Energy Co. Ltd., Class A		23,500		25,419

China Coal Energy Co. Ltd., Class H(a)		83,000		44,990


Investments	Shares		Value

Oil, Gas & Consumable Fuels – (continued)

China Merchants Energy Shipping Co. Ltd., Class A		14,100	$	10,698

China Petroleum & Chemical Corp., Class A		113,300		74,932

China Petroleum & Chemical Corp., Class H		908,000		452,431

China Shenhua Energy Co. Ltd., Class A		30,300		89,943

China Shenhua Energy Co. Ltd., Class H		125,000		260,723

China Suntien Green Energy Corp. Ltd., Class H		50,000		19,248

Coal India Ltd.		80,801		145,136

Cosan SA		2,941		48,821

Dana Gas PJSC		16,893		3,803

Ecopetrol SA		208,767		123,329

Empresas COPEC SA		7,950		85,197

Esso Thailand PCL, NVDR*		562,600		154,484

Exxaro Resources Ltd.(a)		9,281		97,560

Formosa Petrochemical Corp.		29,000		107,454

Gazprom PJSC		433,540		1,328,750

Grupa Lotos SA		3,713		46,860

GS Holdings Corp.		1,538		59,523

Hellenic Petroleum SA		3,199		22,259

Hindustan Petroleum Corp. Ltd.		25,493		80,758

Indian Oil Corp. Ltd.		77,698		95,297

Inner Mongolia Yitai Coal Co. Ltd., Class B		530,000		350,330

LUKOIL PJSC		12,879		994,364

Mari Petroleum Co. Ltd.		1,984		19,726

Medco Energi Internasional Tbk. PT*		3,405,040		157,935

MOL Hungarian Oil & Gas plc*		19,663		136,048

Motor Oil Hellas Corinth Refineries SA		2,820		43,622

Novatek PJSC		34,927		631,769

Oil & Gas Development Co. Ltd.		38,500		22,959

Oil & Natural Gas Corp. Ltd.		121,688		177,671

Oil India Ltd.		180,717		297,891

Pakistan Oilfields Ltd.		70,437		162,393

Pakistan Petroleum Ltd.		29,830		15,779

Pakistan State Oil Co. Ltd.		149,778		207,161

See Accompanying Notes to the Financial Statements.


172		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Oil, Gas & Consumable Fuels – (continued)

PetroChina Co. Ltd., Class H		384,000	$	139,918

Petroleo Brasileiro SA		63,600		270,800

Petroleo Brasileiro SA (Preference)		75,000		326,529

Petronas Dagangan Bhd.		6,600		32,481

Petronet LNG Ltd.		10,434		33,800

Polski Koncern Naftowy ORLEN SA		12,190		214,649

Polskie Gornictwo Naftowe i Gazownictwo SA		55,173		95,812

PTT Exploration & Production PCL		469		1,792

PTT Exploration & Production PCL, NVDR		50,531		193,117

PTT PCL, NVDR		307,400		394,894

Qatar Fuel QSC		9,120		45,587

Qatar Gas Transport Co. Ltd.		13,819		11,993

Reliance Industries Ltd.		54,325		1,462,772

Rosneft Oil Co. PJSC		77,910		545,387

Rosneft Oil Co. PJSC, GDR(b)		1,920		13,275

RussNeft PJSC*		50,324		112,209

Saudi Arabian Oil Co.(b)		33,257		313,938

Semirara Mining & Power Corp.		560,200		143,104

Shaanxi Coal Industry Co. Ltd., Class A		33,300		57,888

Sinopec Kantons Holdings Ltd.(a)		530,000		204,034

SK Discovery Co. Ltd.		901		46,899

SK Gas Ltd.		1,627		146,998

SK Innovation Co. Ltd.*		852		207,188

S-Oil Corp.*		796		62,329

Star Petroleum Refining PCL, NVDR*		20,000		6,038

Surgutneftegas PJSC		307,400		139,459

Surgutneftegas PJSC (Preference)		270,300		154,257

Tatneft PJSC		27,980		189,027

Tatneft PJSC, ADR		4,806		193,490

Tatneft PJSC (Preference)		7,005		43,620

Thai Oil PCL, NVDR		37,100		70,596

Transneft PJSC (Preference)		67		126,546


Investments	Shares		Value

Oil, Gas & Consumable Fuels – (continued)

Turkiye Petrol Rafinerileri A/S*		4,134	$	43,748

Ultrapar Participacoes SA		15,900		61,868

United Tractors Tbk. PT		63,600		93,232

Yanzhou Coal Mining Co. Ltd., Class A		15,000		30,109

Yanzhou Coal Mining Co. Ltd., Class H		52,000		62,064
				13,511,850

Paper & Forest Products – 0.7%

Duratex SA		8,874		38,766

Empresas CMPC SA		25,917		71,668

Indah Kiat Pulp & Paper Tbk. PT		37,900		23,876

Lee & Man Paper Manufacturing Ltd.		47,000		40,968

Nine Dragons Paper Holdings Ltd.		53,000		72,879

Pabrik Kertas Tjiwi Kimia Tbk. PT		642,100		443,402

Sappi Ltd.*		286,094		963,343

Shandong Chenming Paper Holdings Ltd., Class B		254,400		188,011

Shandong Chenming Paper Holdings Ltd., Class H(a)		159,000		138,183

Shandong Sun Paper Industry JSC Ltd., Class A		9,400		23,269

Suzano SA*		10,600		134,169

YFY, Inc.		47,000		63,939
				2,202,473

Personal Products – 0.3%

Amorepacific Corp.		585		142,260

AMOREPACIFIC Group		611		40,373

Colgate-Palmolive India Ltd.		1,366		27,328

Cosmax, Inc.*		96		10,486

Dabur India Ltd.		11,713		85,081

Gillette India Ltd.		103		7,638

Godrej Consumer Products Ltd.		4,418		41,259

Hengan International Group Co. Ltd.(a)		13,000		84,275

Kolmar Korea Co. Ltd.		142		7,136

LG Household & Health Care Ltd.		159		219,986

LG Household & Health Care Ltd. (Preference)		43		27,678

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			173

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Personal Products – (continued)

Marico Ltd.		9,540	$	52,992

Natura & Co. Holding SA*		16,458		147,857
				894,349

Pharmaceuticals – 1.5%

Ajanta Pharma Ltd.		384		9,539

Alkem Laboratories Ltd.		516		19,220

Apeloa Pharmaceutical Co. Ltd., Class A		4,700		22,587

Aspen Pharmacare Holdings Ltd.*		13,886		154,581

AstraZeneca Pharma India Ltd.		235		12,398

Aurobindo Pharma Ltd.		3,474		46,002

Beijing Tong Ren Tang Chinese Medicine Co. Ltd.(a)		20,000		28,995

Binex Co. Ltd.*		564		14,679

Bukwang Pharmaceutical Co. Ltd.		625		12,165

Cadila Healthcare Ltd.*		4,844		37,351

CanSino Biologics, Inc., Class H* (a) (b)		800		40,068

Celltrion Pharm, Inc.*		431		51,533

Center Laboratories, Inc.		8,264		19,792

Changchun High & New Technology Industry Group, Inc., Class A		600		46,135

China Grand Pharmaceutical and Healthcare Holdings Ltd.(a)		24,000		20,147

China Medical System Holdings Ltd.		44,000		101,972

China Resources Pharmaceutical Group Ltd.(b)		81,500		55,090

China Traditional Chinese Medicine Holdings Co. Ltd.		1,286,000		735,155

Chong Kun Dang Pharmaceutical Corp.		98		12,246

Chongkundang Holdings Corp.		1,484		144,084

Cipla Ltd.*		8,726		107,242

CSPC Pharmaceutical Group Ltd.		154,080		190,843

Daewoong Co. Ltd.		339		11,063


Investments	Shares		Value

Pharmaceuticals – (continued)

Daewoong Pharmaceutical Co. Ltd.		49	$	5,881

Dong-A Socio Holdings Co. Ltd.		104		11,547

Dong-A ST Co. Ltd.		94		7,082

Dr Reddy’s Laboratories Ltd.		2,120		147,771

Enzychem Lifesciences Corp.*		212		23,671

Genomma Lab Internacional SAB de CV, Class B*		12,000		12,039

GlaxoSmithKline Pharmaceuticals Ltd.		1,140		22,453

Glenmark Pharmaceuticals Ltd.		990		7,709

Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class H		12,000		32,368

Hanall Biopharma Co. Ltd.*		919		19,002

Hanmi Pharm Co. Ltd.		98		29,778

Hanmi Science Co. Ltd.		646		40,188

Hansoh Pharmaceutical Group Co. Ltd.* (b)		16,000		69,114

Hua Han Health Industry Holdings Ltd.* ^‡ (c)		3,780,000		—

Hubei Jumpcan Pharmaceutical Co. Ltd., Class A*		4,700		14,002

Hypera SA*		8,900		56,859

Ilyang Pharmaceutical Co. Ltd.		231		7,943

Ipca Laboratories Ltd.		752		21,374

Jiangsu Hengrui Medicine Co. Ltd., Class A		7,000		90,968

Jiangsu Nhwa Pharmaceutical Co. Ltd., Class A		4,700		11,519

Joincare Pharmaceutical Group Industry Co. Ltd., Class A		4,700		10,676

Jubilant Pharmova Ltd.*		643		6,932

JW Pharmaceutical Corp.		236		6,185

Kalbe Farma Tbk. PT		491,100		48,957

Komipharm International Co. Ltd.*		1,425		13,259

Laurus Labs Ltd.(b)		5,029		30,739

Livzon Pharmaceutical Group, Inc., Class H		3,930		18,368

Lupin Ltd.		4,452		64,280

Luye Pharma Group Ltd.(b)		901,000		547,548

Mega Lifesciences PCL, NVDR		5,500		6,138

Mezzion Pharma Co. Ltd.*		212		28,779

See Accompanying Notes to the Financial Statements.


174		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Pharmaceuticals – (continued)

Oneness Biotech Co. Ltd.*		3,000	$	25,346

Oscotec, Inc.*		291		9,640

Pfizer Ltd.		341		24,277

Pharmally International Holding Co. Ltd.* ^‡ (c)		2,564		3,897

Richter Gedeon Nyrt.		2,597		74,392

Sam Chun Dang Pharm Co. Ltd.*		307		14,296

Sanofi India Ltd.		163		16,617

Shandong Buchang Pharmaceuticals Co. Ltd., Class A		4,700		16,588

Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A		4,700		43,750

Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H(a)		8,000		50,831

Shin Poong Pharmaceutical Co. Ltd.		432		27,108

Sihuan Pharmaceutical Holdings Group Ltd.(a)		1,848,000		737,596

Sino Biopharmaceutical Ltd.		187,999		202,598

SK Biopharmaceuticals Co. Ltd.*		288		28,221

Sun Pharmaceutical Industries Ltd.		17,702		156,402

Tianjin ZhongXin Pharmaceutical Group Corp. Ltd., Class S		15,000		14,175

Tonghua Dongbao Pharmaceutical Co. Ltd., Class A		4,700		9,623

Torrent Pharmaceuticals Ltd.		717		24,289

Yifan Pharmaceutical Co. Ltd., Class A		4,700		12,993

Yuhan Corp.		1,053		60,869

Yungjin Pharmaceutical Co. Ltd.*		1,602		9,332

Yunnan Baiyao Group Co. Ltd., Class A		1,100		18,281

Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., Class A		700		36,702


Investments	Shares		Value

Pharmaceuticals – (continued)

Zhejiang Huahai Pharmaceutical Co. Ltd., Class A		4,700	$	15,774

Zhejiang NHU Co. Ltd., Class A		4,700		28,404
				4,968,017

Professional Services – 0.0%(d)

51job, Inc., ADR*		710		43,700

Benefit Systems SA*		33		7,734

L&T Technology Services Ltd.(b)		103		3,795
				55,229

Real Estate Management & Development – 4.4%

Agile Group Holdings Ltd.		46,000		72,137

Aldar Properties PJSC		60,325		57,646

Arabian Centres Co. Ltd.		1,662		11,000

Ayala Land, Inc.		90,100		60,254

Barwa Real Estate Co.		84,270		74,919

Beijing North Star Co. Ltd., Class H		318,000		58,549

BR Malls Participacoes SA*		15,600		27,374

Bumi Serpong Damai Tbk. PT*		168,600		13,714

C&D International Investment Group Ltd.(a)		131,000		261,432

Cathay Real Estate Development Co. Ltd.		33,100		25,418

Cencosud Shopping SA		11,704		19,009

Central China Real Estate Ltd.(a)		371,000		204,921

Central Pattana PCL, NVDR		42,400		71,149

China Aoyuan Group Ltd.		53,000		55,137

China Dili Group*		100,000		27,810

China Evergrande Group(a)		66,000		111,829

China Fortune Land Development Co. Ltd., Class A		6,110		5,259

China Jinmao Holdings Group Ltd.		212,000		80,522

China Logistics Property Holdings Co. Ltd.* (b)		59,000		33,576

China Merchants Property Operation & Service Co. Ltd., Class A		4,700		15,324

China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A		18,800		33,757

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			175

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Real Estate Management & Development – (continued)

China Overseas Grand Oceans Group Ltd.		925,000	$	590,716

China Overseas Land & Investment Ltd.		136,500		345,518

China Overseas Property Holdings Ltd.(a)		50,000		50,728

China Resources Land Ltd.		106,000		497,460

China SCE Group Holdings Ltd.(a)		824,000		386,175

China Vanke Co. Ltd., Class A		31,800		138,423

China Vanke Co. Ltd., Class H		72,000		252,149

Chong Hong Construction Co. Ltd.		2,000		5,943

CIFI Holdings Group Co. Ltd.		129,144		115,562

Ciputra Development Tbk. PT		179,449		14,162

Corp. Inmobiliaria Vesta SAB de CV		2,000		3,914

Country Garden Holdings Co. Ltd.(a)		265,832		316,595

DAMAC Properties Dubai Co. PJSC*		26,553		8,675

Dar Al Arkan Real Estate Development Co.*		8,271		22,849

Dexin China Holdings Co. Ltd.* (a) (b)		424,000		165,957

DLF Ltd.		14,668		48,971

E-House China Enterprise Holdings Ltd.(a) (b)		381,600		412,217

Emaar Development PJSC*		39,052		29,237

Emaar Economic City*		7,389		21,122

Emaar Malls PJSC*		46,896		23,492

Emaar Properties PJSC		147,075		149,351

Fantasia Holdings Group Co. Ltd.*		715,500		92,122

Ganglong China Property Group Ltd.* (a) (b)		212,000		120,919

Gemdale Corp., Class A		14,100		25,622

Gemdale Properties & Investment Corp. Ltd.		186,000		26,103

Globe Trade Centre SA*		103		190

Godrej Properties Ltd.*		1,507		27,839

Greenland Holdings Corp. Ltd., Class A		28,200		24,707


Investments	Shares		Value

Real Estate Management & Development – (continued)

Greenland Hong Kong Holdings Ltd.		424,000	$	147,942

Greentown China Holdings Ltd.(a)		26,500		31,936

Guangzhou R&F Properties Co. Ltd., Class H(a)		826,800		1,058,137

Hanson International Tbk. PT* ^‡ (c)		2,409,275		4,170

Highwealth Construction Corp.		32,500		52,648

Hopson Development Holdings Ltd.(a)		22,000		86,534

IOI Properties Group Bhd.		52,800		17,658

Jiangsu Zhongnan Construction Group Co. Ltd., Class A		14,100		15,426

Jiayuan International Group Ltd.		659,243		303,867

Jinke Properties Group Co. Ltd., Class A		14,100		14,380

Joy City Property Ltd.		1,758,000		108,646

Kaisa Group Holdings Ltd.(a)		119,714		52,097

KE Holdings, Inc., ADR* (a)		2,544		132,415

Kindom Development Co. Ltd.		174,000		271,593

Korea Real Estate Investment & Trust Co. Ltd.		73,955		153,914

KWG Group Holdings Ltd.		53,000		85,162

LAMDA Development SA*		1,368		12,252

Logan Group Co. Ltd.		29,000		46,150

Longfor Group Holdings Ltd.(b)		58,000		361,807

LSR Group PJSC		24,973		267,771

Mah Sing Group Bhd.		805,600		202,560

MBK PCL, NVDR*		337,600		149,623

Megaworld Corp.		444,200		29,060

Midea Real Estate Holding Ltd.(a) (b)		9,400		21,446

Multiplan Empreendimentos Imobiliarios SA*		500		2,122

NEPI Rockcastle plc		15,641		105,333

Oberoi Realty Ltd.*		4,021		29,707

Pakuwon Jati Tbk. PT*		534,400		19,608

Parque Arauco SA		15,651		24,173

Phoenix Mills Ltd. (The)*		1,316		12,737

Poly Developments and Holdings Group Co. Ltd., Class A		37,100		80,260

Poly Property Group Co. Ltd.(a)		1,007,000		287,831

See Accompanying Notes to the Financial Statements.


176		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Real Estate Management & Development – (continued)

Powerlong Real Estate Holdings Ltd.		41,000	$	43,181

Prestige Estates Projects Ltd.*		652		2,393

Prince Housing & Development Corp.		50,000		22,554

Pruksa Holding PCL, NVDR		315,100		129,531

Quality Houses PCL, NVDR		2,293,800		175,327

Radiance Holdings Group Co. Ltd.* (b)		318,000		192,433

Red Star Macalline Group Corp. Ltd., Class H(b)		53,000		30,025

Redco Properties Group Ltd.(a) (b)		52,000		18,813

Redsun Properties Group Ltd.(a)		460,000		153,988

RiseSun Real Estate Development Co. Ltd., Class A		9,400		8,948

Road King Infrastructure Ltd.		130,000		173,069

Robinsons Land Corp.		56,106		19,086

Ronshine China Holdings Ltd.* (a) (b)		333,000		232,809

Ruentex Development Co. Ltd.		53,000		100,752

Salhia Real Estate Co. KSCP		207,442		352,507

Seazen Group Ltd.*		80,000		85,492

Seazen Holdings Co. Ltd., Class A		4,700		32,711

Shanghai Jinqiao Export Processing Zone Development Co. Ltd., Class B		132,500		121,900

Shanghai Lingang Holdings Corp. Ltd., Class A		4,700		14,946

Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B		17,540		15,839

Shanghai Shimao Co. Ltd., Class A		18,800		12,172

Shanghai Zhangjiang High-Tech Park Development Co. Ltd., Class A		4,700		13,196

Shenzhen Investment Ltd.		99,930		36,669

Shimao Group Holdings Ltd.		53,000		153,537


Investments	Shares		Value

Real Estate Management & Development – (continued)

Shimao Services Holdings Ltd.* (b)		11,000	$	28,609

Shui On Land Ltd.		1,802,000		296,975

Sime Darby Property Bhd.		1,116,300		181,217

Sinic Holdings Group Co. Ltd., Class H(a) (b)		318,000		163,773

Sino-Ocean Group Holding Ltd.		1,563,500		348,256

SK D&D Co. Ltd.		27		892

Skyfame Realty Holdings Ltd.		1,590,000		200,622

SM Prime Holdings, Inc.		164,300		117,552

SOHO China Ltd.*		48,500		14,675

SP Setia Bhd. Group*		552,694		138,970

Sunac China Holdings Ltd.		88,000		342,739

Sunway Bhd.		50,749		20,070

Supalai PCL, NVDR		29,000		19,093

Talaat Moustafa Group		489,799		176,715

Times China Holdings Ltd.(a)		29,000		41,371

United Development Co. QSC		895,117		390,646

UOA Development Bhd.		18,800		8,444

Vista Land & Lifescapes, Inc.		1,509,200		110,330

WHA Corp. PCL, NVDR		113,390		12,309

Wharf Holdings Ltd. (The)		53,000		161,043

Yango Group Co. Ltd., Class A		14,100		12,484

Yuexiu Property Co. Ltd.		318,000		73,698

Yuzhou Group Holdings Co. Ltd.		954,000		265,312

Zhenro Properties Group Ltd.(a) (b)		87,000		58,696

Zhongliang Holdings Group Co. Ltd.(b)		38,000		25,441

Zhongtian Financial Group Co. Ltd., Class A*		28,200		12,070

Zhuguang Holdings Group Co. Ltd.* (a)		134,000		38,474
				14,828,773

Road & Rail – 0.1%

BTS Group Holdings PCL, NVDR		103,040		29,617

Cia de Locacao das Americas*		4,500		21,873

CJ Logistics Corp.*		150		23,127

Container Corp. of India Ltd.		4,571		36,403

Daqin Railway Co. Ltd., Class A		53,000		56,345

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			177

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Road & Rail – (continued)

Dazhong Transportation Group Co. Ltd., Class B		323,500	$	91,874

Localiza Rent a Car SA*		9,850		116,742

Rumo SA*		21,200		78,153
				454,134

Semiconductors & Semiconductor Equipment – 5.4%

ADATA Technology Co. Ltd.		108,000		467,834

Alchip Technologies Ltd.		1,000		17,793

Ardentec Corp.		212,000		358,229

ASE Technology Holding Co. Ltd.		126,000		532,274

Chipbond Technology Corp.		15,000		41,564

ChipMOS Technologies, Inc.		265,000		452,529

Daqo New Energy Corp., ADR* (a)		934		75,178

DB HiTek Co. Ltd.		1,773		88,144

Elan Microelectronics Corp.		4,000		30,716

eMemory Technology, Inc.*		1,000		36,874

ENNOSTAR, Inc.*		7,000		20,248

Eo Technics Co. Ltd.		134		14,155

Everlight Electronics Co. Ltd.		212,000		351,778

Flat Glass Group Co. Ltd., Class A		5,000		21,973

Flat Glass Group Co. Ltd., Class H(a)		7,000		21,630

GCL System Integration Technology Co. Ltd., Class A*		53,000		25,470

GemVax & Kael Co. Ltd.*		920		16,872

Gigadevice Semiconductor Beijing, Inc., Class A		1,600		47,774

Globalwafers Co. Ltd.		3,000		92,793

Globetronics Technology Bhd.		42,400		23,185

Hangzhou Silan Microelectronics Co. Ltd., Class A		5,000		27,822

Hua Hong Semiconductor Ltd.* (b)		6,000		37,506

JA Solar Technology Co. Ltd., Class A*		5,000		20,127

King Yuan Electronics Co. Ltd.*		35,000		62,023

Koh Young Technology, Inc.		1,007		25,167


Investments	Shares		Value

Semiconductors & Semiconductor Equipment – (continued)

LEENO Industrial, Inc.		180	$	26,377

LONGi Green Energy Technology Co. Ltd., Class A		5,300		81,406

Macronix International Co. Ltd.		37,000		60,733

MediaTek, Inc.*		26,000		1,102,996

Mi Technovation Bhd.		26,500		24,841

MiCo Ltd.*		1,855		24,431

MLS Co. Ltd., Class A		1,100		2,225

Nanya Technology Corp.		21,000		68,865

Novatek Microelectronics Corp.		10,000		223,392

Parade Technologies Ltd.		1,400		69,416

Phison Electronics Corp.		3,000		64,870

Pixart Imaging, Inc.		1,000		7,035

Powertech Technology, Inc.		21,000		83,826

Radiant Opto-Electronics Corp.		14,330		65,922

Realtek Semiconductor Corp.*		7,070		134,652

RFHIC Corp.		742		27,116

S&S Tech Corp.		423		12,169

Sanan Optoelectronics Co. Ltd., Class A		9,400		36,458

Seoul Semiconductor Co. Ltd.		1,370		23,155

SFA Semicon Co. Ltd.*		3,233		23,048

Shenzhen Goodix Technology Co. Ltd., Class A		1,800		31,653

Silergy Corp.		1,000		104,715

Silicon Works Co. Ltd.		5,658		486,272

SIMMTECH Co. Ltd.		9,646		197,715

Sino-American Silicon Products, Inc.		17,000		118,981

Sitronix Technology Corp.		54,000		607,991

SK Hynix, Inc.		19,504		2,244,358

Taiwan Semiconductor Manufacturing Co. Ltd.		320,000		6,873,590

Taiwan Surface Mounting Technology Corp.		124,000		514,947

Tianjin Zhonghuan Semiconductor Co. Ltd., Class A		4,700		20,067

Tianshui Huatian Technology Co. Ltd., Class A		21,200		41,932

Tokai Carbon Korea Co. Ltd.		86		15,146

TongFu Microelectronics Co. Ltd., Class A		4,700		15,520

See Accompanying Notes to the Financial Statements.


178		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Semiconductors & Semiconductor Equipment – (continued)

Topco Scientific Co. Ltd.		78,000	$	381,162

United Microelectronics Corp.		424,000		860,659

United Renewable Energy Co. Ltd.*		94,003		47,956

Vanguard International Semiconductor Corp.		13,000		55,615

ViTrox Corp. Bhd.		4,800		18,818

Will Semiconductor Co. Ltd. Shanghai, Class A		600		28,047

Win Semiconductors Corp.		6,961		91,333

Winbond Electronics Corp.		57,000		72,849

WONIK IPS Co. Ltd.		824		37,631

Wuxi Taiji Industry Co. Ltd., Class A		21,200		25,454

XinTec, Inc.*		3,000		16,754

Xinyi Solar Holdings Ltd.(a)		66,457		111,234
				18,092,990

Software – 0.3%

360 Security Technology, Inc., Class A		9,400		18,316

Agora, Inc., ADR* (a)		376		18,277

Ahnlab, Inc.		190		11,256

AsiaInfo Technologies Ltd.(b)		21,200		34,119

Asseco Poland SA		2,144		39,863

China Youzan Ltd.*		300,000		96,950

Douzone Bizon Co. Ltd.		214		16,218

Iflytek Co. Ltd., Class A		4,700		37,018

Kingdee International Software Group Co. Ltd.*		37,000		122,431

Kingsoft Corp. Ltd.		16,000		113,302

Linx SA		1,900		13,256

LiveChat Software SA		795		26,227

Ming Yuan Cloud Group Holdings Ltd.* (a)		11,000		51,128

Oracle Financial Services Software Ltd.		632		29,680

Shanghai Baosight Software Co. Ltd., Class A		4,000		39,187

Shanghai Baosight Software Co. Ltd., Class B		11,100		41,836

TOTVS SA		10,700		61,337


Investments	Shares		Value

Software – (continued)

Weimob, Inc.* (a) (b)		25,000	$	55,235

Yonyou Network Technology Co. Ltd., Class A		4,700		24,112
				849,748

Specialty Retail – 1.0%

Abu Dhabi National Oil Co. for Distribution PJSC		52,364		64,579

Ace Hardware Indonesia Tbk. PT		206,000		21,106

China Meidong Auto Holdings Ltd.		8,000		40,016

China Tourism Group Duty Free Corp. Ltd., Class A		2,500		120,525

China Yongda Automobiles Services Holdings Ltd.		59,500		107,863

Detsky Mir PJSC(b)		390,080		783,005

Foschini Group Ltd. (The)*		11,040		87,620

GOME Retail Holdings Ltd.* (a)		279,447		46,054

Home Product Center PCL, NVDR		63,300		28,664

Hotai Motor Co. Ltd.		6,000		129,739

Hotel Shilla Co. Ltd.		396		30,794

Italtile Ltd.		10,931		12,854

Jarir Marketing Co.		839		44,522

JUMBO SA		2,397		44,870

LOTTE Himart Co. Ltd.		4,440		154,672

M.Video PJSC		23,055		209,127

Mr Price Group Ltd.		5,618		70,425

Pet Center Comercio e Participacoes SA*		6,307		28,098

Petrobras Distribuidora SA		9,400		39,002

Pou Sheng International Holdings Ltd.*		1,169,000		284,467

PTG Energy PCL, NVDR		26,300		16,977

Shanghai Yuyuan Tourist Mart Group Co. Ltd.		18,800		34,250

Shinsegae International, Inc.		81		14,928

Siam Global House PCL, NVDR		16,622		11,958

Suning.com Co. Ltd., Class A		23,500		24,184

Topsports International Holdings Ltd.(b)		13,000		17,575

Truworths International Ltd.		230,603		765,047

Via Varejo S/A*		23,200		50,589

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			179

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Specialty Retail – (continued)

Zhongsheng Group Holdings Ltd.		9,000	$	68,194
				3,351,704

Technology Hardware, Storage & Peripherals – 5.9%

Acer, Inc.		47,858		58,767

Advantech Co. Ltd.		7,941		101,206

Asustek Computer, Inc.		24,000		323,059

Catcher Technology Co. Ltd.		24,000		169,692

Chicony Electronics Co. Ltd.		15,992		48,377

Compal Electronics, Inc.		159,000		142,305

Getac Technology Corp.		172,000		354,061

Gigabyte Technology Co. Ltd.*		20,000		88,068

HTC Corp.*		18,000		26,807

Innodisk Corp.		4,733		30,415

Inventec Corp.		140,000		136,076

Legend Holdings Corp., Class H(b)		301,300		494,224

Lenovo Group Ltd.(a)		212,000		291,516

Lite-On Technology Corp.		81,000		185,297

Micro-Star International Co. Ltd.		31,000		204,758

Mitac Holdings Corp.		46,600		51,049

Ninestar Corp., Class A		4,700		18,432

Pegatron Corp.		79,000		208,155

Primax Electronics Ltd.		212,000		462,206

Qisda Corp.		60,000		78,187

Quanta Computer, Inc.		106,000		373,408

Samsung Electronics Co. Ltd.		186,613		13,672,818

Samsung Electronics Co. Ltd. (Preference)		29,786		1,962,794

Shenzhen Kaifa Technology Co. Ltd., Class A		4,700		12,543

Wistron Corp.		106,000		124,090

Wiwynn Corp.		2,000		65,442
				19,683,752

Textiles, Apparel & Luxury Goods – 1.1%

Aditya Birla Fashion and Retail Ltd.*		6,536		15,442

ANTA Sports Products Ltd.		15,000		269,414

Bata India Ltd.		122		2,256

Bosideng International Holdings Ltd.(a)		96,000		48,823


Investments	Shares		Value

Textiles, Apparel & Luxury Goods – (continued)

CCC SA*		20,120	$	545,075

Eclat Textile Co. Ltd.		2,698		51,771

F&F Co. Ltd.(c)		206		33,335

Feng TAY Enterprise Co. Ltd.		10,600		78,742

FF Group* ^‡ (c)		3,536		–

Fila Holdings Corp.		1,167		47,840

Fuguiniao Group Ltd.* ^‡ (c)		334,800		–

Grendene SA		8,264		12,445

Guararapes Confeccoes SA*		2,400		7,423

Handsome Co. Ltd.		6,840		267,180

Hansae Co. Ltd.		10,503		230,389

Hwaseung Enterprise Co. Ltd.		331		5,490

Hyosung TNC Corp.		1,272		826,769

Lao Feng Xiang Co. Ltd., Class B		2,500		7,538

Li Ning Co. Ltd.		32,500		265,294

LPP SA*		24		62,074

Makalot Industrial Co. Ltd.		4,334		38,014

Nan Liu Enterprise Co. Ltd.		4,000		24,344

Page Industries Ltd.		130		52,055

Pou Chen Corp.		106,000		135,095

Rajesh Exports Ltd.		3,055		21,508

Ruentex Industries Ltd.		15,800		48,192

Shenzhou International Group Holdings Ltd.		13,100		288,081

Tainan Spinning Co. Ltd.		48,555		49,106

Titan Co. Ltd.		6,466		130,210

Youngone Corp.		890		35,125

Youngone Holdings Co. Ltd.		2,610		111,805
				3,710,835

Thrifts & Mortgage Finance – 0.6%

Aavas Financiers Ltd.*		611		18,763

Housing Development Finance Corp. Ltd.		29,839		974,901

LIC Housing Finance Ltd.		158,682		869,112
				1,862,776

Tobacco – 0.2%

British American Tobacco Malaysia Bhd.		5,900		20,653

Eastern Co. SAE		29,100		21,667

Gudang Garam Tbk. PT*		14,900		37,237

ITC Ltd.		48,018		131,337

KT&G Corp.		4,868		360,609

See Accompanying Notes to the Financial Statements.


180		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Tobacco – (continued)

Smoore International Holdings Ltd.* (b)		28,000	$	198,459
				769,962

Trading Companies & Distributors – 0.4%

Adani Enterprises Ltd.*		4,998		78,183

ALAFCO Aviation Lease & Finance Co. KSCP*		172,780		123,291

Barloworld Ltd.*		101,518		669,322

BOC Aviation Ltd.(a) (b)		9,400		84,840

Bohai Leasing Co. Ltd., Class A*		32,900		10,523

COSCO SHIPPING Development Co. Ltd., Class A		37,600		16,559

IndiaMart InterMesh Ltd.* (b)		192		20,603

LG International Corp.		14,840		410,907

Posco International Corp.		2,165		40,873

SK Networks Co. Ltd.		2,415		11,507

Xiamen C & D, Inc., Class A		9,400		11,780

Zall Smart Commerce Group Ltd.*		20,000		1,468
				1,479,856

Transportation Infrastructure – 1.1%

Adani Ports & Special Economic Zone Ltd.*		12,564		123,829

Airports of Thailand PCL		54,000		107,523

Airports of Thailand PCL, NVDR		25,500		50,775

Anhui Expressway Co. Ltd., Class H		144,000		101,045

Bangkok Expressway & Metro PCL, NVDR*		136,300		35,019

CCR SA		14,100		31,292

China Merchants Port Holdings Co. Ltd.		55,407		88,887

COSCO SHIPPING Ports Ltd.		856,749		720,314

EcoRodovias Infraestrutura e Logistica SA*		4,700		10,422

Evergreen International Storage & Transport Corp.		50,000		43,765

GMR Infrastructure Ltd.*		48,418		15,001


Investments	Shares		Value

Transportation Infrastructure – (continued)

Grupo Aeroportuario del Centro Norte SAB de CV*		4,105	$	25,630

Grupo Aeroportuario del Pacifico SAB de CV, Class B*		5,300		54,706

Grupo Aeroportuario del Sureste SAB de CV, Class B*		3,670		62,325

Guangzhou Baiyun International Airport Co. Ltd., Class A		4,700		8,831

International Container Terminal Services, Inc.		20,810		56,142

Jasa Marga Persero Tbk. PT		39,723		11,412

Jiangsu Expressway Co. Ltd., Class H		20,000		23,587

Lingkaran Trans Kota Holdings Bhd.		127,200		116,754

Malaysia Airports Holdings Bhd.		27,900		40,797

MMC Corp. Bhd.		461,100		124,944

Ningbo Zhoushan Port Co. Ltd., Class A		23,500		14,380

Novorossiysk Commercial Sea Port PJSC		1,470,796		144,873

Promotora y Operadora de Infraestructura SAB de CV		2,160		16,760

Qingdao Port International Co. Ltd., Class H(b)		47,000		28,926

Shanghai International Airport Co. Ltd., Class A		5,300		40,244

Shanghai International Port Group Co. Ltd., Class A		61,100		43,714

Shenzhen Airport Co. Ltd., Class A		9,400		12,390

Shenzhen Expressway Co. Ltd., Class A		9,400		14,453

Shenzhen Expressway Co. Ltd., Class H		22,000		22,830

Shenzhen International Holdings Ltd.		30,745		51,223

Shenzhen Investment Holdings Bay Area Development Co. Ltd.		265,000		105,429

Sichuan Expressway Co. Ltd., Class H(a)		318,000		75,336

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			181

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Transportation Infrastructure – (continued)

Taiwan High Speed Rail Corp.		54,000	$	60,799

TAV Havalimanlari Holding A/S*		90,259		234,247

Westports Holdings Bhd.		17,500		18,370

Yuexiu Transport Infrastructure Ltd.		530,000		326,181

Zhejiang Expressway Co. Ltd., Class H		742,000		645,811
				3,708,966

Water Utilities – 0.5%

Aguas Andinas SA, Class A		36,828		10,416

Beijing Enterprises Water Group Ltd.*		234,000		89,480

China Water Affairs Group Ltd.(a)		424,000		343,923

Chongqing Water Group Co. Ltd., Class A		18,800		15,455

Cia de Saneamento Basico do Estado de Sao Paulo*		4,700		37,061

Cia de Saneamento de Minas Gerais-COPASA		95,400		295,595

Cia de Saneamento do Parana*		127,200		494,709

Grandblue Environment Co. Ltd., Class A		4,700		17,256

Guangdong Investment Ltd.		36,000		55,436

Inversiones Aguas Metropolitanas SA		256,562		196,495

Luenmei Quantum Co. Ltd., Class A		9,400		13,203
				1,569,029

Wireless Telecommunication Services – 1.0%

Advanced Info Service PCL, NVDR		19,800		108,737

America Movil SAB de CV, Series L(a)		853,300		598,488

Axiata Group Bhd.		83,304		78,700

Bharti Airtel Ltd.		44,247		320,626

DiGi.Com Bhd.		68,900		70,474

Empresa Nacional de Telecomunicaciones SA		1,467		8,198


Investments	Shares		Value

Wireless Telecommunication Services – (continued)

Etihad Etisalat Co.*		5,160	$	42,586

Far EasTone Telecommunications Co. Ltd.*		30,000		69,917

Globe Telecom, Inc.		580		22,080

Indosat Tbk. PT*		588,300		267,779

Intouch Holdings PCL, NVDR		24,000		49,137

Maxis Bhd.		32,900		36,945

Mobile Telecommunications Co. KSCP		91,001		182,123

Mobile Telecommunications Co. Saudi Arabia*		15,090		60,922

Mobile TeleSystems PJSC		30,216		128,891

MTN Group Ltd.*		61,109		385,925

PLDT, Inc.		3,320		87,982

Sistema PJSFC		122,643		55,329

SK Telecom Co. Ltd.		1,511		412,270

Taiwan Mobile Co. Ltd.		30,000		107,400

TIM SA*		14,100		31,681

Total Access Communication PCL, NVDR		15,200		15,987

Turkcell Iletisim Hizmetleri A/S		41,075		73,511

Vodacom Group Ltd.		25,705		222,774

Vodafone Idea Ltd.*		97,468		10,987
				3,449,449
Total Common Stocks (Cost $243,433,707)				332,645,283
	Principal Amount

CORPORATE BONDS – 0.0%(d)

Food Products – 0.0%(d)

Britannia Industries Ltd. 8.00%, 8/28/2022		INR 2,231		31

Independent Power and Renewable Electricity Producers – 0.0%(d)

NTPC Ltd. Series 54, 8.49%, 3/25/2025		INR 49,126		11,838
Total Corporate Bonds (Cost $31)				11,869

See Accompanying Notes to the Financial Statements.


182		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Number of Rights		Value

RIGHTS – 0.0%(d)

Electronic Equipment, Instruments & Components –0.0%(d)

Supreme Electronics Co. Ltd., expiring 5/7/2021, price 32.00 TWD* (c)		17,331	$	6,205

Entertainment – 0.0%(d)

HYBE Co. Ltd., expiring 6/2/2021, price 200,000.00 KRW* (c)		14		541

Technology Hardware, Storage & Peripherals – 0.0%

Legend Holdings Corp., expiring 6/30/2021* ^‡ (c)		4,192		—
Total Rights (Cost $—)				6,746
	Number of Warrants

WARRANTS – 0.0%(d)

Commercial Services & Supplies – 0.0%

Frontken Corp. Bhd., expiring 12/31/2025* ^‡ (c)		9,600		—

Real Estate Management & Development – 0.0%(d)

MBK PCL, expiring 12/31/2024, price 3.00 THB* (c)		12,244		4,247
Total Warrants (Cost $—)				4,247


Investments	Principal Amount		Value

SECURITIES LENDING REINVESTMENTS(e) – 0.7%

REPURCHASE AGREEMENTS – 0.7%
Citigroup Global Markets Ltd., 0.05%, dated 4/30/2021, due 5/3/2021, repurchase price $500,000, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 3.00%, maturing 5/15/2023 – 2/15/2049; Foreign Government Fixed Income Securities, 0.45%, maturing 8/19/2027; total market value $508,744	$	500,000	$	500,000
Citigroup Global Markets, Inc., 0.01%, dated 4/30/2021, due 5/3/2021, repurchase price $1,062,892, collateralized by various U.S. Treasury Securities, ranging from 0.88% – 5.00%, maturing 1/15/2028 –2/15/2047; total market value $1,072,480		1,062,892		1,062,892
Deutsche Bank AG, London Branch, 0.15%, dated 4/30/2021, due 5/3/2021, repurchase price $700,000, collateralized by various U.S. Treasury Securities, 0.13%, maturing 7/15/2030; Foreign Government Fixed Income Securities, ranging from 0.25% –3.13%, maturing 7/23/2021 –2/14/2031; total market value $710,799		700,000		700,000

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			183

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


Investments	Principal Amount		Value

SECURITIES LENDING REINVESTMENTS(e) – (continued)

REPURCHASE AGREEMENTS – (continued)

NBC Global Finance Ltd., 0.19%, dated 4/30/2021, due 5/3/2021, repurchase price $200,000, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 4.38%, maturing 1/31/2023 –8/15/2050; Common Stocks; total market value $219,653	$	200,000	$	200,000
				2,462,892
Total Securities Lending Reinvestments (Cost $2,462,892)				2,462,892
Total Investments – 99.7% (Cost $245,896,630)				335,131,037

Other assets less liabilities – 0.3%				879,786
NET ASSETS – 100.0%			$	336,010,823

*	Non-income producing security.

^	Security subject to restrictions on resale.

^‡	Value determined using significant unobservable inputs.

^(a)

The security or a portion of this security is on loan at April 30, 2021. The total value of securities on loan at April 30, 2021 was $13,947,664, collateralized in the form of cash with a value of $2,462,892 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $5,240,416 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 7.25%, and maturity dates ranging from May 11, 2021 – February 15, 2051 and $7,280,797 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from July 7, 2021 – September 20, 2117; a total value of $14,984,105.

^(b)

^(c)

Security fair valued as of April 30, 2021 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at April 30, 2021 amounted to $954,017, which represents approximately 0.28% of net assets of the Fund.

^(d)

Represents less than 0.05% of net assets.

^(e)

The security was purchased with cash collateral held from securities on loan at April 30, 2021. The total value of securities purchased was $2,462,892.

Percentages shown are based on Net Assets.

Abbreviations

ADR – American Depositary Receipt

GDR – Global Depositary Receipt

NVDR – Non-Voting Depositary Receipt

OJSC – Open Joint Stock Company

PJSC – Public Joint Stock Company

SCA – Limited partnership with share capital



Aggregate gross unrealized appreciation	$	101,216,101
Aggregate gross unrealized depreciation		(14,681,104	)
Net unrealized appreciation	$	86,534,997
Federal income tax cost	$	248,603,375

Futures Contracts

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund had the following open futures contracts as of April 30, 2021:

Number of
Contracts

Expiration
Date

Trading
Currency

Notional
Amount

Value and
Unrealized
Appreciation*

Long Contracts

MSCI Emerging Markets E-Mini Index

06/18/2021

USD

3,475,160

22,001

*	This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts.

See Accompanying Notes to the Financial Statements.


184		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)

Forward Foreign Currency Contracts

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund had the following outstanding contracts as of April 30, 2021:


Contracts to Receive		Counterparty	In Exchange For		Maturity Date		Unrealized Appreciation/ (Depreciation)
HKD	2,280,000	BNP Paribas SA	USD	293,245		06/16/2021	$	346
TWD*	10,800,000	Goldman Sachs & Co.	USD	381,558		06/16/2021		5,106
USD	353,818	Toronto-Dominion Bank (The)	HKD	2,746,137		06/16/2021		204
USD	240,540	Citibank NA	INR*	17,798,500		06/16/2021		1,928
USD	81,955	Goldman Sachs & Co.	RUB*	6,123,045		06/16/2021		880
Total unrealized appreciation							$	8,464
USD	57,712	Citibank NA	BRL*	339,553		06/16/2021	$	(4,647	)
USD	757,184	Citibank NA	KRW*	860,956,590		06/16/2021		(16,828	)
USD	416,943	Citibank NA	TWD*	11,676,120		06/16/2021		(1,088	)
USD	11,077	BNP Paribas SA	ZAR	170,000		06/17/2021		(567	)
Total unrealized depreciation							$	(23,130	)
Net unrealized depreciation							$	(14,666	)

* Non-deliverable forward. See Note 2 in the Notes to Financial Statements.

Abbreviations:

BRL – Brazilian Real

HKD – Hong Kong Dollar

INR – Indian Rupee

KRW – Korean Won

RUB – Russian Ruble

TWD – Taiwan Dollar

USD – US Dollar

ZAR – South African Rand

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			185

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2021:


Brazil	4.5	%
Chile	0.8
China	28.9
Colombia	0.5
Czech Republic	0.3
Egypt	0.3
Greece	0.8
Hungary	0.3
India	8.5
Indonesia	1.5
Kuwait	0.7
Malaysia	2.1
Mexico	2.0
Pakistan	0.5
Peru	0.3
Philippines	0.9
Poland	1.5
Qatar	0.8
Russia	3.7
Saudi Arabia	1.5
South Africa	4.7
South Korea	16.2
Taiwan	14.1
Thailand	2.0
Turkey	1.0
United Arab Emirates	0.6
Other¹	1.0
	100.0	%

¹	Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities).

See Accompanying Notes to the Financial Statements.


186		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^®US Quality Large Cap Index Fund

April 30, 2021 (Unaudited)


Investments	Shares			Value

COMMON STOCKS – 99.2%

Aerospace & Defense – 0.3%

Lockheed Martin Corp.		664		$	252,692

Air Freight & Logistics – 1.3%

Expeditors International of Washington, Inc.		4,814			528,866

United Parcel Service, Inc., Class B		3,569			727,576
					1,256,442

Automobiles – 1.2%

Tesla, Inc.*		1,591			1,128,719

Banks – 5.1%

Bank of America Corp.		14,940			605,518

Citigroup, Inc.		22,327			1,590,576

Citizens Financial Group, Inc.		11,786			545,456

M&T Bank Corp.		2,158			340,295

Wells Fargo & Co.		39,674			1,787,314
					4,869,159

Beverages – 0.6%

Monster Beverage Corp.*		5,644			547,750

Biotechnology – 2.6%

AbbVie, Inc.		–	(a)		45

Alexion Pharmaceuticals, Inc.*		830			140,004

Amgen, Inc.		5,312			1,272,968

Gilead Sciences, Inc.		5,312			337,153

Moderna, Inc.*		996			178,105

Novavax, Inc.* (b)		83			19,665

Regeneron Pharmaceuticals, Inc.*		205			98,666

Seagen, Inc.*		1,494			214,777

Vertex Pharmaceuticals, Inc.*		1,079			235,438
					2,496,821

Building Products – 1.3%

Lennox International, Inc.		880			295,099

Masco Corp.		7,138			455,975

Trane Technologies plc		2,490			432,837
					1,183,911

Capital Markets – 1.8%

Ameriprise Financial, Inc.		249			64,341


Investments	Shares		Value

Capital Markets – (continued)

Bank of New York Mellon Corp. (The)		9,628	$	480,245

Morgan Stanley		14,442		1,192,187
				1,736,773

Chemicals – 1.5%

Dow, Inc.		9,296		581,000

Sherwin-Williams Co. (The)		3,012		824,897
				1,405,897

Commercial Services & Supplies – 0.2%

Cintas Corp.		415		143,233

Communications Equipment – 1.6%

Cisco Systems, Inc.		29,133		1,483,161

Consumer Finance – 2.1%

American Express Co.		1,992		305,473

Capital One Financial Corp.		3,403		507,319

Discover Financial Services		5,312		605,568

Synchrony Financial		13,197		577,237
				1,995,597

Distributors – 0.6%

Pool Corp.		1,328		561,107

Diversified Financial Services – 1.6%

Berkshire Hathaway, Inc., Class B*		5,644		1,551,818

Diversified Telecommunication Services – 1.0%

AT&T, Inc.		14,940		469,265

Liberty Global plc, Class C*		913		24,706

Verizon Communications, Inc.		7,885		455,674
				949,645

Electric Utilities – 2.1%

Duke Energy Corp.		1,577		158,788

Exelon Corp.		12,865		578,153

Pinnacle West Capital Corp.		3,984		337,246

Southern Co. (The)		13,197		873,245
				1,947,432

Electrical Equipment – 1.1%

Eaton Corp. plc		2,407		344,032

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			187

FlexShares^® US Quality Large Cap Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Electrical Equipment – (continued)

Emerson Electric Co.		996	$	90,128

Generac Holdings, Inc.*		996		322,654

Rockwell Automation, Inc.		1,079		285,137
				1,041,951

Energy Equipment & Services – 1.1%

Baker Hughes Co.		20,999		421,660

Halliburton Co.		6,059		118,514

Schlumberger NV		20,252		547,817
				1,087,991

Entertainment – 2.1%

Activision Blizzard, Inc.		9,545		870,408

Electronic Arts, Inc.		3,735		530,669

Netflix, Inc.*		198		101,667

Take-Two Interactive Software, Inc.*		2,573		451,253
				1,953,997

Equity Real Estate Investment Trusts (REITs) – 1.3%

Essex Property Trust, Inc.		115		33,410

Mid-America Apartment Communities, Inc.		249		39,175

Public Storage		2,075		583,407

Weyerhaeuser Co.		14,442		559,916
				1,215,908

Food & Staples Retailing – 0.3%

Walmart, Inc.		1,826		255,476

Food Products – 0.6%

Campbell Soup Co.		2,988		142,677

General Mills, Inc.		2,324		141,439

Kraft Heinz Co. (The)(b)		6,889		284,447
				568,563

Health Care Equipment & Supplies – 1.3%

Hologic, Inc.*		3,486		228,507

IDEXX Laboratories, Inc.*		1,078		591,811

Quidel Corp.* (b)		1,660		173,952

ResMed, Inc.		1,494		280,827
				1,275,097


Investments	Shares		Value

Health Care Providers & Services – 3.0%

AmerisourceBergen Corp.		581	$	70,185

Anthem, Inc.		415		157,447

Cardinal Health, Inc.		6,225		375,616

Cigna Corp.		332		82,671

DaVita, Inc.*		2,158		251,472

HCA Healthcare, Inc.		2,407		483,951

Humana, Inc.		332		147,820

McKesson Corp.		2,739		513,727

UnitedHealth Group, Inc.		1,909		761,309
				2,844,198

Health Care Technology – 0.5%

Cerner Corp.		6,059		454,728

Veeva Systems, Inc., Class A*		83		23,443
				478,171

Hotels, Restaurants & Leisure – 0.3%

Yum! Brands, Inc.		2,075		248,004

Household Durables – 1.0%

Lennar Corp., Class A		3,984		412,742

PulteGroup, Inc.		8,798		520,138
				932,880

Household Products – 2.4%

Colgate-Palmolive Co.		9,213		743,489

Procter & Gamble Co. (The)		11,122		1,483,897
				2,227,386

Independent Power and Renewable Electricity Producers – 0.6%

AES Corp. (The)		10,043		279,396

Vistra Corp.		18,094		305,246
				584,642

Industrial Conglomerates – 0.6%

Honeywell International, Inc.		2,656		592,394

Insurance – 2.4%

Aflac, Inc.		3,901		209,601

Allstate Corp. (The)		4,814		610,415

American International Group, Inc.		10,126		490,605

MetLife, Inc.		9,960		633,755

Prudential Financial, Inc.		2,988		299,875
				2,244,251

See Accompanying Notes to the Financial Statements.


188		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® US Quality Large Cap Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Interactive Media & Services – 7.7%

Alphabet, Inc., Class A*		1,097	$	2,581,789

Alphabet, Inc., Class C*		1,041		2,508,935

Facebook, Inc., Class A*		6,909		2,245,978
				7,336,702

Internet & Direct Marketing Retail – 3.9%

Amazon.com, Inc.*		799		2,770,469

eBay, Inc.		8,881		495,471

Etsy, Inc.*		2,241		445,488
				3,711,428

IT Services – 3.8%

Accenture plc, Class A		332		96,270

Cognizant Technology Solutions Corp., Class A		3,652		293,621

FleetCor Technologies, Inc.*		415		119,404

Jack Henry & Associates, Inc.		1,992		324,357

Mastercard, Inc., Class A		1,131		432,110

Paychex, Inc.		1,328		129,467

PayPal Holdings, Inc.*		498		130,620

Square, Inc., Class A*		332		81,280

VeriSign, Inc.*		913		199,737

Visa, Inc., Class A(b)		7,802		1,822,235
				3,629,101

Leisure Products – 0.1%

Peloton Interactive, Inc., Class A*		1,411		138,772

Life Sciences Tools & Services – 1.1%

Mettler-Toledo International, Inc.*		403		529,268

Waters Corp.*		1,743		522,673
				1,051,941

Machinery – 1.4%

Dover Corp.		332		49,531

Illinois Tool Works, Inc.		3,818		879,896

Parker-Hannifin Corp.		1,245		390,694
				1,320,121

Media – 2.4%

Charter Communications, Inc., Class A* (b)		1,743		1,173,824

Comcast Corp., Class A		5,561		312,250


Investments	Shares			Value

Media – (continued)

Discovery, Inc., Class A* (b)		6,806		$	256,314

Discovery, Inc., Class C*		2,075			67,043

Omnicom Group, Inc.		5,146			423,310
					2,232,741

Metals & Mining – 0.6%

Newmont Corp.		9,545			595,704

Multiline Retail – 1.1%

Target Corp.		5,229			1,083,763

Multi-Utilities – 1.1%

Public Service Enterprise Group, Inc.		8,964			566,166

WEC Energy Group, Inc.		4,814			467,777
					1,033,943

Oil, Gas & Consumable Fuels – 0.9%

Kinder Morgan, Inc.(b)		21,995			375,015

Occidental Petroleum Corp.		14,691			372,564

Williams Cos., Inc. (The)		6,059			147,597
					895,176

Pharmaceuticals – 4.1%

Eli Lilly and Co.		7,553			1,380,462

Johnson & Johnson		12,865			2,093,521

Merck & Co., Inc.		4,316			321,542

Pfizer, Inc.		1,494			57,743

Viatris, Inc.*		–	(a)		1
					3,853,269

Real Estate Management & Development – 0.6%

CBRE Group, Inc., Class A*		7,055			601,086

Road & Rail – 0.4%

Old Dominion Freight Line, Inc.		1,494			385,168

Semiconductors & Semiconductor Equipment – 5.0%

Advanced Micro Devices, Inc.* (b)		332			27,098

Broadcom, Inc.		1,204			549,265

Intel Corp.		15,936			916,798

KLA Corp.		767			241,874

Lam Research Corp.		1,487			922,609

Maxim Integrated Products, Inc.		1,909			179,446

Microchip Technology, Inc.		166			24,948

NVIDIA Corp.		165			99,063

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			189

FlexShares^® US Quality Large Cap Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Semiconductors & Semiconductor Equipment – (continued)

QUALCOMM, Inc.		2,158	$	299,530

Texas Instruments, Inc.		8,383		1,513,215
				4,773,846

Software – 11.2%

Adobe, Inc.*		3,071		1,561,112

Autodesk, Inc.*		913		266,514

Check Point Software Technologies Ltd.*		3,652		426,590

Citrix Systems, Inc.		3,320		411,182

Fair Isaac Corp.*		465		242,456

Fortinet, Inc.*		3,071		627,190

Intuit, Inc.		3,233		1,332,513

Microsoft Corp.		14,857		3,746,638

Oracle Corp.		22,493		1,704,745

SS&C Technologies Holdings, Inc.		249		18,481

Zoom Video Communications, Inc., Class A*		951		303,911
				10,641,332

Specialty Retail – 1.9%

Best Buy Co., Inc.		2,905		337,764

Home Depot, Inc. (The)		2,573		832,803

Lowe’s Cos., Inc.		3,071		602,684
				1,773,251

Technology Hardware, Storage & Peripherals – 7.1%

Apple, Inc.		50,879		6,688,553

NetApp, Inc.		830		61,993
				6,750,546

Tobacco – 0.8%

Altria Group, Inc.		1,660		79,265

Philip Morris International, Inc.		6,723		638,685
				717,950

Trading Companies & Distributors – 0.5%

United Rentals, Inc.*		756		241,882

WW Grainger, Inc.		535		231,944
				473,826
Total Common Stocks (Cost $69,814,232)				94,060,732


Investments	Principal Amount		Value

SECURITIES LENDING REINVESTMENTS(c) – 0.3%

REPURCHASE AGREEMENTS – 0.3%

Citigroup Global Markets Ltd., 0.05%, dated 4/30/2021, due 5/3/2021, repurchase price $70,000, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 3.00%, maturing 5/15/2023 –2/15/2049; Foreign Government Fixed Income Securities, 0.45%, maturing 8/19/2027; total market value $71,224	$	70,000	$	70,000

Citigroup Global Markets, Inc., 0.01%, dated 4/30/2021, due 5/3/2021, repurchase price $193,694, collateralized by various U.S. Treasury Securities, ranging from 0.88% – 5.00%, maturing 1/15/2028 –2/15/2047; total market value $195,441		193,694		193,694
				263,694
Total Securities Lending Reinvestments (Cost $263,694)				263,694
Total Investments – 99.5% (Cost $70,077,926)				94,324,426

Other assets less liabilities – 0.5%				506,884
NET ASSETS – 100.0%			$	94,831,310

*	Non-income producing security.

^(a)

Amount represents less than one share.

^(b)

The security or a portion of this security is on loan at April 30, 2021. The total value of securities on loan at April 30, 2021 was $3,999,717, collateralized in the form of cash with a value of $263,694 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $3,687,398 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 7.25%, and maturity dates ranging from May 27, 2021 – February 15, 2051 and $175,864 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% –5.75%, and maturity dates ranging from July 7, 2021 –September 20, 2117; a total value of $4,126,956.

^(c)

The security was purchased with cash collateral held from securities on loan at April 30, 2021. The total value of securities purchased was $263,694.

See Accompanying Notes to the Financial Statements.


190		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® US Quality Large Cap Index Fund (cont.)

Percentages shown are based on Net Assets.



Aggregate gross unrealized appreciation	$	25,001,682
Aggregate gross unrealized depreciation		(724,042	)
Net unrealized appreciation	$	24,277,640
Federal income tax cost	$	70,089,033

Futures Contracts

FlexShares^® US Quality Large Cap Index Fund had the following open futures contracts as of April 30, 2021:

Number of
Contracts

Expiration
Date

Trading
Currency

Notional Amount

Value and
Unrealized
Appreciation*

Long Contracts

S&P 500 E-Mini Index

06/18/2021

USD

$626,160

$42,247

*	This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts.

Abbreviations:

USD – US Dollar

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			191

Schedule of Investments

FlexShares^®STOXX^® US ESG Select Index Fund

April 30, 2021 (Unaudited)


Investments	Shares		Value

COMMON STOCKS – 98.9%

Aerospace & Defense – 0.1%

Teledyne Technologies, Inc.*		210	$	94,027

Air Freight & Logistics – 0.2%

CH Robinson Worldwide, Inc.		840		81,547

FedEx Corp.		1,260		365,791
				447,338

Airlines – 0.1%

Southwest Airlines Co.*		2,520		158,206

United Airlines Holdings, Inc.*		1,260		68,544
				226,750

Auto Components – 0.1%

Aptiv plc*		1,050		151,084

BorgWarner, Inc.(a)		420		20,404
				171,488

Automobiles – 3.1%

Ford Motor Co.*		12,250		141,365

General Motors Co.*		12,390		708,956

Tesla, Inc.*		6,580		4,668,115
				5,518,436

Banks – 6.4%

Bank of America Corp.		78,330		3,174,715

Citigroup, Inc.		21,070		1,501,027

Fifth Third Bancorp		6,230		252,564

Huntington Bancshares, Inc.(a)		4,620		70,778

JPMorgan Chase & Co.		31,080		4,780,415

KeyCorp		9,450		205,632

PNC Financial Services Group, Inc. (The)		3,710		693,584

Regions Financial Corp.		3,360		73,248

US Bancorp		10,850		643,948
				11,395,911

Beverages – 2.0%

Coca-Cola Co. (The)		26,950		1,454,761

Coca-Cola European Partners plc		1,750		99,435

PepsiCo, Inc.		13,790		1,987,966
				3,542,162


Investments	Shares		Value

Biotechnology – 2.4%

AbbVie, Inc.		15,050	$	1,678,075

Amgen, Inc.		3,920		939,389

Biogen, Inc.*		1,050		280,696

Gilead Sciences, Inc.		10,080		639,778

Regeneron Pharmaceuticals, Inc.*		700		336,910

Vertex Pharmaceuticals, Inc.*		1,820		397,124
				4,271,972

Building Products – 0.4%

Allegion plc		560		75,253

Fortune Brands Home & Security, Inc.		490		51,440

Johnson Controls International plc		2,940		183,280

Lennox International, Inc.		210		70,421

Trane Technologies plc		1,820		316,371
				696,765

Capital Markets – 3.0%

Bank of New York Mellon Corp. (The)		3,430		171,089

BlackRock, Inc.		1,470		1,204,371

CME Group, Inc.		1,680		339,343

Goldman Sachs Group, Inc. (The)		3,500		1,219,575

Morgan Stanley		14,420		1,190,371

Raymond James Financial, Inc.		560		73,237

S&P Global, Inc.(a)		1,960		765,164

State Street Corp.		3,360		282,072

T. Rowe Price Group, Inc.		630		112,896
				5,358,118

Chemicals – 1.3%

Air Products and Chemicals, Inc.		1,050		302,904

Celanese Corp.		1,190		186,413

DuPont de Nemours, Inc.		910		70,170

Eastman Chemical Co.		700		80,773

Ecolab, Inc.		2,310		517,717

International Flavors & Fragrances, Inc.		1,960		278,653

LyondellBasell Industries NV, Class A		1,120		116,189

PPG Industries, Inc.		1,400		239,736

Sherwin-Williams Co. (The)		1,680		460,102
				2,252,657

See Accompanying Notes to the Financial Statements.


192		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® STOXX^® US ESG Select Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Commercial Services & Supplies – 0.2%

Cintas Corp.		840	$	289,918

Communications Equipment – 1.1%

Cisco Systems, Inc.		35,070		1,785,414

Motorola Solutions, Inc.		1,400		263,620
				2,049,034

Consumer Finance – 0.5%

Capital One Financial Corp.		4,060		605,265

Synchrony Financial		4,620		202,079
				807,344

Containers & Packaging – 0.3%

Amcor plc		5,110		60,043

Ball Corp.		2,380		222,863

International Paper Co.		1,890		109,620

Packaging Corp. of America		770		113,690

Westrock Co.		1,820		101,465
				607,681

Distributors – 0.0%(b)

Genuine Parts Co.		210		26,244

Diversified Telecommunication Services – 2.4%

AT&T, Inc.		59,150		1,857,901

Lumen Technologies, Inc.		8,750		112,263

Verizon Communications, Inc.		41,650		2,406,953
				4,377,117

Electric Utilities – 1.1%

Alliant Energy Corp.		1,470		82,570

Duke Energy Corp.		4,690		472,236

Entergy Corp.		1,400		153,006

Eversource Energy		3,080		265,558

FirstEnergy Corp.		3,570		135,374

NextEra Energy, Inc.		9,520		737,895

PPL Corp.		4,690		136,620
				1,983,259

Electrical Equipment – 0.7%

Eaton Corp. plc		3,220		460,235

Emerson Electric Co.		5,740		519,412

Rockwell Automation, Inc.		700		184,982


Investments	Shares		Value

Electrical Equipment – (continued)

Sunrun, Inc.* (a)		1,890	$	92,610
				1,257,239

Electronic Equipment, Instruments & Components – 0.3%

Amphenol Corp., Class A		6,440		433,670

Trimble, Inc.*		2,240		183,680
				617,350

Energy Equipment & Services – 0.3%

Halliburton Co.		7,350		143,766

Schlumberger NV		14,980		405,209
				548,975

Entertainment – 1.8%

Roku, Inc.*		560		192,063

Spotify Technology SA*		700		176,484

Take-Two Interactive Software, Inc.*		280		49,107

Walt Disney Co. (The)*		15,470		2,877,729
				3,295,383

Equity Real Estate Investment Trusts (REITs) – 2.1%

American Tower Corp.		1,610		410,180

AvalonBay Communities, Inc.		1,120		215,040

Boston Properties, Inc.		490		53,581

Digital Realty Trust, Inc.(a)		2,030		313,249

Equity LifeStyle Properties, Inc.		2,030		140,882

Essex Property Trust, Inc.		630		183,028

Healthpeak Properties, Inc.		6,370		218,746

Host Hotels & Resorts, Inc.*		6,510		118,222

Prologis, Inc.		6,510		758,610

Public Storage		1,610		452,668

Ventas, Inc.		1,470		81,526

Welltower, Inc.		3,920		294,118

Weyerhaeuser Co.		7,350		284,959

WP Carey, Inc.(a)		1,960		146,784
				3,671,593

Food & Staples Retailing – 0.6%

Kroger Co. (The)(a)		4,410		161,141

Walgreens Boots Alliance, Inc.		3,010		159,831

Walmart, Inc.		4,970		695,353
				1,016,325

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			193

FlexShares^® STOXX^® US ESG Select Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Food Products – 0.6%

Archer-Daniels-Midland Co.		2,450	$	154,669

General Mills, Inc.		4,690		285,433

Hershey Co. (The)		1,400		230,020

Hormel Foods Corp.		980		45,276

J M Smucker Co. (The)		700		91,693

Kellogg Co.		2,380		148,560

McCormick & Co., Inc. (Non-Voting)		840		75,902
				1,031,553

Health Care Equipment & Supplies – 4.0%

Abbott Laboratories		14,700		1,765,176

ABIOMED, Inc.*		350		112,256

Align Technology, Inc.*		420		250,123

Baxter International, Inc.		3,080		263,925

Becton Dickinson and Co.		1,890		470,251

Boston Scientific Corp.*		11,760		512,736

Danaher Corp.		4,620		1,173,203

Edwards Lifesciences Corp.*		4,620		441,302

Hologic, Inc.*		1,750		114,712

Medtronic plc		9,310		1,218,865

ResMed, Inc.		840		157,895

STERIS plc		280		59,086

Stryker Corp.		1,260		330,914

Zimmer Biomet Holdings, Inc.		1,890		334,832
				7,205,276

Health Care Providers & Services – 2.6%

AmerisourceBergen Corp.		770		93,016

Anthem, Inc.		2,520		956,063

Cigna Corp.		1,330		331,183

Humana, Inc.		630		280,501

Laboratory Corp. of America Holdings*		490		130,276

McKesson Corp.		840		157,551

Quest Diagnostics, Inc.		910		120,011

UnitedHealth Group, Inc.		6,370		2,540,356
				4,608,957

Health Care Technology – 0.3%

Cerner Corp.		1,610		120,830

Veeva Systems, Inc., Class A*		1,260		355,887
				476,717


Investments	Shares		Value

Hotels, Restaurants & Leisure – 1.6%

Carnival Corp.*		1,470	$	41,101

Darden Restaurants, Inc.		490		71,893

Domino’s Pizza, Inc.		140		59,128

Hilton Worldwide Holdings, Inc.*		2,380		306,306

Marriott International, Inc., Class A*		3,010		447,045

McDonald’s Corp.		3,920		925,434

MGM Resorts International		3,220		131,118

Royal Caribbean Cruises Ltd.*		350		30,432

Starbucks Corp.		6,230		713,273

Yum! Brands, Inc.		1,820		217,526
				2,943,256

Household Products – 2.0%

Clorox Co. (The)		560		102,200

Kimberly-Clark Corp.		1,540		205,313

Procter & Gamble Co. (The)		24,710		3,296,808
				3,604,321

Independent Power and Renewable Electricity Producers – 0.1%

AES Corp. (The)		3,500		97,370

Industrial Conglomerates – 1.5%

3M Co.		5,880		1,159,183

General Electric Co.		89,670		1,176,471

Roper Technologies, Inc.		630		281,257
				2,616,911

Insurance – 1.4%

Aflac, Inc.		6,160		330,977

Allstate Corp. (The)		2,520		319,536

Aon plc, Class A(a)		1,400		352,016

Arthur J Gallagher & Co.		630		91,319

Chubb Ltd.		2,450		420,396

Hartford Financial Services Group, Inc. (The)		3,640		240,094

Principal Financial Group, Inc.		2,940		187,778

Progressive Corp. (The)		2,660		267,968

Travelers Cos., Inc. (The)		1,890		292,307
				2,502,391

Interactive Media & Services – 7.4%

Alphabet, Inc., Class C*		3,150		7,591,878

Facebook, Inc., Class A*		16,310		5,302,055

See Accompanying Notes to the Financial Statements.


194		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® STOXX^® US ESG Select Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Interactive Media & Services – (continued)

Snap, Inc., Class A* (a)		4,200	$	259,644
				13,153,577

Internet & Direct Marketing Retail – 5.6%

Amazon.com, Inc.*		2,696		9,348,164

eBay, Inc.		4,690		261,655

Etsy, Inc.*		1,260		250,476

Farfetch Ltd., Class A*		1,330		65,157
				9,925,452

IT Services – 4.0%

Accenture plc, Class A		6,790		1,968,896

Akamai Technologies, Inc.*		630		68,481

Amdocs Ltd.		1,120		85,949

Automatic Data Processing, Inc.		3,010		562,840

Broadridge Financial Solutions, Inc.		420		66,625

Cognizant Technology Solutions Corp., Class A		2,730		219,492

EPAM Systems, Inc.*		350		160,212

Fidelity National Information Services, Inc.		3,010		460,229

International Business Machines Corp.		8,820		1,251,382

Mastercard, Inc., Class A		6,020		2,300,001

Wix.com Ltd.*		280		89,006
				7,233,113

Leisure Products – 0.1%

Hasbro, Inc.		980		97,461

Life Sciences Tools & Services – 1.1%

Agilent Technologies, Inc.		2,800		374,192

Avantor, Inc.*		4,130		132,325

Bio-Rad Laboratories, Inc., Class A*		140		88,218

Charles River Laboratories International, Inc.*		280		93,086

Illumina, Inc.*		980		384,984

Mettler-Toledo International, Inc.*		210		275,797

Thermo Fisher Scientific, Inc.		1,330		625,406
				1,974,008

Machinery – 1.8%

Caterpillar, Inc.		5,600		1,277,416


Investments	Shares		Value

Machinery – (continued)

Cummins, Inc.		1,050	$	264,642

Deere & Co.		1,120		415,352

Dover Corp.		910		135,763

IDEX Corp.		210		47,082

Illinois Tool Works, Inc.		980		225,851

Nordson Corp.		70		14,799

PACCAR, Inc.		3,570		320,871

Parker-Hannifin Corp.		770		241,634

Snap-on, Inc.		70		16,632

Stanley Black & Decker, Inc.		700		144,739

Xylem, Inc.		630		69,709
				3,174,490

Media – 1.3%

Comcast Corp., Class A		38,010		2,134,262

Omnicom Group, Inc.		2,590		213,053
				2,347,315

Metals & Mining – 0.4%

Freeport-McMoRan, Inc.		7,140		269,249

Newmont Corp.		6,300		393,183

Nucor Corp.		560		46,066
				708,498

Mortgage Real Estate Investment Trusts (REITs) – 0.0%(b)

Annaly Capital Management, Inc.		5,950		54,026

Multiline Retail – 0.5%

Dollar General Corp.		700		150,325

Target Corp.		3,430		710,902
				861,227

Multi-Utilities – 0.5%

Dominion Energy, Inc.		3,710		296,429

Sempra Energy		2,240		308,157

WEC Energy Group, Inc.		2,380		231,264
				835,850

Oil, Gas & Consumable Fuels – 3.2%

Chevron Corp.		19,250		1,984,097

ConocoPhillips		11,970		612,146

Devon Energy Corp.		560		13,093

Exxon Mobil Corp.		42,350		2,424,114

Hess Corp.		1,330		99,098

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			195

FlexShares^® STOXX^® US ESG Select Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Oil, Gas & Consumable Fuels – (continued)

Occidental Petroleum Corp.		4,760	$	120,713

Phillips 66		2,870		232,212

Valero Energy Corp.		2,380		176,025
				5,661,498

Personal Products – 0.3%

Estee Lauder Cos., Inc. (The), Class A		1,960		615,048

Pharmaceuticals – 2.7%

Bristol-Myers Squibb Co.		19,180		1,197,216

Catalent, Inc.*		1,120		125,966

Eli Lilly and Co.		7,000		1,279,390

Merck & Co., Inc.		21,210		1,580,145

Pfizer, Inc.		18,270		706,135
				4,888,852

Professional Services – 0.1%

Booz Allen Hamilton Holding Corp.		910		75,484

Leidos Holdings, Inc.		420		42,538
				118,022

Real Estate Management & Development – 0.2%

CBRE Group, Inc., Class A*		3,360		286,272

Semiconductors & Semiconductor Equipment – 6.2%

Advanced Micro Devices, Inc.* (a)		7,770		634,187

Analog Devices, Inc.(a)		2,030		310,915

Applied Materials, Inc.		4,550		603,831

Broadcom, Inc.		1,400		638,680

Cree, Inc.*		770		76,553

Intel Corp.		41,650		2,396,125

Lam Research Corp.		1,260		781,767

Maxim Integrated Products, Inc.		1,120		105,280

Micron Technology, Inc.*		9,170		789,262

NVIDIA Corp.		3,080		1,849,170

ON Semiconductor Corp.*		2,800		109,200

QUALCOMM, Inc.		5,530		767,564

Skyworks Solutions, Inc.(a)		700		126,931

Teradyne, Inc.		840		105,067

Texas Instruments, Inc.		9,380		1,693,184
				10,987,716


Investments	Shares		Value

Software – 9.0%

Adobe, Inc.*		4,060	$	2,063,860

Autodesk, Inc.*		2,170		633,445

Citrix Systems, Inc.		420		52,017

Crowdstrike Holdings, Inc., Class A* (a)		1,120		233,531

Fortinet, Inc.*		560		114,369

Intuit, Inc.		1,820		750,131

Microsoft Corp.		35,140		8,861,605

NortonLifeLock, Inc.		2,730		58,995

Oracle Corp.		19,040		1,443,042

PTC, Inc.*		700		91,658

salesforce.com, Inc.*		6,090		1,402,649

Splunk, Inc.*		910		115,042

Synopsys, Inc.*		910		224,825

VMware, Inc., Class A* (a)		350		56,290
				16,101,459

Specialty Retail – 3.3%

Advance Auto Parts, Inc.		70		14,011

AutoZone, Inc.*		140		204,977

Best Buy Co., Inc.		2,380		276,723

Burlington Stores, Inc.*		770		251,274

Home Depot, Inc. (The)		10,990		3,557,133

Lowe’s Cos., Inc.		5,040	��	989,100

TJX Cos., Inc. (The)		9,660		685,860
				5,979,078

Technology Hardware, Storage & Peripherals – 5.7%

Apple, Inc.		68,600		9,018,157

Dell Technologies, Inc., Class C*		1,330		130,779

Hewlett Packard Enterprise Co.		11,480		183,910

HP, Inc.		14,140		482,315

NetApp, Inc.		1,750		130,708

Western Digital Corp.*		3,010		212,596
				10,158,465

Textiles, Apparel & Luxury Goods – 0.5%

Lululemon Athletica, Inc.*		980		328,565

NIKE, Inc., Class B		4,200		557,004

VF Corp.		840		73,634
				959,203

Tobacco – 0.2%

Altria Group, Inc.		6,930		330,907

See Accompanying Notes to the Financial Statements.


196		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® STOXX^® US ESG Select Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Trading Companies & Distributors – 0.0%(b)

WW Grainger, Inc.		210	$	91,043

Water Utilities – 0.1%

American Water Works Co., Inc.		1,610		251,144

Wireless Telecommunication Services – 0.1%

T-Mobile US, Inc.*		1,750		231,228
Total Common Stocks (Cost $142,973,220)				176,634,790
	Principal Amout

SECURITIES LENDING REINVESTMENTS(c) – 0.0%(b)

REPURCHASE AGREEMENTS – 0.0%(b)

Citigroup Global Markets Ltd., 0.05%, dated 4/30/2021, due 5/3/2021, repurchase price $25,000, collateralized by various U.S. Treasury Securities, ranging from 0.00% –3.00%, maturing 5/15/2023 –2/15/2049; Foreign Government Fixed Income Securities, 0.45%, maturing 8/19/2027; total market value $25,437	$	25,000		25,000

Citigroup Global Markets, Inc., 0.01%, dated 4/30/2021, due 5/3/2021, repurchase price $32,104, collateralized by various U.S. Treasury Securities, ranging from 0.88% –5.00%, maturing 1/15/2028 –2/15/2047; total market value $32,394		32,104		32,104
				57,104
Total Securities Lending Reinvestments (Cost $57,104)				57,104
Total Investments – 98.9% (Cost $143,030,324)				176,691,894

Other assets less liabilities – 1.1%				1,922,041
NET ASSETS – 100.0%			$	178,613,935

*	Non-income producing security.

^(a)

The security or a portion of this security is on loan at April 30, 2021. The total value of securities on loan at April 30, 2021 was $3,033,560, collateralized in the form of cash with a value of $57,104 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments and $3,080,727 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 7.25%, and maturity dates ranging from May 11, 2021 – February 15, 2051; a total value of $3,137,831.

^(b)

Represents less than 0.05% of net assets.

^(c)

The security was purchased with cash collateral held from securities on loan at April 30, 2021. The total value of securities purchased was $57,104.

Percentages shown are based on Net Assets.



Aggregate gross unrealized appreciation	$	34,119,581
Aggregate gross unrealized depreciation		(348,823	)
Net unrealized appreciation	$	33,770,758
Federal income tax cost	$	143,032,058

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			197

FlexShares^® STOXX^® US ESG Select Index Fund (cont.)

Futures Contracts

FlexShares^® STOXX^® US ESG Select Index Fund had the following open futures contracts as of April 30, 2021:

Number of
Contracts

Expiration
Date

Trading
Currency

Notional Amount

Value and
Unrealized
Appreciation*

Long Contracts

S&P 500 E-Mini Index

06/18/2021

USD

1,878,480

110,922

*	This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts.

Abbreviations:

USD – US Dollar

See Accompanying Notes to the Financial Statements.


198		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^®STOXX^® Global ESG Select Index Fund

April 30, 2021 (Unaudited)


Investments	Shares		Value

COMMON STOCKS – 98.2%

Aerospace & Defense – 0.0%(a)

Meggitt plc*		9,375	$	60,488

Air Freight & Logistics – 0.3%

CH Robinson Worldwide, Inc.		600		58,248

Deutsche Post AG (Registered)		3,302		194,594

DSV Panalpina A/S		1,400		312,627
				565,469

Airlines – 0.1%

ANA Holdings, Inc.* (b)		2,500		57,294

Deutsche Lufthansa AG (Registered)*		147		1,900

International Consolidated Airlines Group SA*		25,500		71,601

Qantas Airways Ltd.*		4,092		15,646

Ryanair Holdings plc*		962		19,571

Singapore Airlines Ltd.*		7,800		29,666
				195,678

Auto Components – 0.5%

Bridgestone Corp.		5,200		208,228

Cie Generale des Etablissements Michelin SCA		962		139,372

Continental AG		825		111,867

Denso Corp.		2,500		161,452

Faurecia SE(b)		144		7,756

Magna International, Inc.		1,300		122,666

Nokian Renkaat OYJ		63		2,349

Valeo SA		1,872		60,710
				814,400

Automobiles – 3.6%

Bayerische Motoren Werke AG		1,820		182,722

Daimler AG (Registered)		3,796		338,381

Ferrari NV		450		96,506

General Motors Co.*		8,325		476,356

Honda Motor Co. Ltd.		10,400		307,514

Nissan Motor Co. Ltd.*		8,300		41,589

Renault SA*		1,026		41,407

Stellantis NV		8,844		147,065

Subaru Corp.		5,000		92,745


Investments	Shares		Value

Automobiles – (continued)

Suzuki Motor Corp.(b)		2,500	$	94,849

Tesla, Inc.*		4,350		3,086,064

Toyota Motor Corp.		15,000		1,115,274

Volkswagen AG (Preference)		728		189,908
				6,210,380

Banks – 8.9%

ABN AMRO Bank NV, CVA(c)		462		5,978

Australia & New Zealand Banking Group Ltd.		9,516		211,257

Banco Bilbao Vizcaya Argentaria SA		39,390		221,464

Banco de Sabadell SA*		98,514		62,545

Banco Santander SA		111,100		429,981

Bank of America Corp.		62,850		2,547,311

Bank of Ireland Group plc* (b)		15,250		89,624

Bank of Montreal		1,898		178,985

Bank of Nova Scotia (The)		3,025		192,462

Bankinter SA		231		1,267

Barclays plc		87,542		212,717

BAWAG Group AG(c)		1,196		64,702

BNP Paribas SA*		5,252		337,551

CaixaBank SA*		16,562		53,173

Canadian Imperial Bank of Commerce		1,300		135,030

Citigroup, Inc.		16,744		1,192,843

Commerzbank AG*		5,538		36,607

Commonwealth Bank of Australia		13,416		922,738

DBS Group Holdings Ltd.		5,231		117,603

DNB ASA		7,332		158,012

Erste Group Bank AG		338		12,044

Fifth Third Bancorp		3,225		130,742

Hang Seng Bank Ltd.(b)		2,600		51,050

HSBC Holdings plc		137,200		860,140

ING Groep NV		15,288		195,631

Intesa Sanpaolo SpA*		101,140		282,587

JPMorgan Chase & Co.		16,750		2,576,317

KBC Group NV*		675		52,508

KeyCorp		4,394		95,613

Lloyds Banking Group plc		452,325		284,544

Mitsubishi UFJ Financial Group, Inc.		53,200		281,319

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			199

FlexShares^® STOXX^® Global ESG Select Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Banks – (continued)

National Australia Bank Ltd.		14,404	$	296,629

Natwest Group plc		18,694		50,886

Nordea Bank Abp		6,526		67,886

PNC Financial Services Group, Inc. (The)		1,846		345,110

Royal Bank of Canada		4,966		473,550

Skandinaviska Enskilda Banken AB, Class A		8,375		107,612

Societe Generale SA*		6,250		178,087

Standard Chartered plc		20,700		148,918

Svenska Handelsbanken AB, Class A		7,358		85,434

Toronto-Dominion Bank (The)		6,136		421,470

UniCredit SpA		9,178		94,597

United Overseas Bank Ltd.		2,600		51,965

US Bancorp		6,550		388,743

Westpac Banking Corp.		25,275		487,701
				15,192,933

Beverages – 2.0%

Anheuser-Busch InBev SA/NV		3,200		226,623

Asahi Group Holdings Ltd.		2,600		108,586

Carlsberg A/S, Class B		312		54,823

Coca-Cola Amatil Ltd.(d)		3,094		31,787

Coca-Cola Co. (The)		17,250		931,155

Coca-Cola European Partners plc		988		56,138

Coca-Cola HBC AG, DI		189		6,547

Diageo plc		6,000		270,070

Heineken Holding NV		364		36,194

Heineken NV(b)		1,326		153,941

Kirin Holdings Co. Ltd.		5,300		99,425

PepsiCo, Inc.		8,075		1,164,092

Pernod Ricard SA		1,222		251,107

Remy Cointreau SA(b)		52		10,404

Suntory Beverage & Food Ltd.		100		3,376

Thai Beverage PCL		4,200		2,257

Treasury Wine Estates Ltd.		11,050		85,697
				3,492,222

Biotechnology – 1.8%

AbbVie, Inc.		6,969		777,029

Amgen, Inc.		2,625		629,055


Investments	Shares		Value

Biotechnology – (continued)

Biogen, Inc.*		500	$	133,665

CSL Ltd.		2,575		539,353

Gilead Sciences, Inc.		7,750		491,893

Grifols SA		50		1,357

Regeneron Pharmaceuticals, Inc.*		500		240,650

Vertex Pharmaceuticals, Inc.*		925		201,835
				3,014,837

Building Products – 0.6%

AGC, Inc.		2,600		118,458

Assa Abloy AB, Class B		5,200		148,391

Cie de Saint-Gobain		3,588		226,760

Daikin Industries Ltd.		1,200		240,758

Geberit AG (Registered)		182		119,810

Lixil Corp.(b)		2,600		70,432

Trane Technologies plc		950		165,138
				1,089,747

Capital Markets – 2.7%

BlackRock, Inc.		950		778,335

Brookfield Asset Management, Inc., Class A		5,798		264,072

Credit Suisse Group AG (Registered)(b)		12,075		126,383

Goldman Sachs Group, Inc. (The)		2,750		958,237

Hong Kong Exchanges & Clearing Ltd.		2,627		158,969

Intermediate Capital Group plc		2,425		73,396

Julius Baer Group Ltd.		728		45,913

London Stock Exchange Group plc		1,425		146,001

Macquarie Group Ltd.		2,418		299,761

Morgan Stanley		9,425		778,034

Natixis SA		84		411

S&P Global, Inc.		1,066		416,156

Standard Life Aberdeen plc		15,314		58,838

State Street Corp.		1,794		150,606

UBS Group AG (Registered)		23,050		351,923
				4,607,035

Chemicals – 1.6%

Air Liquide SA		1,541		259,930

See Accompanying Notes to the Financial Statements.


200		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® STOXX^® Global ESG Select Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Chemicals – (continued)

Akzo Nobel NV		1,196	$	143,859

Arkema SA		650		81,377

Asahi Kasei Corp.		7,500		79,011

BASF SE		2,275		183,708

Celanese Corp.		520		81,458

Chr Hansen Holding A/S*		1,100		101,246

Clariant AG (Registered)		300		6,287

Croda International plc		553		51,789

Ecolab, Inc.		1,075		240,929

Evonik Industries AG		1,898		66,534

Givaudan SA (Registered)		26		109,012

Hexpol AB(b)		1,820		22,396

International Flavors & Fragrances, Inc.		936		133,071

Johnson Matthey plc		126		5,670

Koninklijke DSM NV		1,000		179,607

Mitsubishi Chemical Holdings Corp.(b)		13,100		97,496

Mitsui Chemicals, Inc.		2,700		84,973

Nippon Paint Holdings Co. Ltd.		3,500		50,016

Novozymes A/S, Class B		962		68,565

Orica Ltd.		200		2,095

PPG Industries, Inc.		728		124,663

Sherwin-Williams Co. (The)		600		164,322

Sika AG (Registered)		675		201,601

Solvay SA		78		9,934

Symrise AG		286		36,976

Yara International ASA		1,900		99,411
				2,685,936

Commercial Services & Supplies – 0.3%

Brambles Ltd.		6,500		52,218

Cintas Corp.		390		134,605

Downer EDI Ltd.		1,237		5,379

Elis SA*		168		3,009

ISS A/S*		63		1,198

Rentokil Initial plc		12,064		83,583

Secom Co. Ltd.		1,700		141,157

SPIE SA*		858		21,711
				442,860


Investments	Shares		Value

Communications Equipment – 0.2%

Nokia OYJ*		19,734	$	93,657

Telefonaktiebolaget LM Ericsson, Class B		14,586		199,994
				293,651

Construction & Engineering – 0.3%

Bouygues SA(b)		1,612		69,160

Eiffage SA*		884		96,966

Ferrovial SA		1,469		41,805

Obayashi Corp.		2,600		23,715

Skanska AB, Class B		2,400		65,168

Vinci SA		1,979		217,744
				514,558

Construction Materials – 0.3%

Boral Ltd.* (b)		17,498		83,801

CRH plc		3,614		170,671

HeidelbergCement AG		825		75,697

LafargeHolcim Ltd. (Registered)*		2,216		136,792

Wienerberger AG		494		19,398
				486,359

Consumer Finance – 0.3%

Capital One Financial Corp.		2,678		399,237

Synchrony Financial		1,976		86,430
				485,667

Containers & Packaging – 0.2%

Ball Corp.		1,550		145,142

DS Smith plc		567		3,303

Orora Ltd.		1,625		3,992

Packaging Corp. of America		546		80,617

Smurfit Kappa Group plc		910		46,623
				279,677

Diversified Financial Services – 0.1%

EXOR NV		650		53,458

Groupe Bruxelles Lambert SA(b)		676		74,037

Kinnevik AB, Class B* (b)		1,196		66,195

L E Lundbergforetagen AB, Class B		858		49,091

Wendel SE		42		5,597
				248,378

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			201

FlexShares^® STOXX^® Global ESG Select Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Diversified Telecommunication Services – 0.7%

BT Group plc*		30,862	$	70,483

Cellnex Telecom SA(b) (c)		3,020		171,013

Deutsche Telekom AG (Registered)		17,056		328,512

Elisa OYJ		702		39,879

Koninklijke KPN NV		23,946		82,616

Orange SA		4,925		61,362

Proximus SADP(b)		84		1,793

Singapore Telecommunications Ltd.		10,800		20,295

Spark New Zealand Ltd.		13,085		41,309

Swisscom AG (Registered)(b)		156		84,718

Telecom Italia SpA		6,132		3,368

Telenor ASA		4,186		74,795

Telia Co. AB		3,562		14,761

Telstra Corp. Ltd.		78,550		205,691

TELUS Corp.		3,268		67,740
				1,268,335

Electric Utilities – 1.2%

Chubu Electric Power Co., Inc.		7,500		90,607

CK Infrastructure Holdings Ltd.		4,500		27,579

CLP Holdings Ltd.		5,000		49,344

Duke Energy Corp.		2,366		238,233

EDP – Energias de Portugal SA		7,350		40,895

Electricite de France SA*		5,876		85,731

Endesa SA		676		17,789

Enel SpA		22,906		227,956

Entergy Corp.		806		88,088

Eversource Energy		1,825		157,351

FirstEnergy Corp.		2,704		102,536

Fortum OYJ		2,340		61,549

Iberdrola SA		29,100		393,569

Orsted A/S(c)		900		131,438

Red Electrica Corp. SA		125		2,298

SSE plc		5,525		112,297

Terna Rete Elettrica Nazionale SpA		8,918		65,808

Verbund AG		1,025		84,275
				1,977,343


Investments	Shares		Value

Electrical Equipment – 1.1%

ABB Ltd. (Registered)		9,256	$	300,905

Eaton Corp. plc		1,924		274,997

Emerson Electric Co.		2,850		257,896

Legrand SA		1,175		114,572

Nidec Corp.		4,300		497,841

Prysmian SpA		1,400		43,903

Schneider Electric SE(b)		1,768		283,109

Signify NV* (c)		286		16,288

Vestas Wind Systems A/S		3,625		151,510
				1,941,021

Electronic Equipment, Instruments & Components – 1.1%

Alps Alpine Co. Ltd.		2,600		31,493

Amphenol Corp., Class A		4,900		329,966

Azbil Corp.		1,300		52,568

Halma plc		1,425		51,061

Hexagon AB, Class B		1,378		131,579

Hitachi Ltd.		6,400		315,067

Ibiden Co. Ltd.		2,000		94,781

Kyocera Corp.		2,600		157,872

Murata Manufacturing Co. Ltd.		3,900		310,523

Omron Corp.		1,300		98,596

Shimadzu Corp.		2,500		87,484

Taiyo Yuden Co. Ltd.		100		4,593

TDK Corp.		1,300		176,616

Trimble, Inc.*		1,066		87,412
				1,929,611

Energy Equipment & Services – 0.2%

Halliburton Co.		4,525		88,509

Schlumberger NV		7,600		205,580

Worley Ltd.		252		2,114
				296,203

Entertainment – 1.4%

Nintendo Co. Ltd.		500		286,766

Ubisoft Entertainment SA*		350		26,316

Vivendi SE*		4,056		141,596

Walt Disney Co. (The)*		10,125		1,883,453
				2,338,131

Equity Real Estate Investment Trusts (REITs) – 1.1%

alstria office REIT-AG		2,990		53,595

See Accompanying Notes to the Financial Statements.


202		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® STOXX^® Global ESG Select Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Equity Real Estate Investment Trusts (REITs) – (continued)

AvalonBay Communities, Inc.		494	$	94,848

British Land Co. plc (The)		12,350		88,642

Cofinimmo SA		106		16,269

Covivio		50		4,466

Derwent London plc		1,456		67,109

Dexus		10,062		79,045

Essex Property Trust, Inc.		364		105,749

Gecina SA		150		21,966

Goodman Group		4,700		68,653

GPT Group (The)		630		2,248

Healthpeak Properties, Inc.		5,225		179,427

Host Hotels & Resorts, Inc.*		702		12,748

Klepierre SA		42		1,115

Land Securities Group plc		630		6,287

Mirvac Group		15,210		31,605

Orix JREIT, Inc.		26		45,861

Public Storage		1,075		302,247

Scentre Group		34,450		72,382

Segro plc		2,314		32,215

Stockland		17,342		62,693

Suntec REIT		2,900		3,335

Welltower, Inc.		2,860		214,586

Weyerhaeuser Co.		3,042		117,938

WP Carey, Inc.		1,650		123,569
				1,808,598

Food & Staples Retailing – 0.4%

Carrefour SA(b)		625		12,117

Coles Group Ltd.		5,675		71,541

Etablissements Franz Colruyt NV		105		6,235

J Sainsbury plc		1,722		5,667

Jeronimo Martins SGPS SA		1,118		20,444

Kesko OYJ, Class B		1,144		34,897

Koninklijke Ahold Delhaize NV		4,675		126,006

Kroger Co. (The)		2,650		96,831

Lawson, Inc.		800		35,863

Woolworths Group Ltd.		10,634		322,819
				732,420

Food Products – 1.4%

AAK AB		624		14,324

Ajinomoto Co., Inc.		5,000		100,018


Investments	Shares		Value

Food Products – (continued)

Associated British Foods plc*		2,900	$	92,671

Danone SA		2,700		190,563

General Mills, Inc.		2,262		137,665

Hershey Co. (The)		702		115,338

Kellogg Co.		702		43,819

Kerry Group plc, Class A(b)		425		55,152

Mowi ASA		2,314		57,264

Nestle SA (Registered)		13,125		1,566,855

Orkla ASA		6,136		62,747

Vitasoy International Holdings Ltd.(b)		2,000		7,738
				2,444,154

Gas Utilities – 0.1%

Enagas SA		50		1,091

Italgas SpA		441		2,878

Rubis SCA		84		3,949

Snam SpA		11,867		66,856

Tokyo Gas Co. Ltd.		5,200		105,280
				180,054

Health Care Equipment & Supplies – 3.5%

Abbott Laboratories		10,325		1,239,826

ABIOMED, Inc.*		156		50,034

Alcon, Inc.*		2,625		197,152

Align Technology, Inc.*		156		92,903

Ansell Ltd.		1,742		56,865

Baxter International, Inc.		1,638		140,360

Becton Dickinson and Co.		900		223,929

Boston Scientific Corp.*		7,250		316,100

Cochlear Ltd.		338		58,092

Coloplast A/S, Class B		442		73,230

Danaher Corp.		3,025		768,169

Edwards Lifesciences Corp.*		2,158		206,132

Fisher & Paykel Healthcare Corp. Ltd.		2,886		74,442

Getinge AB, Class B		806		27,309

Hologic, Inc.*		1,500		98,325

Hoya Corp.		3,600		409,551

Koninklijke Philips NV*		4,982		281,155

Medtronic plc		6,050		792,066

Olympus Corp.(b)		5,000		102,809

ResMed, Inc.		494		92,857

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			203

FlexShares^® STOXX^® Global ESG Select Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Health Care Equipment & Supplies – (continued)

Sartorius AG (Preference)		225	$	127,085

Smith & Nephew plc		1,975		42,945

Sonova Holding AG (Registered)*		392		116,089

STERIS plc		234		49,379

Straumann Holding AG (Registered)		78		111,563

Sysmex Corp.		900		89,955

Zimmer Biomet Holdings, Inc.		832		147,397
				5,985,719

Health Care Providers & Services – 1.7%

Anthem, Inc.		1,700		644,963

Fresenius SE & Co. KGaA		1,200		59,054

Humana, Inc.		364		162,067

Laboratory Corp. of America Holdings*		442		117,515

McKesson Corp.		525		98,469

Orpea SA		75		9,665

Ramsay Health Care Ltd.		2,300		119,603

Sonic Healthcare Ltd.		3,406		94,399

UnitedHealth Group, Inc.		4,050		1,615,140
				2,920,875

Health Care Technology – 0.0%(a)

Cerner Corp.		625		46,906

Hotels, Restaurants & Leisure – 0.8%

Accor SA*		168		6,769

Aristocrat Leisure Ltd.		4,316		123,921

Carnival plc*		168		3,911

Domino’s Pizza Enterprises Ltd.		390		32,129

Galaxy Entertainment Group Ltd.* (b)		6,000		52,840

Genting Singapore Ltd.		18,200		11,833

Hilton Worldwide Holdings, Inc.*		1,430		184,041

InterContinental Hotels Group plc*		786		56,067

Marriott International, Inc., Class A*		1,924		285,753

MGM Resorts International		1,092		44,466

Oriental Land Co. Ltd.		1,400		198,207


Investments	Shares		Value

Hotels, Restaurants & Leisure – (continued)

Restaurant Brands International, Inc.		520	$	35,680

Sands China Ltd.*		10,400		49,410

Sodexo SA*		925		92,533

Star Entertainment Grp Ltd. (The)*		18,616		57,232

Whitbread plc*		2,050		92,075
				1,326,867

Household Durables – 0.9%

Barratt Developments plc		1,170		12,506

Berkeley Group Holdings plc		754		48,303

Husqvarna AB, Class B		2,938		40,948

Panasonic Corp.		12,500		147,409

Persimmon plc		1,716		74,413

SEB SA		171		31,186

Sony Group Corp.		10,900		1,086,958

Taylor Wimpey plc		41,800		103,942
				1,545,665

Household Products – 2.1%

Clorox Co. (The)		225		41,062

Essity AB, Class B		3,146		102,799

Kimberly-Clark Corp.		1,300		173,316

Procter & Gamble Co. (The)		21,025		2,805,156

Reckitt Benckiser Group plc		4,375		390,763

Unicharm Corp.		2,700		104,833
				3,617,929

Industrial Conglomerates – 1.5%

3M Co.		4,680		922,615

CK Hutchison Holdings Ltd.		13,000		106,620

General Electric Co.		71,214		934,328

Rheinmetall AG		25		2,609

Roper Technologies, Inc.		425		189,737

Siemens AG (Registered)		2,375		396,890

Smiths Group plc		2,054		46,227
				2,599,026

Insurance – 2.2%
Admiral Group plc		754		32,665
Aflac, Inc.		3,075		165,220
AIA Group Ltd.		20,800		264,859
Allstate Corp. (The)		1,300		164,840

See Accompanying Notes to the Financial Statements.


204		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® STOXX^® Global ESG Select Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Insurance – (continued)
Aon plc, Class A		546		137,286
ASR Nederland NV		1,274		55,840
Assicurazioni Generali SpA		5,824		116,977
Aviva plc		29,300		162,391
AXA SA(b)		9,178		259,915
CNP Assurances		126		2,209
Dai-ichi Life Holdings, Inc.		7,500		134,863
Direct Line Insurance Group plc		693		2,736
Hartford Financial Services Group, Inc. (The)		1,508		99,468
Insurance Australia Group Ltd.		21,875		82,797
Japan Post Holdings Co. Ltd.*		15,900		133,478
Japan Post Insurance Co. Ltd.		2,600		50,095
Legal & General Group plc		49,600		187,067
Linea Directa Aseguradora SA Cia de Seguros y Reaseguros*		231		453
Medibank Pvt Ltd.		11,466		27,279
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered)		520		150,641
Phoenix Group Holdings plc		3,042		29,963
Poste Italiane SpA(c)		3,276		42,986
Power Corp. of Canada		2,704		78,689
Principal Financial Group, Inc.		975		62,273
Prudential plc		15,080		320,389
QBE Insurance Group Ltd.		11,804		89,904
Sampo OYJ, Class A		2,288		108,822
Sompo Holdings, Inc.		2,600		96,574
Storebrand ASA(b)		693		6,653
Suncorp Group Ltd.		15,575		126,445
Swiss Life Holding AG (Registered)		156		76,097

Swiss Re AG		962		89,529

Zurich Insurance Group AG		962		395,221
				3,754,624

Interactive Media & Services – 3.9%

Alphabet, Inc., Class C*		2,600		6,266,312

Rightmove plc		4,758		40,448

Snap, Inc., Class A*		3,796		234,669

Z Holdings Corp.		20,900		96,560
				6,637,989


Investments	Shares		Value

Internet & Direct Marketing Retail – 5.6%

Amazon.com, Inc.*		2,575	$	8,928,607

Delivery Hero SE* (c)		775		123,195

eBay, Inc.		2,200		122,738

Etsy, Inc.*		700		139,153

Farfetch Ltd., Class A*		1,092		53,497

Rakuten Group, Inc.		5,000		63,538

Zalando SE* (c)		1,150		119,803
				9,550,531

IT Services – 3.2%

Accenture plc, Class A		5,525		1,602,084

Akamai Technologies, Inc.*		450		48,915

Alten SA*		78		9,775

Amadeus IT Group SA*		1,475		100,677

Amdocs Ltd.		494		37,910

Atos SE		917		62,502

Automatic Data Processing, Inc.		1,014		189,608

Capgemini SE		676		124,018

Cognizant Technology Solutions Corp., Class A		2,100		168,840

Computershare Ltd.		1,043		11,376

Edenred		1,432		81,279

EPAM Systems, Inc.*		208		95,212

Fujitsu Ltd.		2,500		398,083

International Business Machines Corp.		7,525		1,067,647

Itochu Techno-Solutions Corp.		1,200		41,608

Mastercard, Inc., Class A		2,575		983,804

NEC Corp.		800		46,549

Nomura Research Institute Ltd.		2,600		80,042

NTT Data Corp.		7,500		116,509

Sopra Steria Group SACA*		52		9,690

Worldline SA* (c)		1,360		133,642
				5,409,770

Leisure Products – 0.1%

Bandai Namco Holdings, Inc.		1,400		102,799

Hasbro, Inc.		442		43,957

Yamaha Corp.		900		48,991
				195,747

Life Sciences Tools & Services – 0.6%

Agilent Technologies, Inc.		936		125,087

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			205

FlexShares^® STOXX^® Global ESG Select Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Life Sciences Tools & Services – (continued)

Avantor, Inc.*		3,925	$	125,757

Bio-Rad Laboratories, Inc., Class A*		175		110,273

Eurofins Scientific SE(b)		520		51,549

Illumina, Inc.*		700		274,988

Lonza Group AG (Registered)		200		127,361

Mettler-Toledo International, Inc.*		100		131,332

Sartorius Stedim Biotech		182		83,693
				1,030,040

Machinery – 1.7%

Alfa Laval AB(b)		1,794		60,764

Alstom SA*		825		45,128

Atlas Copco AB, Class A		3,068		186,132

Caterpillar, Inc.		3,600		821,196

CNH Industrial NV		8,725		129,924

Cummins, Inc.		416		104,849

Dover Corp.		546		81,458

Ebara Corp.		100		4,272

Epiroc AB, Class A		3,900		84,635

GEA Group AG		676		29,711

Georg Fischer AG (Registered)		26		36,489

IMI plc		1,404		30,986

KION Group AG		338		33,747

Komatsu Ltd.		2,700		79,168

Kone OYJ, Class B		1,950		153,380

Kubota Corp.		5,200		122,263

Kurita Water Industries Ltd.		1,500		69,164

Metso Outotec OYJ		8,268		93,001

MINEBEA MITSUMI, Inc.(b)		2,500		62,691

Nabtesco Corp.		100		4,497

PACCAR, Inc.		1,794		161,245

Parker-Hannifin Corp.		225		70,607

Rotork plc		5,512		26,299

Schindler Holding AG		260		74,062

Trelleborg AB, Class B		2,886		75,292

Valmet OYJ		416		17,407

Volvo AB, Class B(b)		6,656		162,823

Wartsila OYJ Abp		3,744		48,383
				2,869,573


Investments	Shares		Value

Marine – 0.1%

AP Moller – Maersk A/S, Class B		26	$	64,688

Kuehne + Nagel International AG (Registered)		234		70,042
				134,730

Media – 0.3%

Informa plc*		13,832		107,667

Omnicom Group, Inc.		1,898		156,129

Pearson plc		8,250		94,807

Publicis Groupe SA		1,575		102,118

SES SA, Receipts		231		1,753

WPP plc		988		13,346
				475,820

Metals & Mining – 1.0%

Alumina Ltd.		2,425		3,241

Anglo American plc		3,718		158,036

Antofagasta plc		3,625		93,629

ArcelorMittal SA(b)		2,470		72,105

BlueScope Steel Ltd.		3,302		55,145

Boliden AB(b)		1,248		48,676

Evraz plc		1,300		11,563

Fortescue Metals Group Ltd.		9,150		159,664

Glencore plc*		37,284		152,387

Newmont Corp.		3,484		217,408

Norsk Hydro ASA		294		1,881

Northern Star Resources Ltd.		2,340		18,997

OZ Minerals Ltd.		3,770		69,716

Polymetal International plc		100		2,071

Rio Tinto Ltd.		1,325		123,996

Rio Tinto plc		3,225		271,304

South32 Ltd.		52,700		117,239

Sumitomo Metal Mining Co. Ltd.		2,500		106,102
				1,683,160

Multiline Retail – 0.4%

Marks & Spencer Group plc*		1,680		3,675

Marui Group Co. Ltd.		2,700		50,540

Next plc*		676		73,023

Target Corp.		1,625		336,798

Wesfarmers Ltd.		3,950		165,099
				629,135

See Accompanying Notes to the Financial Statements.


206		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® STOXX^® Global ESG Select Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Multi-Utilities – 0.6%

A2A SpA		14,300	$	28,008

AGL Energy Ltd.		210		1,448

E.ON SE		4,212		50,836

Engie SA		9,672		144,026

National Grid plc		21,398		269,780

RWE AG		1,525		57,901

Sempra Energy		1,275		175,402

Veolia Environnement SA		3,120		99,492

WEC Energy Group, Inc.		1,875		182,194
				1,009,087

Oil, Gas & Consumable Fuels – 3.4%

Ampol Ltd.		50		988

BP plc		138,050		579,146

Canadian Natural Resources Ltd.		3,900		118,281

Chevron Corp.		13,025		1,342,487

ConocoPhillips		5,675		290,220

ENEOS Holdings, Inc.		27,500		118,549

Eni SpA		8,242		98,523

Equinor ASA		3,718		75,853

Exxon Mobil Corp.		22,672		1,297,745

Galp Energia SGPS SA		42		486

Koninklijke Vopak NV		494		22,657

Lundin Energy AB		1,775		56,929

Neste OYJ		1,725		104,658

Occidental Petroleum Corp.		950		24,092

OMV AG		147		7,257

Origin Energy Ltd.		24,425		78,487

Repsol SA		4,118		49,265

Royal Dutch Shell plc, Class A(b)		27,825		530,572

Santos Ltd.		17,925		96,646

Suncor Energy, Inc.		6,375		136,237

TC Energy Corp.		2,775		137,171

TOTAL SE		10,275		455,490

Woodside Petroleum Ltd.		6,075		107,274
				5,729,013

Paper & Forest Products – 0.2%

Mondi plc		2,054		55,882

Stora Enso OYJ, Class R		4,275		81,980

Svenska Cellulosa AB SCA, Class B		3,926		68,948


Investments	Shares		Value

Paper & Forest Products – (continued)

UPM-Kymmene OYJ		1,586	$	62,145
				268,955

Personal Products – 1.3%

Beiersdorf AG		300		33,911

Estee Lauder Cos., Inc. (The), Class A		1,066		334,511

Kao Corp.		900		57,694

L’Oreal SA(b)		1,352		556,048

Pola Orbis Holdings, Inc.		2,600		67,388

Rohto Pharmaceutical Co. Ltd.		1,000		25,644

Shiseido Co. Ltd.		4,100		297,377

Unilever plc (Chicago Board Options Exchanges)		5,649		330,357

Unilever plc (Sigma X Multilateral Trading Facility)		9,901		580,072
				2,283,002

Pharmaceuticals – 4.8%

Astellas Pharma, Inc.		10,500		157,589

AstraZeneca plc		7,700		822,499

Bayer AG (Registered)		4,425		286,689

Bristol-Myers Squibb Co.		8,736		545,301

Catalent, Inc.*		850		95,600

Chugai Pharmaceutical Co. Ltd.		2,500		93,797

Eli Lilly and Co.		4,900		895,573

GlaxoSmithKline plc		18,250		338,491

Hikma Pharmaceuticals plc		338		11,419

Ipsen SA		25		2,421

Merck & Co., Inc.		14,775		1,100,738

Merck KGaA		550		96,764

Novartis AG (Registered)		14,450		1,235,154

Novo Nordisk A/S, Class B		6,682		490,037

Otsuka Holdings Co. Ltd.		5,300		203,699

Roche Holding AG		3,150		1,027,838

Sanofi(b)		5,975		627,707

Shionogi & Co. Ltd.		1,300		68,351

UCB SA		25		2,319
				8,101,986

Professional Services – 0.8%

Adecco Group AG (Registered)		702		47,598

Booz Allen Hamilton Holding Corp.		702		58,231

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			207

FlexShares^® STOXX^® Global ESG Select Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Professional Services – (continued)

Bureau Veritas SA*		1,846	$	55,266

Intertek Group plc		700		59,489

Recruit Holdings Co. Ltd.		10,000		451,855

RELX plc		11,310		294,316

SGS SA (Registered)		26		76,969

Teleperformance		425		164,280

Wolters Kluwer NV(b)		1,430		129,555
				1,337,559

Real Estate Management & Development – 0.5%

Aroundtown SA		6,188		47,704

CapitaLand Ltd.		2,100		5,872

Castellum AB(b)		1,456		35,488

CBRE Group, Inc., Class A*		1,525		129,930

CK Asset Holdings Ltd.		13,000		81,597

Daiwa House Industry Co. Ltd.		2,600		76,950

Entra ASA(b) (c)		3,172		71,777

Lendlease Corp. Ltd.		7,020		68,921

Mitsubishi Estate Co. Ltd.		10,000		164,265

Mitsui Fudosan Co. Ltd.		5,000		108,412

New World Development Co. Ltd.		5,000		26,459

Sun Hung Kai Properties Ltd.		3,000		45,308

Vonovia SE		775		50,976
				913,659

Road & Rail – 0.3%

Aurizon Holdings Ltd.		2,275		6,590

Canadian National Railway Co.		3,172		341,205

MTR Corp. Ltd.		8,549		47,661

Nippon Express Co. Ltd.		1,100		84,031
				479,487

Semiconductors & Semiconductor Equipment – 5.3%

Advanced Micro Devices, Inc.*		4,700		383,614

Advantest Corp.		1,100		104,460

ams AG*		650		11,282

Analog Devices, Inc.		1,200		183,792

Applied Materials, Inc.		2,200		291,962

ASM International NV		400		121,776

ASML Holding NV		1,900		1,237,844

Cree, Inc.*		400		39,768


Investments	Shares		Value

Semiconductors & Semiconductor Equipment – (continued)

Infineon Technologies AG		7,275	$	293,950

Intel Corp.		29,125		1,675,561

Lam Research Corp.		775		480,849

Maxim Integrated Products, Inc.		598		56,212

Micron Technology, Inc.*		5,175		445,412

NVIDIA Corp.		1,825		1,095,694

ON Semiconductor Corp.*		1,586		61,854

QUALCOMM, Inc.		3,350		464,980

Renesas Electronics Corp.*		13,100		152,806

Rohm Co. Ltd.		400		39,632

STMicroelectronics NV		2,675		100,292

SUMCO Corp.		2,600		67,364

Teradyne, Inc.		900		112,572

Texas Instruments, Inc.		6,175		1,114,649

Tokyo Electron Ltd.		1,200		530,479
				9,066,804

Software – 8.3%

Adobe, Inc.*		2,775		1,410,643

Autodesk, Inc.*		1,375		401,376

Crowdstrike Holdings, Inc., Class A*		425		88,617

Dassault Systemes SE		678		157,481

Fortinet, Inc.*		260		53,100

Intuit, Inc.		1,200		494,592

Microsoft Corp.		33,900		8,548,902

NortonLifeLock, Inc.		3,120		67,423

Oracle Corp.		12,714		963,594

Sage Group plc (The)		5,356		47,312

salesforce.com, Inc.*		3,925		904,006

SAP SE		4,725		664,126

SimCorp A/S		442		58,498

Splunk, Inc.*		350		44,247

Synopsys, Inc.*		825		203,825

Xero Ltd.*		50		5,467
				14,113,209

Specialty Retail – 2.3%

Best Buy Co., Inc.		1,404		163,243

Burlington Stores, Inc.*		442		144,238

H & M Hennes & Mauritz AB, Class B*		3,432		84,747

Home Depot, Inc. (The)		7,650		2,476,076

See Accompanying Notes to the Financial Statements.


208		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® STOXX^® Global ESG Select Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Specialty Retail – (continued)

Industria de Diseno Textil SA(b)		3,450	$	123,015

Kingfisher plc*		9,672		47,847

Lowe’s Cos., Inc.		2,300		451,375

TJX Cos., Inc. (The)		6,214		441,194
				3,931,735

Technology Hardware, Storage & Peripherals – 5.6%

Apple, Inc.		65,750		8,643,495

Canon, Inc.(b)		5,000		119,070

Dell Technologies, Inc., Class C*		650		63,915

Hewlett Packard Enterprise Co.		4,342		69,559

HP, Inc.		10,575		360,713

Logitech International SA (Registered)		260		29,191

NetApp, Inc.		624		46,607

Seiko Epson Corp.(b)		5,000		84,992

Western Digital Corp.*		2,964		209,347
				9,626,889

Textiles, Apparel & Luxury Goods – 1.5%

adidas AG*		962		297,447

Asics Corp.		2,600		41,270

Burberry Group plc*		910		25,967

EssilorLuxottica SA – IM		282		46,942

EssilorLuxottica SA – MO		1,252		208,591

Hermes International		130		163,380

Kering SA		390		312,910

Lululemon Athletica, Inc.*		520		174,340

LVMH Moet Hennessy Louis Vuitton SE		1,430		1,077,962

Moncler SpA*		1,456		89,424

Pandora A/S		546		62,045

Shenzhou International Group Holdings Ltd.		2,600		57,176

Swatch Group AG (The)		260		79,706
				2,637,160

Tobacco – 0.1%

Imperial Brands plc		3,675		76,705

Japan Tobacco, Inc.		2,700		50,490
				127,195


Investments	Shares		Value

Trading Companies & Distributors – 0.5%

Brenntag SE		572	$	51,423

Bunzl plc		1,326		42,722

Electrocomponents plc		21		310

Ferguson plc		390		49,310

ITOCHU Corp.(b)		5,300		165,248

Marubeni Corp.		10,000		83,125

Mitsui & Co. Ltd.(b)		10,400		219,170

Rexel SA*		189		3,724

Sojitz Corp.		23,700		70,685

Sumitomo Corp.		10,000		136,133

Toyota Tsusho Corp.		2,600		109,894
				931,744

Transportation Infrastructure – 0.3%

Aena SME SA* (c)		286		49,818

Aeroports de Paris* (b)		42		5,395

Auckland International Airport Ltd.* (b)		6,906		37,609

Flughafen Zurich AG (Registered)* (b)		130		23,405

Getlink SE		2,626		41,822

Transurban Group(b)		25,100		274,735
				432,784

Water Utilities – 0.1%

American Water Works Co., Inc.		775		120,892

Pennon Group plc		1,650		23,622

Severn Trent plc		1,768		60,634
				205,148

Wireless Telecommunication Services – 0.2%

Vodafone Group plc		156,925		297,226
Total Common Stocks (Cost $121,457,437)				167,502,893
	Number of Warrants

WARRANTS – 0.0%(a)

Textiles, Apparel & Luxury Goods – 0.0%(a)

Cie Financiere Richemont SA, expiring 11/22/2023, price 67.00 CHF*

(Cost $—)		4,830		2,065

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			209

FlexShares^® STOXX^® Global ESG Select Index Fund (cont.)


Investments	Number of Rights		Value

RIGHTS – 0.0%

Capital Markets – 0.0%

Credit Suisse Group AG, expiring 5/6/2021, price 1,000.00 CHF* ^‡ (d) (Cost $—)		12,075	$	—
	Principal Amount

SECURITIES LENDING REINVESTMENTS(e) – 1.8%

REPURCHASE AGREEMENTS – 1.8%

Citigroup Global Markets Ltd., 0.05%, dated 4/30/2021, due 5/3/2021, repurchase price $900,000, collateralized by various U.S. Treasury Securities, ranging from 0.00% –3.00%, maturing 5/15/2023 –2/15/2049; Foreign Government Fixed Income Securities, 0.45%, maturing 8/19/2027; total market value $915,740	$	900,000		900,000

Citigroup Global Markets, Inc., 0.01%, dated 4/30/2021, due 5/3/2021, repurchase price $2,105,671, collateralized by various U.S. Treasury Securities, ranging from 0.88% –5.00%, maturing 1/15/2028 –2/15/2047; total market value $2,124,666		2,105,671		2,105,671
				3,005,671
Total Securities Lending Reinvestments (Cost $3,005,671)				3,005,671
Total Investments – 100.0% (Cost $124,463,108)				170,510,629

Liabilities in excess of other assets – 0.0%				(70,373	)
NET ASSETS – 100.0%			$	170,440,256

*	Non-income producing security.

^‡	Value determined using significant unobservable inputs.

^(a)

Represents less than 0.05% of net assets.

^(b)

The security or a portion of this security is on loan at April 30, 2021. The total value of securities on loan at April 30, 2021 was $4,528,506, collateralized in the form of cash with a value of $3,005,671 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $614,666 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 7.25%, and maturity dates ranging from May 13, 2021 – February 15, 2051 and $1,334,552 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from July 7, 2021 – September 20, 2117; a total value of $4,954,889.

^(c)

^(d)

Security fair valued as of April 30, 2021 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at April 30, 2021 amounted to $31,787, which represents approximately 0.02% of net assets of the Fund.

^(e)

The security was purchased with cash collateral held from securities on loan at April 30, 2021. The total value of securities purchased was $3,005,671.

Percentages shown are based on Net Assets.

Abbreviations

CVA – Dutch Certification

DI – Depositary Interest

OYJ – Public Limited Company

SCA – Limited partnership with share capital



Aggregate gross unrealized appreciation	$	47,044,806
Aggregate gross unrealized depreciation		(910,729	)
Net unrealized appreciation	$	46,134,077
Federal income tax cost	$	124,498,644

See Accompanying Notes to the Financial Statements.


210		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® STOXX^® Global ESG Select Index Fund (cont.)

Futures Contracts

FlexShares^® STOXX^® Global ESG Select Index Fund had the following open futures contracts as of April 30, 2021:


	Number of Contracts		Expiration Date		Trading Currency		Notional Amount		Value and Unrealized Appreciation*
Long Contracts
EURO STOXX 50 Index		1		06/18/2021		EUR	$	47,430	$	(391	)
MSCI EAFE E-Mini Index		9		06/18/2021		USD		1,015,785		15,278
S&P 500 E-Mini Index		8		06/18/2021		USD		1,669,760		107,120
									$	122,007

*	This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts.

Forward Foreign Currency Contracts

FlexShares^® STOXX^® Global ESG Select Index Fund had the following outstanding contracts as of April 30, 2021:


Contracts to Receive		Counterparty		In Exchange For			Maturity Date		Unrealized Appreciation/ (Depreciation)
USD	46,596		JPMorgan Chase Bank		AUD	60,000		06/16/2021	$	240
USD	69,788		Citibank NA		GBP	50,000		06/16/2021		552
Total unrealized appreciation									$	792
USD	119,782		Morgan Stanley		EUR	100,000		06/16/2021	$	(707	)
Total unrealized depreciation									$	(707	)
Net unrealized appreciation									$	85

Abbreviations:

AUD – Australian Dollar

EUR – Euro

GBP – British Pound

USD – US Dollar

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			211

FlexShares^® STOXX^® Global ESG Select Index Fund (cont.)

FlexShares^® STOXX^® Global ESG Select Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2021:


Australia	3.6	%
Austria	0.1
Belgium	0.2
Canada	1.6
Denmark	0.9
Finland	0.5
France	4.8
Germany	2.8
Hong Kong	0.6
Ireland	0.2
Italy	1.0
Japan	8.2
Luxembourg	0.1
Netherlands	1.6
New Zealand	0.1
Norway	0.4
Portugal	0.0	^†
Singapore	0.1
Spain	1.0
Sweden	1.2
Switzerland	4.0
United Kingdom	6.0
United States	59.2
Other¹	1.8
	100.0	%

†	Amount represents less than 0.05%.

1	Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities).

See Accompanying Notes to the Financial Statements.


212		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^®Morningstar Global Upstream Natural Resources Index Fund

April 30, 2021 (Unaudited)


Investments	Shares		Value

COMMON STOCKS – 99.1%

Building Products – 0.2%

UFP Industries, Inc.		114,576	$	9,628,967

Chemicals – 15.0%

CF Industries Holdings, Inc.		1,126,664		54,789,670

Corteva, Inc.		4,108,368		200,324,024

FMC Corp.		712,008		84,187,826

ICL Group Ltd.		3,808,288		24,481,726

Mosaic Co. (The)		1,762,288		61,997,292

Nutrien Ltd.(a)		3,109,920		171,523,388

PI Industries Ltd.		436,480		14,800,162

SABIC Agri-Nutrients Co.		1,153,450		32,295,739

Scotts Miracle-Gro Co. (The)		229,152		52,970,776

UPL Ltd.		2,828,936		23,178,389

Yara International ASA(a)		930,248		48,672,252
				769,221,244

Equity Real Estate Investment Trusts (REITs) – 1.3%

Rayonier, Inc.(a)		280,984		10,194,100

Weyerhaeuser Co.		1,505,856		58,382,037
				68,576,137

Food Products – 15.3%

a2 Milk Co. Ltd. (The)* (a)		4,318,424		23,703,290

Archer-Daniels-Midland Co.		3,093,552		195,295,938

Bakkafrost P/F		253,704		20,172,464

Bunge Ltd.(a)		763,840		64,483,373

Cal-Maine Foods, Inc.(a)		190,960		7,134,266

Charoen Pokphand Foods PCL, NVDR		19,641,600		18,293,260

Charoen Pokphand Indonesia Tbk. PT		37,646,400		18,373,632

International Holdings Co. PJSC*		1,793,954		44,297,572

IOI Corp. Bhd.		18,550,400		18,521,418

Kuala Lumpur Kepong Bhd.		3,404,300		18,283,029

Mowi ASA		2,485,208		61,500,537

Muyuan Foods Co. Ltd., Class A		1,854,900		32,420,264

PPB Group Bhd.		4,092,000		18,480,129

QL Resources Bhd.		6,547,200		9,669,602

Salmar ASA		297,352		20,679,568


Investments	Shares		Value

Food Products – (continued)

Sime Darby Plantation Bhd.		14,458,400	$	16,024,103

Tongwei Co. Ltd., Class A		2,728,060		14,851,202

Tyson Foods, Inc., Class A		1,544,048		119,586,518

Wilmar International Ltd.		16,368,000		64,222,008
				785,992,173

Metals & Mining – 31.2%

Agnico Eagle Mines Ltd.		469,216		29,300,254

Anglo American plc		2,651,616		112,708,756

AngloGold Ashanti Ltd.(a)		747,472		15,467,247

B2Gold Corp.		2,035,088		9,793,303

Barrick Gold Corp.		3,311,792		70,505,473

BHP Group Ltd.(a)		6,083,440		224,149,610

Boliden AB(a)		567,424		22,131,264

Evolution Mining Ltd.		3,633,696		12,995,708

First Quantum Minerals Ltd.(a)		1,129,392		26,008,515

Fortescue Metals Group Ltd.		3,947,416		68,881,010

Franco-Nevada Corp.		362,824		50,501,019

Freeport-McMoRan, Inc.		2,850,760		107,502,160

Glencore plc*		22,503,272		91,975,185

Gold Fields Ltd.		1,579,512		14,937,725

Grupo Mexico SAB de CV, Series B		6,001,600		27,240,651

Impala Platinum Holdings Ltd.		1,317,624		24,661,344

Kinross Gold Corp.		2,359,720		16,592,081

Kirkland Lake Gold Ltd.(a)		523,776		19,444,684

MMC Norilsk Nickel PJSC		28,416		9,712,187

MMC Norilsk Nickel PJSC, ADR		934,044		31,692,113

Newcrest Mining Ltd.		1,677,720		34,368,722

Newmont Corp.		1,497,672		93,469,709

Northern Star Resources Ltd.		2,474,296		20,087,447

Pan American Silver Corp.(a)		447,392		14,212,388

Rio Tinto plc		2,370,632		199,430,031

Royal Gold, Inc.		125,488		14,037,088

South32 Ltd.		9,689,856		21,556,596

Sumitomo Metal Mining Co. Ltd.		625,900		26,563,744

Teck Resources Ltd., Class B(a)		911,152		19,264,399

Vale SA		6,880,495		138,263,041

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			213

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Metals & Mining – (continued)

Wheaton Precious Metals Corp.		859,320	$	35,617,564
				1,603,071,018

Multi-Utilities – 1.3%

Suez SA(a)		1,042,096		24,913,877

Veolia Environnement SA		1,358,544		43,322,151
				68,236,028

Oil, Gas & Consumable Fuels – 26.3%

BP plc		22,964,304		96,339,539

Cabot Oil & Gas Corp.(a)		471,944		7,867,307

Canadian Natural Resources Ltd.		1,252,152		37,975,769

Chevron Corp.		2,116,928		218,191,769

China Petroleum & Chemical Corp., Class H		31,212,000		15,552,050

ConocoPhillips		1,451,296		74,219,277

Eni SpA		2,943,512		35,185,960

EOG Resources, Inc.(a)		613,800		45,200,232

Equinor ASA		1,224,872		24,989,264

Exxon Mobil Corp.		4,048,352		231,727,669

Gazprom PJSC		13,803,680		42,306,678

Hess Corp.		308,264		22,968,751

LUKOIL PJSC		230,548		17,800,190

LUKOIL PJSC, ADR		170,468		13,071,486

Novatek PJSC		1,020,272		18,454,962

Occidental Petroleum Corp.		930,248		23,591,089

PetroChina Co. Ltd., Class H		24,342,000		8,869,472

Petroleo Brasileiro SA (Preference)		5,728,800		24,941,571

Pioneer Natural Resources Co.(a)		231,880		35,670,100

PTT PCL, NVDR		10,366,400		13,316,933

Repsol SA		1,819,576		21,768,251

Rosneft Oil Co. PJSC		2,537,040		17,759,829

Royal Dutch Shell plc, Class A		4,664,880		88,162,070

Saudi Arabian Oil Co.(b)		2,344,896		22,135,228

Suncor Energy, Inc.		1,658,624		35,445,639

Tatneft PJSC		1,636,800		11,057,891

TOTAL SE		2,927,144		129,760,104


Investments	Shares		Value

Oil, Gas & Consumable Fuels – (continued)

Woodside Petroleum Ltd.		1,167,584	$	20,617,440
				1,354,946,520

Paper & Forest Products – 3.6%

Canfor Corp.* (a)		130,944		3,267,746

Dongwha Enterprise Co. Ltd.*		13,640		886,566

Duratex SA		545,600		2,383,433

Holmen AB, Class B(a)		196,416		9,268,248

Mondi plc		979,352		26,644,650

Oji Holdings Corp.		2,071,500		13,057,623

Stella-Jones, Inc.		130,944		5,471,079

Stora Enso OYJ, Class R		1,298,528		24,901,267

Suzano SA*		1,504,393		19,041,826

Svenska Cellulosa AB SCA, Class B		1,211,232		21,271,673

UPM-Kymmene OYJ		1,107,568		43,398,601

West Fraser Timber Co. Ltd.		180,048		13,889,250
				183,481,962

Trading Companies & Distributors – 0.8%

Mitsui & Co. Ltd.		1,990,200		41,941,592

Water Utilities – 4.1%

American States Water Co.(a)		95,480		7,561,061

American Water Works Co., Inc.		485,584		75,746,248

Beijing Enterprises Water Group Ltd.* (a)		13,724,000		5,247,981

California Water Service Group(a)		133,672		7,853,230

China Water Affairs Group Ltd.(a)		1,490,000		1,208,598

Cia de Saneamento Basico do Estado de Sao Paulo*		937,933		7,395,931

Cia de Saneamento do Parana*		545,600		2,121,959

Essential Utilities, Inc.		570,152		26,871,264

Guangdong Investment Ltd.		7,245,576		11,157,302

Pennon Group plc		1,003,904		14,372,138

Severn Trent plc		616,528		21,144,015

SJW Group(a)		70,928		4,649,330

See Accompanying Notes to the Financial Statements.


214		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Water Utilities – (continued)

United Utilities Group plc		1,707,728	$	22,892,458
				208,221,515
Total Common Stocks (Cost $4,111,739,406)				5,093,317,156
	Principal Amount

SECURITIES LENDING REINVESTMENTS(c) – 0.7%

CERTIFICATES OF DEPOSIT – 0.2%

Bank of Nova Scotia, Houston (ICE LIBOR USD 3 Month + 0.08%), 0.27%, 7/21/2021(d)	$	2,000,000		2,000,044

Cooperatieve Rabobank UA, London (ICE LIBOR USD 3 Month + 0.08%), 0.27%, 7/30/2021(d)		3,000,000		3,000,600

Nordea Bank Abp, New York Branch (ICE LIBOR USD 3 Month + 0.03%), 0.24%, 10/7/2021(d)		5,000,000		5,002,000

Royal Bank of Canada, New York (ICE LIBOR USD 3 Month + 0.04%), 0.24%, 10/5/2021(d)		2,000,000		2,000,436
Total Certificates Of Deposit (Cost $11,999,854)				12,003,080



REPURCHASE AGREEMENTS – 0.5%

BofA Securities, Inc., 0.50%, dated 4/30/2021, due 8/2/2021, repurchase price $8,000,000, collateralized by various Common Stocks; total market value $8,712,122		8,000,000		8,000,000


Investments	Principal Amount		Value

REPURCHASE AGREEMENTS – (continued)

Citigroup Global Markets Ltd., 0.05%, dated 4/30/2021, due 5/3/2021, repurchase price $400,000, collateralized by various U.S. Treasury Securities, ranging from 0.00% –3.00%, maturing 5/15/2023 – 2/15/2049; Foreign Government Fixed Income Securities, 0.45%, maturing 8/19/2027; total market value $406,995	$	400,000	$	400,000

Citigroup Global Markets, Inc., 0.01%, dated 4/30/2021, due 5/3/2021, repurchase price $763,701, collateralized by various U.S. Treasury Securities, ranging from 0.88% – 5.00%, maturing 1/15/2028 – 2/15/2047; total market value $770,590		763,701		763,701

Deutsche Bank AG, London Branch, 0.15%, dated 4/30/2021, due 5/3/2021, repurchase price $500,000, collateralized by various U.S. Treasury Securities, 0.13%, maturing 7/15/2030; Foreign Government Fixed Income Securities, ranging from 0.25% – 3.13%, maturing 7/23/2021 – 2/14/2031; total market value $507,714		500,000		500,000

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			215

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund (cont.)


Investments	Principal Amount		Value

REPURCHASE AGREEMENTS – (continued)

NBC Global Finance Ltd., 0.19%, dated 4/30/2021, due 5/3/2021, repurchase price $15,000,000, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 4.38%, maturing 1/31/2023 – 8/15/2050; Common Stocks; total market value $16,473,977	$	15,000,000	$	15,000,000
Total Repurchase Agreements (Cost $24,663,701)				24,663,701
Total Securities Lending Reinvestments (Cost $36,663,555)				36,666,781
Total Investments – 99.8% (Cost $4,148,402,961)				5,129,983,937

Other assets less liabilities—0.2%				12,498,759
NET ASSETS – 100.0%			$	5,142,482,696

*	Non-income producing security.

^(a)

The security or a portion of this security is on loan at April 30, 2021. The total value of securities on loan at April 30, 2021 was $126,528,187, collateralized in the form of cash with a value of $36,663,531 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $71,126,696 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 6.88%, and maturity dates ranging from May 13, 2021 – February 15, 2051 and $27,966,718 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 6.50%, and maturity dates ranging from July 7, 2021 – September 20, 2117; a total value of $135,756,945.

^(b)

^(c)

The security was purchased with cash collateral held from securities on loan at April 30, 2021. The total value of securities purchased was $36,666,781.

^(d)

Variable or floating rate security, linked to the referenced benchmark. The interest rate shown is the rate in effect as of April 30, 2021.

Percentages shown are based on Net Assets.

Abbreviations

ADR – American Depositary Receipt

ICE – Intercontinental Exchange

LIBOR – London Interbank Offered Rate

NVDR – Non-Voting Depositary Receipt

OYJ – Public Limited Company

PJSC – Public Joint Stock Company

SCA – Limited partnership with share capital

USD – US Dollar



Aggregate gross unrealized appreciation	$	1,088,213,055
Aggregate gross unrealized depreciation		(128,932,976	)
Net unrealized appreciation	$	959,280,079
Federal income tax cost	$	4,171,864,560

See Accompanying Notes to the Financial Statements.


216		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund (cont.)

Futures Contracts

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund had the following open futures contracts as of April 30, 2021:


	Number of Contracts		Expiration Date		Trading Currency		Notional Amount		Value and Unrealized Appreciation/ (Depreciation)*
Long Contracts
EURO STOXX 50 Index		3		06/18/2021		EUR	$	142,289	$	5,610
FTSE 100 Index		158		06/18/2021		GBP		15,176,399		392,445
FTSE/JSE Top 40 Index		30		06/17/2021		ZAR		1,269,502		(19,512	)
Hang Seng Index		2		05/28/2021		HKD		367,330		(4,140	)
MSCI Emerging Markets E-Mini Index		35		06/18/2021		USD		2,339,050		14,189
S&P Midcap 400 E-Mini Index		26		06/18/2021		USD		7,072,780		259,418
S&P/TSX 60 Index		85		06/17/2021		CAD		15,689,969		360,942
SPI 200 Index		52		06/17/2021		AUD		7,031,304		213,823
TOPIX Index		5		06/10/2021		JPY		869,814		(8,664	)
									$	1,214,111

*	This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts.

Forward Foreign Currency Contracts

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund had the following outstanding contracts as of April 30, 2021:


Contracts to Receive		Counterparty	In Exchange For		Maturity Date		Unrealized Appreciation/ (Depreciation)
AUD	464,184	BNP Paribas SA	USD	358,300		06/16/2021	$	332
AUD	800,000	Citibank NA	USD	614,153		06/16/2021		3,933
AUD	450,000	Morgan Stanley	USD	342,081		06/16/2021		5,592
BRL^*	13,310,000	Morgan Stanley	USD	2,393,756		06/16/2021		50,603
CAD	2,260,000	JPMorgan Chase Bank	USD	1,803,909		06/16/2021		33,359
CAD	380,000	Morgan Stanley	USD	300,933		06/16/2021		7,988
CAD	5,264,539	Toronto-Dominion Bank (The)	USD	4,184,674		06/16/2021		95,133
EUR	1,108,602	Morgan Stanley	USD	1,327,910		06/16/2021		7,838
GBP	1,285,000	JPMorgan Chase Bank	USD	1,772,770		06/16/2021		6,582
GBP	320,000	Morgan Stanley	USD	438,882		06/16/2021		4,226
MYR^*	2,484,831	Goldman Sachs & Co.	USD	600,562		06/16/2021		4,881
NOK	16,831,048	BNP Paribas SA	USD	1,987,745		06/16/2021		38,216
NZD	276,346	BNP Paribas SA	USD	198,104		06/16/2021		141
SEK	4,000,000	Toronto-Dominion Bank (The)	USD	467,281		06/16/2021		5,964
SGD	900,000	Citibank NA	USD	670,048		06/16/2021		6,329
SGD	149,915	Goldman Sachs & Co.	USD	111,428		06/16/2021		1,238
USD	3,819,820	JPMorgan Chase Bank	AUD	4,918,630		06/16/2021		19,649
USD	1,648,731	Citibank NA	GBP	1,181,242		06/16/2021		13,052
USD	1,000,319	JPMorgan Chase Bank	GBP	720,000		06/16/2021		3,327
USD	5,550,120	Toronto-Dominion Bank (The)	GBP	4,000,000		06/16/2021		11,277
USD	640,023	Toronto-Dominion Bank (The)	HKD	4,967,495		06/16/2021		369
USD	1,900,249	Toronto-Dominion Bank (The)	JPY	206,700,000		06/16/2021		8,538
USD	16,274	Goldman Sachs & Co.	RUB^*	1,215,850		06/16/2021		175
USD	219,856	Morgan Stanley	SEK	1,857,739		06/16/2021		65

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			217

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund (cont.)

Forward Foreign Currency Contracts (cont.)


Contracts to Receive		Counterparty	In Exchange For		Maturity Date		Unrealized Appreciation/ (Depreciation)
USD	1,696,615	JPMorgan Chase Bank	SGD	2,250,000		06/16/2021	$	5,673
Total unrealized appreciation							$	334,480
AUD	6,000,000	Morgan Stanley	USD	4,646,330		06/16/2021	$	(10,684	)
GBP	198,713	Bank of New York	USD	276,391		06/16/2021		(1,231	)
INR^*	6,925,711	Citibank NA	USD	93,598		06/16/2021		(750	)
JPY	22,715,753	BNP Paribas SA	USD	210,312		06/16/2021		(2,418	)
JPY	168,022,649	Morgan Stanley	USD	1,548,063		06/16/2021		(10,326	)
USD	1,606,289	Citibank NA	BRL^*	9,450,760		06/16/2021		(129,328	)
USD	5,351,492	Toronto-Dominion Bank (The)	CAD	6,700,000		06/16/2021		(95,273	)
USD	1,040,852	Morgan Stanley	CHF	961,534		06/16/2021		(14,650	)
USD	358,178	Citibank NA	EUR	300,000		06/16/2021		(3,290	)
USD	2,826,743	Toronto-Dominion Bank (The)	EUR	2,400,000		06/16/2021		(65,003	)
USD	1,129,476	Morgan Stanley	JPY	124,500,000		06/16/2021		(9,943	)
USD	307,860	Citibank NA	KRW^*	350,052,156		06/16/2021		(6,842	)
USD	31,462	BNP Paribas SA	MXN	670,000		06/16/2021		(1,584	)
USD	1,006,342	Toronto-Dominion Bank (The)	NOK	8,600,000		06/16/2021		(28,844	)
USD	120,427	Morgan Stanley	SEK	1,024,544		06/16/2021		(788	)
USD	135,536	BNP Paribas SA	ZAR	2,080,000		06/17/2021		(6,935	)
Total unrealized depreciation							$	(387,889	)
Net unrealized depreciation							$	(53,409	)

*	Non-deliverable forward. See Note 2 in the Notes to Financial Statements.

Abbreviations:

AUD – Australian Dollar

BRL – Brazilian Real

CAD – Canadian Dollar

CHF – Swiss Franc

EUR – Euro

GBP – British Pound

HKD – Hong Kong Dollar

INR – Indian Rupee

JPY – Japanese Yen

KRW – Korean Won

MXN – Mexican Peso

MYR – Malaysian Ringgit

NOK – Norwegian Krone

NZD – New Zealand Dollar

RUB – Russian Ruble

SEK – Swedish Krona

SGD – Singapore Dollar

USD – US Dollar

ZAR – South African Rand

See Accompanying Notes to the Financial Statements.


218		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund (cont.)

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2021:


Australia	7.8	%
Brazil	3.8
Canada	10.9
China	1.7
Finland	1.3
France	3.9
India	0.7
Indonesia	0.4
Israel	0.5
Italy	0.7
Japan	1.6
Malaysia	1.6
Mexico	0.5
New Zealand	0.5
Norway	3.4
Russia	3.1
Saudi Arabia	1.1
Singapore	1.2
South Africa	1.1
South Korea	0.0	^†
Spain	0.4
Sweden	1.0
Thailand	0.6
United Arab Emirates	0.9
United Kingdom	13.1
United States	37.3
Other1	0.9
	100.0	%

†	Amount represents less than 0.05%.

1	Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities).

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			219

Schedule of Investments

FlexShares^®STOXX^® Global Broad Infrastructure Index Fund

April 30, 2021 (Unaudited)


Investments	Shares		Value

COMMON STOCKS – 99.1%

Air Freight & Logistics – 3.6%

bpost SA* (a)		133,770	$	1,424,331

Deutsche Post AG (Registered)		1,344,070		79,208,773

Oesterreichische Post AG(a)		43,680		1,937,646

Pos Malaysia Bhd.*		546,000		116,627

PostNL NV		644,280		3,373,016

Royal Mail plc*		1,175,720		8,074,102

Singapore Post Ltd.		1,820,000		1,053,367
				95,187,862

Commercial Services & Supplies – 3.9%

Befesa SA(b)		48,230		3,379,050

Biffa plc* (b)		416,780		1,595,551

Bingo Industries Ltd.(a) (b)		612,430		1,613,174

Casella Waste Systems, Inc., Class A*		20,930		1,404,612

China Everbright Environment Group Ltd.		4,550,000		2,864,675

Clean Harbors, Inc.*		20,930		1,861,933

Cleanaway Co. Ltd.		100,000		631,869

Cleanaway Waste Management Ltd.		2,812,810		6,192,352

CoreCivic, Inc., REIT* (a)		49,140		381,818

Covanta Holding Corp.		49,140		739,065

Daiseki Co. Ltd.		37,700		1,417,565

Insun ENT Co. Ltd.*		46,410		571,598

Koentec Co. Ltd.		29,120		237,180

Lassila & Tikanoja OYJ(a)		50,050		871,218

Republic Services, Inc.		87,360		9,286,368

Shanghai Youngsun Investment Co. Ltd., Class B* ^ ^‡ (c)		57,800		—

Stericycle, Inc.*		37,310		2,846,007

US Ecology, Inc.* (a)		12,740		540,940

Waste Connections, Inc.(a)		360,360		42,890,515

Waste Management, Inc.		172,900		23,855,013
				103,180,503

Diversified Financial Services – 0.1%

Metro Pacific Investments Corp.		17,290,000		1,454,299


Investments	Shares		Value

Diversified Telecommunication Services – 12.6%

AT&T, Inc.		2,905,630	$	91,265,838

BCE, Inc.		456,820		21,574,737

BT Group plc*		4,428,060		10,112,871

Cellnex Telecom SA(a) (b)		247,425		14,023,656

China Tower Corp. Ltd., Class H(b)		21,840,000		3,149,385

Deutsche Telekom AG (Registered)		1,638,000		31,549,191

Hellenic Telecommunications Organization SA		119,210		2,024,856

HKT Trust & HKT Ltd.		1,820,000		2,643,234

Indus Towers Ltd.		689,780		2,351,338

Infrastrutture Wireless Italiane SpA(a) (b)		169,260		1,976,425

Liberty Global plc, Class C*		158,340		4,284,680

Lumen Technologies, Inc.(a)		410,422		5,265,714

Nippon Telegraph & Telephone Corp.		1,183,000		29,817,163

Spark New Zealand Ltd.		936,390		2,956,183

Swisscom AG (Registered)(a)		12,740		6,918,614

Telecom Italia SpA		5,152,420		2,830,193

Telesites SAB de CV* (a)		1,729,000		1,639,484

Verizon Communications, Inc.		1,686,230		97,447,232
				331,830,794

Electric Utilities – 13.7%

American Electric Power Co., Inc.		202,930		18,001,920

Duke Energy Corp.		300,300		30,237,207

Enel SpA		7,401,940		73,662,735

Eversource Energy		140,140		12,082,871

Exelon Corp.		396,760		17,830,394

Iberdrola SA		5,583,760		75,518,640

NextEra Energy, Inc.		796,250		61,717,338

Orsted A/S(b)		180,180		26,313,954

Southern Co. (The)		431,340		28,541,768

Xcel Energy, Inc.		222,040		15,831,452
				359,738,279

Equity Real Estate Investment Trusts (REITs) – 5.6%

American Tower Corp.		181,090		46,136,299

See Accompanying Notes to the Financial Statements.


220		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Equity Real Estate Investment Trusts (REITs) – (continued)

CoreSite Realty Corp.(a)		17,290	$	2,100,562

Crown Castle International Corp.		175,630		33,204,608

CyrusOne, Inc.		49,140		3,578,866

Digital Realty Trust, Inc.		114,660		17,693,185

Equinix, Inc.		36,400		26,235,664

GEO Group, Inc. (The)(a)		49,140		270,761

Keppel DC REIT		637,022		1,288,026

QTS Realty Trust, Inc., Class A(a)		26,390		1,754,671

SBA Communications Corp.		45,500		13,637,260
				145,899,902

Gas Utilities – 1.1%

APA Group		961,870		7,452,255

Beijing Enterprises Holdings Ltd.		455,000		1,487,991

Enagas SA		224,770		4,902,876

Infraestructura Energetica Nova SAB de CV*		455,000		1,956,943

Petronas Gas Bhd.		455,000		1,748,291

Snam SpA		2,020,845		11,385,004
				28,933,360

Health Care Providers & Services – 3.1%

Acadia Healthcare Co., Inc.*		36,400		2,217,488

Apollo Hospitals Enterprise Ltd.		159,250		6,874,371

Bangkok Dusit Medical Services PCL, NVDR		16,016,000		11,161,693

Bumrungrad Hospital PCL, NVDR		728,000		3,132,943

Encompass Health Corp.		40,040		3,397,794

Fortis Healthcare Ltd.*		708,890		2,016,445

HCA Healthcare, Inc.		110,110		22,138,717

IHH Healthcare Bhd.		3,185,000		4,183,014

Life Healthcare Group Holdings Ltd.*		1,684,410		2,210,661

Mitra Keluarga Karyasehat Tbk. PT(b)		7,462,000		1,353,440

Netcare Ltd.*		1,629,810		1,691,879

Ramsay Health Care Ltd.		254,800		13,249,940


Investments	Shares		Value

Health Care Providers & Services – (continued)

Tenet Healthcare Corp.*		42,770	$	2,534,550

Universal Health Services, Inc., Class B		31,850		4,726,859
				80,889,794

IT Services – 0.2%

Fastly, Inc., Class A* (a)		39,130		2,499,233

NEXTDC Ltd.*		229,320		2,053,032
				4,552,265

Media – 6.5%

Altice USA, Inc., Class A*		101,010		3,667,673

Cable One, Inc.		2,145		3,839,550

Charter Communications, Inc., Class A*		56,420		37,996,049

Comcast Corp., Class A		1,862,770		104,594,536

DISH Network Corp., Class A*		105,560		4,728,032

Liberty Broadband Corp., Class C*		60,970		9,921,038

Shaw Communications, Inc., Class B		244,790		7,083,827
				171,830,705

Multi-Utilities – 9.4%

Consolidated Edison, Inc.		140,140		10,848,238

Dominion Energy, Inc.		333,970		26,684,203

DTE Energy Co.		78,260		10,957,965

E.ON SE		2,012,920		24,294,533

Engie SA		1,778,258		26,480,051

Keppel Infrastructure Trust		5,278,000		2,181,975

National Grid plc		3,379,740		42,610,790

Public Service Enterprise Group, Inc.		206,570		13,046,961

RWE AG		643,370		24,427,377

Sempra Energy		117,390		16,149,342

Suez SA(a)		551,460		13,184,013

Veolia Environnement SA		741,650		23,650,226

WEC Energy Group, Inc.		130,130		12,644,732
				247,160,406

Oil, Gas & Consumable Fuels – 7.4%

Antero Midstream Corp.(a)		138,320		1,195,085

Enbridge, Inc.		1,929,200		74,348,376

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			221

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Oil, Gas & Consumable Fuels – (continued)

Equitrans Midstream Corp.		166,530	$	1,358,885

Inter Pipeline Ltd.(a)		408,590		5,951,823

Keyera Corp.(a)		210,210		4,803,287

Kinder Morgan, Inc.		819,910		13,979,465

Koninklijke Vopak NV(a)		59,150		2,712,902

ONEOK, Inc.		179,270		9,382,992

Pembina Pipeline Corp.(a)		524,160		16,165,364

Petronet LNG Ltd.		714,350		2,314,061

Targa Resources Corp.		93,730		3,251,494

TC Energy Corp.		889,070		43,947,607

Transneft PJSC (Preference)		1,820		3,437,518

Williams Cos., Inc. (The)		495,040		12,059,174
				194,908,033

Road & Rail – 17.0%

Aurizon Holdings Ltd.		2,534,350		7,341,220

Canadian National Railway Co.		970,970		104,445,180

Canadian Pacific Railway Ltd.(a)		182,910		68,202,444

Central Japan Railway Co.		283,600		41,474,278

CSX Corp.		310,310		31,263,732

East Japan Railway Co.(a)		521,800		35,703,236

Kansas City Southern		37,310		10,902,355

Keikyu Corp.(a)		364,000		4,655,524

Keisei Electric Railway Co. Ltd.(a)		225,800		7,044,307

MTR Corp. Ltd.		2,275,000		12,683,070

Norfolk Southern Corp.		102,830		28,714,249

Odakyu Electric Railway Co. Ltd.(a)		455,000		12,300,672

Tobu Railway Co. Ltd.		273,000		7,018,252

Union Pacific Corp.		273,910		60,832,672

West Japan Railway Co.		273,000		15,065,514
				447,646,705

Transportation Infrastructure – 7.2%

Adani Ports & Special Economic Zone Ltd.*		1,041,950		10,269,339

Aena SME SA* (b)		100,100		17,436,405

Aeroports de Paris* (a)		36,400		4,675,415

Airports of Thailand PCL, NVDR		5,824,000		11,596,564


Investments	Shares		Value

Transportation Infrastructure – (continued)

ASTM SpA*		82,810	$	2,571,916

Atlantia SpA*		693,420		13,543,640

Atlas Arteria Ltd.(a)		1,309,490		6,109,554

Auckland International Airport Ltd.* (a)		1,648,920		8,979,730

Bangkok Expressway & Metro PCL, NVDR*		11,830,000		3,039,422

CCR SA		1,638,000		3,635,136

China Merchants Port Holdings Co. Ltd.		1,820,000		2,919,742

COSCO SHIPPING Ports Ltd.		1,820,000		1,530,170

Getlink SE		596,960		9,507,349

Grupo Aeroportuario del Pacifico SAB de CV, Class B*		568,750		5,870,604

Grupo Aeroportuario del Sureste SAB de CV, Class B* (a)		273,000		4,636,176

International Container Terminal Services, Inc.		2,411,500		6,505,791

Japan Airport Terminal Co. Ltd.		109,100		4,900,791

Promotora y Operadora de Infraestructura SAB de CV		313,950		2,436,032

Qube Holdings Ltd.		2,380,560		5,534,979

Shenzhen International Holdings Ltd.		1,820,000		3,032,220

Sydney Airport*		3,684,590		17,617,740

Transurban Group(a)		3,741,010		40,947,661

Westports Holdings Bhd.		1,274,000		1,337,321

Westshore Terminals Investment Corp.(a)		56,420		920,001
				189,553,698

Water Utilities – 2.5%

Aguas Andinas SA, Class A		3,639,090		1,029,237

American States Water Co.(a)		14,560		1,153,006

American Water Works Co., Inc.		72,800		11,356,072

Beijing Enterprises Water Group Ltd.* (a)		5,460,000		2,087,873

California Water Service Group		20,930		1,229,637

See Accompanying Notes to the Financial Statements.


222		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Water Utilities – (continued)

Cia de Saneamento Basico do Estado de Sao Paulo*		455,000	$	3,587,835

Cia de Saneamento de Minas Gerais-COPASA		273,000		845,884

Cia de Saneamento do Parana (Preference)*		1,365,000		1,071,822

Essential Utilities, Inc.(a)		90,090		4,245,942

Guangdong Investment Ltd.		3,640,000		5,605,155

Middlesex Water Co.(a)		7,280		597,106

Pennon Group plc		576,940		8,259,616

Severn Trent plc		330,330		11,328,768

SJW Group(a)		11,830		775,456

TTW PCL, NVDR		2,093,000		779,729

United Utilities Group plc		930,020		12,467,116

WHA Utilities and Power PCL, NVDR		1,456,000		223,514
				66,643,768

Wireless Telecommunication Services – 5.2%

KDDI Corp.		845,200		25,563,617

SoftBank Group Corp.		665,900		60,220,681

T-Mobile US, Inc.*		197,470		26,091,711

Vodafone Group plc		13,552,630		25,669,554
				137,545,563
Total Common Stocks (Cost $2,134,286,524)				2,606,955,936
	Principal Amount

SECURITIES LENDING REINVESTMENTS(d) – 0.6%

REPURCHASE AGREEMENTS – 0.6%
BofA Securities, Inc., 0.50%, dated 4/30/2021, due 8/2/2021, repurchase price $2,000,000, collateralized by various Common Stocks; total market value $2,178,031	$	2,000,000		2,000,000


Investments	Principal Amount		Value

REPURCHASE AGREEMENTS – (continued)
Citigroup Global Markets, Inc., 0.01%, dated 4/30/2021, due 5/3/2021, repurchase price $2,057,745, collateralized by various U.S. Treasury Securities, ranging from 0.88% – 5.00%, maturing 1/15/2028 –2/15/2047; total market value $2,076,308	$	2,057,745	$	2,057,745

NBC Global Finance Ltd., 0.19%, dated 4/30/2021, due 5/3/2021, repurchase price $11,000,000, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 4.38%, maturing 1/31/2023 – 8/15/2050; Common Stocks; total market value $12,080,917		11,000,000		11,000,000
				15,057,745
Total Securities Lending Reinvestments (Cost $15,057,745)				15,057,745
Total Investments – 99.7% (Cost $2,149,344,269)				2,622,013,681

Other assets less liabilities – 0.3%				8,249,555
NET ASSETS – 100.0%			$	2,630,263,236

*	Non-income producing security.

^	Security subject to restrictions on resale.

^‡	Value determined using significant unobservable inputs.

^(a)

The security or a portion of this security is on loan at April 30, 2021. The total value of securities on loan at April 30, 2021 was $148,101,015, collateralized in the form of cash with a value of $15,057,745 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $111,634,045 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.00%, and maturity dates ranging from May 13, 2021 – February 15, 2051 and $28,288,041 of collateral in the form of Foreign

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			223

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund (cont.)

Government Fixed Income Securities, interest rates ranging from 0.00% – 6.50%, and maturity dates ranging from July 7, 2021 – September 20, 2117; a total value of $154,979,831.

^(b)

^(c)

Security fair valued as of April 30, 2021 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at April 30, 2021 amounted to $0, which represents approximately 0.00% of net assets of the Fund.

^(d)

The security was purchased with cash collateral held from securities on loan at April 30, 2021. The total value of securities purchased was $15,057,745.

Percentages shown are based on Net Assets.

Abbreviations

NVDR – Non-Voting Depositary Receipt

OYJ – Public Limited Company

PJSC – Public Joint Stock Company



Aggregate gross unrealized appreciation	$	509,686,367
Aggregate gross unrealized depreciation		(44,375,003	)
Net unrealized appreciation	$	465,311,364
Federal income tax cost	$	2,157,474,012

Futures Contracts

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund had the following open futures contracts as of April 30, 2021:


	Number of Contracts		Expiration Date		Trading Currency		Notional Amount		Value and Unrealized Appreciation/ (Depreciation)*
Long Contracts
EURO STOXX 50 Index		86		06/18/2021		EUR	$	4,078,956	$	115,968
FTSE 100 Index		21		06/18/2021		GBP		2,017,116		48,149
S&P 500 E-Mini Index		36		06/18/2021		USD		7,513,920		411,064
S&P/TSX 60 Index		37		06/17/2021		CAD		6,829,751		126,737
SPI 200 Index		10		06/17/2021		AUD		1,352,174		42,297
TOPIX Index		12		06/10/2021		JPY		2,087,553		(18,752	)
									$	725,463

*	This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts.

See Accompanying Notes to the Financial Statements.


224		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund (cont.)

Forward Foreign Currency Contracts

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund had the following outstanding contracts as of April 30, 2021:


Contracts to Receive		Counterparty	In Exchange For		Maturity Date		Unrealized Appreciation/ (Depreciation)
CAD	2,955,816	Toronto-Dominion Bank (The)	USD	2,356,427		06/16/2021	$	46,504
EUR	1,510,130	Morgan Stanley	USD	1,800,061		06/16/2021		19,485
EUR	1,050,000	Toronto-Dominion Bank (The)	USD	1,252,876		06/16/2021		12,263
GBP	90,000	BNP Paribas SA	USD	123,602		06/16/2021		1,022
JPY	11,900,000	JPMorgan Chase Bank	USD	108,869		06/16/2021		40
USD	774,774	Toronto-Dominion Bank (The)	AUD	1,000,000		06/16/2021		2,166
USD	618,766	Toronto-Dominion Bank (The)	EUR	510,000		06/16/2021		4,828
USD	601,926	Citibank NA	GBP	431,253		06/16/2021		4,765
Total unrealized appreciation							$	91,073
AUD	297,161	JPMorgan Chase Bank	USD	230,776		06/16/2021	$	(1,187	)
GBP	430,000	Toronto-Dominion Bank (The)	USD	596,638		06/16/2021		(1,212	)
HKD	2,099,601	Toronto-Dominion Bank (The)	USD	270,517		06/16/2021		(156	)
JPY	84,456,439	Morgan Stanley	USD	778,133		06/16/2021		(5,190	)
JPY	110,200,000	Toronto-Dominion Bank (The)	USD	1,011,971		06/16/2021		(3,425	)
USD	892,277	JPMorgan Chase Bank	CAD	1,120,000		06/16/2021		(18,227	)
USD	263,045	Morgan Stanley	CHF	243,000		06/16/2021		(3,702	)
USD	1,333,598	Morgan Stanley	JPY	147,000,000		06/16/2021		(11,742	)
Total unrealized depreciation							$	(44,841	)
Net unrealized appreciation							$	46,232

Abbreviations:

AUD – Australian Dollar

CAD – Canadian Dollar

CHF – Swiss Franc

EUR – Euro

GBP – British Pound

HKD–Hong Kong Dollar

JPY – Japanese Yen

USD – US Dollar

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			225

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund (cont.)

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2021:


Australia	4.1	%
Austria	0.1
Belgium	0.1
Brazil	0.3
Canada	14.8
Chile	0.0	^†
China	0.9
Denmark	1.0
Finland	0.0	^†
France	2.9
Germany	6.2
Greece	0.1
Hong Kong	0.6
India	0.9
Indonesia	0.1
Italy	4.0
Japan	9.3
Malaysia	0.3
Mexico	0.6
Netherlands	0.2
New Zealand	0.5
Philippines	0.3
Russia	0.1
Singapore	0.2
South Africa	0.2
South Korea	0.0	^†
Spain	4.3
Switzerland	0.3
Taiwan	0.0	^†
Thailand	1.1
United Kingdom	4.6
United States	41.0
Other¹	0.9
	100.0	%

^†	Amount represents less than 0.05%.

¹	Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities).

See Accompanying Notes to the Financial Statements.


226		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^®Global Quality Real Estate Index Fund

April 30, 2021 (Unaudited)


Investments	Shares		Value

COMMON STOCKS – 98.3%

Equity Real Estate Investment Trusts (REITs) – 75.6%

AEON REIT Investment Corp.		678	$	933,525

Alexandria Real Estate Equities, Inc.		58,760		10,641,436

alstria office REIT-AG		72,207		1,294,280

American Homes 4 Rent, Class A		125,769		4,658,484

American Tower Corp.		37,403		9,529,162

Argosy Property Ltd.		127,361		135,702

AvalonBay Communities, Inc.		63,054		12,106,368

Befimmo SA		17,854		759,765

Brandywine Realty Trust		81,699		1,105,387

Brookfield Property REIT, Inc., Class A		41,245		741,791

BWP Trust		292,896		934,402

Camden Property Trust		34,465		4,152,343

Canadian Apartment Properties REIT(a)		37,855		1,681,350

CapitaLand China Trust		757,100		785,326

CareTrust REIT, Inc.		43,957		1,062,880

CDL Hospitality Trusts		847,500		796,283

Centerspace		11,074		779,499

Charter Hall Group		210,406		2,275,394

Cominar REIT(a)		110,175		874,092

Corporate Office Properties Trust		50,624		1,419,497

Cousins Properties, Inc.(a)		67,122		2,461,364

Covivio(a)		7,232		645,976

Crombie REIT(a)		63,167		840,549

Cromwell European REIT(b)		1,367,999		782,229

Crown Castle International Corp.		24,069		4,550,485

CT REIT(a)		61,924		833,070

Derwent London plc		47,912		2,208,344

Dream Industrial REIT(a)		77,518		858,861

Dream Office REIT(a)		47,573		817,117

EastGroup Properties, Inc.		17,854		2,832,716

Equinix, Inc.		3,842		2,769,160

Equity Commonwealth		54,692		1,575,130

Equity Residential		168,031		12,472,941

Essex Property Trust, Inc.		20,679		6,007,663

First Capital REIT(a)		64,297		925,622

First Industrial Realty Trust, Inc.		58,082		2,890,741

Fortune REIT(a)		226,000		227,838


Investments	Shares		Value

Equity Real Estate Investment Trusts (REITs) – (continued)

Frasers Logistics & Commercial Trust(b)		1,084,800	$	1,198,629

Frontier Real Estate Investment Corp.		226		988,317

Fukuoka REIT Corp.		452		741,031

Gaming and Leisure Properties, Inc.		98,649		4,586,192

Gecina SA		20,679		3,028,280

GEO Group, Inc. (The)(a)		73,789		406,577

Getty Realty Corp.		16,724		528,144

Goodman Group		608,279		8,885,149

Goodman Property Trust(a)		578,560		925,710

Granite REIT(a)		15,368		983,017

Growthpoint Properties Australia Ltd.(a)		279,675		807,971

Heiwa Real Estate REIT, Inc.		565		851,338

Hibernia REIT plc		539,575		739,177

Highwoods Properties, Inc.		46,895		2,100,427

Hoshino Resorts REIT, Inc.(a)		155		910,388

Industrial Logistics Properties Trust		39,550		980,840

InterRent REIT(a)		73,676		919,303

Invincible Investment Corp.		2,712		973,844

Japan Logistics Fund, Inc.		380		1,088,148

Japan Metropolitan Fund Invest		2,373		2,338,156

Kenedix Retail REIT Corp.		339		867,776

Killam Apartment REIT(a)		54,240		835,072

Kimco Realty Corp.		195,377		4,102,917

Kite Realty Group Trust		49,268		1,025,267

Lexington Realty Trust		125,091		1,531,114

Life Storage, Inc.		32,770		3,147,886

LTC Properties, Inc.(a)		21,809		927,537

Macerich Co. (The)(a)		68,591		945,870

Mapletree Commercial Trust		971,800		1,599,701

Medical Properties Trust, Inc.		160,234		3,533,160

Mid-America Apartment Communities, Inc.		51,641		8,124,679

Monmouth Real Estate Investment Corp.		51,415		950,149

Mori Trust Sogo Reit, Inc.		565		814,121

National Health Investors, Inc.		20,227		1,484,864

NexPoint Residential Trust, Inc.		17,402		872,884

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			227

FlexShares^® Global Quality Real Estate Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Equity Real Estate Investment Trusts (REITs) – (continued)

NorthWest Healthcare Properties REIT(a)		78,083	$	828,942

NSI NV		19,662		800,016

NTT UD REIT Investment Corp.(a)		678		1,006,099

Office Properties Income Trust		30,623		849,788

Paramount Group, Inc.		99,779		1,058,655

Park Hotels & Resorts, Inc.*		81,925		1,827,747

Parkway Life REIT		259,900		814,629

Physicians Realty Trust		85,767		1,606,416

Piedmont Office Realty Trust, Inc., Class A		57,517		1,070,967

PotlatchDeltic Corp.		30,171		1,790,951

Prologis, Inc.		198,767		23,162,318

PS Business Parks, Inc.		9,266		1,504,520

Public Storage		65,314		18,363,684

Rayonier, Inc.(a)		61,585		2,234,304

Retail Opportunity Investments Corp.		60,229		1,060,030

Retail Properties of America, Inc., Class A(a)		96,615		1,133,294

RPT Realty		75,484		959,402

Sabra Health Care REIT, Inc.		93,451		1,698,005

Safestore Holdings plc		95,033		1,120,386

Scentre Group		1,857,833		3,903,426

Service Properties Trust		78,309		964,375

SITE Centers Corp.		77,292		1,140,057

SL Green Realty Corp.(a)		31,753		2,350,040

STAG Industrial, Inc.(a)		67,348		2,458,875

Summit Industrial Income REIT(a)		72,546		920,536

Tanger Factory Outlet Centers, Inc.(a)		61,020		1,064,799

VEREIT, Inc.		98,649		4,719,368

VICI Properties, Inc.(a)		242,272		7,680,022

Washington REIT		39,437		915,727

Waypoint REIT		432,903		832,646

Weingarten Realty Investors		54,918		1,776,048

Weyerhaeuser Co.		337,418		13,081,696

WP Carey, Inc.(a)		79,326		5,940,724
				275,748,899

Household Durables – 0.8%

Iida Group Holdings Co. Ltd.		67,800		1,651,813


Investments	Shares		Value

Household Durables – (continued)

Open House Co. Ltd.		27,400	$	1,139,317
				2,791,130

Real Estate Management & Development – 21.9%

ADLER Group SA(a) (b)		35,821		1,059,922

Aeon Mall Co. Ltd.		45,200		717,047

Aroundtown SA		173,116		1,334,575

Ascendas India Trust		700,600		747,784

Atrium Ljungberg AB, Class B		38,081		796,680

CA Immobilien Anlagen AG(a)		29,041		1,274,276

CapitaLand Ltd.		1,096,100		3,064,862

Castellum AB(a)		106,446		2,594,509

CK Asset Holdings Ltd.		1,146,000		7,193,071

CLS Holdings plc		241,933		834,071

Daibiru Corp.		56,500		659,050

Deutsche Wohnen SE		142,493		7,718,988

DREAM Unlimited Corp., Class A		43,957		819,325

Entra ASA(b)		78,196		1,769,438

Fabege AB		119,328		1,781,647

Fastighets AB Balder, Class B*		25,877		1,492,501

Goldcrest Co. Ltd.(a)		45,200		656,259

Hang Lung Group Ltd.		452,000		1,190,109

Hang Lung Properties Ltd.		791,000		2,159,074

Heiwa Real Estate Co. Ltd.		22,600		768,117

Henderson Land Development Co. Ltd.		678,000		3,016,010

Howard Hughes Corp. (The)* (a)		18,645		2,012,541

Hufvudstaden AB, Class A		56,613		903,183

Hulic Co. Ltd.		135,600		1,543,263

Kojamo OYJ		55,709		1,209,137

Kungsleden AB		91,191		1,061,734

Melisron Ltd.*		15,368		931,552

Nomura Real Estate Holdings, Inc.		56,500		1,390,467

Platzer Fastigheter Holding AB, Class B		62,489		818,825

PSP Swiss Property AG (Registered)		13,108		1,618,289

Realogy Holdings Corp.*		53,675		927,504

S IMMO AG		35,482		922,606

Sirius Real Estate Ltd.		656,078		922,907

St Joe Co. (The)(a)		17,176		786,489

See Accompanying Notes to the Financial Statements.


228		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Global Quality Real Estate Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Real Estate Management & Development – (continued)

Sumitomo Realty & Development Co. Ltd.		140,600	$	4,680,878

Sun Hung Kai Properties Ltd.		591,000		8,925,665

Swire Properties Ltd.		497,200		1,485,163

TAG Immobilien AG		66,105		2,045,930

Tokyo Tatemono Co. Ltd.		79,100		1,167,269

Tricon Residential, Inc.		95,146		1,008,538

UOL Group Ltd.		203,400		1,177,225

VGP NV		4,407		770,307

Wihlborgs Fastigheter AB		62,489		1,278,491

Yanlord Land Group Ltd.		802,300		802,059
				80,037,337
Total Common Stocks (Cost $309,965,609)				358,577,366
	Principal Amount

SECURITIES LENDING REINVESTMENTS(c) – 3.0%

REPURCHASE AGREEMENTS – 3.0%

Citigroup Global Markets Ltd., 0.05%, dated 4/30/2021, due 5/3/2021, repurchase price $1,700,000, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 3.00%, maturing 5/15/2023 – 2/15/2049; Foreign Government Fixed Income Securities, 0.45%, maturing 8/19/2027; total market value $1,729,730	$	1,700,000		1,700,000
Citigroup Global Markets, Inc., 0.01%, dated 4/30/2021, due 5/3/2021, repurchase price $6,141,163, collateralized by various U.S. Treasury Securities, ranging from 0.88% – 5.00%, maturing 1/15/2028 –2/15/2047; total market value $6,196,562		6,141,163		6,141,163


Investments	Principal Amount		Value

REPURCHASE AGREEMENTS – (continued)
Deutsche Bank AG, London Branch, 0.15%, dated 4/30/2021, due 5/3/2021, repurchase price $2,400,000, collateralized by various U.S. Treasury Securities, 0.13%, maturing 7/15/2030; Foreign Government Fixed Income Securities, ranging from 0.25% – 3.13%, maturing 7/23/2021 – 2/14/2031; total market value $2,437,027	$	2,400,000	$	2,400,000

NBC Global Finance Ltd., 0.19%, dated 4/30/2021, due 5/3/2021, repurchase price $700,000, collateralized by various U.S. Treasury Securities, ranging from 0.13% –4.38%, maturing 1/31/2023 – 8/15/2050; Common Stocks; total market value $768,786		700,000		700,000
				10,941,163
Total Securities Lending Reinvestments (Cost $10,941,163)				10,941,163
Total Investments – 101.3% (Cost $320,906,772)				369,518,529

Liabilities in excess of other assets – (1.3%)				(4,574,093	)
NET ASSETS – 100.0%			$	364,944,436

*	Non-income producing security.

^(a)

The security or a portion of this security is on loan at April 30, 2021. The total value of securities on loan at April 30, 2021 was $34,686,748, collateralized in the form of cash with a value of $10,941,163 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $20,438,686 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.00%, and maturity dates ranging from May 11, 2021 – February 15, 2051 and $5,406,664 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 6.50%, and maturity dates ranging from July 7, 2021 – September 20, 2117; a total value of $36,786,513.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			229

FlexShares^® Global Quality Real Estate Index Fund (cont.)

^(b)

^(c)

The security was purchased with cash collateral held from securities on loan at April 30, 2021. The total value of securities purchased was $10,941,163.

Percentages shown are based on Net Assets.

Abbreviations

OYJ – Public Limited Company



Aggregate gross unrealized appreciation	$	51,093,712
Aggregate gross unrealized depreciation		(2,999,521	)
Net unrealized appreciation	$	48,094,191
Federal income tax cost	$	321,552,287

Futures Contracts

FlexShares^® Global Quality Real Estate Index Fund had the following open futures contracts as of April 30, 2021:


	Number of Contracts		Expiration Date		Trading Currency		Notional Amount		Value and Unrealized Appreciation (Depreciation)*
Long Contracts
EURO STOXX 50 Index		19		06/18/2021		EUR	$	901,165	$	15,549
Hang Seng Index		2		05/28/2021		HKD		367,330		(2,793	)
S&P 500 E-Mini Index		2		06/18/2021		USD		417,440		17,052
S&P Midcap 400 E-Mini Index		13		06/18/2021		USD		3,536,390		76,866
SPI 200 Index		9		06/17/2021		AUD		1,216,956		29,389
									$	136,063

*	This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts.

Forward Foreign Currency Contracts

FlexShares^® Global Quality Real Estate Index Fund had the following outstanding contracts as of April 30, 2021:


Contracts to Receive		Counterparty	In Exchange For		Maturity Date		Unrealized Appreciation/ (Depreciation)
AUD	100,000	Morgan Stanley	USD	76,107		06/16/2021	$	1,154
EUR	91,023	Morgan Stanley	USD	109,030		06/16/2021		644
SEK	968,851	Morgan Stanley	USD	113,881		06/16/2021		745
SGD	100,000	JPMorgan Chase Bank	USD	74,167		06/16/2021		986
USD	5,515	JPMorgan Chase Bank	AUD	7,101		06/16/2021		28
USD	9,561	Citibank NA	GBP	6,850		06/16/2021		76
USD	74,693	Toronto-Dominion Bank (The)	HKD	580,000		06/16/2021		8
Total unrealized appreciation							$	3,641
HKD	317,674	Toronto-Dominion Bank (The)	USD	40,930		06/16/2021	$	(24	)
JPY	7,200,000	Citibank NA	USD	66,624		06/16/2021		(730	)
JPY	197,193	Morgan Stanley	USD	1,817		06/16/2021		(12	)
USD	439,591	Toronto-Dominion Bank (The)	CAD	553,029		06/16/2021		(9,994	)
USD	43,414	JPMorgan Chase Bank	CHF	40,000		06/16/2021		(495	)
USD	7,982	Morgan Stanley	CHF	7,373		06/16/2021		(112	)
USD	34,960	Goldman Sachs & Co.	SGD	47,035		06/16/2021		(388	)
Total unrealized depreciation							$	(11,755	)
Net unrealized depreciation							$	(8,114	)

See Accompanying Notes to the Financial Statements.


230		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Global Quality Real Estate Index Fund (cont.)

Abbreviations:

AUD – Australian Dollar

CAD – Canadian Dollar

CHF – Swiss Franc

EUR – Euro

GBP – British Pound

HKD – Hong Kong Dollar

JPY – Japanese Yen

SEK – Swedish Krona

SGD – Singapore Dollar

USD – US Dollar

FlexShares^® Global Quality Real Estate Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2021:


Australia	4.8	%
Austria	0.6
Belgium	0.4
Canada	3.6
Finland	0.3
France	1.0
Germany	3.7
Hong Kong	6.6
Ireland	0.2
Israel	0.3
Japan	7.1
Netherlands	0.2
New Zealand	0.3
Norway	0.5
Singapore	3.2
Sweden	3.0
Switzerland	0.5
United Kingdom	1.4
United States	60.6
Other¹	1.7
	100.0	%

¹	Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities).

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			231

Schedule of Investments

FlexShares^®Real Assets Allocation Index Fund

April 30, 2021 (Unaudited)


Investments	Shares		Value

EXCHANGE TRADED FUNDS – 99.9%

FlexShares^® Global Quality Real Estate Index Fund(a)		14,598	$	944,172

FlexShares^® Global Upstream Natural Resources Index Fund(a)		72,801		2,742,414

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund(a)		63,765		3,690,718
Total Exchange Traded Funds (Cost $6,527,022)				7,377,304
Total Investments – 99.9% (Cost $6,527,022)				7,377,304

Other assets less liabilities—0.1%				10,125
NET ASSETS – 100.0%			$	7,387,429

^(a)

Investment in affiliated Fund. Northern Trust Investments, Inc. is the Investment Adviser to both the Fund and the affiliated Funds.

Percentages shown are based on Net Assets.



Aggregate gross unrealized appreciation	$	838,450
Aggregate gross unrealized depreciation		—
Net unrealized appreciation	$	838,450
Federal income tax cost	$	6,538,854

The underlying index of the FlexShares^® Real Assets Allocation Index Fund is comprised of securities of affiliated FlexShares^® Funds. The Schedules of Investments of the affiliated FlexShares^® Funds are located elsewhere in this Report.

Investment in a company which was affiliated for the period ended April 30, 2021, was as follows:


Security	Value October 31, 2020		Purchases at Cost		Sales Proceeds		Shares April 30, 2021		Value April 30, 2021		Change in Unrealized Appreciation (Depreciation)		Dividend Income		Realized Gain
FlexShares^® Global Quality Real Estate Index Fund	$	917,016	$	338,762	$	566,762		14,598	$	944,172	$	248,589	$	6,890	$	6,567
FlexShares^® Global Upstream Natural Resources Index Fund		1,335,592		882,137		17,162		72,801		2,742,414		542,476		21,340		(629	)
FlexShares^® STOXX^® Global Broad Infrastructure Index Fund		2,249,624		1,017,502		25,790		63,765		3,690,718		449,146		23,997		236
	$	4,502,232	$	2,238,401	$	609,714		151,164	$	7,377,304	$	1,240,211	$	52,227	$	6,174

See Accompanying Notes to the Financial Statements.


232		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^®Quality Dividend Index Fund

April 30, 2021 (Unaudited)


Investments	Shares		Value

COMMON STOCKS – 99.5%

Aerospace & Defense – 0.6%

Lockheed Martin Corp.		22,878	$	8,706,452

Auto Components – 0.5%

Gentex Corp.		208,692		7,341,785

Banks – 5.5%

Bank of America Corp.		76,446		3,098,357

First Citizens BancShares, Inc., Class A(a)		1,116		968,085

JPMorgan Chase & Co.		359,352		55,271,931

M&T Bank Corp.		45,756		7,215,264

PNC Financial Services Group, Inc. (The)		78,120		14,604,534

Western Alliance Bancorp(a)		30,132		3,165,969
				84,324,140

Beverages – 0.0%(b)

Coca-Cola Co. (The)		7,254		391,571

Biotechnology – 2.6%

Amgen, Inc.		107,136		25,674,071

Gilead Sciences, Inc.		230,454		14,626,915
				40,300,986

Building Products – 1.6%

A O Smith Corp.		126,108		8,543,817

Fortune Brands Home & Security, Inc.		59,148		6,209,357

Trane Technologies plc		53,568		9,311,725
				24,064,899

Capital Markets – 3.6%

Ameriprise Financial, Inc.(a)		36,828		9,516,355

Lazard Ltd., Class A		149,544		6,727,985

Moody’s Corp.		31,806		10,391,338

Morgan Stanley		131,130		10,824,781

Stifel Financial Corp.(a)		125,550		8,686,805

T. Rowe Price Group, Inc.		52,452		9,399,398
				55,546,662

Chemicals – 2.2%

Dow, Inc.		148,986		9,311,625


Investments	Shares		Value

Chemicals – (continued)

Eastman Chemical Co.		69,750	$	8,048,453

FMC Corp.		54,126		6,399,858

Sherwin-Williams Co. (The)		36,828		10,086,084
				33,846,020

Commercial Services & Supplies – 0.6%

Cintas Corp.		5,580		1,925,881

Rollins, Inc.(a)		202,554		7,551,213
				9,477,094

Communications Equipment – 2.6%

Cisco Systems, Inc.		773,946		39,401,591

Consumer Finance – 0.6%

Synchrony Financial		204,786		8,957,340

Distributors – 0.6%

Pool Corp.		22,878		9,666,413

Diversified Consumer Services – 0.1%

H&R Block, Inc.		99,324		2,210,952

Diversified Telecommunication Services – 2.1%

AT&T, Inc.		498,294		15,651,414

Verizon Communications, Inc.		283,464		16,381,385
				32,032,799

Electric Utilities – 1.6%

Evergy, Inc.(a)		102,672		6,567,928

IDACORP, Inc.(a)		41,850		4,288,788

NRG Energy, Inc.		185,256		6,635,870

OGE Energy Corp.(a)		201,438		6,760,259
				24,252,845

Electrical Equipment – 0.5%

Rockwell Automation, Inc.		31,806		8,405,054

Energy Equipment & Services – 0.9%

Baker Hughes Co.		332,568		6,677,965

Halliburton Co.		379,998		7,432,761
				14,110,726

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			233

FlexShares^® Quality Dividend Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Entertainment – 2.0%

Activision Blizzard, Inc.		141,174	$	12,873,657

Electronic Arts, Inc.		59,706		8,483,029

World Wrestling Entertainment, Inc., Class A(a)		155,682		8,579,635
				29,936,321

Equity Real Estate Investment Trusts (REITs) – 2.5%

Extra Space Storage, Inc.		61,380		9,126,592

Gaming and Leisure Properties, Inc.		167,958		7,808,367

Highwoods Properties, Inc.		94,860		4,248,779

National Health Investors, Inc.		102,114		7,496,189

Public Storage		36,828		10,354,561
				39,034,488

Food & Staples Retailing – 1.8%

Walmart, Inc.		200,880		28,105,121

Food Products – 0.4%

Campbell Soup Co.(a)		119,970		5,728,568

Health Care Equipment & Supplies – 0.6%

Abbott Laboratories		8,928		1,072,074

ResMed, Inc.		42,408		7,971,432
				9,043,506

Health Care Providers & Services – 2.1%

Cardinal Health, Inc.		149,544		9,023,485

Chemed Corp.		13,392		6,382,761

McKesson Corp.		44,640		8,372,678

UnitedHealth Group, Inc.		19,530		7,788,564
				31,567,488

Health Care Technology – 0.5%

Cerner Corp.		98,766		7,412,388

Hotels, Restaurants & Leisure – 0.5%

Wingstop, Inc.		44,082		6,983,030

Household Durables – 0.6%

PulteGroup, Inc.		149,544		8,841,041


Investments	Shares		Value

Household Products – 2.8%

Clorox Co. (The)		5,580	$	1,018,350

Colgate-Palmolive Co.		32,922		2,656,806

Procter & Gamble Co. (The)		296,298		39,532,079
				43,207,235

Independent Power and Renewable Electricity Producers – 0.7%

AES Corp. (The)		155,682		4,331,073

Vistra Corp.		342,612		5,779,865
				10,110,938

Industrial Conglomerates – 1.4%

3M Co.		105,462		20,790,779

Insurance – 3.5%

Aflac, Inc.		179,118		9,624,010

Allstate Corp. (The)		80,910		10,259,388

Aon plc, Class A(a)		17,856		4,489,713

MetLife, Inc.		155,682		9,906,046

Progressive Corp. (The)		107,694		10,849,093

Unum Group		287,928		8,136,845
				53,265,095

Internet & Direct Marketing Retail – 0.5%

eBay, Inc.		139,500		7,782,705

IT Services – 3.3%

International Business Machines Corp.(a)		163,494		23,196,529

Mastercard, Inc., Class A		11,718		4,476,979

Paychex, Inc.		92,070		8,975,904

Visa, Inc., Class A(a)		27,342		6,385,998

Western Union Co. (The)		282,348		7,273,284
				50,308,694

Leisure Products – 1.1%

Brunswick Corp.(a)		80,910		8,667,888

Polaris, Inc.(a)		61,938		8,673,178
				17,341,066

Life Sciences Tools & Services – 0.0%(b)

Thermo Fisher Scientific, Inc.		1,116		524,777

See Accompanying Notes to the Financial Statements.


234		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Quality Dividend Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Machinery – 1.4%

Illinois Tool Works, Inc.		58,032	$	13,374,055

Pentair plc(a)		136,710		8,819,162
				22,193,217

Media – 3.3%

Comcast Corp., Class A		245,520		13,785,948

Fox Corp., Class A		34,596		1,294,582

Interpublic Group of Cos., Inc. (The)		71,424		2,267,712

New York Times Co. (The), Class A		151,218		6,866,809

Nexstar Media Group, Inc., Class A(a)		58,032		8,554,497

Omnicom Group, Inc.		116,622		9,593,326

Sirius XM Holdings, Inc.(a)		1,234,854		7,532,610
				49,895,484

Metals & Mining – 0.6%

Newmont Corp.		152,334		9,507,165

Multiline Retail – 0.5%

Target Corp.		36,828		7,632,971

Multi-Utilities – 1.6%

MDU Resources Group, Inc.		263,376		8,812,561

Public Service Enterprise Group, Inc.		131,688		8,317,414

WEC Energy Group, Inc.(a)		78,120		7,590,920
				24,720,895

Oil, Gas & Consumable Fuels – 1.7%

Antero Midstream Corp.(a)		791,244		6,836,348

Cabot Oil & Gas Corp.(a)		15,624		260,452

Cimarex Energy Co.		71,982		4,765,209

Plains GP Holdings LP, Class A* (a)		615,474		5,773,146

Williams Cos., Inc. (The)		357,678		8,713,036
				26,348,191

Paper & Forest Products – 0.7%

Louisiana-Pacific Corp.		167,400		11,028,312


Investments	Shares		Value

Personal Products – 0.5%

Nu Skin Enterprises, Inc., Class A(a)		150,102	$	7,934,392

Pharmaceuticals – 5.7%

Eli Lilly and Co.		106,578		19,479,261

Johnson & Johnson		310,806		50,577,460

Merck & Co., Inc.		241,056		17,958,672
				88,015,393

Professional Services – 0.5%

CoreLogic, Inc.		83,700		6,670,890

Exponent, Inc.		13,950		1,343,804
				8,014,694

Road & Rail – 2.1%

Old Dominion Freight Line, Inc.		35,712		9,206,911

Union Pacific Corp.		105,462		23,422,055
				32,628,966

Semiconductors & Semiconductor Equipment – 4.3%

Analog Devices, Inc.(a)		67,518		10,341,057

Broadcom, Inc.		558		254,560

Intel Corp.		85,932		4,943,668

KLA Corp.		28,458		8,974,230

Microchip Technology, Inc.		53,568		8,050,735

Skyworks Solutions, Inc.		17,298		3,136,646

Texas Instruments, Inc.		168,516		30,418,823
				66,119,719

Software – 6.5%

Citrix Systems, Inc.		56,916		7,049,047

Microsoft Corp.		241,056		60,789,502

Oracle Corp.		393,948		29,857,319

SS&C Technologies Holdings, Inc.		17,298		1,283,857
				98,979,725

Specialty Retail – 5.5%

Best Buy Co., Inc.		68,076		7,915,197

Dick’s Sporting Goods, Inc.(a)		92,628		7,649,220

Home Depot, Inc. (The)		94,860		30,703,336

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			235

FlexShares^® Quality Dividend Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Specialty Retail – 5.5%

Lowe’s Cos., Inc.		127,782	$	25,077,218

Tractor Supply Co.		16,182		3,051,925

Williams-Sonoma, Inc.(a)		60,264		10,290,078
				84,686,974

Technology Hardware, Storage & Peripherals – 8.7%

Apple, Inc.		895,590		117,734,261

NetApp, Inc.		85,374		6,376,584

Seagate Technology plc		92,628		8,599,584
				132,710,429

Thrifts & Mortgage Finance – 0.4%

PennyMac Financial Services, Inc.(a)		111,600		6,719,436

Tobacco – 2.8%

Altria Group, Inc.		340,938		16,279,789

Philip Morris International, Inc.		285,696		27,141,120
				43,420,909

Trading Companies & Distributors – 2.2%

Fastenal Co.		174,096		9,101,739

MSC Industrial Direct Co., Inc., Class A		81,468		7,345,155

Watsco, Inc.		30,690		8,987,873

WW Grainger, Inc.		17,856		7,741,290
				33,176,057
Total Common Stocks (Cost $1,150,456,323)				1,526,753,498
	Principal Amount

SECURITIES LENDING REINVESTMENTS(c) – 4.4%

CERTIFICATES OF DEPOSIT – 0.7%

Bank of Nova Scotia, Houston (ICE LIBOR USD 3 Month + 0.08%), 0.27%, 7/21/2021(d)	$	3,000,000		3,000,066

Cooperatieve Rabobank UA, London (ICE LIBOR USD 3 Month + 0.08%), 0.27%, 7/30/2021(d)		3,000,000		3,000,600


Investments	Principal Amount		Value

CERTIFICATES OF DEPOSIT – (continued)

Nordea Bank Abp, New York Branch (ICE LIBOR USD 3 Month + 0.03%), 0.24%, 10/7/2021(d)	$	3,000,000	$	3,001,200

Royal Bank of Canada, New York (ICE LIBOR USD 3 Month + 0.04%), 0.24%, 10/5/2021(d)		1,000,000		1,000,218
Total Certificates Of Deposit (Cost $9,999,912)				10,002,084



REPURCHASE AGREEMENTS – 3.7%

BofA Securities, Inc., 0.50%, dated 4/30/2021, due 8/2/2021, repurchase price $8,000,000, collateralized by various Common Stocks; total market value $8,712,122		8,000,000		8,000,000

Citigroup Global Markets, Inc., 0.01%, dated 4/30/2021, due 5/3/2021, repurchase price $9,636,664, collateralized by various U.S. Treasury Securities, ranging from 0.88% – 5.00%, maturing 1/15/2028 – 2/15/2047; total market value $9,723,595		9,636,664		9,636,663

Deutsche Bank AG, London Branch, 0.15%, dated 4/30/2021, due 5/3/2021, repurchase price $4,400,000, collateralized by various U.S. Treasury Securities, 0.13%, maturing 7/15/2030; Foreign Government Fixed Income Securities, ranging from 0.25% – 3.13%, maturing 7/23/2021 – 2/14/2031; total market value $4,467,882		4,400,000		4,400,000

See Accompanying Notes to the Financial Statements.


236		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Quality Dividend Index Fund (cont.)


Investments	Principal Amount		Value

SECURITIES LENDING REINVESTMENTS(c) – (continued)

REPURCHASE AGREEMENTS – (continued)

NBC Global Finance Ltd., 0.19%, dated 4/30/2021, due 5/3/2021, repurchase price $35,000,000, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 4.38%, maturing 1/31/2023 – 8/15/2050; Common Stocks; total market value $38,439,281	$	35,000,000	$	35,000,000
Total Repurchase Agreements (Cost $57,036,663)				57,036,663
Total Securities Lending Reinvestments (Cost $67,036,575)				67,038,747
Total Investments – 103.9% (Cost $1,217,492,898)				1,593,792,245

Liabilities in excess of other assets – (3.9%)				(60,305,946	)
NET ASSETS – 100.0%			$	1,533,486,299

*	Non-income producing security.

^(a)

The security or a portion of this security is on loan at April 30, 2021. The total value of securities on loan at April 30, 2021 was

$85,123,744, collateralized in the form of cash with a value of $67,036,561 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $21,019,722 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 7.25%, and maturity dates ranging from May 27, 2021 – February 15, 2051 and $4,584 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 6.50%, and maturity dates ranging from October 7, 2022 – July 4, 2037; a total value of $88,060,867.

^(b)

Represents less than 0.05% of net assets.

^(c)

The security was purchased with cash collateral held from securities on loan at April 30, 2021. The total value of securities purchased was $67,038,747.

^(d)

Variable or floating rate security, linked to the referenced benchmark. The interest rate shown is the rate in effect as of April 30, 2021.

Percentages shown are based on Net Assets.

Abbreviations

ICE Intercontinental Exchange

LIBOR London Interbank Offered Rate

USD US Dollar



Aggregate gross unrealized appreciation	$	381,729,876
Aggregate gross unrealized depreciation		(5,488,169	)
Net unrealized appreciation	$	376,241,707
Federal income tax cost	$	1,217,877,021

Futures Contracts

FlexShares^® Quality Dividend Index Fund had the following open futures contracts as of April 30, 2021:

Number of
Contracts

Expiration
Date

Trading
Currency

Notional
Amount

Value and
Unrealized
Appreciation*

Long Contracts

S&P 500 E-Mini Index

06/18/2021

USD

6,470,320

326,483

*	This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts.

Abbreviations:

USD – US Dollar

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			237

Schedule of Investments

FlexShares^®Quality Dividend Defensive Index Fund

April 30, 2021 (Unaudited)


Investments	Shares		Value

COMMON STOCKS – 99.7%

Banks – 3.7%

Bank of America Corp.		24,206	$	981,069

JPMorgan Chase & Co.		99,008		15,228,421

Popular, Inc.		18,746		1,386,454
				17,595,944

Beverages – 0.0%(a)

Coca-Cola Co. (The)		2,366		127,717

Biotechnology – 2.6%

Amgen, Inc.		33,670		8,068,679

Gilead Sciences, Inc.		72,436		4,597,513
				12,666,192

Building Products – 2.3%

A O Smith Corp.		39,676		2,688,049

Advanced Drainage Systems, Inc.		23,478		2,621,553

Lennox International, Inc.(b)		8,008		2,685,403

Trane Technologies plc		16,926		2,942,247
				10,937,252

Capital Markets – 1.2%

MarketAxess Holdings, Inc.		1,274		622,298

T. Rowe Price Group, Inc.		16,380		2,935,296

Virtu Financial, Inc., Class A		78,260		2,318,844
				5,876,438

Chemicals – 2.5%

CF Industries Holdings, Inc.		49,322		2,398,529

Chemours Co. (The)(b)		87,360		2,638,272

FMC Corp.		22,204		2,625,401

RPM International, Inc.		19,474		1,846,914

Scotts Miracle-Gro Co. (The)		9,646		2,229,769
				11,738,885

Commercial Services & Supplies – 1.0%

Cintas Corp.		6,916		2,386,988

Rollins, Inc.(b)		63,700		2,374,736
				4,761,724

Communications Equipment – 3.1%

Cisco Systems, Inc.		243,880		12,415,931


Investments	Shares		Value

Communications Equipment – (continued)

Motorola Solutions, Inc.		14,196	$	2,673,107
				15,089,038

Containers & Packaging – 0.7%

International Paper Co.		12,740		738,920

Packaging Corp. of America		18,018		2,660,358
				3,399,278

Distributors – 0.6%

Pool Corp.		7,280		3,075,945

Diversified Consumer Services – 0.5%

H&R Block, Inc.		116,662		2,596,896

Diversified Telecommunication Services – 2.4%

AT&T, Inc.		159,978		5,024,909

Cogent Communications Holdings, Inc.		8,008		604,684

Lumen Technologies, Inc.(b)		48,958		628,131

Verizon Communications, Inc.		89,362		5,164,230
				11,421,954

Electric Utilitie – 2.5%

Exelon Corp.		60,606		2,723,634

IDACORP, Inc.		23,114		2,368,723

NRG Energy, Inc.		58,422		2,092,676

OGE Energy Corp.		63,882		2,143,880

PPL Corp.		25,480		742,232

Southern Co. (The)		26,572		1,758,269
				11,829,414

Entertainment – 2.0%

Activision Blizzard, Inc.		44,408		4,049,566

Electronic Arts, Inc.		18,564		2,637,573

World Wrestling Entertainment, Inc., Class A(b)		48,958		2,698,075
				9,385,214

Equity Real Estate Investment Trusts (REITs) – 6.2%

Alexandria Real Estate Equities, Inc.		14,560		2,636,816

American Tower Corp.		25,662		6,537,908

CoreSite Realty Corp.		3,822		464,335

CubeSmart		65,338		2,766,411

See Accompanying Notes to the Financial Statements.


238		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Quality Dividend Defensive Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Equity Real Estate Investment Trusts (REITs) – (continued)

Extra Space Storage, Inc.		20,748	$	3,085,020

Gaming and Leisure Properties, Inc.		53,690		2,496,048

Iron Mountain, Inc.(b)		16,926		679,071

Mid-America Apartment Communities, Inc.		17,472		2,748,870

National Health Investors, Inc.		32,214		2,364,830

Public Storage		11,648		3,274,951

STAG Industrial, Inc.(b)		71,162		2,598,124
				29,652,384

Food & Staples Retailing – 1.9%

Walmart, Inc.		63,882		8,937,731

Food Products – 0.7%

General Mills, Inc.		38,948		2,370,375

Hershey Co. (The)		4,732		777,468
				3,147,843

Health Care Equipment & Supplies – 0.6%

Abbott Laboratories		2,730		327,818

ResMed, Inc.		13,286		2,497,370
				2,825,188

Health Care Providers & Services – 4.2%

Cardinal Health, Inc.		25,480		1,537,463

Chemed Corp.		4,732		2,255,319

UnitedHealth Group, Inc.		41,314		16,476,023
				20,268,805

Hotels, Restaurants & Leisure – 1.2%

Domino’s Pizza, Inc.		1,638		691,793

Wingstop, Inc.(b)		14,014		2,219,957

Yum! Brands, Inc.		23,842		2,849,596
				5,761,346

Household Durables – 0.6%

Newell Brands, Inc.		99,372		2,679,069

Household Products – 2.4%

Church & Dwight Co., Inc.		8,372		717,815

Clorox Co. (The)		13,832		2,524,340

Procter & Gamble Co. (The)		48,958		6,531,976

WD-40 Co.		7,098		1,765,557
				11,539,688


Investments	Shares		Value

Independent Power and Renewable Electricity Producers – 1.1%

AES Corp. (The)		85,722	$	2,384,786

Atlantica Sustainable Infrastructure plc(b)		57,876		2,231,120

NextEra Energy Partners LP(b)		6,370		474,883
				5,090,789

Industrial Conglomerates – 1.4%

3M Co.		33,306		6,565,945

Insurance – 2.6%

Aflac, Inc.		52,416		2,816,312

Aon plc, Class A(b)		13,286		3,340,632

Brown & Brown, Inc.		11,830		629,119

Kinsale Capital Group, Inc.(b)		11,830		2,058,538

Progressive Corp. (The)		33,670		3,391,916
				12,236,517

Internet & Direct Marketing Retail – 0.5%

eBay, Inc.		44,044		2,457,215

IT Services – 3.8%

International Business Machines Corp.		51,506		7,307,671

Jack Henry & Associates, Inc.		14,196		2,311,535

Mastercard, Inc., Class A		3,640		1,390,698

Paychex, Inc.		29,120		2,838,909

Visa, Inc., Class A(b)		8,554		1,997,872

Western Union Co. (The)		99,008		2,550,446
				18,397,131

Life Sciences Tools & Services – 0.0%(a)

Thermo Fisher Scientific, Inc.		364		171,164

Machinery – 1.4%

Illinois Tool Works, Inc.		18,200		4,194,372

Lincoln Electric Holdings, Inc.(b)		20,020		2,563,561
				6,757,933

Media – 3.0%

Comcast Corp., Class A		95,368		5,354,913

Interpublic Group of Cos., Inc. (The)(b)		22,750		722,312

New York Times Co. (The), Class A		47,502		2,157,066

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			239

FlexShares^® Quality Dividend Defensive Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Media – (continued)

Nexstar Media Group, Inc., Class A(b)		4,550	$	670,716

Omnicom Group, Inc.		36,582		3,009,235

Sirius XM Holdings, Inc.(b)		388,752		2,371,387
				14,285,629

Metals & Mining – 0.6%

Newmont Corp.		48,412		3,021,393

Multiline Retail – 1.1%

Target Corp.		26,572		5,507,313

Multi-Utilities – 2.0%

Dominion Energy, Inc.		48,412		3,868,119

Public Service Enterprise Group, Inc.		41,860		2,643,877

WEC Energy Group, Inc.(b)		31,304		3,041,810
				9,553,806

Oil, Gas & Consumable Fuels – 0.9%

Antero Midstream Corp.		249,158		2,152,725

Cabot Oil & Gas Corp.(b)		127,582		2,126,792
				4,279,517

Personal Products – 0.5%

Nu Skin Enterprises, Inc., Class A		47,138		2,491,715

Pharmaceuticals – 5.7%

Eli Lilly and Co.		49,686		9,081,110

Johnson & Johnson		98,644		16,052,338

Merck & Co., Inc.		26,026		1,938,937

Pfizer, Inc.		7,644		295,441
				27,367,826

Professional Services – 1.4%

Booz Allen Hamilton Holding Corp.		29,120		2,415,504

CoreLogic, Inc.		26,390		2,103,283

Exponent, Inc.		24,752		2,384,360
				6,903,147

Semiconductors & Semiconductor Equipment – 5.4%

Analog Devices, Inc.(b)		21,294		3,261,389

Broadcom, Inc.		7,644		3,487,193


Investments	Shares		Value

Semiconductors & Semiconductor Equipment – (continued)

Intel Corp.		32,396	$	1,863,742

KLA Corp.		8,918		2,812,291

QUALCOMM, Inc.		16,016		2,223,021

Skyworks Solutions, Inc.		13,468		2,442,152

Texas Instruments, Inc.		52,962		9,560,171
				25,649,959

Software – 6.5%

Citrix Systems, Inc.		17,836		2,208,989

Microsoft Corp.		77,350		19,506,123

Oracle Corp.		123,942		9,393,564
				31,108,676

Specialty Retail – 5.5%

Best Buy Co., Inc.		20,566		2,391,209

Home Depot, Inc. (The)		53,326		17,260,026

Lowe’s Cos., Inc.		15,652		3,071,705

Tractor Supply Co.(b)		1,638		308,927

Williams-Sonoma, Inc.		18,928		3,231,956
				26,263,823

Technology Hardware, Storage & Peripherals – 8.4%

Apple, Inc.		281,918		37,060,940

Seagate Technology plc		34,398		3,193,511
				40,254,451

Thrifts & Mortgage Finance – 0.4%

PennyMac Financial Services, Inc.(b)		35,126		2,114,936

Tobacco – 2.9%

Altria Group, Inc.		107,380		5,127,395

Philip Morris International, Inc.		89,908		8,541,260
				13,668,655

Trading Companies & Distributors – 1.7%

Fastenal Co.		54,964		2,873,518

MSC Industrial Direct Co., Inc., Class A(b)		27,482		2,477,777

Watsco, Inc.		9,646		2,824,928
				8,176,223
Total Common Stocks (Cost $371,357,325)				477,637,708

See Accompanying Notes to the Financial Statements.


240		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Quality Dividend Defensive Index Fund (cont.)


Investments	Principal Amount		Value

SECURITIES LENDING REINVESTMENTS(c) – 3.3%

REPURCHASE AGREEMENTS – 3.3%

BofA Securities, Inc., 0.50%, dated 4/30/2021, due 8/2/2021, repurchase price $1,000,000, collateralized by various Common Stocks; total market value $1,089,015	$	1,000,000	$	1,000,000

Citigroup Global Markets Ltd., 0.05%, dated 4/30/2021, due 5/3/2021, repurchase price $2,500,000, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 3.00%, maturing 5/15/2023 – 2/15/2049; Foreign Government Fixed Income Securities, 0.45%, maturing 8/19/2027; total market value $2,543,721		2,500,000		2,500,000

Citigroup Global Markets, Inc., 0.01%, dated 4/30/2021, due 5/3/2021, repurchase price $8,220,569, collateralized by various U.S. Treasury Securities, ranging from 0.88% – 5.00%, maturing 1/15/2028 – 2/15/2047; total market value $8,294,726		8,220,569		8,220,569

Deutsche Bank AG, London Branch, 0.15%, dated 4/30/2021, due 5/3/2021, repurchase price $3,600,000, collateralized by various U.S. Treasury Securities, 0.13%, maturing 7/15/2030; Foreign Government Fixed Income Securities, ranging from 0.25% – 3.13%, maturing 7/23/2021 – 2/14/2031; total market value $3,655,540		3,600,000		3,600,000


Investments	Principal Amount		Value

REPURCHASE AGREEMENT – (continued)

NBC Global Finance Ltd., 0.19%, dated 4/30/2021, due 5/3/2021, repurchase price $500,000, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 4.38%, maturing 1/31/2023 – 8/15/2050; Common Stocks; total market value $549,133	$	500,000	$	500,000
				15,820,569
Total Securities Lending Reinvestments (Cost $15,820,569)				15,820,569
Total Investments – 103.0% (Cost $387,177,894)				493,458,277

Liabilities in excess of other assets – (3.0%)				(14,196,148	)
NET ASSETS – 100.0%			$	479,262,129

(a)

Represents less than 0.05% of net assets.

(b)

The security or a portion of this security is on loan at April 30, 2021. The total value of securities on loan at April 30, 2021 was $26,149,841, collateralized in the form of cash with a value of $15,820,569 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $11,101,333 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 7.25%, and maturity dates ranging from May 11, 2021 – February 15, 2051 and $44,345 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 5.75%, and maturity dates ranging from July 7, 2021 – September 20, 2117; a total value of $26,966,247.

(c)

The security was purchased with cash collateral held from securities on loan at April 30, 2021. The total value of securities purchased was $15,820,569.

Percentages shown are based on Net Assets.



Aggregate gross unrealized appreciation	$	109,001,986
Aggregate gross unrealized depreciation		(2,733,717	)
Net unrealized appreciation	$	106,268,269
Federal income tax cost	$	387,253,648

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			241

FlexShares^® Quality Dividend Defensive Index Fund (cont.)

Futures Contracts

FlexShares^® Quality Dividend Defensive Index Fund had the following open futures contracts as of April 30, 2021:

Number of
Contracts

Expiration
Date

Trading
Currency

Notional
Amount

Value and
Unrealized
Appreciation*

Long Contracts

S&P 500 E-Mini Index

06/18/2021

USD

1,461,040

63,640

*	This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts.

Abbreviations:

USD – US Dollar

See Accompanying Notes to the Financial Statements.


242		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^®Quality Dividend Dynamic Index Fund

April 30, 2021 (Unaudited)


Investments	Shares		Value

COMMON STOCKS – 98.1%

Air Freight & Logistics – 0.1%

United Parcel Service, Inc., Class B		147	$	29,967

Auto Components – 0.5%

Gentex Corp.		2,681		94,318

Automobiles – 0.1%

Thor Industries, Inc.		182		25,769

Banks – 7.0%

Bank of America Corp.		3,430		139,018

Citigroup, Inc.		4,928		351,071

JPMorgan Chase & Co.		4,697		722,445

PNC Financial Services Group, Inc. (The)		483		90,297

Western Alliance Bancorp		1,225		128,711
				1,431,542

Beverages – 0.0%(a)

Coca-Cola Co. (The)		126		6,802

Biotechnology – 1.7%

Amgen, Inc.		1,407		337,173

Building Products – 2.7%

A O Smith Corp.		1,561		105,758

Advanced Drainage Systems, Inc.		987		110,209

Fortune Brands Home & Security, Inc.		1,134		119,047

Masco Corp.		1,456		93,009

Trane Technologies plc		686		119,247
				547,270

Capital Markets – 3.8%

Ameriprise Financial, Inc.		490		126,616

Artisan Partners Asset Management, Inc., Class A		364		18,535

BlackRock, Inc.		7		5,735

Lazard Ltd., Class A		2,163		97,313

LPL Financial Holdings, Inc.		749		117,368

Morgan Stanley		3,374		278,524

T. Rowe Price Group, Inc.		693		124,186
				768,277


Investments	Shares		Value

Chemicals – 3.9%

Celanese Corp.		693	$	108,558

Chemours Co. (The)		3,584		108,237

Dow, Inc.		1,939		121,187

Eastman Chemical Co.		924		106,620

FMC Corp.		770		91,045

Scotts Miracle-Gro Co. (The)		406		93,851

Sherwin-Williams Co. (The)		588		161,036
				790,534

Commercial Services & Supplies – 0.5%

Cintas Corp.		308		106,303

Communications Equipment – 2.5%

Cisco Systems, Inc.		10,066		512,460

Consumer Finance – 1.7%

Discover Financial Services		1,134		129,276

OneMain Holdings, Inc.		1,806		102,707

Synchrony Financial		2,674		116,961
				348,944

Containers & Packaging – 0.2%

International Paper Co.		546		31,668

Distributors – 0.6%

Pool Corp.		294		124,221

Diversified Telecommunication Services – 2.0%

AT&T, Inc.		6,209		195,025

Lumen Technologies, Inc.		2,016		25,865

Verizon Communications, Inc.		3,346		193,365
				414,255

Electric Utilities – 0.4%

PPL Corp.		2,667		77,690

Electrical Equipment – 1.2%

Emerson Electric Co.		1,435		129,853

Rockwell Automation, Inc.		406		107,290
				237,143

Electronic Equipment, Instruments & Components – 0.4%

Amphenol Corp., Class A		476		32,054

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			243

FlexShares^® Quality Dividend Dynamic Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Electronic Equipment, Instruments & Component – (continued)

Cognex Corp.		476	$	40,993
				73,047

Energy Equipment & Services – 0.9%

Baker Hughes Co.		4,410		88,553

Halliburton Co.		4,865		95,159
				183,712

Entertainment – 1.9%

Activision Blizzard, Inc.		1,855		169,157

Electronic Arts, Inc.		791		112,385

World Wrestling Entertainment, Inc., Class A		1,995		109,945
				391,487

Equity Real Estate Investment Trusts (REITs) – 2.6%

Gaming and Leisure Properties, Inc.		2,184		101,534

National Health Investors, Inc.		1,302		95,580

SL Green Realty Corp.(b)		1,512		111,903

STAG Industrial, Inc.		2,898		105,806

Weyerhaeuser Co.		3,080		119,412
				534,235

Food & Staples Retailing – 0.1%

Walmart, Inc.		154		21,546

Health Care Equipment & Supplies – 0.6%

Abbott Laboratories		742		89,099

West Pharmaceutical Services, Inc.		70		22,997
				112,096

Health Care Providers & Services – 0.9%

Cardinal Health, Inc.		1,463		88,278

UnitedHealth Group, Inc.		238		94,914
				183,192

Hotels, Restaurants & Leisure – 0.0%(a)

Wingstop, Inc.		21		3,327

Household Durables – 0.3%

Lennar Corp., Class A		343		35,535

Whirlpool Corp.		126		29,793
				65,328


Investments	Shares		Value

Household Products – 0.4%

Procter & Gamble Co. (The)		665	$	88,724

Independent Power and Renewable Electricity Producers – 0.5%

AES Corp. (The)		3,612		100,486

Industrial Conglomerates – 1.3%

3M Co.		1,372		270,476

Insurance – 1.3%

Kinsale Capital Group, Inc.(b)		112		19,489

MetLife, Inc.		2,065		131,396

Unum Group		3,682		104,053
				254,938

Internet & Direct Marketing Retail – 0.5%

eBay, Inc.		1,848		103,100

IT Services – 2.6%

International Business Machines Corp.		2,121		300,928

Mastercard, Inc., Class A		154		58,837

Paychex, Inc.		917		89,398

Visa, Inc., Class A(b)		364		85,016
				534,179

Leisure Products – 1.1%

Brunswick Corp.		1,064		113,986

Polaris, Inc.		798		111,744
				225,730

Life Sciences Tools & Services – 2.2%

Thermo Fisher Scientific, Inc.		938		441,076

Machinery – 1.7%

Cummins, Inc.		154		38,814

Illinois Tool Works, Inc.		763		175,841

Lincoln Electric Holdings, Inc.		77		9,860

Parker-Hannifin Corp.		399		125,210
				349,725

Media – 3.2%

Comcast Corp., Class A		3,836		215,391

Interpublic Group of Cos., Inc. (The)		987		31,337

New York Times Co. (The), Class A		2,009		91,229

Nexstar Media Group, Inc., Class A		763		112,474

See Accompanying Notes to the Financial Statements.


244		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Quality Dividend Dynamic Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Media – (continued)

Omnicom Group, Inc.		1,498	$	123,225

Sirius XM Holdings, Inc.(b)		13,356		81,472
				655,128

Metals & Mining – 0.4%

Newmont Corp.		1,183		73,831

Multiline Retail – 1.2%

Target Corp.		1,197		248,090

Oil, Gas & Consumable Fuels – 3.9%

Antero Midstream Corp.		10,542		91,083

APA Corp.		1,281		25,620

Chevron Corp.		1,792		184,701

Cimarex Energy Co.		1,757		116,313

Devon Energy Corp.		1,302		30,441

Equitrans Midstream Corp.		13,104		106,929

Plains GP Holdings LP, Class A* (b)		10,857		101,839

Targa Resources Corp.		861		29,868

Williams Cos., Inc. (The)		4,599		112,032
				798,826

Paper & Forest Products – 0.7%

Louisiana-Pacific Corp.		2,149		141,576

Personal Products – 0.5%

Nu Skin Enterprises, Inc., Class A		1,953		103,236

Pharmaceuticals – 4.7%

Johnson & Johnson		4,095		666,379

Merck & Co., Inc.		2,429		180,961

Pfizer, Inc.		3,017		116,607
				963,947

Professional Services – 0.9%

CoreLogic, Inc.		728		58,022

Robert Half International, Inc.		1,323		115,908
				173,930

Road & Rail – 1.8%

Union Pacific Corp.		1,624		360,674

Semiconductors & Semiconductor Equipment – 7.6%

Analog Devices, Inc.		875		134,015


Investments	Shares		Value

Semiconductors & Semiconductor Equipment – (continued)

Applied Materials, Inc.		931	$	123,553

Broadcom, Inc.		245		111,769

Intel Corp.		511		29,398

KLA Corp.		371		116,995

Lam Research Corp.		70		43,431

Microchip Technology, Inc.		707		106,255

QUALCOMM, Inc.		2,688		373,094

Skyworks Solutions, Inc.		560		101,545

Texas Instruments, Inc.		2,198		396,761
				1,536,816

Software – 6.3%

Microsoft Corp.		3,815		962,067

Oracle Corp.		2,933		222,292

SS&C Technologies Holdings, Inc.		1,330		98,712
				1,283,071

Specialty Retail – 5.4%

Best Buy Co., Inc.		861		100,108

Camping World Holdings, Inc., Class A(b)		2,534		110,330

Dick’s Sporting Goods, Inc.(b)		994		82,085

Home Depot, Inc. (The)		987		319,462

Lowe’s Cos., Inc.		1,806		354,428

Williams-Sonoma, Inc.(b)		798		136,259
				1,102,672

Technology Hardware, Storage & Peripherals – 8.6%

Apple, Inc.		11,697		1,537,688

HP, Inc.		728		24,832

NetApp, Inc.		574		42,872

Seagate Technology plc		1,442		133,875
				1,739,267

Thrifts & Mortgage Finance – 0.3%

PennyMac Financial Services, Inc.		959		57,741

Tobacco – 2.8%

Altria Group, Inc.		4,410		210,578

Philip Morris International, Inc.		3,717		353,115
				563,693

Trading Companies & Distributors – 1.6%

Fastenal Co.		2,240		117,107

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			245

FlexShares^® Quality Dividend Dynamic Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Trading Companies & Distributor – (continued)

MSC Industrial Direct Co., Inc., Class A		1,120	$	100,979

Watsco, Inc.		336		98,401
				316,487
Total Common Stocks (Cost $15,164,904)				19,939,725
	Principal Amount

SECURITIES LENDING REINVESTMENTS(c) – 1.7%

REPURCHASE AGREEMENTS – 1.7%

Citigroup Global Markets Ltd., 0.05%, dated 4/30/2021, due 5/3/2021, repurchase price $50,000, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 3.00%, maturing 5/15/2023 – 2/15/2049; Foreign Government Fixed Income Securities, 0.45%, maturing 8/19/2027; total market value $50,874	$	50,000		50,000

Citigroup Global Markets, Inc., 0.01%, dated 4/30/2021, due 5/3/2021, repurchase price $208,785, collateralized by various U.S. Treasury Securities, ranging from 0.88% – 5.00%, maturing 1/15/2028 – 2/15/2047; total market value $210,668		208,785		208,785

Deutsche Bank AG, London Branch, 0.15%, dated 4/30/2021, due 5/3/2021, repurchase price $50,000, collateralized by various U.S. Treasury Securities, 0.13%, maturing 7/15/2030; Foreign Government Fixed Income Securities, ranging from 0.25% – 3.13%, maturing 7/23/2021 – 2/14/2031; total market value $50,771		50,000		50,000


	Principal Amount

REPURCHASE AGREEMENTS – (continued)

NBC Global Finance Ltd., 0.19%, dated 4/30/2021, due 5/3/2021, repurchase price $30,000, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 4.38%, maturing 1/31/2023 – 8/15/2050; Common Stocks; total market value $32,948	$	30,000	$	30,000
				338,785
Total Securities Lending Reinvestments (Cost $338,785)				338,785
Total Investments – 99.8% (Cost $15,503,689)				20,278,510

Other assets less liabilities – 0.2%				49,234
NET ASSETS – 100.0%			$	20,327,744

*	Non-income producing security.

^(a)

Represents less than 0.05% of net assets.

^(b)

The security or a portion of this security is on loan at April 30, 2021. The total value of securities on loan at April 30, 2021 was $568,864, collateralized in the form of cash with a value of $338,785 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments and $256,303 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 7.25%, and maturity dates ranging from May 27, 2021 – February 15, 2051; a total value of $595,088.

^(c)

The security was purchased with cash collateral held from securities on loan at April 30, 2021. The total value of securities purchased was $338,785.

Percentages shown are based on Net Assets.



Aggregate gross unrealized appreciation	$	4,869,570
Aggregate gross unrealized depreciation		(81,892	)
Net unrealized appreciation	$	4,787,678
Federal income tax cost	$	15,502,903

See Accompanying Notes to the Financial Statements.


246		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Quality Dividend Dynamic Index Fund (cont.)

Futures Contracts

FlexShares^® Quality Dividend Dynamic Index Fund had the following open futures contract as of April 30, 2021:

Number of
Contracts

Expiration
Date

Trading
Currency

Notional
Amount

Value and
Unrealized
Appreciation*

Long Contracts

S&P 500 E-Mini Index

06/18/2021

USD

208,720

12,071

*	This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts.

Abbreviations:

USD – US Dollar

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			247

Schedule of Investments

FlexShares^®International Quality Dividend Index Fund

April 30, 2021 (Unaudited)


Investments	Shares		Value

COMMON STOCKS – 96.5%

Auto Components – 0.7%

Bridgestone Corp.		109,000	$	4,364,787

Automobiles – 1.4%

Bajaj Auto Ltd.*		59,850		3,097,640

Ford Otomotiv Sanayi A/S		194,625		4,126,275

Tofas Turk Otomobil Fabrikasi A/S		245,475		883,379
				8,107,294

Banks – 7.2%

Absa Group Ltd.*		482,850		4,075,477

Banco Santander Brasil SA		292,807		2,079,508

Banco Santander Brasil SA (Preference)		337,500		1,249,159

Bank of China Ltd., Class H		4,500,000		1,790,301

China Minsheng Banking Corp. Ltd., Class H(a)		7,087,500		3,641,003

DBS Group Holdings Ltd.		235,056		5,284,520

Hana Financial Group, Inc.		3,600		147,741

Hang Seng Bank Ltd.(a)		220,000		4,319,640

Nedbank Group Ltd.*		458,550		4,673,528

Nordea Bank Abp		105,300		1,095,372

Royal Bank of Canada(a)		152,100		14,504,025
				42,860,274

Beverages – 0.7%

Thai Beverage PCL		7,425,000		3,990,435

Building Products – 0.4%

Geberit AG (Registered)		3,600		2,369,870

Capital Markets – 1.9%

CSC Financial Co. Ltd., Class H(a) (b)		225,000		262,751

Moscow Exchange MICEX-RTS PJSC		92,250		217,440

Natixis SA		361,800		1,770,014

Partners Group Holding AG		3,825		5,452,004

Standard Life Aberdeen plc		998,100		3,834,826
				11,537,035

Chemicals – 0.9%

Kumho Petrochemical Co. Ltd.		10,800		2,524,385


Investments	Shares		Value

Chemicals – (continued)

Nissan Chemical Corp.		8,500	$	437,034

Nitto Denko Corp.		14,500		1,201,867

Sinopec Shanghai Petrochemical Co. Ltd., Class H		4,500,000		1,118,214
				5,281,500

Commercial Services & Supplies – 0.1%

Country Garden Services Holdings Co. Ltd.		49,000		514,172

Construction & Engineering – 1.2%

HOCHTIEF AG*		10,800		1,013,821

Obayashi Corp.		225,000		2,052,285

Taisei Corp.		112,500		4,147,797
				7,213,903

Construction Materials – 1.1%

Ambuja Cements Ltd.		1,111,725		4,638,410

China Resources Cement Holdings Ltd.		1,522,000		1,659,790
				6,298,200

Diversified Financial Services – 2.3%

Banca Mediolanum SpA		466,425		4,363,841

M&G plc		1,601,325		4,817,790

Power Finance Corp. Ltd.		766,125		1,121,171

REC Ltd.		1,978,425		3,421,462
				13,724,264

Diversified Telecommunication Services – 2.4%

Elisa OYJ		5,400		306,759

Hellenic Telecommunications Organization SA		264,600		4,494,395

Koninklijke KPN NV		1,336,050		4,609,494

Proximus SADP(a)		115,425		2,463,559

Spark New Zealand Ltd.		63,922		201,802

Swisscom AG (Registered)(a)		3,375		1,832,835

Telefonica SA		6,581		30,528
				13,939,372

Electric Utilities – 2.6%

Fortum OYJ		114,750		3,018,273

SSE plc		240,975		4,897,864

See Accompanying Notes to the Financial Statements.


248		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Electric Utilities – (continued)

Transmissora Alianca de Energia Eletrica SA		720,000	$	5,547,394

Verbund AG(a)		22,950		1,886,938
				15,350,469

Electrical Equipment – 0.7%

Mitsubishi Electric Corp.		253,800		3,905,508

Entertainment – 2.0%

NetEase, Inc., ADR		43,875		4,916,633

Nintendo Co. Ltd.		11,600		6,652,980
				11,569,613

Equity Real Estate Investment Trusts (REITs) – 0.6%

Gecina SA		25,650		3,756,244

Food Products – 1.8%

Dali Foods Group Co. Ltd.(b)		225,000		133,838

Nestle SA (Registered)		77,400		9,239,967

Want Want China Holdings Ltd.		1,800,000		1,304,776
				10,678,581

Gas Utilities – 1.6%

Enagas SA(a)		165,825		3,617,117

Naturgy Energy Group SA(a)		172,125		4,419,663

Snam SpA		305,869		1,723,200
				9,759,980

Health Care Equipment & Supplies – 1.2%

Coloplast A/S, Class B		1,800		298,220

Hartalega Holdings Bhd.		900,000		2,258,568

Hoya Corp.		4,900		557,445

Top Glove Corp. Bhd.		2,925,000		4,034,335
				7,148,568

Hotels, Restaurants & Leisure – 1.7%

Evolution Gaming Group AB(b)		37,800		7,474,393

Genting Singapore Ltd.		2,700,000		1,755,487

Kangwon Land, Inc.*		43,425		987,686
				10,217,566

Household Durables – 2.8%

Casio Computer Co. Ltd.		202,500		3,577,398


Investments	Shares		Value

Household Durables – (continued)

Man Wah Holdings Ltd.(a)		1,530,000	$	3,218,834

Nien Made Enterprise Co. Ltd.		316,000		5,113,378

Sekisui House Ltd.		225,000		4,547,139

Sony Group Corp.		1,800		179,498
				16,636,247

Household Products – 0.6%

Unilever Indonesia Tbk. PT		8,617,500		3,579,439

Industrial Conglomerates – 0.2%

Industries Qatar QSC		360,000		1,332,821

Insurance – 6.7%

Ageas SA		56,250		3,410,064

AIA Group Ltd.		45,000		573,012

Allianz SE (Registered)		44,100		11,488,152

Aviva plc		606,825		3,363,239

BB Seguridade Participacoes SA		585,000		2,407,825

Great-West Lifeco, Inc.(a)		177,750		5,149,577

Legal & General Group plc		249,750		941,936

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered)		10,575		3,063,519

PICC Property & Casualty Co. Ltd., Class H		4,618,000		4,536,632

Zurich Insurance Group AG		11,475		4,714,306
				39,648,262

Interactive Media & Services – 1.4%

Kakaku.com, Inc.		17,600		478,221

Tencent Holdings Ltd.		95,800		7,684,377
				8,162,598

Internet & Direct Marketing Retail – 1.6%

CJ ENM Co. Ltd.		23,400		3,029,262

momo.com, Inc.		48,000		1,769,950

ZOZO, Inc.		135,000		4,557,431
				9,356,643

IT Services – 2.0%

Amadeus IT Group SA*		32,400		2,211,477

Capgemini SE		14,175		2,600,533

Edenred		25,200		1,430,331

Infosys Ltd.		33,750		617,089

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			249

FlexShares^® International Quality Dividend Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

IT Service – (continued)

Nomura Research Institute Ltd.		64,100	$	1,973,345

Otsuka Corp.		22,500		1,134,212

SCSK Corp.		30,500		1,769,086
				11,736,073

Leisure Products – 0.1%

Yamaha Corp.		16,100		876,401

Machinery – 3.0%

Atlas Copco AB, Class A		37,800		2,293,280

Atlas Copco AB, Class B(a)		9,675		502,872

Epiroc AB, Class A(a)		99,900		2,167,951

Epiroc AB, Class B		9,675		190,050

Kone OYJ, Class B		53,550		4,212,044

MINEBEA MITSUMI, Inc.		49,200		1,233,770

Mitsubishi Heavy Industries Ltd.		103,700		3,080,499

Rational AG		900		751,460

Schindler Holding AG		1,125		320,459

Schindler Holding AG (Registered)		450		125,322

Sinotruk Hong Kong Ltd.		1,237,500		3,046,409
				17,924,116

Media – 0.7%

Telenet Group Holding NV		103,275		4,428,366

Metals & Mining – 6.7%

BHP Group Ltd.(a)		81,900		3,017,676

BHP Group plc		39,375		1,190,916

Evraz plc		590,850		5,255,226

Fortescue Metals Group Ltd.		273,150		4,766,371

Grupo Mexico SAB de CV, Series B		1,012,500		4,595,634

Kumba Iron Ore Ltd.		102,375		4,645,634

MMC Norilsk Nickel PJSC		7,425		2,537,760

Rio Tinto plc		120,150		10,107,650

Severstal PAO		66,150		1,563,255

Vedanta Ltd.		439,425		1,526,101

Wheaton Precious Metals Corp.		9,675		401,015
				39,607,238

Multiline Retail – 0.5%

Wesfarmers Ltd.		64,125		2,680,250


Investments	Shares		Value

Multi-Utilities – 0.9%

A2A SpA		742,950	$	1,455,129

AGL Energy Ltd.		531,000		3,662,827
				5,117,956

Oil, Gas & Consumable Fuels – 6.4%

Adaro Energy Tbk. PT		49,432,500		4,260,537

BP plc		1,050,300		4,406,204

Canadian Natural Resources Ltd.		183,150		5,554,647

China Shenhua Energy Co. Ltd., Class H		2,145,500		4,475,057

Equinor ASA		77,400		1,579,079

Exxaro Resources Ltd.(a)		153,225		1,610,671

Formosa Petrochemical Corp.		316,000		1,170,873

LUKOIL PJSC		62,550		4,829,371

Lundin Energy AB		131,400		4,214,373

Royal Dutch Shell plc, Class A		45,000		850,460

Royal Dutch Shell plc, Class B		20,700		372,296

TOTAL SE		25,650		1,137,063

Yanzhou Coal Mining Co. Ltd., Class H		2,894,000		3,454,088
				37,914,719

Paper & Forest Products – 0.8%

UPM-Kymmene OYJ		120,375		4,716,737

Personal Products – 2.1%

Hengan International Group Co. Ltd.(a)		112,500		729,302

L’Oreal SA(a)		27,000		11,104,513

Unilever plc		5,625		329,553
				12,163,368

Pharmaceuticals – 6.8%

AstraZeneca plc		22,050		2,355,338

China Medical System Holdings Ltd.		225,000		521,447

Chugai Pharmaceutical Co. Ltd.		99,300		3,725,624

GlaxoSmithKline plc		260,325		4,828,360

Livzon Pharmaceutical Group, Inc., Class H		292,500		1,367,060

Novartis AG (Registered)		94,275		8,058,417

Novo Nordisk A/S, Class B		66,375		4,867,740

Orion OYJ, Class B		80,325		3,561,285

Roche Holding AG		30,150		9,837,882

See Accompanying Notes to the Financial Statements.


250		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Pharmaceuticals – (continued)

Roche Holding AG – BR		675	$	234,757

Sanofi(a)		2,925		307,288

Shionogi & Co. Ltd.(a)		5,700		299,692
				39,964,890

Professional Services – 1.2%

Nihon M&A Center, Inc.		95,000		2,489,182

RELX plc		61,200		1,592,584

SGS SA (Registered)		949		2,809,385
				6,891,151

Real Estate Management & Development – 3.3%

CK Asset Holdings Ltd.		22,000		138,087

Country Garden Holdings Co. Ltd.(a)		1,373,000		1,635,187

Daito Trust Construction Co. Ltd.		35,200		3,742,043

Guangzhou R&F Properties Co. Ltd., Class H(a)		900,000		1,151,818

Hopson Development Holdings Ltd.(a)		450,000		1,770,023

KWG Group Holdings Ltd.		2,700,000		4,338,438

Land & Houses PCL, NVDR		11,205,000		3,112,750

Logan Group Co. Ltd.(a)		2,475,000		3,938,662
				19,827,008

Road & Rail – 0.7%

Aurizon Holdings Ltd.		1,385,550		4,013,505

Semiconductors & Semiconductor Equipment – 5.3%

ASM International NV		7,650		2,328,974

ASML Holding NV		4,050		2,638,561

Novatek Microelectronics Corp.		266,000		5,942,219

Taiwan Semiconductor Manufacturing Co. Ltd.		601,222		12,914,230

Tokyo Electron Ltd.		15,500		6,852,020

United Microelectronics Corp.		482,000		978,391
				31,654,395

Software – 0.0%(c)

SAP SE		1,575		221,375

Specialty Retail – 2.2%

Industria de Diseno Textil SA(a)		160,875		5,736,249


Investments	Shares		Value

Specialty Retail – (continued)

Nitori Holdings Co. Ltd.		3,800	$	681,744

Petrobras Distribuidora SA		675,000		2,800,654

Topsports International Holdings Ltd.(b)		526,000		711,099

USS Co. Ltd.		167,100		3,028,453
				12,958,199

Technology Hardware, Storage & Peripherals – 3.1%

Brother Industries Ltd.		112,500		2,378,551

Chicony Electronics Co. Ltd.		1,125,000		3,403,233

Inventec Corp.		450,000		437,386

Lite-On Technology Corp.		726,000		1,660,810

Pegatron Corp.		1,575,000		4,149,930

Quanta Computer, Inc.		423,000		1,490,108

Samsung Electronics Co. Ltd.		64,125		4,698,330
				18,218,348

Textiles, Apparel & Luxury Goods – 1.3%

Eclat Textile Co. Ltd.		62,000		1,189,704

Hermes International		1,800		2,262,181

Li Ning Co. Ltd.		359,500		2,934,562

LVMH Moet Hennessy Louis Vuitton SE		1,800		1,356,875
				7,743,322

Tobacco – 1.6%

Imperial Brands plc		223,200		4,658,651

Japan Tobacco, Inc.		216,600		4,050,413

Swedish Match AB		6,525		535,844
				9,244,908

Trading Companies & Distributors – 1.1%

Marubeni Corp.		203,700		1,693,260

MonotaRO Co. Ltd.		139,600		3,563,277

Toyota Tsusho Corp.		32,000		1,352,546
				6,609,083

Transportation Infrastructure – 0.1%

CCR SA		292,500		649,131

Wireless Telecommunication Services – 0.8%

SoftBank Group Corp.		4,000		361,740

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			251

FlexShares^® International Quality Dividend Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Wireless Telecommunication Services – (continued)

Total Access Communication PCL, NVDR		3,957,500	$	4,162,445
				4,524,185
Total Common Stocks (Cost $475,235,368)				570,988,369
	Principal Amount

SECURITIES LENDING REINVESTMENTS(d) – 3.9%

REPURCHASE AGREEMENTS – 3.9%

Citigroup Global Markets Ltd., 0.05%, dated 4/30/2021, due 5/3/2021, repurchase price $4,700,000, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 3.00%, maturing 5/15/2023 – 2/15/2049; Foreign Government Fixed Income Securities, 0.45%, maturing 8/19/2027; total market value $4,782,196	$	4,700,000		4,700,000

Citigroup Global Markets, Inc., 0.01%, dated 4/30/2021, due 5/3/2021, repurchase price $11,336,738, collateralized by various U.S. Treasury Securities, ranging from 0.88% – 5.00%, maturing 1/15/2028 – 2/15/2047; total market value $11,439,006		11,336,738		11,336,738

Deutsche Bank AG, London Branch, 0.15%, dated 4/30/2021, due 5/3/2021, repurchase price $6,700,000, collateralized by various U.S. Treasury Securities, 0.13%, maturing 7/15/2030; Foreign Government Fixed Income Securities, ranging from 0.25% – 3.13%, maturing 7/23/2021 – 2/14/2031; total market value $6,803,366		6,700,000		6,700,000


	Principal Amount		Value

REPURCHASE AGREEMENT – (continued)

NBC Global Finance Ltd., 0.19%, dated 4/30/2021, due 5/3/2021, repurchase price $300,000, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 4.38%, maturing 1/31/2023 – 8/15/2050; Common Stocks; total market value $329,480	$	300,000	$	300,000
				23,036,738
Total Securities Lending Reinvestments (Cost $23,036,738)				23,036,738
Total Investments – 100.4% (Cost $498,272,106)				594,025,107

Liabilities in excess of other assets – (0.4%)				(2,656,899	)
NET ASSETS – 100.0%			$	591,368,208

*	Non-income producing security.

^(a)

The security or a portion of this security is on loan at April 30, 2021. The total value of securities on loan at April 30, 2021 was $45,022,886, collateralized in the form of cash with a value of $23,036,738 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $11,649,768 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 6.50%, and maturity dates ranging from May 13, 2021 – February 15, 2051 and $13,457,738 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 6.00%, and maturity dates ranging from July 7, 2021 – September 20, 2117; a total value of $48,144,244.

^(b)

^(c)

Represents less than 0.05% of net assets.

^(d)

The security was purchased with cash collateral held from securities on loan at April 30, 2021. The total value of securities purchased was $23,036,738.

See Accompanying Notes to the Financial Statements.


252		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Index Fund (cont.)

Percentages shown are based on Net Assets.

Abbreviations

ADR – American Depositary Receipt

NVDR – Non-Voting Depositary Receipt

OYJ – Public Limited Company

PJSC – Public Joint Stock Company



Aggregate gross unrealized appreciation	$	114,328,328
Aggregate gross unrealized depreciation		(19,913,815	)
Net unrealized appreciation	$	94,414,513
Federal income tax cost	$	499,929,619

Futures Contracts

FlexShares^® International Quality Dividend Index Fund had the following open futures contracts as of April 30, 2021:


	Number of Contracts		Expiration Date		Trading Currency		Notional Amount		Value and Unrealized Appreciation/ (Depreciation)*
Long Contracts
EURO STOXX 50 Index		111		06/18/2021		EUR	$	5,264,699	$	178,525
FTSE 100 Index		31		06/18/2021		GBP		2,977,648		74,805
MSCI Emerging Markets E-Mini Index		83		06/18/2021		USD		5,546,890		17,476
S&P/TSX 60 Index		10		06/17/2021		CAD		1,845,879		39,899
SPI 200 Index		14		06/17/2021		AUD		1,893,043		57,876
TOPIX Index		17		06/10/2021		JPY		2,957,367		(8,034	)
									$	360,547

*	This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts.

Forward Foreign Currency Contracts

FlexShares^® International Quality Dividend Index Fund had the following outstanding contracts as of April 30, 2021:


Contracts to Receive		Counterparty	In Exchange For		Maturity Date		Unrealized Appreciation/ (Depreciation)
CAD	304,850	Toronto-Dominion Bank (The)	USD	242,319		06/16/2021	$	5,509
DKK	760,000	Bank of New York	USD	121,763		06/16/2021		1,354
EUR	1,041,186	Morgan Stanley	USD	1,247,158		06/16/2021		7,361
HKD	1,415,892	UBS AG	USD	182,073		06/16/2021		248
SEK	1,969,475	Morgan Stanley	USD	231,497		06/16/2021		1,514
SGD	219,235	Goldman Sachs & Co.	USD	163,142		06/16/2021		1,620
USD	268,676	JPMorgan Chase Bank	AUD	345,963		06/16/2021		1,382
USD	245,522	Morgan Stanley	GBP	176,070		06/16/2021		1,717
USD	243,599	Toronto-Dominion Bank (The)	GBP	175,563		06/16/2021		495
USD	216,908	Goldman Sachs & Co.	HKD	1,684,244		06/16/2021		32
USD	235,322	Goldman Sachs & Co.	RUB^*	17,581,399		06/16/2021		2,527
USD	173,791	Goldman Sachs & Co.	TRY	1,305,542		06/16/2021		19,859
Total unrealized appreciation							$	43,618

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			253

FlexShares^® International Quality Dividend Index Fund (cont.)

Forward Foreign Currency Contracts (cont.)


Contracts to Receive		Counterparty	In Exchange For		Maturity Date		Unrealized Appreciation/ (Depreciation)
EUR	105,330	Toronto-Dominion Bank (The)	USD	127,375		06/16/2021	$	(465	)
GBP	34,589	Citibank NA	USD	48,278		06/16/2021		(382	)
HKD	5,443,084	Toronto-Dominion Bank (The)	USD	701,299		06/16/2021		(404	)
INR^*	9,479,319	Citibank NA	USD	128,109		06/16/2021		(1,027	)
JPY	45,255,138	Citibank NA	USD	414,704		06/16/2021		(531	)
JPY	175,276,320	Morgan Stanley	USD	1,616,669		06/16/2021		(12,545	)
JPY	26,764,933	Toronto-Dominion Bank (The)	USD	246,864		06/16/2021		(1,912	)
TRY	68,354	BNP Paribas SA	USD	8,669		06/16/2021		(610	)
USD	483,266	Citibank NA	BRL^*	2,843,346		06/16/2021		(38,909	)
USD	366,392	Morgan Stanley	CHF	338,991		06/16/2021		(5,727	)
USD	214,546	Morgan Stanley	CZK	4,724,570		06/16/2021		(5,313	)
USD	289,213	Citibank NA	KRW^*	328,849,715		06/16/2021		(6,428	)
USD	56,599	BNP Paribas SA	NOK	479,248		06/16/2021		(1,088	)
USD	124,773	BNP Paribas SA	NZD	174,054		06/16/2021		(89	)
USD	306,617	Morgan Stanley	PLN	1,176,488		06/16/2021		(3,950	)
USD	16,951	Goldman Sachs & Co.	SGD	22,806		06/16/2021		(188	)
USD	325,792	Citibank NA	TWD^*	9,123,516		06/16/2021		(850	)
USD	92,283	BNP Paribas SA	ZAR	1,416,223		06/17/2021		(4,722	)
Total unrealized depreciation							$	(85,140	)
Net unrealized depreciation							$	(41,522	)

*	Non-deliverable forward. See Note 2 in the Notes to Financial Statements.

Abbreviations:

AUD – Australian Dollar

BRL – Brazilian Real

CAD – Canadian Dollar

CHF – Swiss Franc

CZK – Czech Koruna

DKK – Danish Krone

EUR – Euro

GBP – British Pound

HKD – Hong Kong Dollar

INR – Indian Rupee

JPY – Japanese Yen

KRW – Korean Won

NOK – Norwegian Krone

NZD – New Zealand Dollar

PLN – Polish Zloty

RUB – Russian Ruble

SEK – Swedish Krona

SGD – Singapore Dollar

TRY – Turkish Lira

TWD – Taiwan Dollar

USD – US Dollar

ZAR – South African Rand

See Accompanying Notes to the Financial Statements.


254		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Index Fund (cont.)

FlexShares^® International Quality Dividend Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2021:


Australia	3.1	%
Austria	0.3
Belgium	1.7
Brazil	2.5
Canada	4.3
China	9.7
Denmark	0.9
Finland	2.7
France	4.4
Germany	2.8
Greece	0.8
Hong Kong	1.4
India	2.4
Indonesia	1.3
Italy	1.3
Japan	13.7
Malaysia	1.1
Mexico	0.8
Netherlands	1.6
New Zealand	0.0	^†
Norway	0.3
Qatar	0.2
Russia	1.5
Singapore	1.9
South Africa	2.5
South Korea	1.9
Spain	2.7
Sweden	3.1
Switzerland	7.6
Taiwan	6.8
Thailand	1.2
Turkey	0.9
United Kingdom	9.1
Other¹	3.5
	100.0	%

^†	Amount represents less than 0.05%.

¹	Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities).

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			255

Schedule of Investments

FlexShares^®International Quality Dividend Defensive Index Fund

April 30, 2021 (Unaudited)


Investments	Shares		Value

COMMON STOCKS – 97.6%

Aerospace & Defense – 0.0%(a)

Bharat Electronics Ltd.		20,160	$	35,858

Air Freight & Logistics – 0.3%

Deutsche Post AG (Registered)		990		58,343

SG Holdings Co. Ltd.		6,000		136,352
				194,695

Auto Components – 0.7%

Bridgestone Corp.		12,000		480,527

Automobiles – 2.3%

Bajaj Auto Ltd.*		10,050		520,155

Ford Otomotiv Sanayi A/S		23,370		495,471

Hero MotoCorp Ltd.		11,430		435,018

Subaru Corp.		7,200		133,553

Tofas Turk Otomobil Fabrikasi A/S		33,660		121,131
				1,705,328

Banks – 7.4%

Absa Group Ltd.*		64,380		543,397

Banco de Chile		1,434,120		152,806

Banco Santander Brasil SA (Preference)		3,000		11,104

Bank of China Ltd., Class H		660,000		262,577

Bank of Communications Co. Ltd., Class H		120,000		76,788

China Minsheng Banking Corp. Ltd., Class H(b)		840,000		431,526

Commonwealth Bank of Australia		12,060		829,474

Hang Seng Bank Ltd.(b)		30,000		589,042

Malayan Banking Bhd.		30,791		61,862

National Bank of Canada		3,780		274,574

Royal Bank of Canada(b)		19,170		1,828,022

Sberbank of Russia PJSC		75,000		297,418
				5,358,590

Beverages – 0.3%

Coca-Cola Amatil Ltd.(c)		15,660		160,885

Diageo plc		870		39,160
				200,045


Investments	Shares		Value

Biotechnology – 0.5%

CSL Ltd.(b)		60	$	12,568

Seegene, Inc.		4,140		348,365
				360,933

Capital Markets – 1.9%

Macquarie Korea Infrastructure Fund		54,780		593,427

Singapore Exchange Ltd.		39,000		306,336

Standard Life Aberdeen plc		127,770		490,909
				1,390,672

Chemicals – 0.1%

Sinopec Shanghai Petrochemical Co. Ltd., Class H		300,000		74,548

Construction & Engineering – 1.5%

Bouygues SA(b)		9,750		418,308

HOCHTIEF AG*		1,530		143,625

Taisei Corp.		14,000		516,170
				1,078,103

Construction Materials – 0.8%

Ambuja Cements Ltd.		135,240		564,257

Diversified Financial Services – 0.9%

Banca Mediolanum SpA		15,960		149,321

Power Finance Corp. Ltd.		83,730		122,533

REC Ltd.		240,090		415,208
				687,062

Diversified Telecommunication Services – 3.6%

BCE, Inc.		2,760		130,350

Deutsche Telekom AG (Registered)		6,150		118,454

Hellenic Telecommunications Organization SA(b)		31,050		527,403

HKT Trust & HKT Ltd.		99,000		143,780

Koninklijke KPN NV		168,060		579,822

Nippon Telegraph & Telephone Corp.		8,000		201,638

Proximus SADP(b)		23,580		503,277

Spark New Zealand Ltd.		9,440		29,802

Telefonica SA		46,740		216,819

See Accompanying Notes to the Financial Statements.


256		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Defensive Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Diversified Telecommunication Services – (continued)

Telenor ASA		8,670	$	154,915
				2,606,260

Electric Utilities – 2.9%

Endesa SA		6,120		161,048

Enel SpA		57,990		577,106

Red Electrica Corp. SA		7,470		137,359

SSE plc		28,200		573,170

Transmissora Alianca de Energia Eletrica SA		48,000		369,826

Verbund AG(b)		3,690		303,390
				2,121,899

Electrical Equipment – 0.1%

Mitsubishi Electric Corp.		6,000		92,329

Electronic Equipment, Instruments & Components – 0.2%

Yageo Corp.		9,000		174,954

Entertainment – 0.7%

NetEase, Inc., ADR		4,560		510,994

Equity Real Estate Investment Trusts (REITs) – 0.2%

Covivio(b)		780		69,671

Gecina SA		270		39,540
				109,211

Food & Staples Retailing – 1.5%

BIM Birlesik Magazalar A/S		15,750		123,462

Etablissements Franz Colruyt NV		7,050		418,653

ICA Gruppen AB(b)		9,510		438,625

Welcia Holdings Co. Ltd.(b)		3,900		121,669
				1,102,409

Food Products – 3.2%

Nestle SA (Registered)		16,680		1,991,249

Orkla ASA		15,870		162,287

Uni-President Enterprises Corp.		60,000		161,315
				2,314,851

Gas Utilities – 1.5%

Enagas SA		17,340		378,235

Naturgy Energy Group SA(b)		21,060		540,759


Investments	Shares		Value

Gas Utilities – (continued)

Snam SpA		32,988	$	185,847
				1,104,841

Health Care Equipment & Supplies – 1.8%

Coloplast A/S, Class B		2,550		422,478

Fisher & Paykel Healthcare Corp. Ltd.		6,330		163,277

Hartalega Holdings Bhd.		84,000		210,800

Top Glove Corp. Bhd.		366,000		504,809
				1,301,364

Hotels, Restaurants & Leisure – 0.2%

McDonald’s Holdings Co. Japan Ltd.		3,200		146,087

Household Durables – 2.0%

Casio Computer Co. Ltd.		25,800		455,787

Nien Made Enterprise Co. Ltd.		28,000		453,084

Sekisui House Ltd.		27,000		545,657

Sony Group Corp.		300		29,916
				1,484,444

Household Products – 0.3%

Pigeon Corp.(b)		6,000		203,376

Industrial Conglomerates – 2.3%

Alfa SAB de CV, Class A		30,000		21,071

CITIC Ltd.		30,000		31,596

Jardine Matheson Holdings Ltd.		9,800		658,952

Siemens AG (Registered)		5,670		947,522
				1,659,141

Insurance – 7.0%

Ageas SA		5,100		309,179

AIA Group Ltd.		6,000		76,402

Allianz SE (Registered)		1,830		476,719

Aviva plc		47,700		264,370

BB Seguridade Participacoes SA		87,000		358,087

Direct Line Insurance Group plc		113,370		447,511

Great-West Lifeco, Inc.(b)		12,450		360,688

Legal & General Group plc		58,950		222,331

Medibank Pvt Ltd.		246,930		587,483

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered)		2,040		590,977

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			257

FlexShares^® International Quality Dividend Defensive Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Insurance – (continued)

PICC Property & Casualty Co. Ltd., Class H		642,000	$	630,688

Sampo OYJ, Class A		4,560		216,883

Zurich Insurance Group AG		1,380		566,949
				5,108,267

Interactive Media & Services – 1.3%

Tencent Holdings Ltd.		12,000		962,552

Internet & Direct Marketing Retail – 1.5%

CJ ENM Co. Ltd.		3,030		392,251

Naspers Ltd., Class N		630		143,757

ZOZO, Inc.		16,200		546,892
				1,082,900

IT Services – 2.0%

Edenred		706		40,072

Itochu Techno-Solutions Corp.		12,000		416,083

Otsuka Corp.		8,200		413,357

Tata Consultancy Services Ltd.		14,910		611,044
				1,480,556

Leisure Products – 0.7%

Shimano, Inc.		2,300		526,787

Life Sciences Tools & Services – 0.1%

Sartorius Stedim Biotech		180		82,773

Machinery – 2.5%

Atlas Copco AB, Class B(b)		1,200		62,372

Knorr-Bremse AG		3,960		486,239

Kone OYJ, Class B		6,540		514,412

Mitsubishi Heavy Industries Ltd.		11,300		335,676

Rational AG		120		100,195

Sinotruk Hong Kong Ltd.		135,000		332,335
				1,831,229

Media – 1.1%

Publicis Groupe SA		3,300		213,961

Telenet Group Holding NV		13,170		564,721
				778,682


Investments	Shares		Value

Metals & Mining – 6.6%

Evraz plc		75,600	$	672,413

Fortescue Metals Group Ltd.		34,860		608,295

Grupo Mexico SAB de CV, Series B		129,000		585,518

Kumba Iron Ore Ltd.		13,110		594,913

Magnitogorsk Iron & Steel Works PJSC		225,684		195,935

Novolipetsk Steel PJSC		63,008		222,939

Polymetal International plc		7,170		148,462

Rio Tinto Ltd.		3,120		291,977

Rio Tinto plc		15,180		1,277,021

Severstal PAO		9,212		217,698

Severstal PAO, GDR(d)		238		5,602
				4,820,773

Multiline Retail – 1.3%

Canadian Tire Corp. Ltd., Class A(b)		900		143,333

Dollarama, Inc.(b)		4,080		189,971

Wesfarmers Ltd.		15,060		629,467
				962,771

Multi-Utilities – 0.6%

AGL Energy Ltd.(b)		67,770		467,476

Oil, Gas & Consumable Fuels – 6.4%

Adaro Energy Tbk. PT		3,075,000		265,031

BP plc		128,280		538,158

China Petroleum & Chemical Corp., Class H		300,000		149,481

China Shenhua Energy Co. Ltd., Class H		270,000		563,163

Enbridge, Inc.		12,390		477,491

Equinor ASA		10,380		211,768

Exxaro Resources Ltd.		2,340		24,598

LUKOIL PJSC		1,050		81,069

Neste OYJ		8,850		536,943

Novatek PJSC		14,970		270,781

Royal Dutch Shell plc, Class A		23,580		445,641

Royal Dutch Shell plc, Class B		1,800		32,374

TOTAL SE		7,680		340,454

Yanzhou Coal Mining Co. Ltd., Class H(b)		612,000		730,443
				4,667,395

See Accompanying Notes to the Financial Statements.


258		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Defensive Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Personal Products – 1.5%

L’Oreal SA(b)		2,490	$	1,024,083

Unilever plc		1,110		65,032
				1,089,115

Pharmaceuticals – 6.1%

AstraZeneca plc		510		54,477

Chugai Pharmaceutical Co. Ltd.		11,700		438,971

GlaxoSmithKline plc		31,740		588,696

Novartis AG (Registered)		6,810		582,104

Novo Nordisk A/S, Class B		1,230		90,204

Orion OYJ, Class B		9,330		413,654

Roche Holding AG		6,960		2,271,033

Sanofi(b)		300		31,517
				4,470,656

Professional Services – 0.3%

RELX plc		1,590		41,376

Thomson Reuters Corp.		2,010		186,246
				227,622

Real Estate Management & Development – 2.4%

Agile Group Holdings Ltd.		94,000		147,411

Daito Trust Construction Co. Ltd.		5,000		531,540

Deutsche Wohnen SE		570		30,878

Guangzhou R&F Properties Co. Ltd., Class H(b)		96,000		122,861

KWG Group Holdings Ltd.		315,000		506,151

Land & Houses PCL, NVDR		1,470,000		408,366
				1,747,207

Road & Rail – 0.7%

Aurizon Holdings Ltd.		164,190		475,607

Semiconductors & Semiconductor Equipment – 3.0%

ASML Holding NV		480		312,718

Novatek Microelectronics Corp.		35,000		781,871

Taiwan Semiconductor Manufacturing Co. Ltd.		50,000		1,073,999
				2,168,588

Software – 0.6%

Kingdee International Software Group Co. Ltd.*(b)		120,000		397,072


Investments	Shares		Value

Software – (continued)

SAP SE		150	$	21,084
				418,156

Specialty Retail – 1.1%

Industria de Diseno Textil SA(b)		17,280		616,145

USS Co. Ltd.		11,100		201,172
				817,317

Technology Hardware, Storage & Peripherals – 5.2%

Asustek Computer, Inc.		18,000		242,294

Chicony Electronics Co. Ltd.		98,000		296,459

Compal Electronics, Inc.		180,000		161,100

FUJIFILM Holdings Corp.		9,700		628,918

Inventec Corp.		198,000		192,450

Lite-On Technology Corp.		280,000		640,533

Logitech International SA (Registered)		4,890		549,023

Pegatron Corp.		180,000		474,278

Samsung Electronics Co. Ltd.		8,250		604,463
				3,789,518

Textiles, Apparel & Luxury Goods – 1.9%

Bosideng International Holdings Ltd.(b)		350,000		178,000

Hermes International		570		716,357

LVMH Moet Hennessy Louis Vuitton SE		210		158,302

Page Industries Ltd.		750		300,320
				1,352,979

Tobacco – 3.3%

British American Tobacco plc		15,750		584,855

Imperial Brands plc		27,510		574,191

ITC Ltd.		188,370		515,222

Japan Tobacco, Inc.		32,100		600,269

Swedish Match AB		1,410		115,791
				2,390,328

Trading Companies & Distributors – 1.0%

ITOCHU Corp.(b)		10,000		311,788

Mitsubishi Corp.		9,000		248,662

Sumitomo Corp.		13,500		183,779
				744,229

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			259

FlexShares^® International Quality Dividend Defensive Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Transportation Infrastructure – 0.7%

Westports Holdings Bhd.		471,000	$	494,410

Wireless Telecommunication Services – 1.5%

KDDI Corp.		12,000		362,948

Mobile TeleSystems PJSC		123,000		524,676

Softbank Corp.(b)		14,400		185,690

SoftBank Group Corp.		500		45,217
				1,118,531
Total Common Stocks (Cost $59,461,566)				71,139,202
	Principal Amount

SECURITIES LENDING REINVESTMENTS(e) – 3.3%

REPURCHASE AGREEMENTS – 3.3%

Citigroup Global Markets Ltd., 0.05%, dated 4/30/2021, due 5/3/2021, repurchase price $500,000, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 3.00%, maturing 5/15/2023 – 2/15/2049; Foreign Government Fixed Income Securities, 0.45%, maturing 8/19/2027; total market value $508,744	$	500,000		500,000

Citigroup Global Markets, Inc., 0.01%, dated 4/30/2021, due 5/3/2021, repurchase price $1,258,130, collateralized by various U.S. Treasury Securities, ranging from 0.88% – 5.00%, maturing 1/15/2028 – 2/15/2047; total market value $1,269,479		1,258,130		1,258,130


	Principal Amount

REPURCHASE AGREEMENTS – (continued)

Deutsche Bank AG, London Branch, 0.15%, dated 4/30/2021, due 5/3/2021, repurchase price $600,000, collateralized by various U.S. Treasury Securities, 0.13%, maturing 7/15/2030; Foreign Government Fixed Income Securities, ranging from 0.25% – 3.13%, maturing 7/23/2021 – 2/14/2031; total market value $609,257	$	600,000	$	600,000

NBC Global Finance Ltd., 0.19%, dated 4/30/2021, due 5/3/2021, repurchase price $70,000, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 4.38%, maturing 1/31/2023 – 8/15/2050; Common Stocks; total market value $76,879		70,000		70,000
				2,428,130
Total Securities Lending Reinvestments (Cost $2,428,130)				2,428,130
Total Investments – 100.9% (Cost $61,889,696)				73,567,332

Liabilities in excess of other assets – (0.9%)				(661,988	)
NET ASSETS – 100.0%			$	72,905,344

*	Non-income producing security.

^(a)

Represents less than 0.05% of net assets.

^(b)

The security or a portion of this security is on loan at April 30, 2021. The total value of securities on loan at April 30, 2021 was $7,107,596, collateralized in the form of cash with a value of $2,428,130 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $2,505,444 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 6.63%, and maturity dates ranging from May 13, 2021 – February 15, 2051 and $2,739,403 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 6.00%, and maturity dates ranging from July 7, 2021 – September 20, 2117; a total value of $7,672,977.

See Accompanying Notes to the Financial Statements.


260		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Defensive Index Fund (cont.)

^(c)

Security fair valued as of April 30, 2021 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at April 30, 2021 amounted to $160,885, which represents approximately 0.22% of net assets of the Fund.

^(d)

^(e)

The security was purchased with cash collateral held from securities on loan at April 30, 2021. The total value of securities purchased was $2,428,130.

Percentages shown are based on Net Assets.

Abbreviations

ADR – American Depositary Receipt

GDR – Global Depositary Receipt

NVDR – Non-Voting Depositary Receipt

OYJ – Public Limited Company

PJSC – Public Joint Stock Company

Preference A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.



Aggregate gross unrealized appreciation	$	13,731,867
Aggregate gross unrealized depreciation		(2,303,160	)
Net unrealized appreciation	$	11,428,707
Federal income tax cost	$	62,161,822

Futures Contracts

FlexShares^® International Quality Dividend Defensive Index Fund had the following open futures contracts as of April 30, 2021:


	Number of Contracts		Expiration Date		Trading Currency		Notional Amount		Value and Unrealized Appreciation*
Long Contracts
MSCI EAFE E-Mini Index		14		06/18/2021		USD	$	1,580,110	$	31,758
MSCI Emerging Markets E-Mini Index		6		06/18/2021		USD		400,980		4,262
									$	36,020

*	This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts.

Forward Foreign Currency Contracts

FlexShares^® International Quality Dividend Defensive Index Fund had the following outstanding contracts as of April 30, 2021:


Contracts to Receive		Counterparty	In Exchange For		Maturity Date		Unrealized Appreciation/ (Depreciation)
EUR	80,000	Morgan Stanley	USD	96,299		06/16/2021	$	93
NOK	59,477	BNP Paribas SA	USD	7,024		06/16/2021		135
USD	217,047	Citibank NA	AUD	280,000		06/16/2021		716
USD	81,826	JPMorgan Chase Bank	AUD	105,364		06/16/2021		421
USD	73,707	Morgan Stanley	JPY	8,000,000		06/16/2021		492
Total unrealized appreciation							$	1,857
USD	16,996	Citibank NA	BRL^*	100,000		06/16/2021	$	(1,368	)
USD	228,628	Morgan Stanley	CHF	210,000		06/16/2021		(1,895	)
USD	239,565	Morgan Stanley	EUR	200,000		06/16/2021		(1,414	)
USD	195,484	BNP Paribas SA	ZAR	3,000,000		06/17/2021		(10,003	)
Total unrealized depreciation							$	(14,680	)
Net unrealized depreciation							$	(12,823	)

*	Non-deliverable forward. See Note 2 in the Notes to Financial Statements.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			261

FlexShares^® International Quality Dividend Defensive Index Fund (cont.)

Abbreviations:

AUD – Australian Dollar

BRL – Brazilian Real

CHF – Swiss Franc

EUR – Euro

JPY – Japanese Yen

NOK – Norwegian Krone

USD – US Dollar

ZAR – South African Rand

FlexShares^® International Quality Dividend Defensive Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2021:


Australia	5.6	%
Austria	0.4
Belgium	2.5
Brazil	1.0
Canada	4.9
Chile	0.2
China	8.4
Denmark	0.7
Finland	2.3
France	4.3
Germany	4.1
Greece	0.7
Hong Kong	1.1
India	4.8
Indonesia	0.4
Italy	1.3
Japan	12.4
Malaysia	1.7
Mexico	0.8
Netherlands	1.2
New Zealand	0.3
Norway	0.7
Russia	2.5
Singapore	1.3
South Africa	1.8
South Korea	2.7
Spain	2.8
Sweden	0.8
Switzerland	8.2
Taiwan	6.4
Thailand	0.6
Turkey	1.0
United Kingdom	9.7
Other¹	2.4
	100.0	%

¹	Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities).

See Accompanying Notes to the Financial Statements.


262		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^®International Quality Dividend Dynamic Index Fund

April 30, 2021 (Unaudited)


Investments	Shares		Value

COMMON STOCKS – 98.8%

Aerospace & Defense – 0.7%

MTU Aero Engines AG		1,548	$	391,145

Auto Components – 1.7%

Denso Corp.		2,200		142,078

Fuyao Glass Industry Group Co. Ltd., Class H(a)		50,400		292,984

Koito Manufacturing Co. Ltd.		1,800		112,145

Magna International, Inc.		2,034		191,925

Motherson Sumi Systems Ltd.*		11,790		34,173

Nexteer Automotive Group Ltd.		72,000		80,743

Valeo SA		2,304		74,720
				928,768

Automobiles – 1.3%

Ford Otomotiv Sanayi A/S		18,144		384,674

Geely Automobile Holdings Ltd.		36,000		93,397

Porsche Automobil Holding SE (Preference)		1,638		172,692

Tofas Turk Otomobil Fabrikasi A/S		21,366		76,889
				727,652

Banks – 8.1%

Absa Group Ltd.*		46,296		390,760

Agricultural Bank of China Ltd., Class H		270,000		104,985

Bancolombia SA		12,780		95,380

Bank Mandiri Persero Tbk. PT		268,200		114,651

Bank Rakyat Indonesia Persero Tbk. PT		430,200		120,617

China Construction Bank Corp., Class H		486,000		384,828

China Merchants Bank Co. Ltd., Class H		18,000		145,194

Credit Agricole SA		10,332		160,098

DBS Group Holdings Ltd.		23,490		528,101

DNB ASA		7,164		154,391

Hang Seng Bank Ltd.(b)		18,000		353,425

Krung Thai Bank PCL, NVDR		273,600		99,291

National Bank of Canada		2,538		184,357

Nedbank Group Ltd.*		14,742		150,250

Nordea Bank Abp		18,180		189,115


Investments	Shares		Value

Banks – (continued)

Royal Bank of Canada		14,256	$	1,359,430
				4,534,873

Beverages – 0.5%

Anheuser-Busch InBev SA/NV		3,852		272,797

Capital Markets – 2.5%

Macquarie Group Ltd.		1,728		214,221

Magellan Financial Group Ltd.		3,096		115,988

Meritz Securities Co. Ltd.		117,180		508,814

Natixis SA		6,228		30,469

St James’s Place plc		7,470		140,814

Standard Life Aberdeen plc		93,024		357,410
				1,367,716

Chemicals – 2.8%

BASF SE		4,590		370,646

Covestro AG(a)		2,016		132,070

Nippon Sanso Holdings Corp.		5,400		101,474

Nissan Chemical Corp.(b)		5,700		293,070

Shin-Etsu Chemical Co. Ltd.		1,800		303,829

Sinopec Shanghai Petrochemical Co. Ltd., Class H		396,000		98,403

Wacker Chemie AG		1,710		258,341
				1,557,833

Construction & Engineering – 0.9%

ACS Actividades de Construccion y Servicios SA(b)		11,880		387,990

HOCHTIEF AG*		1,206		113,210
				501,200

Construction Materials – 0.5%

China Resources Cement Holdings Ltd.		216,000		235,555

CRH plc		792		37,402
				272,957

Distributors – 0.2%

Jardine Cycle & Carriage Ltd.		5,400		94,086

Diversified Consumer Services – 0.2%

YDUQS Participacoes SA		18,000		97,079

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			263

FlexShares^® International Quality Dividend Dynamic Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Diversified Financial Services – 3.0%

Banca Mediolanum SpA		44,550	$	416,807

EXOR NV		5,220		429,312

M&G plc		152,802		459,724

REC Ltd.		193,500		334,636
				1,640,479

Diversified Telecommunication Services – 0.6%

Telefonica SA(b)		33,534		155,559

Telenor ASA(b)		6,516		116,427

Turk Telekomunikasyon A/S		49,122		37,736
				309,722

Electric Utilities – 3.2%

Centrais Eletricas Brasileiras SA (Preference), Class B		16,200		110,424

Endesa SA		4,716		124,102

Enel SpA		13,446		133,812

Fortum OYJ(b)		16,200		426,109

SSE plc		22,428		455,853

Transmissora Alianca de Energia Eletrica SA		66,600		513,134
				1,763,434

Electrical Equipment – 1.8%

Fuji Electric Co. Ltd.		2,700		122,890

Mitsubishi Electric Corp.		28,800		443,178

Schneider Electric SE		2,862		458,291
				1,024,359

Electronic Equipment, Instruments & Components – 1.2%

Omron Corp.		4,500		341,293

Walsin Technology Corp.		12,000		104,178

Yageo Corp.		5,000		97,197

Yokogawa Electric Corp.		6,400		116,166
				658,834

Entertainment – 0.5%

Nintendo Co. Ltd.		500		286,766

Equity Real Estate Investment Trusts (REITs) – 0.7%

Covivio(b)		1,476		131,839

Growthpoint Properties Ltd.(b)		120,312		120,416

RioCan REIT(b)		7,002		119,641
				371,896


Investments	Shares		Value

Food Products – 1.0%

Nestle SA (Registered)		2,214	$	264,306

Want Want China Holdings Ltd.(b)		432,000		313,146
				577,452

Gas Utilities – 1.4%

AltaGas Ltd.		7,362		137,461

Enagas SA		12,960		282,695

Naturgy Energy Group SA(b)		14,562		373,909
				794,065

Health Care Equipment & Supplies – 0.8%

Hoya Corp.		2,700		307,163

Straumann Holding AG (Registered)		108		154,472
				461,635

Health Care Providers & Services – 0.2%

Notre Dame Intermedica Participacoes SA		7,200		107,856

Hotels, Restaurants & Leisure – 2.1%

Aristocrat Leisure Ltd.		5,238		150,393

Genting Singapore Ltd.		181,800		118,203

Kangwon Land, Inc.*		18,126		412,269

OPAP SA		31,608		485,134
				1,165,999

Household Durables – 1.3%

Electrolux AB, Series B		4,158		116,837

Panasonic Corp.		12,600		148,588

Persimmon plc		10,890		472,235
				737,660

Industrial Conglomerates – 1.6%

LG Corp.(c)		4,230		481,049

Siemens AG (Registered)		2,592		433,153
				914,202

Insurance – 7.6%

Allianz SE (Registered)		4,158		1,083,169

Aviva plc		73,638		408,128

AXA SA(b)		9,702		274,755

BB Seguridade Participacoes SA		18,000		74,087

Legal & General Group plc		118,152		445,612

Manulife Financial Corp.		22,914		499,928

See Accompanying Notes to the Financial Statements.


264		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Dynamic Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Insurance – (continued)

Old Mutual Ltd.		15,858	$	13,828

PICC Property & Casualty Co. Ltd., Class H		72,000		70,731

Ping An Insurance Group Co. of China Ltd., Class H		18,000		196,875

Poste Italiane SpA(a)		6,462		84,791

Prudential plc		13,122		278,789

Swiss Re AG		4,842		450,621

Zurich Insurance Group AG		918		377,144
				4,258,458

Interactive Media & Services – 1.0%

Tencent Holdings Ltd.		7,200		577,531

Internet & Direct Marketing Retail – 1.3%

CJ ENM Co. Ltd.		2,592		335,549

ZOZO, Inc.		11,600		391,602
				727,151

IT Services – 1.1%

Amadeus IT Group SA*		4,212		287,492

Capgemini SE		1,872		343,436
				630,928

Machinery – 2.1%

Atlas Copco AB, Class B(b)		756		39,294

FANUC Corp.		1,900		437,606

Komatsu Ltd.		5,400		158,337

MINEBEA MITSUMI, Inc.		16,200		406,241

SKF AB, Class B		4,608		119,127

Weichai Power Co. Ltd., Class H		7,000		16,241
				1,176,846

Media – 0.6%

Publicis Groupe SA		2,340		151,718

WPP plc		11,664		157,553
				309,271

Metals & Mining – 7.9%

Anglo American Platinum Ltd.		1,350		184,698

Anglo American plc		6,246		265,490

BHP Group Ltd.(b)		5,022		185,040

BHP Group plc		6,984		211,235


Investments	Shares		Value

Metals & Mining – (continued)

Evraz plc		54,540	$	485,098

Fortescue Metals Group Ltd.		25,398		443,186

Gerdau SA (Preference)		25,200		154,305

Impala Platinum Holdings Ltd.		8,478		158,679

Kumba Iron Ore Ltd.		9,486		430,461

Magnitogorsk Iron & Steel Works PJSC		157,320		136,583

MMC Norilsk Nickel PJSC		936		319,912

Rio Tinto plc		8,622		725,328

Severstal PAO		6,570		155,262

Vedanta Ltd.		158,274		549,677
				4,404,954

Multiline Retail – 0.1%

Central Retail Corp. PCL, NVDR		70,200		78,908

Multi-Utilities – 0.3%

AGL Energy Ltd.(b)		27,432		189,225

Oil, Gas & Consumable Fuels – 7.9%

Adaro Energy Tbk. PT		4,681,800		403,520

Aker BP ASA		1,530		43,976

BP plc		102,528		430,124

Canadian Natural Resources Ltd.		17,028		516,432

China Petroleum & Chemical Corp., Class H		180,000		89,689

China Shenhua Energy Co. Ltd., Class H		153,000		319,126

Equinor ASA		7,308		149,094

Exxaro Resources Ltd.(b)		7,938		83,443

Indian Oil Corp. Ltd.		85,806		105,241

Keyera Corp.(b)		5,562		127,091

OMV AG		2,664		131,516

Pembina Pipeline Corp.		4,986		153,771

Suncor Energy, Inc.		8,298		177,332

TOTAL SE		25,380		1,125,094

Woodside Petroleum Ltd.		22,014		388,728

Yanzhou Coal Mining Co. Ltd., Class H		108,000		128,902
				4,373,079

Paper & Forest Products – 0.4%

UPM-Kymmene OYJ		6,048		236,983

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			265

FlexShares^® International Quality Dividend Dynamic Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Personal Products – 1.9%

L’Oreal SA(b)		2,520	$	1,036,421

Pharmaceuticals – 4.3%

Astellas Pharma, Inc.		10,800		162,091

Eisai Co. Ltd.		3,900		254,363

GlaxoSmithKline plc		25,506		473,071

Novartis AG (Registered)		6,354		543,126

Orion OYJ, Class B		6,246		276,922

Roche Holding AG		1,242		405,262

Roche Holding AG – BR		468		162,765

Takeda Pharmaceutical Co. Ltd.		3,600		119,720
				2,397,320

Professional Services – 0.5%

Nihon M&A Center, Inc.		10,800		282,981

Real Estate Management & Development – 4.7%

Agile Group Holdings Ltd.		72,000		112,911

China Resources Land Ltd.		74,000		347,284

CK Asset Holdings Ltd.		54,000		338,940

Country Garden Holdings Co. Ltd.(b)		239,109		284,769

Daiwa House Industry Co. Ltd.		1,800		53,273

Guangzhou R&F Properties Co. Ltd., Class H(b)		324,000		414,655

KWG Group Holdings Ltd.		216,000		347,075

Land & Houses PCL, NVDR		1,530,000		425,034

Logan Group Co. Ltd.		54,000		85,934

NEPI Rockcastle plc		18,144		122,190

Yuzhou Group Holdings Co. Ltd.		324,000		90,106
				2,622,171

Road & Rail – 0.5%

Aurizon Holdings Ltd.		96,480		279,472

Semiconductors & Semiconductor Equipment – 8.7%

Advantest Corp.		800		75,971

ASML Holding NV		3,960		2,579,926

Globalwafers Co. Ltd.		5,000		154,656

Nanya Technology Corp.		36,000		118,054

Novatek Microelectronics Corp.		24,000		536,140

Taiwan Semiconductor Manufacturing Co. Ltd.		33,000		708,839


Investments	Shares		Value

Semiconductors & Semiconductor Equipment – (continued)

Tokyo Electron Ltd.		1,500	$	663,099
				4,836,685

Software – 0.2%

Nemetschek SE		1,458		108,819

SAP SE		126		17,710
				126,529

Specialty Retail – 1.5%

Fast Retailing Co. Ltd.		200		164,146

Hotai Motor Co. Ltd.		5,000		108,116

Industria de Diseno Textil SA(b)		2,466		87,929

Petrobras Distribuidora SA		86,400		358,484

USS Co. Ltd.		7,200		130,490
				849,165

Technology Hardware, Storage & Peripherals – 1.9%

Lite-On Technology Corp.		72,000		164,708

Pegatron Corp.		108,000		284,567

Samsung Electronics Co. Ltd.		4,698		344,214

Samsung Electronics Co. Ltd. (Preference)		4,032		265,695
				1,059,184

Textiles, Apparel & Luxury Goods – 0.7%

Eclat Textile Co. Ltd.		20,000		383,776

Tobacco – 1.6%

British American Tobacco plc		3,618		134,350

Imperial Brands plc	��	19,404		405,002

Japan Tobacco, Inc.		19,800		370,259
				909,611

Trading Companies & Distributors – 0.4%

Rexel SA*		6,192		122,021

Toyota Tsusho Corp.		2,800		118,348
				240,369

Transportation Infrastructure – 0.4%

CCR SA		37,800		83,888

China Merchants Port Holdings Co. Ltd.		72,000		115,506
				199,394

See Accompanying Notes to the Financial Statements.


266		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Dynamic Index Fund (cont.)


Investments	Shares		Value

COMMON STOCKS – (continued)

Wireless Telecommunication Services – 2.4%

Mobile TeleSystems PJSC		6,300	$	26,874

MTN Group Ltd.*		24,714		156,077

SoftBank Group Corp.		7,700		696,350

Total Access Communication PCL, NVDR		379,800		399,468

Vodafone Group plc		30,114		57,038
				1,335,807
Total Common Stocks (Cost $47,454,347)				55,082,684
	Principal Amount

SECURITIES LENDING REINVESTMENTS(d) – 3.9%

REPURCHASE AGREEMENTS – 3.9%

Citigroup Global Markets Ltd., 0.05%, dated 4/30/2021, due 5/3/2021, repurchase price $400,000, collateralized by various U.S. Treasury Securities, ranging from 0.00% - 3.00%, maturing 5/15/2023 - 2/15/2049; Foreign Government Fixed Income Securities, 0.45%, maturing 8/19/2027; total market value $406,995	$	400,000		400,000

Citigroup Global Markets, Inc., 0.01%, dated 4/30/2021, due 5/3/2021, repurchase price $1,161,098, collateralized by various U.S. Treasury Securities, ranging from 0.88% - 5.00%, maturing 1/15/2028 - 2/15/2047; total market value $1,171,572		1,161,098		1,161,098


Investments	Principal Amount		Value

REPURCHASE AGREEMENTS – (continued)

Deutsche Bank AG, London Branch, 0.15%, dated 4/30/2021, due 5/3/2021, repurchase price $600,000, collateralized by various U.S. Treasury Securities, 0.13%, maturing 7/15/2030; Foreign Government Fixed Income Securities, ranging from 0.25% - 3.13%, maturing 7/23/2021 - 2/14/2031; total market value $609,257	$	600,000	$	600,000
				2,161,098
Total Securities Lending Reinvestments (Cost $2,161,098)				2,161,098
Total Investments – 102.7% (Cost $49,615,445)				57,243,782

Liabilities in excess of other assets – (2.7%)				(1,523,292	)
NET ASSETS – 100.0%			$	55,720,490

*	Non-income producing security.

^(a)

^(b)

The security or a portion of this security is on loan at April 30, 2021. The total value of securities on loan at April 30, 2021 was $3,861,859, collateralized in the form of cash with a value of $2,161,098 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $630,026 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 6.00%, and maturity dates ranging from May 13, 2021 – February 15, 2051 and $1,372,913 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 6.00%, and maturity dates ranging from July 7, 2021 – September 20, 2117; a total value of $4,164,037.

^(c)

Security fair valued as of April 30, 2021 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at April 30, 2021 amounted to $481,049, which represents approximately 0.86% of net assets of the Fund.

^(d)

The security was purchased with cash collateral held from securities on loan at April 30, 2021. The total value of securities purchased was $2,161,098.

Percentages shown are based on Net Assets.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			267

FlexShares^® International Quality Dividend Dynamic Index Fund (cont.)

Abbreviations

NVDR – Non-Voting Depositary Receipt

OYJ – Public Limited Company

PJSC – Public Joint Stock Company



Aggregate gross unrealized appreciation	$	8,343,595
Aggregate gross unrealized depreciation		(800,959	)
Net unrealized appreciation	$	7,542,636
Federal income tax cost	$	49,709,665

Futures Contracts

FlexShares^® International Quality Dividend Dynamic Index Fund had the following open futures contracts as of April 30, 2021:


	Number of Contracts		Expiration Date		Trading Currency		Notional Amount		Value and Unrealized Appreciation*
Long Contracts
MSCI EAFE E-Mini Index		4		06/18/2021		USD	$	451,460	$	9,995
MSCI Emerging Markets E-Mini Index		3		06/18/2021		USD		200,490		136
									$	10,131

*	This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts.

Forward Foreign Currency Contracts

FlexShares^® International Quality Dividend Dynamic Index Fund had the following outstanding contracts as of April 30, 2021:


Contracts to Receive		Counterparty	In Exchange For		Maturity Date		Unrealized Appreciation/ (Depreciation)
AUD	30,000	Citibank NA	USD	23,030		06/16/2021	$	149
CAD	15,000	Toronto-Dominion Bank (The)	USD	11,923		06/16/2021		271
EUR	7,000	BNP Paribas SA	USD	8,347		06/16/2021		87
EUR	34,000	Morgan Stanley	USD	40,450		06/16/2021		516
GBP	6,000	Morgan Stanley	USD	8,229		06/16/2021		79
HKD	160,000	Morgan Stanley	USD	20,585		06/16/2021		18
JPY	2,300,000	Morgan Stanley	USD	20,994		06/16/2021		56
USD	39,607	JPMorgan Chase Bank	AUD	51,000		06/16/2021		202
USD	19,541	Citibank NA	GBP	14,000		06/16/2021		155
USD	27,787	Morgan Stanley	GBP	20,000		06/16/2021		92
USD	34,688	Toronto-Dominion Bank (The)	GBP	25,000		06/16/2021		71
USD	10,301	UBS AG	HKD	80,000		06/16/2021		–
USD	28,423	Morgan Stanley	JPY	3,085,000		06/16/2021		190
Total unrealized appreciation							$	1,886
HKD	106,000	Toronto-Dominion Bank (The)	USD	13,657		06/16/2021	$	(8	)
JPY	2,400,000	JPMorgan Chase Bank	USD	22,035		06/16/2021		(70	)
JPY	1,400,000	Morgan Stanley	USD	12,903		06/16/2021		(91	)
USD	108,417	Morgan Stanley	CHF	100,000		06/16/2021		(1,354	)
USD	8,652	Bank of New York	DKK	54,000		06/16/2021		(96	)

See Accompanying Notes to the Financial Statements.


268		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Dynamic Index Fund (cont.)

Forward Foreign Currency Contracts (cont.)


Contracts to Receive		Counterparty	In Exchange For		Maturity Date		Unrealized Appreciation/ (Depreciation)
USD	45,517	Morgan Stanley	EUR	38,000		06/16/2021	$	(269	)
USD	64,015	Toronto-Dominion Bank (The)	EUR	54,000		06/16/2021		(1,049	)
USD	28,263	Morgan Stanley	HKD	220,000		06/16/2021		(66	)
USD	32,660	Morgan Stanley	JPY	3,600,000		06/16/2021		(288	)
USD	30,144	Toronto-Dominion Bank (The)	JPY	3,300,000		06/16/2021		(58	)
USD	13,379	Goldman Sachs & Co.	SGD	18,000		06/16/2021		(149	)
Total unrealized depreciation							$	(3,498	)
Net unrealized depreciation							$	(1,612	)

Abbreviations:

AUD – Australian Dollar

CAD – Canadian Dollar

CHF – Swiss Franc

DKK – Danish Krone

EUR – Euro

GBP – British Pound

HKD – Hong Kong Dollar

JPY – Japanese Yen

SGD – Singapore Dollar

USD – US Dollar

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			269

FlexShares^® International Quality Dividend Dynamic Index Fund (cont.)

FlexShares^® International Quality Dividend Dynamic Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2021:


Australia	3.5	%
Austria	0.2
Belgium	0.5
Brazil	2.7
Canada	6.2
China	8.9
Colombia	0.2
Finland	1.7
France	7.0
Germany	5.5
Greece	0.9
Hong Kong	1.2
India	1.8
Indonesia	1.2
Italy	1.9
Japan	12.9
Netherlands	4.6
Norway	0.8
Russia	1.2
Singapore	1.3
South Africa	3.3
South Korea	4.2
Spain	3.1
Sweden	0.8
Switzerland	4.2
Taiwan	4.8
Thailand	1.8
Turkey	0.9
United Kingdom	11.5
Other¹	1.2
	100.0	%

¹	Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities).

See Accompanying Notes to the Financial Statements.


270		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^®iBoxx 3-Year Target Duration TIPS Index Fund

April 30, 2021 (Unaudited)


Investments	Principal Amount		Value

U.S. TREASURY OBLIGATIONS – 99.9%

U.S. Treasury Inflation Linked Bonds
2.38%, 1/15/2025(a)	$	137,921,801	$	162,335,053
2.00%, 1/15/2026		28,510,817		33,943,767
2.38%, 1/15/2027		23,139,471		28,608,207

U.S. Treasury Inflation Linked Notes
0.13%, 7/15/2022(a)		50,169,278		52,092,253
0.13%, 1/15/2023		50,219,861		52,621,237
0.63%, 4/15/2023		53,784,243		57,209,537
0.38%, 7/15/2023		49,888,406		53,441,856
0.63%, 1/15/2024		49,721,674		54,024,851
0.50%, 4/15/2024		118,514,595		128,918,264
0.13%, 7/15/2024		160,353,295		174,296,553
0.13%, 10/15/2024		127,437,204		138,735,874
0.25%, 1/15/2025		160,743,190		175,740,240
0.13%, 4/15/2025		38,954,172		42,462,761
0.38%, 7/15/2025		48,919,742		54,265,205
0.13%, 10/15/2025		37,376,685		41,050,516
0.63%, 1/15/2026		50,512,731		56,682,390
0.13%, 4/15/2026		23,548,327		25,815,140
0.13%, 7/15/2026(a)		43,492,095		48,039,171
0.38%, 1/15/2027		45,047,750		50,258,621
Total U.S. Treasury Obligations (Cost $1,352,671,804)				1,430,541,496
Total Investments – 99.9% (Cost $1,352,671,804)				1,430,541,496

Other assets less liabilities – 0.1%				1,721,571
NET ASSETS – 100.0%			$	1,432,263,067

^(a)

The security or a portion of this security is on loan at April 30, 2021. The total value of securities on loan at April 30, 2021 was $54,504,147, collateralized by $55,176,762 in U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.13%, and maturity dates ranging from May 4, 2021 – February 15, 2051 and $519,468 in Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 6.50%, and maturity dates ranging from May 5, 2021 – April 25, 2060; a total value of $55,696,230.

Percentages shown are based on Net Assets.



Aggregate gross unrealized appreciation	$	77,837,220
Aggregate gross unrealized depreciation		—
Net unrealized appreciation	$	77,837,220
Federal income tax cost	$	1,352,704,276

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			271

Schedule of Investments

FlexShares^®iBoxx 5-Year Target Duration TIPS Index Fund

April 30, 2021 (Unaudited)


Investments	Principal Amount		Value

U.S. TREASURY OBLIGATIONS – 99.9%

U.S. Treasury Inflation Linked Bonds
2.38%, 1/15/2025(a)	$	21,020,496	$	24,741,290
2.00%, 1/15/2026		14,271,973		16,991,605
2.38%, 1/15/2027		16,328,834		20,187,957
1.75%, 1/15/2028		10,570,973		12,848,835
3.63%, 4/15/2028		20,752,926		28,184,793
2.50%, 1/15/2029		9,358,004		12,108,801
3.88%, 4/15/2029		17,183,033		24,320,428
3.38%, 4/15/2032		4,063,013		5,986,441

U.S. Treasury Inflation Linked Notes
0.13%, 7/15/2024		24,257,084		26,366,319
0.13%, 10/15/2024		19,434,604		21,157,690
0.25%, 1/15/2025		24,504,300		26,790,507
0.13%, 4/15/2025		19,519,853		21,277,999
0.38%, 7/15/2025(a)		24,475,398		27,149,827
0.13%, 10/15/2025		18,722,300		20,562,553
0.63%, 1/15/2026		25,309,497		28,400,816
0.13%, 4/15/2026		11,739,062		12,869,089
0.13%, 7/15/2026(a)		30,704,627		33,914,779
0.38%, 1/15/2027(a)		31,846,896		35,530,767
0.38%, 7/15/2027(a)		30,144,307		33,855,185
0.50%, 1/15/2028		22,301,246		25,129,715
0.75%, 7/15/2028		20,716,054		23,894,339
0.88%, 1/15/2029(a)		20,304,494		23,576,779
0.25%, 7/15/2029(a)		22,042,167		24,558,915
0.13%, 1/15/2030		22,579,900		24,753,877
0.13%, 7/15/2030		23,695,647		26,066,971
0.13%, 1/15/2031(a)		16,729,541		18,270,543
Total U.S. Treasury Obligations (Cost $556,968,020)				599,496,820


Investments	Principal Amount		Value

SECURITIES LENDING REINVESTMENTS(b) – 0.6%

REPURCHASE AGREEMENTS – 0.6%

Citigroup Global Markets Ltd., 0.05%, dated 4/30/2021, due 5/3/2021, repurchase price $700,000, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 3.00%, maturing 5/15/2023 – 2/15/2049; Foreign Government Fixed Income Securities, 0.45%, maturing 8/19/2027; total market value $712,242	$	700,000	$	700,000

Citigroup Global Markets, Inc., 0.01%, dated 4/30/2021, due 5/3/2021, repurchase price $1,848,356, collateralized by various U.S. Treasury Securities, ranging from 0.88% – 5.00%, maturing 1/15/2028 – 2/15/2047; total market value $1,865,030		1,848,356		1,848,356

Deutsche Bank AG, London Branch, 0.15%, dated 4/30/2021, due 5/3/2021, repurchase price $1,000,000, collateralized by various U.S. Treasury Securities, 0.13%, maturing 7/15/2030; Foreign Government Fixed Income Securities, ranging from 0.25% – 3.13%, maturing 7/23/2021 – 2/14/2031; total market value $1,015,428		1,000,000		1,000,000

See Accompanying Notes to the Financial Statements.


272		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® iBoxx 5-Year Target Duration TIPS Index Fund (cont.)


Investments	Principal Amount		Value

SECURITIES LENDING REINVESTMENTS(b) – (continued)

REPURCHASE AGREEMENTS – (continued)

NBC Global Finance Ltd., 0.19%, dated 4/30/2021, due 5/3/2021, repurchase price $100,000, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 4.38%, maturing 1/31/2023 – 8/15/2050; Common Stocks; total market value $109,827	$	100,000	$	100,000
				3,648,356
Total Securities Lending Reinvestments (Cost $3,648,356)				3,648,356
Total Investments – 100.5% (Cost $560,616,376)				603,145,176

Liabilities in excess of other assets – (0.5%)				(2,759,284	)
NET ASSETS – 100.0%			$	600,385,892

^(a)

The security or a portion of this security is on loan at April 30, 2021. The total value of securities on loan at April 30, 2021 was $115,918,300, collateralized in the form of cash with a value of $3,648,356 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments and $117,097,238 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.00%, and maturity dates ranging from May 5, 2021 – July 22, 2068; a total value of $120,745,594.

^(b)

The security was purchased with cash collateral held from securities on loan at April 30, 2021. The total value of securities purchased was $3,648,356.

Percentages shown are based on Net Assets.



Aggregate gross unrealized appreciation	$	42,071,092
Aggregate gross unrealized depreciation		—
Net unrealized appreciation	$	42,071,092
Federal income tax cost	$	561,074,084

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			273

Schedule of Investments

FlexShares^®Disciplined Duration MBS Index Fund

April 30, 2021 (Unaudited)


Investments	Principal Amount		Value

MORTGAGE-BACKED SECURITIES – 100.1%

FHLMC
2.00%, 8/1/2031	$	211,571	$	219,136
2.00%, 10/1/2031		45,234		46,854
3.00%, 4/1/2033		174,659		185,309
3.00%, 6/1/2033		141,886		150,539
5.00%, 5/1/2034		69,440		80,407
5.00%, 7/1/2034		371,340		429,814
3.00%, 5/1/2035		25,964		27,456
5.00%, 7/1/2035		351,956		407,299
5.00%, 8/1/2035		150,694		174,370
5.00%, 10/1/2035		20,730		24,005
3.00%, 11/1/2035		30,984		32,768
5.00%, 11/1/2035		223,542		258,858
5.00%, 12/1/2035		136,560		158,003
6.00%, 1/1/2037		87,544		104,338
6.00%, 4/1/2037		44,725		53,291
6.00%, 5/1/2037		79,301		94,483
5.00%, 2/1/2038		68,058		78,694
5.00%, 7/1/2038		201,708		233,479
5.00%, 10/1/2038		62,678		72,493
5.00%, 11/1/2038		246,233		285,124
5.00%, 12/1/2038		408,598		473,141
5.00%, 2/1/2039		173,927		200,931
5.00%, 5/1/2039		82,818		95,920
5.00%, 6/1/2039		37,603		43,530
5.00%, 7/1/2039		60,152		69,668
5.00%, 9/1/2039		85,375		98,339
6.00%, 11/1/2039		48,415		57,596
5.00%, 12/1/2039		293,194		339,584
5.00%, 1/1/2040		22,856		26,448
5.00%, 3/1/2040		63,570		73,158
5.00%, 4/1/2040		26,286		30,436
6.00%, 4/1/2040		58,280		68,872
5.00%, 5/1/2040		24,516		28,395
6.00%, 5/1/2040		135,069		159,716
5.00%, 7/1/2040		137,368		158,742
6.00%, 7/1/2040		213,832		254,205
5.00%, 9/1/2040		112,711		130,532
4.00%, 1/1/2041		19,218		21,329
5.00%, 5/1/2041		196,410		227,603
5.00%, 7/1/2041		286,333		331,085
3.50%, 11/1/2041		98,452		107,243
3.00%, 3/1/2042		17,652		18,689
3.00%, 4/1/2042		117,596		125,129


Investments	Principal Amount		Value

MORTGAGE-BACKED SECURITIES – (continued)
3.00%, 6/1/2042	$	102,312	$	108,901
3.00%, 8/1/2042		57,314		61,005
3.00%, 11/1/2042		364,264		389,685
3.00%, 12/1/2042		111,635		119,164
3.00%, 1/1/2043		60,633		64,603
3.00%, 2/1/2043		33,953		36,324
3.00%, 3/1/2043		148,408		159,281
3.00%, 4/1/2043		40,167		42,798
3.00%, 6/1/2043		22,595		24,245
3.00%, 10/1/2043		75,577		80,385
4.00%, 8/1/2044		20,396		22,408
5.00%, 8/1/2044		51,720		59,796
4.00%, 1/1/2045		64,362		70,713
4.00%, 2/1/2045		118,550		131,664
4.00%, 8/1/2045		159,223		174,461
4.00%, 9/1/2045		28,230		30,897
4.00%, 10/1/2045		236,414		259,098
4.00%, 11/1/2045		53,886		58,949
4.00%, 12/1/2045		23,164		25,387
4.00%, 1/1/2046		70,255		77,140
2.50%, 9/1/2046		34,580		35,978
3.00%, 11/1/2046		39,462		41,508
3.00%, 12/1/2046		208,501		220,537
3.00%, 1/1/2047		1,319,446		1,402,598

FHLMC UMBS
2.00%, 8/1/2031		51,623		53,453
2.00%, 11/1/2031		83,029		85,996
2.00%, 2/1/2032		87,367		90,493
5.00%, 8/1/2035		490,881		568,163
1.50%, 4/1/2036		1,000,000		1,014,323
6.00%, 4/1/2036		599,949		713,281
5.50%, 12/1/2036		129,814		151,365
5.00%, 3/1/2038		76,540		88,554
5.00%, 7/1/2039		94,525		109,436
5.00%, 10/1/2039		38,343		44,390
5.00%, 1/1/2040		35,600		41,341
5.00%, 3/1/2040		61,657		71,386
5.50%, 3/1/2040		313,896		366,561
5.00%, 5/1/2040		96,356		110,968
2.00%, 7/1/2040		142,839		145,881
6.00%, 7/1/2040		974,263		1,159,987
1.50%, 10/1/2040		703,368		700,486
3.50%, 12/1/2040		66,234		71,825
2.00%, 1/1/2041		222,970		227,719
1.50%, 3/1/2041		880,910		877,296

See Accompanying Notes to the Financial Statements.


274		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Disciplined Duration MBS Index Fund (cont.)


Investments	Principal Amount		Value

MORTGAGE-BACKED SECURITIES – (continued)
2.00%, 3/1/2041	$	776,937	$	793,481
4.50%, 3/1/2041		127,880		143,925
1.50%, 4/1/2041		249,034		247,074
2.00%, 4/1/2041		199,263		203,506
4.50%, 4/1/2041		25,091		28,345
1.50%, 5/1/2041		750,000		742,074
4.00%, 1/1/2042		85,931		95,417
5.00%, 2/1/2042		81,965		94,681
3.00%, 3/1/2042		161,549		172,359
3.50%, 11/1/2042		116,202		127,286
3.00%, 12/1/2042		719,334		769,255
3.50%, 1/1/2043		55,136		60,660
3.50%, 2/1/2043		45,802		50,032
2.50%, 6/1/2043		581,379		608,802
4.00%, 12/1/2043		19,189		21,157
4.50%, 3/1/2044		93,151		104,777
4.00%, 6/1/2044		7,454		8,186
4.50%, 7/1/2044		38,237		42,674
4.00%, 8/1/2044		22,039		24,205
4.50%, 12/1/2044		21,623		23,938
5.00%, 12/1/2044		215,390		248,973
4.00%, 2/1/2045		23,710		26,322
4.50%, 9/1/2045		20,133		22,253
4.00%, 10/1/2045		74,768		81,761
4.00%, 12/1/2045		31,946		35,388
4.50%, 12/1/2045		1,026,239		1,140,115
4.00%, 1/1/2046		56,008		61,814
4.50%, 4/1/2046		50,868		57,548
2.50%, 12/1/2046		184,164		191,812
2.50%, 11/1/2050		194,504		203,679
3.00%, 3/1/2051		998,292		1,056,908
3.00%, 4/1/2051		665,944		702,235

FNMA UMBS
3.50%, 10/1/2030		81,942		87,582
3.50%, 11/1/2030		16,560		17,700
2.00%, 9/1/2031		42,515		44,023
2.00%, 11/1/2031		96,440		99,864
2.00%, 2/1/2032		81,774		84,696
6.00%, 12/1/2032		15,948		18,884
5.50%, 2/1/2033		25,365		29,389
5.50%, 4/1/2033		112,062		129,935
6.00%, 4/1/2033		9,360		11,148
3.00%, 5/1/2033		162,627		171,981
3.00%, 6/1/2033		160,015		169,644
3.00%, 7/1/2033		20,431		21,666


Investments	Principal Amount		Value

MORTGAGE-BACKED SECURITIES – (continued)
5.50%, 7/1/2033	$	37,402	$	43,369
5.50%, 8/1/2033		54,551		63,253
3.00%, 10/1/2033		35,084		37,205
5.50%, 1/1/2034		74,547		86,672
5.50%, 2/1/2034		1,571,077		1,820,932
5.50%, 3/1/2034		20,786		23,515
6.00%, 3/1/2034		322,497		378,775
5.50%, 4/1/2034		200,749		233,007
5.50%, 7/1/2034		50,213		58,089
6.00%, 8/1/2034		55,268		65,774
6.50%, 9/1/2034		148,758		175,551
5.50%, 11/1/2034		80,015		93,068
5.50%, 12/1/2034		46,812		54,481
6.00%, 12/1/2034		250,064		297,162
5.50%, 1/1/2035		90,408		105,106
5.50%, 2/1/2035		171,016		198,561
6.00%, 4/1/2035		926,630		1,073,759
5.50%, 5/1/2035		38,647		45,161
5.00%, 8/1/2035		33,777		39,032
5.50%, 10/1/2035		42,495		49,282
1.50%, 11/1/2035		1,054,752		1,070,661
5.50%, 11/1/2035		35,283		41,257
6.00%, 11/1/2035		47,504		56,101
5.00%, 12/1/2035		73,864		85,396
2.00%, 1/1/2036		696,583		723,884
5.50%, 1/1/2036		197,097		229,453
5.00%, 2/1/2036		283,145		327,520
4.50%, 6/1/2036		719,769		807,706
6.00%, 6/1/2036		68,152		81,191
5.00%, 7/1/2036		35,828		41,407
5.50%, 7/1/2036		161,239		187,736
6.50%, 8/1/2036		25,491		30,309
6.00%, 9/1/2036		990,553		1,177,824
6.00%, 11/1/2036		68,232		81,288
5.50%, 12/1/2036		125,436		146,462
5.50%, 1/1/2037		22,597		26,372
5.50%, 2/1/2037		6,634		7,536
5.50%, 3/1/2037		321,949		374,648
5.50%, 4/1/2037		262,887		306,376
5.50%, 5/1/2037		31,840		36,898
6.00%, 6/1/2037		133,936		159,572
5.50%, 8/1/2037		1,370,971		1,596,111
6.00%, 8/1/2037		222,732		264,631
5.50%, 9/1/2037		70,940		82,778
6.00%, 9/1/2037		30,442		36,257
6.50%, 10/1/2037		51,477		59,952
5.50%, 2/1/2038		45,124		52,533

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			275

FlexShares^® Disciplined Duration MBS Index Fund (cont.)


Investments	Principal Amount		Value

MORTGAGE-BACKED SECURITIES – (continued)
5.00%, 3/1/2038	$	76,042	$	87,938
5.50%, 3/1/2038		17,363		20,302
5.00%, 5/1/2038		61,999		71,690
6.00%, 5/1/2038		22,229		26,462
5.50%, 6/1/2038		48,621		56,826
5.50%, 9/1/2038		20,189		23,565
6.00%, 9/1/2038		39,853		47,319
5.50%, 10/1/2038		36,467		42,455
5.50%, 11/1/2038		178,308		208,349
5.50%, 12/1/2038		73,699		86,114
5.50%, 3/1/2039		70,558		82,395
5.50%, 4/1/2039		19,800		22,977
5.50%, 5/1/2039		51,925		60,708
5.00%, 6/1/2039		66,494		76,857
5.50%, 8/1/2039		61,795		71,685
5.00%, 10/1/2039		79,254		91,735
5.50%, 11/1/2039		140,908		163,913
5.50%, 1/1/2040		17,410		20,249
5.00%, 2/1/2040		59,528		69,463
5.00%, 3/1/2040		202,768		234,692
5.50%, 4/1/2040		95,498		111,336
2.50%, 6/1/2040		373,042		389,299
5.00%, 6/1/2040		25,365		29,366
6.00%, 6/1/2040		160,543		190,112
2.50%, 8/1/2040		416,349		433,851
2.00%, 11/1/2040		955,704		976,055
2.50%, 11/1/2040		167,996		175,577
2.00%, 12/1/2040		509,449		520,298
2.50%, 12/1/2040		174,231		181,784
2.00%, 1/1/2041		221,114		225,823
3.50%, 1/1/2041		57,578		62,800
1.50%, 2/1/2041		986,539		982,492
2.50%, 2/1/2041		393,204		409,147
3.50%, 2/1/2041		38,013		41,368
4.50%, 2/1/2041		186,090		210,224
1.50%, 4/1/2041		516,631		513,078
2.00%, 5/1/2041		1,000,000		1,015,106
4.50%, 5/1/2041		59,969		67,592
5.00%, 5/1/2041		49,622		57,360
6.00%, 5/1/2041		36,824		43,736
4.50%, 6/1/2041		908,807		1,014,183
6.00%, 6/1/2041		1,531,854		1,821,383
5.00%, 7/1/2041		713,735		818,506
6.00%, 7/1/2041		2,945,374		3,511,540
4.50%, 8/1/2041		195,406		219,806


Investments	Principal Amount		Value

MORTGAGE-BACKED SECURITIES – (continued)
5.00%, 8/1/2041	$	95,289	$	110,148
4.00%, 9/1/2041		290,350		322,187
4.50%, 9/1/2041		123,613		138,873
5.50%, 9/1/2041		106,634		124,418
3.50%, 10/1/2041		175,954		193,046
4.00%, 10/1/2041		81,866		90,623
5.00%, 10/1/2041		107,778		124,588
4.00%, 11/1/2041		123,296		136,581
4.00%, 12/1/2041		28,513		31,486
4.00%, 1/1/2042		250,777		277,853
4.50%, 1/1/2042		27,552		30,933
6.00%, 1/1/2042		104,733		125,137
5.50%, 2/1/2042		91,162		106,339
3.00%, 3/1/2042		231,576		246,443
4.00%, 3/1/2042		126,854		141,982
3.00%, 4/1/2042		77,836		83,237
4.50%, 4/1/2042		150,756		169,258
3.50%, 5/1/2042		42,167		45,934
4.50%, 5/1/2042		109,646		123,744
3.50%, 6/1/2042		68,563		74,974
3.50%, 7/1/2042		165,289		181,048
4.00%, 7/1/2042		166,453		185,502
3.50%, 8/1/2042		58,153		63,707
3.00%, 9/1/2042		109,895		116,896
3.50%, 9/1/2042		21,643		23,705
4.00%, 9/1/2042		101,660		112,885
3.00%, 10/1/2042		213,412		228,285
3.50%, 10/1/2042		44,748		48,874
2.50%, 12/1/2042		355,880		372,398
3.00%, 12/1/2042		194,983		208,513
2.50%, 1/1/2043		10,701		11,154
3.00%, 1/1/2043		216,206		230,253
3.50%, 1/1/2043		59,626		65,321
4.00%, 1/1/2043		110,121		122,055
4.50%, 1/1/2043		296,601		330,873
2.50%, 2/1/2043		1,023,536		1,071,361
3.00%, 2/1/2043		261,790		279,747
3.50%, 2/1/2043		107,086		116,947
3.50%, 3/1/2043		125,268		137,426
2.50%, 5/1/2043		17,794		18,507
2.50%, 6/1/2043		9,412		9,838
4.00%, 8/1/2043		72,385		79,867
4.00%, 9/1/2043		147,240		162,654
4.50%, 9/1/2043		41,102		46,402
4.00%, 10/1/2043		186,073		205,417
4.00%, 11/1/2043		411,879		457,153
4.50%, 11/1/2043		130,479		145,414

See Accompanying Notes to the Financial Statements.


276		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Disciplined Duration MBS Index Fund (cont.)


Investments	Principal Amount		Value

MORTGAGE-BACKED SECURITIES – (continued)
4.50%, 12/1/2043	$	109,758	$	122,651
4.00%, 1/1/2044		144,668		159,615
4.50%, 2/1/2044		33,021		36,825
4.50%, 3/1/2044		159,577		182,599
5.00%, 3/1/2044		29,675		33,876
4.50%, 4/1/2044		323,354		360,570
5.50%, 5/1/2044		1,234,594		1,435,623
5.00%, 6/1/2044		55,023		62,685
4.00%, 10/1/2044		53,369		59,198
4.50%, 10/1/2044		15,773		17,542
4.50%, 12/1/2044		58,860		66,033
4.00%, 2/1/2045		42,656		47,287
4.50%, 2/1/2045		207,736		233,133
4.00%, 4/1/2045		35,777		39,653
4.00%, 8/1/2045		20,924		22,944
4.00%, 11/1/2045		89,276		98,042
4.50%, 11/1/2045		122,172		136,286
4.00%, 12/1/2045		482,475		532,409
4.00%, 2/1/2046		19,154		21,033
4.50%, 3/1/2046		229,776		256,517
4.00%, 4/1/2046		18,040		19,885
2.50%, 6/1/2046		103,677		108,569
4.50%, 6/1/2046		144,514		160,642
4.50%, 7/1/2046		34,136		37,628
4.50%, 8/1/2046		28,932		32,321
2.50%, 9/1/2046		196,622		204,679
2.50%, 10/1/2046		93,663		97,504
4.50%, 10/1/2046		53,229		59,019
2.50%, 12/1/2046		31,685		32,993
4.50%, 1/1/2047		51,932		57,225
4.00%, 2/1/2047		52,213		57,303
4.50%, 2/1/2047		57,414		64,538
2.50%, 3/1/2047		190,544		198,451
4.50%, 3/1/2047		263,452		297,814
4.50%, 5/1/2047		125,567		138,150
4.50%, 7/1/2047		119,921		132,496
5.00%, 7/1/2047		385,651		445,701
4.00%, 7/1/2048		212,590		234,111
5.50%, 1/1/2049		63,719		71,472
6.00%, 2/1/2049		135,756		163,327
5.50%, 6/1/2049		382,474		438,166
3.00%, 9/1/2050		981,189		1,034,689
2.50%, 11/1/2050		194,598		204,139


Investments	Principal Amount		Value

MORTGAGE-BACKED SECURITIES – (continued)

FNMA/FHLMC UMBS, 15 Year, Single Family
TBA 1.50%, 5/25/2036	$	3,000,000	$	3,035,859
TBA 2.00%, 5/25/2036		3,950,000		4,079,301

FNMA/FHLMC UMBS, 30 Year, Single Family
TBA 1.50%, 5/25/2051		4,275,000		4,187,329
TBA 2.00%, 5/25/2051		4,200,000		4,239,211
TBA 2.50%, 5/25/2051		6,800,000		7,052,344
TBA 3.00%, 5/25/2051		2,800,000		2,932,389

GNMA
6.00%, 3/15/2033		68,572		81,835
5.50%, 8/20/2033		43,896		51,362
5.50%, 11/20/2033		40,486		47,442
6.00%, 12/15/2033		127,994		152,765
5.50%, 3/20/2034		48,161		56,481
5.50%, 7/20/2034		30,767		36,118
5.50%, 9/20/2034		13,289		15,622
6.00%, 2/15/2035		28,092		33,395
5.50%, 3/20/2036		100,248		117,992
5.50%, 9/20/2038		59,182		69,588
5.50%, 2/20/2039		99,341		116,824
5.50%, 12/20/2040		28,931		33,275
5.50%, 1/20/2041		25,412		29,877
5.50%, 5/20/2041		170,295		200,266
5.50%, 11/20/2041		317,818		373,665
5.50%, 12/20/2041		74,215		85,838
5.50%, 2/20/2042		20,611		24,234
2.50%, 3/20/2043		60,887		63,967
2.50%, 5/20/2043		89,356		93,871
5.50%, 3/20/2044		93,760		110,290
2.50%, 11/20/2044		59,859		62,724
5.00%, 6/20/2045		255,525		294,010
5.50%, 3/20/2046		873,505		1,027,913
5.00%, 5/20/2046		604,682		694,114
5.50%, 2/20/2047		363,012		420,635
5.50%, 7/20/2049		28,248		31,279
3.00%, 4/20/2051		500,000		528,871
TBA 2.00%, 5/15/2051		2,000,000		2,039,687
TBA 2.50%, 5/15/2051		4,000,000		4,155,937
Total Mortgage-Backed Securities (Cost $105,677,836)				106,867,362
Total Investments – 100.1% (Cost $105,677,836)				106,867,362

Liabilities in excess of other assets – (0.1%)				(67,919	)
NET ASSETS – 100.0%			$	106,799,443

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			277

FlexShares^® Disciplined Duration MBS Index Fund (cont.)

Percentages shown are based on Net Assets.

Abbreviations

FHLMC – Federal Home Loan Mortgage Corp.

FNMA – Federal National Mortgage Association

GNMA – Government National Mortgage Association

TBA – To Be Announced; Security is subject to delayed delivery.

UMBS – Uniform Mortgage-Backed Securities



Aggregate gross unrealized appreciation	$	1,301,330
Aggregate gross unrealized depreciation		(112,165	)
Net unrealized appreciation	$	1,189,165
Federal income tax cost	$	105,678,197

See Accompanying Notes to the Financial Statements.


278		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares® Credit-Scored US Corporate Bond Index Fund

April 30, 2021 (Unaudited)


Investments	Principal Amount		Value

CORPORATE BONDS – 97.9%

Aerospace & Defense – 2.1%

Boeing Co. (The)
5.15%, 5/1/2030	$	150,000	$	174,516

General Dynamics Corp.
3.50%, 5/15/2025		375,000		413,060
3.75%, 5/15/2028		600,000		672,175

Huntington Ingalls Industries, Inc.
3.84%, 5/1/2025		100,000		109,115
3.48%, 12/1/2027		200,000		217,760

L3Harris Technologies, Inc.
3.85%, 12/15/2026		250,000		279,246
4.40%, 6/15/2028		700,000		802,051

Lockheed Martin Corp.
3.55%, 1/15/2026		605,000		671,477

Northrop Grumman Corp.
2.93%, 1/15/2025		1,000,000		1,070,640
3.25%, 1/15/2028		500,000		541,277

Precision Castparts Corp.
3.25%, 6/15/2025		200,000		217,125

Teledyne Technologies, Inc.
0.95%, 4/1/2024		400,000		400,134
2.25%, 4/1/2028		500,000		502,181
				6,070,757

Air Freight & Logistics – 0.2%

United Parcel Service, Inc.
3.05%, 11/15/2027		395,000		434,323
3.40%, 3/15/2029		200,000		220,508
				654,831

Auto Components – 0.3%

BorgWarner, Inc.
3.38%, 3/15/2025		350,000		380,063
2.65%, 7/1/2027		200,000		209,942

Lear Corp.
3.80%, 9/15/2027		200,000		219,973
				809,978

Banks – 23.3%

Australia & New Zealand Banking Group Ltd.
2.63%, 11/9/2022		250,000		259,028


Investments	Principal Amount		Value

Banks – (continued)

Banco Santander SA
5.18%, 11/19/2025	$	600,000	$	687,560
3.31%, 6/27/2029		200,000		214,074
3.49%, 5/28/2030		400,000		424,164

Bancolombia SA
3.00%, 1/29/2025		250,000		256,565

Bank of America Corp.
3.00%, 12/20/2023(a)		1,000,000		1,039,725
3.86%, 7/23/2024(a)		300,000		320,755
4.20%, 8/26/2024		200,000		220,701
4.00%, 1/22/2025		495,000		544,976
0.98%, 9/25/2025(a)		750,000		749,559
2.01%, 2/13/2026(a)		245,000		252,872
4.45%, 3/3/2026		500,000		566,522
Series L, 4.18%, 11/25/2027		615,000		688,076
3.82%, 1/20/2028(a)		500,000		554,304
3.71%, 4/24/2028(a)		5,000		5,513
3.42%, 12/20/2028(a)		250,000		270,785
4.27%, 7/23/2029(a)		550,000		624,732
3.97%, 2/7/2030(a)		300,000		334,743
3.19%, 7/23/2030(a)		250,000		264,929
2.50%, 2/13/2031(a)		600,000		601,874
2.59%, 4/29/2031(a)		400,000		402,729
1.90%, 7/23/2031(a)		750,000		711,609

Bank of Montreal
4.34%, 10/5/2028(a)		300,000		324,377

Bank of Nova Scotia (The)
3.40%, 2/11/2024		250,000		269,445
4.50%, 12/16/2025		350,000		398,414

Barclays plc
4.38%, 9/11/2024		490,000		536,525
3.65%, 3/16/2025		200,000		216,430
5.20%, 5/12/2026		300,000		341,159
4.84%, 5/9/2028		300,000		337,588
5.09%, 6/20/2030(a)		250,000		287,235
2.67%, 3/10/2032(a)		250,000		246,814

BBVA USA
2.88%, 6/29/2022		300,000		308,091
3.88%, 4/10/2025		250,000		273,545

Canadian Imperial Bank of Commerce
2.25%, 1/28/2025		300,000		313,561

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			279

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Banks – (continued)

Citigroup, Inc.
4.05%, 7/30/2022	$	600,000	$	626,523
2.88%, 7/24/2023(a)		250,000		257,430
3.35%, 4/24/2025(a)		600,000		643,836
3.30%, 4/27/2025		200,000		217,661
4.40%, 6/10/2025		825,000		921,479
5.50%, 9/13/2025		650,000		761,552
4.60%, 3/9/2026		380,000		434,239
3.40%, 5/1/2026		300,000		328,548
3.20%, 10/21/2026		350,000		378,855
4.45%, 9/29/2027		200,000		227,177
3.89%, 1/10/2028(a)		250,000		278,300
3.67%, 7/24/2028(a)		255,000		281,052
2.98%, 11/5/2030(a)		500,000		521,140
2.67%, 1/29/2031(a)		500,000		507,151
4.41%, 3/31/2031(a)		1,136,000		1,300,638
2.57%, 6/3/2031(a)		500,000		501,904

Citizens Bank NA
3.70%, 3/29/2023		300,000		317,501

Citizens Financial Group, Inc.
3.25%, 4/30/2030		200,000		213,703

Comerica, Inc.
3.70%, 7/31/2023		250,000		267,477

Cooperatieve Rabobank UA
3.75%, 7/21/2026		250,000		273,903

Credit Suisse Group Funding Guernsey Ltd.
3.80%, 9/15/2022		250,000		260,619

Discover Bank
3.35%, 2/6/2023		300,000		314,050
4.20%, 8/8/2023		400,000		432,863
4.65%, 9/13/2028		250,000		289,380

Fifth Third Bancorp
4.30%, 1/16/2024		250,000		272,757
3.65%, 1/25/2024		500,000		538,940

Fifth Third Bank NA
3.85%, 3/15/2026		400,000		442,245

First Horizon Corp.
3.55%, 5/26/2023		250,000		264,088

HSBC Holdings plc
3.80%, 3/11/2025(a)		750,000		808,739
4.25%, 8/18/2025		1,040,000		1,153,245
3.90%, 5/25/2026		200,000		221,654


Investments	Principal Amount		Value

Banks – (continued)
4.29%, 9/12/2026(a)	$	250,000	$	277,538
4.04%, 3/13/2028(a)		500,000		552,295
4.58%, 6/19/2029(a)		670,000		761,303
3.97%, 5/22/2030(a)		300,000		328,566

Huntington Bancshares, Inc.
4.00%, 5/15/2025		200,000		222,655

ING Groep NV
3.55%, 4/9/2024		200,000		216,291
4.55%, 10/2/2028		350,000		405,940

JPMorgan Chase & Co.
3.38%, 5/1/2023		520,000		549,881
3.56%, 4/23/2024(a)		300,000		318,030
3.63%, 5/13/2024		400,000		436,521
3.88%, 9/10/2024		1,127,000		1,233,085
0.65%, 9/16/2024(a)		285,000		285,525
4.02%, 12/5/2024(a)		240,000		259,943
3.90%, 7/15/2025		395,000		437,646
2.30%, 10/15/2025(a)		200,000		208,680
2.00%, 3/13/2026(a)		115,000		118,653
2.95%, 10/1/2026		685,000		738,518
4.13%, 12/15/2026		149,000		168,742
3.96%, 1/29/2027(a)		750,000		833,314
3.63%, 12/1/2027		250,000		274,120
3.78%, 2/1/2028(a)		925,000		1,027,003
4.01%, 4/23/2029(a)		130,000		146,248
4.20%, 7/23/2029(a)		450,000		513,221
4.45%, 12/5/2029(a)		500,000		576,571
2.74%, 10/15/2030(a)		200,000		205,256
4.49%, 3/24/2031(a)		200,000		232,191
2.96%, 5/13/2031(a)		500,000		514,007
1.95%, 2/4/2032(a)		500,000		476,257

KeyBank NA
2.40%, 6/9/2022		250,000		255,783

KeyCorp
4.10%, 4/30/2028		200,000		228,471

Lloyds Banking Group plc
4.05%, 8/16/2023		300,000		323,427
2.91%, 11/7/2023(a)		300,000		310,774
3.57%, 11/7/2028(a)		200,000		217,382

Mitsubishi UFJ Financial Group, Inc.
2.67%, 7/25/2022		850,000		873,638
3.76%, 7/26/2023		50,000		53,537
3.41%, 3/7/2024		50,000		53,696
2.19%, 2/25/2025		700,000		727,141

See Accompanying Notes to the Financial Statements.


280		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Banks – (continued)
3.68%, 2/22/2027	$	350,000	$	391,835
3.29%, 7/25/2027		750,000		823,606
3.74%, 3/7/2029		200,000		221,023
2.05%, 7/17/2030		300,000		293,366

Mizuho Financial Group, Inc.
3.55%, 3/5/2023		450,000		476,475
3.17%, 9/11/2027		500,000		543,776
4.02%, 3/5/2028		590,000		662,594
3.15%, 7/16/2030(a)		200,000		211,957

National Australia Bank Ltd.
3.63%, 6/20/2023		250,000		267,030

PNC Bank NA
3.50%, 6/8/2023		250,000		265,867
3.25%, 1/22/2028		250,000		273,057

PNC Financial Services Group, Inc. (The)
3.90%, 4/29/2024		550,000		600,862
3.15%, 5/19/2027		80,000		87,424

Royal Bank of Canada
1.95%, 1/17/2023		350,000		360,096
4.65%, 1/27/2026		250,000		286,643

Santander Holdings USA, Inc.
4.50%, 7/17/2025		440,000		489,140
4.40%, 7/13/2027		500,000		556,808

Santander UK Group Holdings plc
3.82%, 11/3/2028(a)		200,000		219,620

Sumitomo Mitsui Financial Group, Inc.
3.10%, 1/17/2023		950,000		994,031
2.70%, 7/16/2024		1,000,000		1,055,924
2.35%, 1/15/2025		250,000		261,080
3.78%, 3/9/2026		250,000		277,209
2.63%, 7/14/2026		600,000		633,779
3.45%, 1/11/2027		250,000		274,111
3.36%, 7/12/2027		450,000		491,419
3.04%, 7/16/2029		300,000		315,752
2.75%, 1/15/2030		200,000		205,736
2.13%, 7/8/2030		250,000		246,065

Toronto-Dominion Bank (The)
3.25%, 3/11/2024		450,000		484,324

Truist Bank
2.80%, 5/17/2022		250,000		256,283
3.30%, 5/15/2026		200,000		218,383


Investments	Principal Amount		Value

Banks – (continued)

Truist Financial Corp.
3.05%, 6/20/2022	$	200,000	$	205,885
2.85%, 10/26/2024		150,000		160,946
4.00%, 5/1/2025		210,000		233,623

US Bancorp
3.38%, 2/5/2024		200,000		215,802
3.95%, 11/17/2025		200,000		225,535
3.00%, 7/30/2029		200,000		212,295

Wells Fargo & Co.
4.48%, 1/16/2024		325,000		358,573
3.00%, 2/19/2025		1,500,000		1,610,849
3.55%, 9/29/2025		1,190,000		1,308,624
2.41%, 10/30/2025(a)		500,000		523,107
4.10%, 6/3/2026		500,000		562,041
4.30%, 7/22/2027		1,000,000		1,134,588
3.58%, 5/22/2028(a)		750,000		822,725
2.39%, 6/2/2028(a)		1,500,000		1,544,480
2.88%, 10/30/2030(a)		450,000		466,691
2.57%, 2/11/2031(a)		200,000		202,171
4.48%, 4/4/2031(a)		200,000		231,487

Westpac Banking Corp.
2.75%, 1/11/2023		1,100,000		1,146,000
3.40%, 1/25/2028		400,000		444,008
4.32%, 11/23/2031(a)		250,000		278,627
2.67%, 11/15/2035(a)		300,000		287,937
				68,390,746

Beverages – 0.6%

Anheuser-Busch InBev Worldwide, Inc.
4.75%, 1/23/2029		250,000		293,478

Coca-Cola Co. (The)
3.45%, 3/25/2030		200,000		221,443

Diageo Capital plc
2.38%, 10/24/2029		200,000		203,359

Keurig Dr Pepper, Inc.
4.60%, 5/25/2028		200,000		232,722

PepsiCo, Inc.
7.00%, 3/1/2029		500,000		681,297
				1,632,299

Biotechnology – 1.5%

AbbVie, Inc.
3.60%, 5/14/2025		952,000		1,040,974
3.20%, 5/14/2026		100,000		108,393

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			281

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Biotechnology – (continued)
4.25%, 11/14/2028	$	190,000	$	217,385
3.20%, 11/21/2029		210,000		224,552

Amgen, Inc.
2.20%, 2/21/2027		300,000		311,078
2.45%, 2/21/2030		300,000		304,096

Gilead Sciences, Inc.
3.65%, 3/1/2026		1,080,000		1,192,225
2.95%, 3/1/2027		1,000,000		1,073,480
				4,472,183

Building Products – 0.3%

Fortune Brands Home & Security, Inc.
4.00%, 6/15/2025		200,000		221,192

Johnson Controls International plc
3.62%, 7/2/2024(b)		200,000		216,360

Lennox International, Inc.
1.35%, 8/1/2025		450,000		449,699
				887,251

Capital Markets – 5.9%

Ameriprise Financial, Inc.
3.70%, 10/15/2024		250,000		274,847
2.88%, 9/15/2026		200,000		215,487

Ares Capital Corp.
4.20%, 6/10/2024		175,000		188,851
3.88%, 1/15/2026		1,200,000		1,280,895

Bank of New York Mellon Corp. (The)
Series 0012, 3.65%, 2/4/2024		300,000		326,576
2.45%, 8/17/2026		300,000		317,574
3.00%, 10/30/2028		143,000		152,929

BGC Partners, Inc.
3.75%, 10/1/2024		200,000		211,404

BlackRock, Inc.
3.20%, 3/15/2027		200,000		219,875
3.25%, 4/30/2029		400,000		441,184

Blackstone Secured Lending Fund
3.65%, 7/14/2023(c)		150,000		157,030

Cboe Global Markets, Inc.
3.65%, 1/12/2027		200,000		221,586


Investments	Principal Amount		Value

Capital Markets – (continued)

Charles Schwab Corp. (The)
4.20%, 3/24/2025	$	400,000	$	448,412
3.20%, 1/25/2028		100,000		109,252
4.00%, 2/1/2029		400,000		456,357

CME Group, Inc.
3.00%, 3/15/2025		375,000		403,588

Credit Suisse Group AG
3.75%, 3/26/2025		650,000		704,863
4.55%, 4/17/2026		250,000		281,593

Deutsche Bank AG
3.70%, 5/30/2024		795,000		853,439
3.96%, 11/26/2025(a)		300,000		325,151
4.10%, 1/13/2026		100,000		109,510
3.55%, 9/18/2031(a)		500,000		523,696

E*TRADE Financial Corp.
2.95%, 8/24/2022		200,000		206,216

Goldman Sachs BDC, Inc.
3.75%, 2/10/2025		200,000		213,681

Goldman Sachs Group, Inc. (The)
3.63%, 1/22/2023		600,000		633,586
4.00%, 3/3/2024		500,000		546,476
3.85%, 7/8/2024		500,000		544,552
3.50%, 1/23/2025		465,000		504,800
1.43%, 3/9/2027(a)		300,000		298,832

Jefferies Group LLC
4.85%, 1/15/2027		300,000		347,129
4.15%, 1/23/2030		200,000		221,615

Lazard Group LLC
3.75%, 2/13/2025		250,000		272,719

Legg Mason, Inc.
4.75%, 3/15/2026		200,000		231,281

Moody’s Corp.
2.63%, 1/15/2023		200,000		207,328
3.75%, 3/24/2025		300,000		329,344

Morgan Stanley
2.75%, 5/19/2022		200,000		205,179
3.75%, 2/25/2023		1,300,000		1,378,386
3.88%, 1/27/2026		200,000		223,051
0.98%, 12/10/2026(a)		500,000		490,804
2.70%, 1/22/2031(a)		350,000		357,803

Nasdaq, Inc.
3.85%, 6/30/2026		215,000		240,193

S&P Global, Inc.
2.95%, 1/22/2027		200,000		215,677
1.25%, 8/15/2030		300,000		277,122

See Accompanying Notes to the Financial Statements.


282		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Capital Markets – (continued)

State Street Corp.
3.10%, 5/15/2023	$	200,000	$	211,327
3.55%, 8/18/2025		300,000		332,996

TD Ameritrade Holding Corp.
3.75%, 4/1/2024		300,000		326,823
2.75%, 10/1/2029		200,000		209,770
				17,250,789

Chemicals – 1.0%

Air Products and Chemicals, Inc.
3.35%, 7/31/2024		521,000		564,157

Celanese US Holdings LLC
3.50%, 5/8/2024		200,000		215,015

DuPont de Nemours, Inc.
2.17%, 5/1/2023		100,000		100,389

Ecolab, Inc.
2.70%, 11/1/2026		200,000		214,291
4.80%, 3/24/2030		150,000		179,879

FMC Corp.
3.20%, 10/1/2026		200,000		215,567

PPG Industries, Inc.
2.40%, 8/15/2024		200,000		210,161

RPM International, Inc.
3.75%, 3/15/2027		100,000		110,098

Sherwin-Williams Co. (The)
2.75%, 6/1/2022		156,000		159,409
3.45%, 8/1/2025		500,000		544,620
3.45%, 6/1/2027		400,000		439,602
2.95%, 8/15/2029		100,000		105,438
				3,058,626

Commercial Services & Supplies – 0.8%

Cintas Corp. No. 2
3.25%, 6/1/2022		250,000		255,664
3.70%, 4/1/2027		50,000		55,900

RELX Capital, Inc.
3.00%, 5/22/2030		200,000		209,289

Republic Services, Inc.
2.50%, 8/15/2024		567,000		598,792
3.38%, 11/15/2027		100,000		109,744
3.95%, 5/15/2028		300,000		337,150

Waste Management, Inc.
3.13%, 3/1/2025		250,000		269,687


Investments	Principal Amount		Value

Commercial Services & Supplies – (continued)
3.15%, 11/15/2027	$	350,000	$	380,922
				2,217,148

Communications Equipment – 0.5%

Cisco Systems, Inc.
2.20%, 9/20/2023		417,000		436,246
3.63%, 3/4/2024		300,000		326,811
2.95%, 2/28/2026		100,000		109,257

Motorola Solutions, Inc.
4.60%, 2/23/2028		100,000		114,964
4.60%, 5/23/2029		300,000		344,824
				1,332,102

Construction Materials – 0.2%

Martin Marietta Materials, Inc.
3.50%, 12/15/2027		250,000		277,080

Vulcan Materials Co.
4.50%, 4/1/2025		200,000		224,384
				501,464

Consumer Finance – 3.0%

AerCap Ireland Capital DAC
4.50%, 9/15/2023		500,000		538,477
3.15%, 2/15/2024		150,000		157,689
3.88%, 1/23/2028		350,000		370,704

Ally Financial, Inc.
3.05%, 6/5/2023		400,000		417,995
3.88%, 5/21/2024		600,000		651,063

American Express Co.
2.50%, 8/1/2022		200,000		205,129
3.00%, 10/30/2024		690,000		745,203

Capital One Financial Corp.
3.50%, 6/15/2023		320,000		340,388
3.90%, 1/29/2024		50,000		54,305
3.30%, 10/30/2024		200,000		216,464
3.20%, 2/5/2025		850,000		915,870
4.20%, 10/29/2025		110,000		122,612

Caterpillar Financial Services Corp.
3.30%, 6/9/2024		200,000		216,924

General Motors Financial Co., Inc.
5.25%, 3/1/2026		500,000		576,219
4.35%, 1/17/2027		400,000		447,494

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			283

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Consumer Finance – (continued)

Synchrony Financial
4.25%, 8/15/2024	$	426,000	$	465,413
4.50%, 7/23/2025		600,000		669,705
3.70%, 8/4/2026		355,000		385,824
5.15%, 3/19/2029		200,000		232,394

Toyota Motor Credit Corp.
3.20%, 1/11/2027		500,000		547,592
3.05%, 1/11/2028		500,000		540,568
				8,818,032

Containers & Packaging – 0.3%

Amcor Finance USA, Inc.
4.50%, 5/15/2028		300,000		344,957

Avery Dennison Corp.
3.35%, 4/15/2023		50,000		52,078
4.88%, 12/6/2028		200,000		235,022

Packaging Corp. of America
4.50%, 11/1/2023		200,000		217,331
				849,388

Diversified Financial Services – 0.7%

Berkshire Hathaway, Inc.
3.13%, 3/15/2026		330,000		361,487

Equitable Holdings, Inc.
4.35%, 4/20/2028		300,000		338,418

National Rural Utilities Cooperative Finance Corp.
0.35%, 2/8/2024		300,000		299,484
3.40%, 2/7/2028		250,000		270,763
2.40%, 3/15/2030		200,000		202,296

Synchrony Bank
3.00%, 6/15/2022		250,000		256,727

Voya Financial, Inc.
4.70%, 1/23/2048(a)		100,000		104,176
5.65%, 5/15/2053(a)		200,000		214,849
				2,048,200

Diversified Telecommunication Services – 1.7%

AT&T, Inc.
4.35%, 3/1/2029		250,000		283,820
4.30%, 2/15/2030		295,000		332,882

British Telecommunications plc
5.13%, 12/4/2028		200,000		237,171


Investments	Principal Amount		Value

Diversified Telecommunication Services – (continued)

Deutsche Telekom International Finance BV
8.75%, 6/15/2030(b)	$	200,000	$	297,780

TELUS Corp.
3.70%, 9/15/2027		200,000		223,804

Verizon Communications, Inc.
5.15%, 9/15/2023		850,000		941,549
2.63%, 8/15/2026		80,000		85,020
4.13%, 3/16/2027		700,000		797,881
4.33%, 9/21/2028		755,000		870,578
4.02%, 12/3/2029		225,000		254,192
1.68%, 10/30/2030(c)		313,000		293,503
2.55%, 3/21/2031		500,000		502,035
				5,120,215

Electric Utilities – 3.8%

AEP Texas, Inc.
3.95%, 6/1/2028		750,000		837,574

American Electric Power Co., Inc.
Series J, 4.30%, 12/1/2028		45,000		51,286

Appalachian Power Co.
Series X, 3.30%, 6/1/2027		96,000		104,128

Avangrid, Inc.
3.15%, 12/1/2024		100,000		107,507
3.20%, 4/15/2025		250,000		269,502

Duke Energy Corp.
3.15%, 8/15/2027		200,000		215,782
2.45%, 6/1/2030		600,000		598,075

Edison International
4.95%, 4/15/2025		700,000		784,708
5.75%, 6/15/2027		300,000		351,468

Emera US Finance LP
3.55%, 6/15/2026		150,000		164,015

Enel Chile SA
4.88%, 6/12/2028		250,000		288,224

Eversource Energy
Series L, 2.90%, 10/1/2024		300,000		319,435
Series M, 3.30%, 1/15/2028		100,000		108,122

Exelon Corp.
4.05%, 4/15/2030		250,000		280,773

Fortis, Inc.
3.06%, 10/4/2026		200,000		214,471

Georgia Power Co.
3.25%, 4/1/2026		500,000		540,179

See Accompanying Notes to the Financial Statements.


284		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Electric Utilities – (continued)

Interstate Power and Light Co.
4.10%, 9/26/2028	$	250,000	$	283,002

ITC Holdings Corp.
2.70%, 11/15/2022		200,000		206,113
3.35%, 11/15/2027		200,000		217,914

MidAmerican Energy Co.
3.70%, 9/15/2023		472,000		503,710
3.65%, 4/15/2029		100,000		112,038

NextEra Energy Capital Holdings, Inc.
2.25%, 6/1/2030		175,000		173,189
(ICE LIBOR USD 3 Month + 2.41%), 4.80%, 12/1/2077(d)		100,000		111,790
5.65%, 5/1/2079(a)		100,000		116,338

NSTAR Electric Co.
3.20%, 5/15/2027		300,000		326,962

Pacific Gas and Electric Co.
3.75%, 7/1/2028		200,000		211,022

Public Service Electric and Gas Co.
3.00%, 5/15/2027		200,000		216,917

Sierra Pacific Power Co.
2.60%, 5/1/2026		209,000		222,014

Southern Co. (The)
2.95%, 7/1/2023		300,000		314,028
3.25%, 7/1/2026		384,000		414,753
Series A, 3.70%, 4/30/2030		250,000		273,037

Southwestern Electric Power Co.
Series M, 4.10%, 9/15/2028		200,000		224,281

Virginia Electric and Power Co.
Series A, 3.50%, 3/15/2027		300,000		331,175
Series A, 3.80%, 4/1/2028		500,000		558,957

Xcel Energy, Inc.
4.00%, 6/15/2028		900,000		1,009,377
				11,061,866

Electrical Equipment – 0.3%

Emerson Electric Co.
0.88%, 10/15/2026		200,000		196,470

Hubbell, Inc.
3.35%, 3/1/2026		200,000		216,106
3.50%, 2/15/2028		250,000		272,026


Investments	Principal Amount		Value

Electrical Equipment – (continued)

Rockwell Automation, Inc.
2.88%, 3/1/2025	$	250,000	$	265,640
				950,242

Electronic Equipment, Instruments & Components – 0.8%

Allegion US Holding Co., Inc.
3.20%, 10/1/2024		200,000		213,340

Amphenol Corp.
2.05%, 3/1/2025		300,000		311,358

Arrow Electronics, Inc.
4.00%, 4/1/2025		400,000		434,186

Avnet, Inc.
4.63%, 4/15/2026		175,000		197,137

Keysight Technologies, Inc.
4.60%, 4/6/2027		200,000		230,559

Trimble, Inc.
4.90%, 6/15/2028		250,000		290,134

Tyco Electronics Group SA
3.70%, 2/15/2026		200,000		218,839
3.13%, 8/15/2027		200,000		215,911

Vontier Corp.
2.40%, 4/1/2028(c)		250,000		246,572
				2,358,036

Energy Equipment & Services – 0.1%

Helmerich & Payne, Inc.
4.65%, 3/15/2025		200,000		220,716

Entertainment – 0.2%

Activision Blizzard, Inc.
3.40%, 9/15/2026		300,000		330,664
3.40%, 6/15/2027		200,000		220,851

Electronic Arts, Inc.
4.80%, 3/1/2026		100,000		115,774
				667,289

Equity Real Estate Investment Trusts (REITs) – 6.5%

Alexandria Real Estate Equities, Inc.
3.95%, 1/15/2028		300,000		336,655
2.75%, 12/15/2029		100,000		103,012
4.70%, 7/1/2030		100,000		117,498
4.90%, 12/15/2030		100,000		120,367

American Campus Communities Operating Partnership LP
3.63%, 11/15/2027		200,000		218,610

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			285

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Equity Real Estate Investment Trusts (REITs) – (continued)

American Homes 4 Rent LP
4.25%, 2/15/2028	$	200,000	$	222,357

American Tower Corp.
5.00%, 2/15/2024		490,000		544,749
3.38%, 10/15/2026		1,200,000		1,305,367
3.55%, 7/15/2027		400,000		437,133
3.80%, 8/15/2029		338,000		372,344

AvalonBay Communities, Inc.
3.45%, 6/1/2025		200,000		218,492
3.50%, 11/15/2025		150,000		164,380

Boston Properties LP
2.90%, 3/15/2030		255,000		259,873

Brandywine Operating Partnership LP
4.10%, 10/1/2024		250,000		270,908
3.95%, 11/15/2027		100,000		108,344

Brixmor Operating Partnership LP
4.13%, 5/15/2029		300,000		330,090

Camden Property Trust
2.80%, 5/15/2030		200,000		206,913

Columbia Property Trust Operating Partnership LP
4.15%, 4/1/2025		200,000		212,110

Crown Castle International Corp.
3.10%, 11/15/2029		500,000		524,275

CubeSmart LP
4.00%, 11/15/2025		250,000		275,659
3.00%, 2/15/2030		200,000		205,859

CyrusOne LP
2.90%, 11/15/2024		200,000		212,021
2.15%, 11/1/2030		100,000		93,835

Duke Realty LP
3.25%, 6/30/2026		250,000		271,654
2.88%, 11/15/2029		100,000		103,630

Equinix, Inc.
5.38%, 5/15/2027		375,000		402,975
3.20%, 11/18/2029		10,000		10,556
2.15%, 7/15/2030		250,000		240,567

ERP Operating LP
2.85%, 11/1/2026		200,000		213,792
3.25%, 8/1/2027		45,000		48,781

Essex Portfolio LP
3.88%, 5/1/2024		200,000		216,777
3.00%, 1/15/2030		200,000		207,369


Investments	Principal Amount		Value

Equity Real Estate Investment Trusts (REITs) – (continued)

GLP Capital LP
5.38%, 11/1/2023	$	555,000	$	611,452
5.25%, 6/1/2025		200,000		226,208
5.38%, 4/15/2026		300,000		339,961
5.75%, 6/1/2028		500,000		583,559

Healthpeak Properties, Inc.
4.00%, 6/1/2025		250,000		277,475

Highwoods Realty LP
4.13%, 3/15/2028		200,000		218,543
4.20%, 4/15/2029		100,000		110,135

Host Hotels & Resorts LP
Series E, 4.00%, 6/15/2025		250,000		268,932

Hudson Pacific Properties LP
3.25%, 1/15/2030		100,000		102,533

Kilroy Realty LP
4.38%, 10/1/2025		400,000		443,888
4.25%, 8/15/2029		100,000		111,332

Kite Realty Group LP
4.00%, 10/1/2026		100,000		107,680

Life Storage LP
2.20%, 10/15/2030		200,000		193,178

LifeStorage LP
3.50%, 7/1/2026		200,000		217,688

Mid-America Apartments LP
3.95%, 3/15/2029		50,000		55,617
2.75%, 3/15/2030		250,000		255,622

National Retail Properties, Inc.
3.90%, 6/15/2024		500,000		542,353
3.50%, 10/15/2027		150,000		162,090

Omega Healthcare Investors, Inc.
4.38%, 8/1/2023		52,000		55,854
4.95%, 4/1/2024		10,000		10,910
5.25%, 1/15/2026		300,000		343,428
4.50%, 4/1/2027		500,000		552,586
3.63%, 10/1/2029		150,000		156,408

Physicians Realty LP
4.30%, 3/15/2027		200,000		224,191

Piedmont Operating Partnership LP
3.15%, 8/15/2030		100,000		98,600

Public Storage
3.09%, 9/15/2027		200,000		216,704

Realty Income Corp.
4.13%, 10/15/2026		300,000		339,726

See Accompanying Notes to the Financial Statements.


286		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Equity Real Estate Investment Trusts (REITs) – (continued)

Regency Centers LP
3.60%, 2/1/2027	$	150,000	$	164,496

Sabra Health Care LP
5.13%, 8/15/2026		200,000		223,766
3.90%, 10/15/2029		200,000		208,338

Simon Property Group LP
3.38%, 10/1/2024		600,000		646,550

SITE Centers Corp.
3.63%, 2/1/2025		129,000		135,484

Spirit Realty LP
4.45%, 9/15/2026		200,000		223,326
3.40%, 1/15/2030		200,000		209,824

STORE Capital Corp.
4.50%, 3/15/2028		250,000		278,842

Ventas Realty LP
3.50%, 2/1/2025		50,000		54,333
4.75%, 11/15/2030		500,000		588,532

VEREIT Operating Partnership LP
4.63%, 11/1/2025		200,000		226,552

Weyerhaeuser Co.
4.00%, 4/15/2030		250,000		280,618

WP Carey, Inc.
4.60%, 4/1/2024		195,000		214,077
4.00%, 2/1/2025		150,000		163,570
				19,021,913

Food & Staples Retailing – 0.8%

Costco Wholesale Corp.
2.75%, 5/18/2024		300,000		320,242
3.00%, 5/18/2027		375,000		410,597
1.38%, 6/20/2027		300,000		301,285

Walmart, Inc.
3.05%, 7/8/2026		300,000		328,983
3.70%, 6/26/2028		900,000		1,018,941
3.25%, 7/8/2029		42,000		46,579
				2,426,627

Food Products – 2.0%

Bunge Ltd. Finance Corp.
3.75%, 9/25/2027		200,000		220,646

Campbell Soup Co.
3.95%, 3/15/2025		200,000		220,128
4.15%, 3/15/2028		250,000		281,146


Investments	Principal Amount		Value

Food Products – (continued)

Flowers Foods, Inc.
3.50%, 10/1/2026	$	250,000	$	272,072

General Mills, Inc.
4.00%, 4/17/2025		250,000		277,025
4.20%, 4/17/2028		200,000		227,945
2.88%, 4/15/2030		300,000		311,623

J M Smucker Co. (The)
3.38%, 12/15/2027		300,000		328,060

Kellogg Co.
3.40%, 11/15/2027		500,000		547,668

McCormick & Co., Inc.
3.15%, 8/15/2024		200,000		214,307
3.40%, 8/15/2027		200,000		219,602

Mondelez International, Inc.
1.50%, 5/4/2025		400,000		408,537
2.75%, 4/13/2030		200,000		206,697

Unilever Capital Corp.
2.60%, 5/5/2024		1,200,000		1,271,613
2.90%, 5/5/2027		200,000		217,084
3.50%, 3/22/2028		600,000		667,578
				5,891,731

Gas Utilities – 0.5%

Atmos Energy Corp.
0.63%, 3/9/2023		500,000		500,489

Eastern Energy Gas Holdings LLC
Series A, 2.50%, 11/15/2024		410,000		431,889
3.60%, 12/15/2024		80,000		86,984

National Fuel Gas Co.
5.20%, 7/15/2025		200,000		225,468
5.50%, 1/15/2026		275,000		318,885
				1,563,715

Health Care Equipment & Supplies – 0.8%

Abbott Laboratories
3.40%, 11/30/2023		500,000		536,173

Baxter International, Inc.
2.60%, 8/15/2026		200,000		213,164

Becton Dickinson and Co.
3.73%, 12/15/2024		400,000		438,042
3.70%, 6/6/2027		200,000		222,323

DH Europe Finance II Sarl
2.20%, 11/15/2024		250,000		261,459

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			287

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Health Care Equipment & Supplies – (continued)

Edwards Lifesciences Corp.
4.30%, 6/15/2028	$	200,000	$	227,836

Stryker Corp.
3.50%, 3/15/2026		200,000		220,255
1.95%, 6/15/2030		100,000		96,875

Zimmer Biomet Holdings, Inc.
3.55%, 3/20/2030		63,000		68,141
				2,284,268

Health Care Providers & Services – 2.3%

AmerisourceBergen Corp.
3.40%, 5/15/2024		250,000		268,000
3.45%, 12/15/2027		200,000		219,203

Cigna Corp.
4.38%, 10/15/2028		350,000		400,140

CVS Health Corp.
4.30%, 3/25/2028		409,000		465,302

HCA, Inc.
5.25%, 6/15/2026		250,000		290,214
4.50%, 2/15/2027		67,000		75,553
4.13%, 6/15/2029		250,000		278,010

Humana, Inc.
3.85%, 10/1/2024		500,000		546,031
3.95%, 3/15/2027		300,000		336,014

Laboratory Corp. of America Holdings
3.60%, 2/1/2025		300,000		325,610

McKesson Corp.
3.80%, 3/15/2024		250,000		271,422

Quest Diagnostics, Inc.
2.95%, 6/30/2030		200,000		208,088

UnitedHealth Group, Inc.
2.38%, 8/15/2024		500,000		529,063
3.45%, 1/15/2027		1,000,000		1,113,380
2.95%, 10/15/2027		250,000		272,300
3.85%, 6/15/2028		750,000		848,731
3.88%, 12/15/2028		55,000		62,573
2.00%, 5/15/2030		290,000		286,929
				6,796,563

Hotels, Restaurants & Leisure – 0.8%

Booking Holdings, Inc.
3.60%, 6/1/2026		640,000		710,114


Investments	Principal Amount		Value

Hotels, Restaurants & Leisure – (continued)

Hyatt Hotels Corp.
4.85%, 3/15/2026	$	200,000	$	224,377

Marriott International, Inc.
3.60%, 4/15/2024		150,000		159,842
Series EE, 5.75%, 5/1/2025		110,000		126,639
Series R, 3.13%, 6/15/2026		400,000		425,364

McDonald’s Corp.
3.80%, 4/1/2028		150,000		167,521
2.63%, 9/1/2029		100,000		103,789
3.60%, 7/1/2030		500,000		551,132
				2,468,778

Household Durables – 0.8%

DR Horton, Inc.
4.38%, 9/15/2022		200,000		208,363
2.50%, 10/15/2024		200,000		210,865

Lennar Corp.
4.75%, 11/29/2027		1,000,000		1,158,330

PulteGroup, Inc.
5.50%, 3/1/2026		500,000		587,840

Whirlpool Corp.
4.75%, 2/26/2029		200,000		234,928
				2,400,326

Household Products – 0.8%

Church & Dwight Co., Inc.
2.88%, 10/1/2022		500,000		517,227

Clorox Co. (The)
3.10%, 10/1/2027		200,000		217,347
3.90%, 5/15/2028		250,000		281,439

Colgate-Palmolive Co.
3.25%, 3/15/2024		250,000		270,606

Kimberly-Clark Corp.
2.75%, 2/15/2026		200,000		215,508

Procter & Gamble Co. (The)
3.10%, 8/15/2023		150,000		159,864
2.80%, 3/25/2027		185,000		201,480
3.00%, 3/25/2030		400,000		434,488
				2,297,959

Industrial Conglomerates – 1.0%

3M Co.
2.00%, 6/26/2022		200,000		204,045
2.25%, 3/15/2023		570,000		589,953

See Accompanying Notes to the Financial Statements.


288		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Industrial Conglomerates – (continued)
2.88%, 10/15/2027	$	200,000	$	215,974
3.38%, 3/1/2029		200,000		220,495

Carlisle Cos., Inc.
3.75%, 12/1/2027		200,000		222,382

Honeywell International, Inc.
1.35%, 6/1/2025		250,000		255,384
2.50%, 11/1/2026		300,000		320,608
2.70%, 8/15/2029		100,000		105,617

Roper Technologies, Inc.
3.80%, 12/15/2026		200,000		223,883
4.20%, 9/15/2028		200,000		228,494

Trane Technologies Global Holding Co. Ltd.
3.75%, 8/21/2028		200,000		220,938

Trane Technologies Luxembourg Finance SA
3.50%, 3/21/2026		250,000		274,239
				3,082,012

Insurance – 3.4%

Aflac, Inc.
3.25%, 3/17/2025		200,000		217,408
2.88%, 10/15/2026		100,000		107,657

Allied World Assurance Co. Holdings Ltd.
4.35%, 10/29/2025		200,000		216,514

Allstate Corp. (The)
Series B, 5.75%, 8/15/2053(a)		400,000		429,900

American Equity Investment Life Holding Co.
5.00%, 6/15/2027		150,000		168,394

American Financial Group, Inc.
3.50%, 8/15/2026		200,000		217,627

American International Group, Inc.
4.88%, 6/1/2022		400,000		418,865
3.90%, 4/1/2026		100,000		111,015
Series A-9, 5.75%, 4/1/2048(a)		200,000		226,750

Aon Corp.
2.20%, 11/15/2022		500,000		513,589
2.80%, 5/15/2030		250,000		258,052


Investments	Principal Amount		Value

Insurance – (continued)

Aon plc
3.88%, 12/15/2025	$	400,000	$	444,545

Assurant, Inc.
3.70%, 2/22/2030		100,000		108,460

Athene Holding Ltd.
4.13%, 1/12/2028		300,000		329,949

Brighthouse Financial, Inc.
3.70%, 6/22/2027		200,000		216,419

Brown & Brown, Inc.
4.20%, 9/15/2024		200,000		219,874

Chubb INA Holdings, Inc.
3.15%, 3/15/2025		270,000		293,965

Fairfax Financial Holdings Ltd.
4.85%, 4/17/2028		250,000		281,702

Fidelity National Financial, Inc.
5.50%, 9/1/2022		68,000		72,358

First American Financial Corp.
4.60%, 11/15/2024		200,000		223,229

Globe Life, Inc.
4.55%, 9/15/2028		150,000		174,055

Hanover Insurance Group, Inc. (The)
2.50%, 9/1/2030		250,000		247,812

Kemper Corp.
2.40%, 9/30/2030		200,000		193,768

Manulife Financial Corp.
4.15%, 3/4/2026		200,000		226,073

Markel Corp.
3.35%, 9/17/2029		300,000		322,610

Marsh & McLennan Cos., Inc.
3.50%, 6/3/2024		16,000		17,244
3.50%, 3/10/2025		75,000		81,848
3.75%, 3/14/2026		75,000		83,370
4.38%, 3/15/2029		200,000		231,096
2.25%, 11/15/2030		500,000		497,175

MetLife, Inc.
3.05%, 12/15/2022(b)		250,000		260,889

Old Republic International Corp.
4.88%, 10/1/2024		200,000		223,680

Progressive Corp. (The)
2.45%, 1/15/2027		200,000		210,855
3.20%, 3/26/2030		100,000		109,045

Prudential Financial, Inc.
5.63%, 6/15/2043(a)		150,000		162,717
5.20%, 3/15/2044(a)		10,000		10,686

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			289

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Insurance – (continued)
5.38%, 5/15/2045(a)	$	500,000	$	551,165
5.70%, 9/15/2048(a)		500,000		579,034
3.70%, 10/1/2050(a)		100,000		103,375

RenaissanceRe Finance, Inc.
3.45%, 7/1/2027		100,000		108,823

Trinity Acquisition plc
4.40%, 3/15/2026		200,000		226,227

Willis North America, Inc.
3.60%, 5/15/2024		150,000		161,724
				9,859,543

Interactive Media & Services – 0.3%

Alphabet, Inc.
2.00%, 8/15/2026		147,000		154,241
0.80%, 8/15/2027		85,000		82,389

Baidu, Inc.
4.38%, 3/29/2028		500,000		557,258

Weibo Corp.
3.50%, 7/5/2024		200,000		210,069
				1,003,957

Internet & Direct Marketing Retail – 0.8%

Alibaba Group Holding Ltd.
3.60%, 11/28/2024		1,200,000		1,302,456
3.40%, 12/6/2027		300,000		326,528

Amazon.com, Inc.
3.15%, 8/22/2027		300,000		330,361

eBay, Inc.
3.45%, 8/1/2024		120,000		129,466
3.60%, 6/5/2027		200,000		221,126
				2,309,937

IT Services – 1.9%

Automatic Data Processing, Inc.
1.25%, 9/1/2030		200,000		185,917

Broadridge Financial Solutions, Inc.
3.40%, 6/27/2026		200,000		218,264

Fiserv, Inc.
3.50%, 7/1/2029		300,000		325,091

Mastercard, Inc.
2.00%, 3/3/2025		950,000		993,434
2.95%, 11/21/2026		300,000		325,644
2.95%, 6/1/2029		150,000		161,956


Investments	Principal Amount		Value

IT Services – (continued)

PayPal Holdings, Inc.
1.65%, 6/1/2025	$	250,000	$	257,085
2.65%, 10/1/2026		100,000		106,627
2.85%, 10/1/2029		200,000		211,378
2.30%, 6/1/2030		250,000		252,255

Visa, Inc.
2.80%, 12/14/2022		1,100,000		1,142,000
3.15%, 12/14/2025		650,000		711,169
1.90%, 4/15/2027		275,000		284,252

Western Union Co. (The)
2.85%, 1/10/2025		350,000		369,716
				5,544,788

Life Sciences Tools & Services – 0.5%

Agilent Technologies, Inc.
3.88%, 7/15/2023		200,000		212,265

Thermo Fisher Scientific, Inc.
2.95%, 9/19/2026		590,000		637,016
3.20%, 8/15/2027		500,000		545,339
				1,394,620

Machinery – 0.8%

Cummins, Inc.
3.65%, 10/1/2023		100,000		107,199
1.50%, 9/1/2030		150,000		141,937

Dover Corp.
3.15%, 11/15/2025		200,000		215,652

Flowserve Corp.
4.00%, 11/15/2023		84,000		89,372

Fortive Corp.
3.15%, 6/15/2026		100,000		108,538

Illinois Tool Works, Inc.
2.65%, 11/15/2026		200,000		215,423

nVent Finance Sarl
4.55%, 4/15/2028		300,000		319,845

Otis Worldwide Corp.
2.06%, 4/5/2025		300,000		312,052
2.29%, 4/5/2027		200,000		206,792
2.57%, 2/15/2030		200,000		203,566

Parker-Hannifin Corp.
3.25%, 6/14/2029		45,000		48,494

Stanley Black & Decker, Inc.
4.00%, 3/15/2060(a)		300,000		319,590

See Accompanying Notes to the Financial Statements.


290		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Machinery – (continued)

Westinghouse Air Brake Technologies Corp.
4.95%, 9/15/2028(b)	$	150,000	$	172,655
				2,461,115

Media – 0.7%

Charter Communications Operating LLC
4.91%, 7/23/2025		500,000		568,787
4.20%, 3/15/2028		500,000		554,536

Comcast Corp.
4.15%, 10/15/2028		350,000		402,784
4.25%, 10/15/2030		250,000		290,181

Fox Corp.
4.71%, 1/25/2029		100,000		116,182
				1,932,470

Metals & Mining – 0.9%

BHP Billiton Finance USA Ltd.
3.85%, 9/30/2023		300,000		324,725

Kinross Gold Corp.
5.95%, 3/15/2024		150,000		167,887

Rio Tinto Finance USA Ltd.
3.75%, 6/15/2025		650,000		720,567
7.13%, 7/15/2028		200,000		270,619

Steel Dynamics, Inc.
2.80%, 12/15/2024		300,000		317,716

Vale Overseas Ltd.
6.25%, 8/10/2026		379,000		453,515
3.75%, 7/8/2030		250,000		263,313
				2,518,342

Multiline Retail – 0.4%

Dollar General Corp.
3.88%, 4/15/2027		400,000		448,433

Dollar Tree, Inc.
4.00%, 5/15/2025		130,000		143,915
4.20%, 5/15/2028		500,000		567,857
				1,160,205

Multi-Utilities – 2.5%

Ameren Corp.
2.50%, 9/15/2024		700,000		737,407


Investments	Principal Amount		Value

Multi-Utilities – (continued)

Berkshire Hathaway Energy Co.
3.75%, 11/15/2023	$	100,000	$	107,569
4.05%, 4/15/2025		1,100,000		1,225,775
3.25%, 4/15/2028		100,000		108,433

Black Hills Corp.
3.15%, 1/15/2027		200,000		214,216

CMS Energy Corp.
3.45%, 8/15/2027		200,000		220,827

Consolidated Edison Co. of New York, Inc. Series B, 3.13%, 11/15/2027		300,000		324,628

Dominion Energy, Inc.
3.07%, 8/15/2024(b)		700,000		746,719

Series A, 3.30%, 3/15/2025		250,000		270,387
4.25%, 6/1/2028		200,000		227,158
5.75%, 10/1/2054(a)		200,000		220,060

DTE Energy Co.
Series D, 3.70%, 8/1/2023		500,000		532,655
Series C, 2.53%, 10/1/2024(b)		252,000		265,533
2.85%, 10/1/2026		200,000		213,703

Public Service Enterprise Group, Inc.
2.65%, 11/15/2022		200,000		206,318
2.88%, 6/15/2024		400,000		423,770

Sempra Energy
3.55%, 6/15/2024		200,000		215,649
3.25%, 6/15/2027		200,000		216,452
3.40%, 2/1/2028		97,000		105,208

Southern Co. Gas Capital Corp.
2.45%, 10/1/2023		300,000		312,553

WEC Energy Group, Inc.
0.55%, 9/15/2023		500,000		500,739
				7,395,759

Oil, Gas & Consumable Fuels – 4.7%

Boardwalk Pipelines LP
5.95%, 6/1/2026		200,000		236,205

Canadian Natural Resources Ltd.
3.85%, 6/1/2027		400,000		437,588

Cheniere Corpus Christi Holdings LLC
5.88%, 3/31/2025		200,000		229,020
5.13%, 6/30/2027		500,000		576,730

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			291

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Oil, Gas & Consumable Fuels – (continued)

Columbia Pipeline Group, Inc.
4.50%, 6/1/2025	$	150,000	$	169,040

Enable Midstream Partners LP
4.95%, 5/15/2028		250,000		279,499

Enbridge, Inc.
4.00%, 10/1/2023		200,000		214,244
3.70%, 7/15/2027		200,000		219,198
3.13%, 11/15/2029		200,000		209,901
Series 16-A, 6.00%, 1/15/2077(a)		350,000		377,194
5.50%, 7/15/2077(a)		250,000		261,052

Energy Transfer LP
5.88%, 1/15/2024		700,000		779,116
4.05%, 3/15/2025		20,000		21,664
4.75%, 1/15/2026		300,000		335,459
5.50%, 6/1/2027		200,000		232,218
3.75%, 5/15/2030		200,000		208,225

Enterprise Products Operating LLC
3.75%, 2/15/2025		700,000		765,892
4.15%, 10/16/2028		350,000		395,953
Series E, 5.25%, 8/16/2077(a)		200,000		202,546
5.38%, 2/15/2078(a)		350,000		354,734

HollyFrontier Corp.
5.88%, 4/1/2026		200,000		229,720

Kinder Morgan, Inc.
4.30%, 3/1/2028		200,000		225,273

Magellan Midstream Partners LP
5.00%, 3/1/2026		250,000		288,583

ONEOK Partners LP
4.90%, 3/15/2025		400,000		447,789

Phillips 66 Partners LP
3.55%, 10/1/2026		200,000		216,655

Plains All American Pipeline LP
4.65%, 10/15/2025		500,000		554,645

Sabine Pass Liquefaction LLC
5.63%, 3/1/2025		700,000		803,363
5.88%, 6/30/2026		125,000		148,028
4.20%, 3/15/2028		120,000		132,930
4.50%, 5/15/2030		250,000		281,690

Spectra Energy Partners LP
4.75%, 3/15/2024		1,140,000		1,259,151


Investments	Principal Amount		Value

Oil, Gas & Consumable Fuels – (continued)

TC PipeLines LP
4.38%, 3/13/2025	$	100,000	$	110,565

TransCanada PipeLines Ltd.
4.25%, 5/15/2028		200,000		226,053

Transcanada Trust
Series 16-A, 5.87%, 8/15/2076(a)		300,000		333,375
5.30%, 3/15/2077(a)		600,000		638,685
5.50%, 9/15/2079(a)		500,000		543,240

Valero Energy Corp.
2.85%, 4/15/2025		500,000		527,942

Valero Energy Partners LP
4.50%, 3/15/2028		200,000		223,220
				13,696,385

Paper & Forest Products – 0.0%(e)

Suzano Austria GmbH
3.75%, 1/15/2031		150,000		153,766

Pharmaceuticals – 1.7%

Bristol-Myers Squibb Co.
3.40%, 7/26/2029		250,000		275,799

Eli Lilly and Co.
3.38%, 3/15/2029		200,000		220,306

Johnson & Johnson
2.45%, 3/1/2026		500,000		534,834
2.95%, 3/3/2027		650,000		710,650

Novartis Capital Corp.
2.40%, 9/21/2022		200,000		206,168
3.40%, 5/6/2024		403,000		437,235
1.75%, 2/14/2025		350,000		361,612
3.00%, 11/20/2025		700,000		759,199
2.20%, 8/14/2030		200,000		203,222

Royalty Pharma plc
2.20%, 9/2/2030(c)		400,000		382,298

Zoetis, Inc.
3.25%, 2/1/2023		650,000		677,353
3.00%, 9/12/2027		145,000		156,367
				4,925,043

Professional Services – 0.4%

Equifax, Inc.
2.60%, 12/1/2024		200,000		211,874

See Accompanying Notes to the Financial Statements.


292		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Professional Services – (continued)

IHS Markit Ltd.
4.75%, 8/1/2028	$	500,000	$	579,652

Verisk Analytics, Inc.
4.00%, 6/15/2025		250,000		276,792
				1,068,318

Real Estate Management & Development – 0.1%

CBRE Services, Inc.
4.88%, 3/1/2026		200,000		232,037

Road & Rail – 1.1%

Burlington Northern Santa Fe LLC
3.25%, 6/15/2027		224,000		245,067

Canadian National Railway Co.
2.95%, 11/21/2024		250,000		268,147

Canadian Pacific Railway Co.
2.90%, 2/1/2025		250,000		265,963
3.70%, 2/1/2026		20,000		22,011

CSX Corp.
3.25%, 6/1/2027		100,000		109,219
4.25%, 3/15/2029		200,000		229,487

JB Hunt Transport Services, Inc.
3.88%, 3/1/2026		300,000		333,639

Norfolk Southern Corp.
3.15%, 6/1/2027		200,000		217,762

Union Pacific Corp.
3.15%, 3/1/2024		500,000		536,826
3.00%, 4/15/2027		300,000		324,796
2.89%, 4/6/2036(c)		550,000		554,280
				3,107,197

Semiconductors & Semiconductor Equipment – 2.9%

Analog Devices, Inc.
3.50%, 12/5/2026		405,000		445,783

Broadcom Corp.
3.88%, 1/15/2027		2,800,000		3,068,257

Broadcom, Inc.
4.11%, 9/15/2028		500,000		552,627
4.75%, 4/15/2029		110,000		125,200
5.00%, 4/15/2030		300,000		345,729
4.15%, 11/15/2030		350,000		382,754

Intel Corp.
3.90%, 3/25/2030		300,000		341,965


Investments	Principal Amount		Value

Semiconductors & Semiconductor Equipment – (continued)

KLA Corp.
4.65%, 11/1/2024	$	200,000	$	223,952

Maxim Integrated Products, Inc.
3.45%, 6/15/2027		200,000		219,272

Micron Technology, Inc.
2.50%, 4/24/2023		250,000		259,219
4.19%, 2/15/2027		500,000		562,346
4.66%, 2/15/2030		200,000		230,636

NVIDIA Corp.
3.20%, 9/16/2026		300,000		330,682

NXP BV
5.55%, 12/1/2028(c)		500,000		606,662

QUALCOMM, Inc.
3.25%, 5/20/2027		200,000		220,766

Texas Instruments, Inc.
1.38%, 3/12/2025		200,000		204,988
2.90%, 11/3/2027		250,000		270,922
				8,391,760

Software – 2.5%

Adobe, Inc.
3.25%, 2/1/2025		250,000		271,031
2.30%, 2/1/2030		250,000		254,185

Autodesk, Inc.
3.50%, 6/15/2027		200,000		220,436

CA, Inc.
4.70%, 3/15/2027		200,000		224,949

Citrix Systems, Inc.
4.50%, 12/1/2027		200,000		229,578

Intuit, Inc.
1.35%, 7/15/2027		300,000		296,722

Microsoft Corp.
3.63%, 12/15/2023		375,000		405,127
2.70%, 2/12/2025		640,000		687,039
3.13%, 11/3/2025		500,000		547,089
2.40%, 8/8/2026		100,000		106,514
3.30%, 2/6/2027		615,000		682,478

Oracle Corp.
2.50%, 4/1/2025		500,000		528,099
2.65%, 7/15/2026		400,000		421,817
3.25%, 11/15/2027		800,000		867,705
2.30%, 3/25/2028		1,000,000		1,015,671
2.88%, 3/25/2031		500,000		508,013
				7,266,453

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			293

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Specialty Retail – 1.9%

Advance Auto Parts, Inc.
1.75%, 10/1/2027	$	60,000	$	59,455

AutoZone, Inc.
3.25%, 4/15/2025		540,000		579,070
3.13%, 4/21/2026		125,000		135,884
3.75%, 6/1/2027		250,000		277,681

Home Depot, Inc. (The)
2.63%, 6/1/2022		595,000		609,489
3.35%, 9/15/2025		203,000		223,255
3.00%, 4/1/2026		330,000		359,541
2.50%, 4/15/2027		200,000		212,357
2.80%, 9/14/2027		450,000		485,580
3.90%, 12/6/2028		60,000		68,901

Lowe’s Cos., Inc.
4.00%, 4/15/2025		300,000		333,011
3.38%, 9/15/2025		600,000		657,063
3.10%, 5/3/2027		500,000		543,217

O’Reilly Automotive, Inc.
3.55%, 3/15/2026		300,000		332,780
3.60%, 9/1/2027		200,000		220,437

TJX Cos., Inc. (The)
3.50%, 4/15/2025		500,000		547,535
				5,645,256

Technology Hardware, Storage & Peripherals – 3.2%

Apple, Inc.
2.40%, 5/3/2023		2,300,000		2,397,636
3.45%, 5/6/2024		865,000		943,154
3.20%, 5/13/2025		300,000		328,486
3.25%, 2/23/2026		518,000		569,581
2.05%, 9/11/2026		250,000		261,262
3.35%, 2/9/2027		830,000		918,739
3.20%, 5/11/2027		625,000		687,899
2.90%, 9/12/2027		500,000		543,166
3.00%, 11/13/2027		1,500,000		1,641,810

Dell International LLC
5.30%, 10/1/2029(c)		250,000		296,149

HP, Inc.
4.05%, 9/15/2022		200,000		209,295
3.00%, 6/17/2027		400,000		428,225

NetApp, Inc.
1.88%, 6/22/2025		200,000		205,405
				9,430,807


Investments	Principal Amount		Value

Textiles, Apparel & Luxury Goods – 0.2%

Tapestry, Inc.
4.13%, 7/15/2027	$	500,000	$	547,955

Tobacco – 2.3%

Altria Group, Inc.
4.40%, 2/14/2026		500,000		564,945
2.63%, 9/16/2026		160,000		167,378
4.80%, 2/14/2029		300,000		341,420
3.40%, 5/6/2030		300,000		312,713

BAT Capital Corp.
3.22%, 8/15/2024		500,000		532,911
3.22%, 9/6/2026		400,000		423,304
3.56%, 8/15/2027		1,000,000		1,065,440
4.91%, 4/2/2030		265,000		299,019
2.73%, 3/25/2031		750,000		718,629

Philip Morris International, Inc.
2.88%, 5/1/2024		500,000		532,618
1.50%, 5/1/2025		473,000		482,297
2.75%, 2/25/2026		500,000		535,097
0.88%, 5/1/2026		500,000		492,398

Reynolds American, Inc.
4.45%, 6/12/2025		200,000		222,681
				6,690,850

Trading Companies & Distributors – 0.5%

Air Lease Corp.
3.00%, 9/15/2023		405,000		424,524
3.75%, 6/1/2026		150,000		162,451

Aircastle Ltd.
4.40%, 9/25/2023		750,000		804,679
4.25%, 6/15/2026		200,000		216,525
				1,608,179

Water Utilities – 0.1%

American Water Capital Corp.
2.95%, 9/1/2027		200,000		215,189
3.75%, 9/1/2028		200,000		223,504
				438,693

See Accompanying Notes to the Financial Statements.


294		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Wireless Telecommunication Services – 0.2%

T-Mobile USA, Inc.
3.75%, 4/15/2027(c)	$	364,000	$	401,408
3.88%, 4/15/2030(c)		150,000		163,583
				564,991
Total Corporate Bonds (Cost $283,089,798)				286,954,476
Total Investments – 97.9% (Cost $283,089,798)				286,954,476

Other assets less liabilities – 2.1%				6,060,439
NET ASSETS – 100.0%			$	293,014,915

^(a)

Security issued at a fixed coupon rate, which converts to a variable rate at a future date. Rate shown is the rate in effect as of period end.

^(b)

Step bond. Interest rate is a fixed rate for an initial period that either resets at a specific date or may reset in the future at a contingent upon predetermined trigger. The interest rate shown was the current rate as of April 30, 2021.

^(c)

^(d)

Variable or floating rate security, linked to the referenced benchmark. The interest rate shown is the rate in effect as of April 30, 2021.

^(e)

Represents less than 0.05% of net assets.

Percentages shown are based on Net Assets.

Abbreviations

ICE – Intercontinental Exchange

LIBOR – London Interbank Offered Rate

SOFR – Secured Overnight Financing Rate

USD – US Dollar



Aggregate gross unrealized appreciation	$	5,872,933
Aggregate gross unrealized depreciation		(2,084,406	)
Net unrealized appreciation	$	3,788,527
Federal income tax cost	$	283,165,949

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			295

Schedule of Investments

FlexShares® Credit-Scored US Long Corporate Bond Index Fund

April 30, 2021 (Unaudited)


Investments	Principal Amount		Value

CORPORATE BONDS – 97.2%

Aerospace & Defense – 1.2%

Boeing Co. (The)
5.81%, 5/1/2050	$	150,000	$	192,666

L3Harris Technologies, Inc.
5.05%, 4/27/2045		20,000		25,334

Lockheed Martin Corp.
4.09%, 9/15/2052		225,000		268,030

Northrop Grumman Corp.
4.75%, 6/1/2043		60,000		74,353

Precision Castparts Corp.
3.90%, 1/15/2043		100,000		108,780
				669,163

Air Freight & Logistics – 0.5%

FedEx Corp.
5.25%, 5/15/2050		100,000		129,795

United Parcel Service, Inc.
5.30%, 4/1/2050		100,000		138,592
				268,387

Auto Components – 0.4%

Aptiv plc
5.40%, 3/15/2049		50,000		63,727

BorgWarner, Inc.
4.38%, 3/15/2045		50,000		54,104

Lear Corp.
5.25%, 5/15/2049		75,000		88,584
				206,415

Automobiles – 0.3%

General Motors Co.
6.25%, 10/2/2043		100,000		131,607
5.95%, 4/1/2049		50,000		64,754
				196,361

Banks – 9.6%

Bank of America Corp.
4.24%, 4/24/2038(a)		230,000		266,048
7.75%, 5/14/2038		200,000		308,864
5.00%, 1/21/2044		90,000		114,489
4.33%, 3/15/2050(a)		100,000		115,780
4.08%, 3/20/2051(a)		250,000		280,087


Investments	Principal Amount		Value

Banks – (continued)

Barclays plc
3.81%, 3/10/2042(a)	$	200,000	$	200,240

Citigroup, Inc.
3.88%, 1/24/2039(a)		200,000		220,088
5.32%, 3/26/2041(a)		100,000		130,094
5.88%, 1/30/2042		135,000		187,414
4.75%, 5/18/2046		335,000		406,893
4.65%, 7/23/2048		195,000		242,755

Cooperatieve Rabobank UA
5.25%, 5/24/2041		100,000		132,455

Fifth Third Bancorp
8.25%, 3/1/2038		125,000		206,636

HSBC Holdings plc
6.50%, 5/2/2036		200,000		267,934
5.25%, 3/14/2044		200,000		248,011

JPMorgan Chase & Co.
6.40%, 5/15/2038		35,000		49,899
3.11%, 4/22/2041(a)		100,000		99,798
2.53%, 11/19/2041(a)		215,000		196,463
4.95%, 6/1/2045		50,000		63,009
3.11%, 4/22/2051(a)		125,000		121,538

Lloyds Banking Group plc
4.34%, 1/9/2048		200,000		222,142

Regions Financial Corp.
7.38%, 12/10/2037		100,000		148,561

Wachovia Corp.
5.50%, 8/1/2035		450,000		568,110

Wells Fargo & Co.
5.95%, 12/15/2036		100,000		133,300
3.07%, 4/30/2041(a)		200,000		197,563
5.38%, 11/2/2043		265,000		337,157
5.01%, 4/4/2051(a)		100,000		129,521
				5,594,849

Beverages – 1.7%

Anheuser-Busch Cos. LLC
4.90%, 2/1/2046		50,000		59,764

Anheuser-Busch InBev Worldwide, Inc.
4.60%, 4/15/2048		25,000		28,679
5.55%, 1/23/2049		50,000		64,674
4.50%, 6/1/2050		200,000		230,228
5.80%, 1/23/2059		100,000		136,749

See Accompanying Notes to the Financial Statements.


296		FLEXSHARES SEMIANNUAL REPORT

FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Beverages – (continued)

Brown-Forman Corp.
4.50%, 7/15/2045	$	50,000	$	62,347

Coca-Cola Femsa SAB de CV
5.25%, 11/26/2043		150,000		191,854

Constellation Brands, Inc.
5.25%, 11/15/2048		75,000		96,316

Keurig Dr Pepper, Inc.
5.09%, 5/25/2048		100,000		126,970
				997,581

Biotechnology – 4.0%

AbbVie, Inc.
4.40%, 11/6/2042		295,000		342,136
4.45%, 5/14/2046		300,000		348,135

Amgen, Inc.
5.15%, 11/15/2041		28,000		35,842
4.40%, 5/1/2045		300,000		349,217
4.56%, 6/15/2048		250,000		299,053
4.66%, 6/15/2051		125,000		151,823
2.77%, 9/1/2053(b)		137,000		119,887

Biogen, Inc.
3.25%, 2/15/2051(b)		49,000		46,232

Gilead Sciences, Inc.
4.80%, 4/1/2044		150,000		181,363
4.75%, 3/1/2046		300,000		361,224

Regeneron Pharmaceuticals, Inc.
2.80%, 9/15/2050		100,000		87,038
				2,321,950

Building Products – 0.7%

Johnson Controls International plc
4.63%, 7/2/2044(c)		100,000		119,961
4.50%, 2/15/2047		100,000		119,323

Masco Corp.
4.50%, 5/15/2047		50,000		58,494

Owens Corning
4.40%, 1/30/2048		100,000		113,331
				411,109

Capital Markets – 1.9%

Goldman Sachs Group, Inc. (The)
4.02%, 10/31/2038(a)		130,000		147,084
4.75%, 10/21/2045		85,000		106,465


Investments	Principal Amount		Value

Capital Markets – (continued)

Jefferies Group LLC
6.50%, 1/20/2043	$	100,000	$	135,590

Legg Mason, Inc.
5.63%, 1/15/2044		75,000		101,762

Moody’s Corp.
5.25%, 7/15/2044		100,000		130,759
4.88%, 12/17/2048		50,000		63,244

Morgan Stanley
6.38%, 7/24/2042		75,000		111,670
4.30%, 1/27/2045		60,000		70,864

Nasdaq, Inc.
3.25%, 4/28/2050		100,000		96,190

Raymond James Financial, Inc.
4.95%, 7/15/2046		45,000		56,887

S&P Global, Inc.
2.30%, 8/15/2060		100,000		82,333
				1,102,848

Chemicals – 1.4%

Ecolab, Inc.
5.50%, 12/8/2041		100,000		134,140

International Flavors & Fragrances, Inc.
5.00%, 9/26/2048		100,000		125,415

LyondellBasell Industries NV
4.63%, 2/26/2055		100,000		114,933

RPM International, Inc.
4.25%, 1/15/2048		50,000		52,062

Sherwin-Williams Co. (The)
4.50%, 6/1/2047		145,000		172,853
3.80%, 8/15/2049		100,000		108,430
3.30%, 5/15/2050		100,000		100,183
				808,016

Commercial Services & Supplies – 0.1%

Waste Management, Inc.
4.15%, 7/15/2049		50,000		59,644

Communications Equipment – 0.4%

Cisco Systems, Inc.
5.90%, 2/15/2039		85,000		121,591
5.50%, 1/15/2040		100,000		138,058
				259,649

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			297

FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Construction & Engineering – 0.2%

Valmont Industries, Inc.
5.00%, 10/1/2044	$	100,000	$	114,849

Construction Materials – 0.3%

Martin Marietta Materials, Inc.
4.25%, 12/15/2047		50,000		56,667

Vulcan Materials Co.
4.50%, 6/15/2047		100,000		116,831
				173,498

Consumer Finance – 0.3%

Ally Financial, Inc.
8.00%, 11/1/2031		117,000		164,557

Containers & Packaging – 0.0%(d)

Sonoco Products Co.
5.75%, 11/1/2040		20,000		25,210

Diversified Financial Services – 0.1%

Voya Financial, Inc.
4.80%, 6/15/2046		50,000		61,161

Diversified Telecommunication Services – 4.4%

AT&T, Inc.
4.50%, 3/9/2048		100,000		109,733
3.65%, 6/1/2051		200,000		192,612
3.80%, 12/1/2057(b)		582,000		554,542

Bell Canada
4.30%, 7/29/2049		25,000		28,834

Bell Canada, Inc.
4.46%, 4/1/2048		150,000		176,668

Telefonica Emisiones SA
5.52%, 3/1/2049		150,000		186,253

TELUS Corp.
4.30%, 6/15/2049		50,000		57,194

Verizon Communications, Inc.
4.27%, 1/15/2036		339,000		390,745
4.52%, 9/15/2048		100,000		118,304
4.00%, 3/22/2050		400,000		436,798
2.88%, 11/20/2050		100,000		91,032
3.55%, 3/22/2051		200,000		203,165
				2,545,880


Investments	Principal Amount		Value

Electric Utilities – 6.3%

AEP Texas, Inc.
Series H, 3.45%, 1/15/2050	$	100,000	$	100,021

American Electric Power Co., Inc.
3.25%, 3/1/2050		150,000		143,463

Cleco Corporate Holdings LLC
4.97%, 5/1/2046(c)		100,000		114,319

Duke Energy Corp.
3.75%, 9/1/2046		250,000		258,427

Emera US Finance LP
4.75%, 6/15/2046		150,000		171,810

Exelon Corp.
4.70%, 4/15/2050		200,000		242,962

Georgia Power Co.
4.30%, 3/15/2042		200,000		230,310
Series B, 3.70%, 1/30/2050		100,000		105,314

Interstate Power and Light Co.
6.25%, 7/15/2039		150,000		209,104

MidAmerican Energy Co.
4.25%, 7/15/2049		200,000		240,845

Oklahoma Gas and Electric Co.
4.15%, 4/1/2047		125,000		140,723

Pacific Gas and Electric Co.
4.95%, 7/1/2050		100,000		102,534

PPL Capital Funding, Inc.
5.00%, 3/15/2044		100,000		123,764

Southern California Edison Co.
4.50%, 9/1/2040		125,000		142,395
4.65%, 10/1/2043		150,000		173,365
4.00%, 4/1/2047		175,000		182,416
Series 20A, 2.95%, 2/1/2051		200,000		179,840

Southern Co. (The)
4.40%, 7/1/2046		150,000		170,581

Southwestern Electric Power Co.
Series L, 3.85%, 2/1/2048		100,000		105,850

Southwestern Public Service Co.
4.50%, 8/15/2041		50,000		60,058

Virginia Electric and Power Co.
8.88%, 11/15/2038		200,000		350,432

Wisconsin Public Service Corp.
4.75%, 11/1/2044		100,000		123,279
				3,671,812

See Accompanying Notes to the Financial Statements.


298		FLEXSHARES SEMIANNUAL REPORT

FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Electrical Equipment – 0.1%

Emerson Electric Co.
5.25%, 11/15/2039	$	50,000	$	65,655

Electronic Equipment, Instruments & Components – 0.6%

Corning, Inc.
4.75%, 3/15/2042		45,000		53,467
4.38%, 11/15/2057		125,000		138,307
5.45%, 11/15/2079		100,000		128,317
				320,091

Energy Equipment & Services – 0.2%

Halliburton Co.
4.75%, 8/1/2043		100,000		107,713

Entertainment – 0.3%

Activision Blizzard, Inc.
2.50%, 9/15/2050		130,000		111,904

Electronic Arts, Inc.
2.95%, 2/15/2051		50,000		47,174
				159,078

Equity Real Estate Investment Trusts (REITs) – 1.5%

Alexandria Real Estate Equities, Inc.
2.00%, 5/18/2032		100,000		95,019

American Tower Corp.
3.10%, 6/15/2050		150,000		139,970

Crown Castle International Corp.
4.15%, 7/1/2050		100,000		108,462
3.25%, 1/15/2051		200,000		188,991

Federal Realty Investment Trust
4.50%, 12/1/2044		75,000		86,379

Kimco Realty Corp.
3.70%, 10/1/2049		100,000		104,064

Ventas Realty LP
5.70%, 9/30/2043		50,000		62,666

Welltower, Inc.
4.95%, 9/1/2048		50,000		60,707
				846,258

Food & Staples Retailing – 0.4%

Walgreens Boots Alliance, Inc.
4.10%, 4/15/2050		100,000		105,379


Investments	Principal Amount		Value

Food & Staples Retailing – (continued)

Walmart, Inc.
4.75%, 10/2/2043	$	100,000	$	124,286
				229,665

Food Products – 0.3%

Campbell Soup Co.
3.13%, 4/24/2050		100,000		93,639

J M Smucker Co. (The)
3.55%, 3/15/2050		50,000		51,489

Mondelez International, Inc.
2.63%, 9/4/2050		50,000		43,786
				188,914

Gas Utilities – 0.7%

Atmos Energy Corp.
5.50%, 6/15/2041		100,000		131,278
4.13%, 10/15/2044		15,000		17,015
4.30%, 10/1/2048		100,000		117,416

Eastern Energy Gas Holdings LLC
4.60%, 12/15/2044		100,000		115,365
				381,074

Health Care Equipment & Supplies – 1.4%

Abbott Laboratories
4.90%, 11/30/2046		100,000		131,269

Baxter International, Inc.
3.50%, 8/15/2046		100,000		107,340

Becton Dickinson and Co.
4.67%, 6/6/2047		200,000		239,055
3.79%, 5/20/2050		150,000		159,945

DH Europe Finance II Sarl
3.40%, 11/15/2049		50,000		51,873

Zimmer Biomet Holdings, Inc.
4.45%, 8/15/2045		100,000		113,943
				803,425

Health Care Providers & Services – 2.1%

AmerisourceBergen Corp.
4.30%, 12/15/2047		75,000		85,500

Cardinal Health, Inc.
4.37%, 6/15/2047		150,000		165,317

CVS Health Corp.
5.05%, 3/25/2048		150,000		184,525

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			299

FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Health Care Providers & Services – (continued)

HCA, Inc.
5.50%, 6/15/2047	$	100,000	$	125,523

Humana, Inc.
8.15%, 6/15/2038		25,000		39,126
4.63%, 12/1/2042		50,000		59,239
4.95%, 10/1/2044		115,000		140,486

McKesson Corp.
4.88%, 3/15/2044		100,000		121,422

UnitedHealth Group, Inc.
3.70%, 8/15/2049		75,000		82,192
3.88%, 8/15/2059		100,000		111,639
3.13%, 5/15/2060		125,000		122,449
				1,237,418

Hotels, Restaurants & Leisure – 1.3%

McDonald’s Corp.
4.88%, 7/15/2040		50,000		62,036
4.88%, 12/9/2045		125,000		154,674
4.45%, 3/1/2047		200,000		235,171
4.20%, 4/1/2050		100,000		115,369

Starbucks Corp.
3.50%, 11/15/2050		200,000		204,214
				771,464

Household Products – 0.3%

Church & Dwight Co., Inc.
3.95%, 8/1/2047		50,000		56,069

Kimberly-Clark Corp.
5.30%, 3/1/2041		100,000		131,883
				187,952

Independent Power and Renewable Electricity Producers – 0.3%

Exelon Generation Co. LLC
5.60%, 6/15/2042		100,000		112,776

Southern Power Co.
5.15%, 9/15/2041		50,000		58,189
				170,965

Industrial Conglomerates – 0.7%

3M Co.
5.70%, 3/15/2037		100,000		132,673


Investments	Principal Amount		Value

Industrial Conglomerates – (continued)

General Electric Co.
4.35%, 5/1/2050	$	50,000	$	55,727

Honeywell International, Inc.
5.70%, 3/15/2036		100,000		135,015

Trane Technologies Global Holding Co. Ltd.
5.75%, 6/15/2043		20,000		27,852

Trane Technologies Luxembourg Finance SA
4.50%, 3/21/2049		50,000		60,108
				411,375

Insurance – 5.4%

Aflac, Inc.
6.45%, 8/15/2040		50,000		68,835
4.75%, 1/15/2049		150,000		188,298

Alleghany Corp.
4.90%, 9/15/2044		75,000		90,737

Allstate Corp. (The)
4.20%, 12/15/2046		150,000		177,276
6.50%, 5/15/2057(a)		15,000		19,478

American International Group, Inc.
3.88%, 1/15/2035		110,000		120,388
4.70%, 7/10/2035		50,000		58,884

Aon Corp.
6.25%, 9/30/2040		50,000		69,388

Aon plc
4.60%, 6/14/2044		55,000		66,914
4.75%, 5/15/2045		100,000		124,420

Arch Capital Group Ltd.
7.35%, 5/1/2034		300,000		434,806

Berkshire Hathaway Finance Corp.
5.75%, 1/15/2040		115,000		161,640
4.25%, 1/15/2049		150,000		178,509
2.85%, 10/15/2050		50,000		47,406

Brighthouse Financial, Inc.
4.70%, 6/22/2047		50,000		52,079

Everest Reinsurance Holdings, Inc.
3.50%, 10/15/2050		100,000		100,831

Manulife Financial Corp.
5.38%, 3/4/2046		30,000		40,395

Markel Corp.
4.15%, 9/17/2050		125,000		142,348

See Accompanying Notes to the Financial Statements.


300		FLEXSHARES SEMIANNUAL REPORT

FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)


Investments	��	Principal Amount		Value

CORPORATE BONDS – (continued)

Insurance – (continued)

Marsh & McLennan Cos., Inc.
4.35%, 1/30/2047		$	20,000	$	24,015
4.20%, 3/1/2048			50,000		58,830
4.90%, 3/15/2049			165,000		214,794

MetLife, Inc.
6.40%, 12/15/2036			60,000		76,128
4.88%, 11/13/2043			150,000		192,550

Progressive Corp. (The)
4.13%, 4/15/2047			100,000		118,567

Selective Insurance Group, Inc.
5.38%, 3/1/2049			25,000		29,567

Unum Group
4.50%, 12/15/2049			100,000		102,405

W R Berkley Corp.
4.75%, 8/1/2044			100,000		119,942

Willis North America, Inc.
3.88%, 9/15/2049			50,000		54,337
					3,133,767

Interactive Media & Services – 0.1%

Alphabet, Inc.
2.25%, 8/15/2060			75,000		62,400

Internet & Direct Marketing Retail – 2.2%

Alibaba Group Holding Ltd.
4.00%, 12/6/2037			270,000		292,030
2.70%, 2/9/2041			200,000		186,330
4.20%, 12/6/2047			225,000		250,031
4.40%, 12/6/2057			50,000		57,797

Amazon.com, Inc.
4.25%, 8/22/2057			165,000		200,625
2.70%, 6/3/2060			200,000		180,096

eBay, Inc.
4.00%, 7/15/2042			85,000		91,346
					1,258,255

IT Services – 0.9%

International Business Machines Corp.
4.25%, 5/15/2049			100,000		117,371

Mastercard, Inc.
3.65%, 6/1/2049			200,000		222,822


Investments	Principal Amount		Value

IT Services – (continued)

Visa, Inc.
4.30%, 12/14/2045	$	170,000	$	209,311
				549,504

Leisure Products – 0.1%

Hasbro, Inc.
6.35%, 3/15/2040		50,000		65,960

Machinery – 0.6%

Cummins, Inc.
2.60%, 9/1/2050		100,000		91,437

Dover Corp.
5.38%, 3/1/2041		100,000		123,549

Fortive Corp.
4.30%, 6/15/2046		25,000		28,720

Illinois Tool Works, Inc.
3.90%, 9/1/2042		25,000		28,950

Otis Worldwide Corp.
3.11%, 2/15/2040		50,000		50,200
				322,856

Media – 4.4%

Charter Communications Operating LLC
5.38%, 4/1/2038		475,000		565,990
3.50%, 6/1/2041		250,000		240,597
6.48%, 10/23/2045		250,000		331,014
3.70%, 4/1/2051		250,000		235,414

Comcast Corp.
4.70%, 10/15/2048		100,000		125,287

Discovery Communications LLC
5.20%, 9/20/2047		100,000		117,631
4.65%, 5/15/2050		75,000		83,116

Fox Corp.
5.58%, 1/25/2049		50,000		64,261

Interpublic Group of Cos., Inc. (The)
5.40%, 10/1/2048		50,000		63,474

Time Warner Cable LLC
7.30%, 7/1/2038		200,000		284,177
6.75%, 6/15/2039		250,000		341,019
5.88%, 11/15/2040		100,000		125,360
				2,577,340

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			301

FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Metals & Mining – 3.7%

Barrick Gold Corp.
5.25%, 4/1/2042	$	50,000	$	63,018

Barrick North America Finance LLC
5.75%, 5/1/2043		100,000		134,034

Barrick PD Australia Finance Pty. Ltd.
5.95%, 10/15/2039		250,000		338,007

BHP Billiton Finance USA Ltd.
5.00%, 9/30/2043		95,000		125,583

Newmont Corp.
4.88%, 3/15/2042		150,000		184,814

Rio Tinto Finance USA Ltd.
5.20%, 11/2/2040		115,000		151,488

Southern Copper Corp.
5.88%, 4/23/2045		400,000		528,579

Vale Overseas Ltd.
6.88%, 11/21/2036		250,000		340,034
6.88%, 11/10/2039		200,000		276,000
				2,141,557

Multiline Retail – 0.1%

Dollar General Corp.
4.13%, 4/3/2050		50,000		56,200

Multi-Utilities – 3.4%

Berkshire Hathaway Energy Co.
6.13%, 4/1/2036		200,000		274,242
4.45%, 1/15/2049		100,000		120,474
4.25%, 10/15/2050		150,000		177,299
2.85%, 5/15/2051		200,000		184,935

Consolidated Edison Co. of New York, Inc.
4.63%, 12/1/2054		200,000		240,356
4.50%, 5/15/2058		130,000		154,438

Dominion Energy, Inc.
Series A, 4.60%, 3/15/2049		200,000		240,984

NiSource, Inc.
5.65%, 2/1/2045		150,000		197,885

Sempra Energy
6.00%, 10/15/2039		100,000		135,508
4.00%, 2/1/2048		100,000		107,909

Southern Co. Gas Capital Corp.
5.88%, 3/15/2041		50,000		67,837
3.95%, 10/1/2046		84,000		90,474
				1,992,341


Investments	Principal Amount		Value

Oil, Gas & Consumable Fuels – 9.9%

Columbia Pipeline Group, Inc.
5.80%, 6/1/2045	$	50,000	$	63,614

Enable Midstream Partners LP
5.00%, 5/15/2044(c)		100,000		99,788

Enbridge Energy Partners LP
5.50%, 9/15/2040		250,000		306,478

Enbridge, Inc.
5.50%, 12/1/2046		125,000		157,916

Energy Transfer LP
5.80%, 6/15/2038		200,000		231,050
6.50%, 2/1/2042		200,000		242,981
6.25%, 4/15/2049		200,000		239,010

Enterprise Products Operating LLC
5.95%, 2/1/2041		180,000		238,134
4.45%, 2/15/2043		300,000		337,001
4.85%, 3/15/2044		230,000		269,033
4.25%, 2/15/2048		85,000		91,918
3.95%, 1/31/2060		250,000		251,105

Exxon Mobil Corp.
4.33%, 3/19/2050		50,000		58,395

Kinder Morgan Energy Partners LP
6.95%, 1/15/2038		100,000		136,399
6.38%, 3/1/2041		200,000		260,544
5.50%, 3/1/2044		250,000		302,619

Kinder Morgan, Inc.
5.55%, 6/1/2045		125,000		152,397
5.20%, 3/1/2048		100,000		118,731
3.60%, 2/15/2051		100,000		95,744

Magellan Midstream Partners LP
5.15%, 10/15/2043		15,000		17,832
4.20%, 10/3/2047		145,000		153,643
4.85%, 2/1/2049		250,000		287,440

ONEOK Partners LP
6.13%, 2/1/2041		200,000		242,801

ONEOK, Inc.
5.20%, 7/15/2048		100,000		114,452
7.15%, 1/15/2051		200,000		278,339

Phillips 66 Partners LP
4.90%, 10/1/2046		75,000		84,269

Plains All American Pipeline LP
5.15%, 6/1/2042		185,000		190,043

Spectra Energy Partners LP
5.95%, 9/25/2043		100,000		129,750

See Accompanying Notes to the Financial Statements.


302		FLEXSHARES SEMIANNUAL REPORT

FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Oil, Gas & Consumable Fuels – (continued)

TransCanada PipeLines Ltd.
6.20%, 10/15/2037	$	150,000	$	198,543
7.63%, 1/15/2039		150,000		225,323
5.10%, 3/15/2049		100,000		124,872

Williams Cos., Inc. (The)
5.40%, 3/4/2044		50,000		59,264
				5,759,428

Personal Products – 0.2%

Estee Lauder Cos., Inc. (The)
3.70%, 8/15/2042		100,000		109,216

Pharmaceuticals – 1.7%

Eli Lilly and Co.
4.15%, 3/15/2059		145,000		173,499

Johnson & Johnson
5.85%, 7/15/2038		150,000		213,315
3.70%, 3/1/2046		155,000		176,555

Novartis Capital Corp.
4.40%, 5/6/2044		120,000		148,352

Royalty Pharma plc
3.30%, 9/2/2040(b)		100,000		96,821
3.55%, 9/2/2050(b)		100,000		94,733

Zoetis, Inc.
3.00%, 5/15/2050		100,000		96,900
				1,000,175

Professional Services – 0.1%

Verisk Analytics, Inc.
3.63%, 5/15/2050		50,000		50,985

Road & Rail – 2.4%

Burlington Northern Santa Fe LLC
4.90%, 4/1/2044		300,000		381,231
4.15%, 12/15/2048		100,000		116,447

Canadian National Railway Co.
6.38%, 11/15/2037		50,000		70,635

Canadian Pacific Railway Co.
6.13%, 9/15/2115		100,000		150,175

CSX Corp.
4.50%, 8/1/2054		50,000		60,357

Kansas City Southern
4.30%, 5/15/2043		100,000		112,456


Investments	Principal Amount		Value

Road & Rail – (continued)

Norfolk Southern Corp.
5.10%, 8/1/2118	$	50,000	$	60,598

Union Pacific Corp.
3.84%, 3/20/2060		75,000		80,056
4.10%, 9/15/2067		325,000		358,607
				1,390,562

Semiconductors & Semiconductor Equipment – 1.7%

Broadcom, Inc.
3.50%, 2/15/2041(b)		350,000		337,262

Intel Corp.
4.75%, 3/25/2050		150,000		190,196

KLA Corp.
3.30%, 3/1/2050		100,000		99,738

NVIDIA Corp.
3.50%, 4/1/2050		200,000		215,573

Texas Instruments, Inc.
4.15%, 5/15/2048		100,000		120,902
				963,671

Software – 2.8%

Microsoft Corp.
2.53%, 6/1/2050		150,000		139,767
2.92%, 3/17/2052		100,000		99,836
2.68%, 6/1/2060		56,000		51,765
3.04%, 3/17/2062		269,000		268,664

Oracle Corp.
6.13%, 7/8/2039		105,000		141,310
4.13%, 5/15/2045		225,000		239,449
3.60%, 4/1/2050		350,000		345,329
4.38%, 5/15/2055		215,000		237,106
3.85%, 4/1/2060		125,000		125,442
				1,648,668

Specialty Retail – 2.9%

Home Depot, Inc. (The)
5.88%, 12/16/2036		400,000		555,125
5.95%, 4/1/2041		100,000		142,318
4.88%, 2/15/2044		75,000		96,892
2.38%, 3/15/2051		400,000		349,314

Lowe’s Cos., Inc.
4.05%, 5/3/2047		100,000		110,794
4.55%, 4/5/2049		250,000		299,153
5.13%, 4/15/2050		100,000		132,404
				1,686,000

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			303

FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Technology Hardware, Storage & Peripherals – 3.6%

Apple, Inc.
4.38%, 5/13/2045	$	200,000	$	245,649
4.65%, 2/23/2046		190,000		242,794
2.95%, 9/11/2049		100,000		98,638
2.65%, 5/11/2050		100,000		92,893
2.65%, 2/8/2051		150,000		139,174
2.55%, 8/20/2060		100,000		88,019
2.80%, 2/8/2061		100,000		91,762

Dell International LLC
8.10%, 7/15/2036(b)		300,000		444,110
8.35%, 7/15/2046(b)		100,000		156,569

Hewlett Packard Enterprise Co.
6.35%, 10/15/2045(c)		200,000		264,846

HP, Inc.
6.00%, 9/15/2041		185,000		242,507
				2,106,961

Tobacco – 5.7%

Altria Group, Inc.
5.80%, 2/14/2039		300,000		363,124
4.25%, 8/9/2042		140,000		142,033
4.50%, 5/2/2043		100,000		104,523
5.38%, 1/31/2044		125,000		144,345
5.95%, 2/14/2049		350,000		430,595

BAT Capital Corp.
4.39%, 8/15/2037		300,000		308,849
3.73%, 9/25/2040		250,000		233,575
4.54%, 8/15/2047		200,000		198,541
4.76%, 9/6/2049		200,000		202,678

Philip Morris International, Inc.
4.13%, 3/4/2043		330,000		364,279
4.25%, 11/10/2044		450,000		506,376

Reynolds American, Inc.
6.15%, 9/15/2043		100,000		120,296
5.85%, 8/15/2045		150,000		172,962
				3,292,176

Trading Companies & Distributors – 0.4%

WW Grainger, Inc.
4.60%, 6/15/2045		200,000		248,654

Water Utilities – 0.5%

American Water Capital Corp.
4.30%, 12/1/2042		50,000		58,915


Investments	Principal Amount		Value

Water Utilities – (continued)
3.75%, 9/1/2047	$	150,000	$	164,333
4.20%, 9/1/2048		70,000		81,898
				305,146

Wireless Telecommunication Services – 0.4%

Rogers Communications, Inc.
4.35%, 5/1/2049		50,000		55,578

T-Mobile USA, Inc.
4.50%, 4/15/2050(b)		100,000		112,924

Vodafone Group plc
5.25%, 5/30/2048		50,000		63,185
				231,687
Total Corporate Bonds (Cost $56,643,496)				56,487,495
Total Investments – 97.2% (Cost $56,643,496)				56,487,495

Other assets less liabilities – 2.8%				1,634,975
NET ASSETS – 100.0%			$	58,122,470

^(a)

Security issued at a fixed coupon rate, which converts to a variable rate at a future date. Rate shown is the rate in effect as of period end.

^(b)

^(c)

^(d)

Represents less than 0.05% of net assets.

Percentages shown are based on Net Assets.



Aggregate gross unrealized appreciation	$	1,292,699
Aggregate gross unrealized depreciation		(1,451,337	)
Net unrealized depreciation	$	(158,638	)
Federal income tax cost	$	56,646,133

See Accompanying Notes to the Financial Statements.


304		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares® High Yield Value-Scored Bond Index Fund

April 30, 2021 (Unaudited)


Investments	Principal Amount		Value

CORPORATE BONDS – 97.3%

Aerospace & Defense – 2.4%

BWX Technologies, Inc.
4.13%, 6/30/2028(a)	$	200,000	$	204,067

F-Brasile SpA
Series NR, 7.38%, 8/15/2026(a)		320,000		326,400

Howmet Aerospace, Inc.
5.95%, 2/1/2037		50,000		60,135

Kratos Defense & Security Solutions, Inc.
6.50%, 11/30/2025(a)		100,000		105,365

Signature Aviation US Holdings, Inc.
5.38%, 5/1/2026(a)		200,000		206,127

Spirit AeroSystems, Inc.
3.95%, 6/15/2023		190,000		188,694

TransDigm UK Holdings plc
6.88%, 5/15/2026		105,000		110,709

TransDigm, Inc.
6.25%, 3/15/2026(a)		1,135,000		1,203,100
7.50%, 3/15/2027		195,000		209,151
5.50%, 11/15/2027		1,685,000		1,755,761
4.63%, 1/15/2029(a)		115,000		113,520
4.88%, 5/1/2029(a)		175,000		172,594

Triumph Group, Inc.
5.25%, 6/1/2022		115,000		114,425
6.25%, 9/15/2024(a)		315,000		318,741
				5,088,789

Air Freight & Logistics – 0.2%

Cargo Aircraft Management, Inc.
4.75%, 2/1/2028(a)		100,000		102,524

Western Global Airlines LLC
10.38%, 8/15/2025(a)		265,000		301,249
				403,773

Auto Components – 2.0%

Allison Transmission, Inc.
4.75%, 10/1/2027(a)		100,000		104,911
5.88%, 6/1/2029(a)		295,000		318,231

American Axle & Manufacturing, Inc.
6.88%, 7/1/2028		160,000		171,000


Investments	Principal Amount		Value

Auto Components – (continued)

Clarios Global LP
6.25%, 5/15/2026(a)	$	240,000	$	254,865
8.50%, 5/15/2027(a)		885,000		956,906

Dealer Tire LLC
8.00%, 2/1/2028(a)		300,000		317,862

Goodyear Tire & Rubber Co. (The)
4.88%, 3/15/2027		275,000		287,760

Icahn Enterprises LP
5.25%, 5/15/2027		680,000		694,450
4.38%, 2/1/2029(a)		485,000		471,037

IHO Verwaltungs GmbH
6.38%, 5/15/2029(a)(b)		200,000		220,152

Patrick Industries, Inc.
7.50%, 10/15/2027(a)		75,000		81,681

Real Hero Merger Sub 2, Inc.
6.25%, 2/1/2029(a)		380,000		393,687
				4,272,542

Automobiles – 2.0%

Ford Motor Co.
9.00%, 4/22/2025		1,025,000		1,253,226
4.35%, 12/8/2026		45,000		47,950
6.63%, 10/1/2028		225,000		264,544
6.38%, 2/1/2029		150,000		169,875
9.63%, 4/22/2030		500,000		701,877
7.45%, 7/16/2031		160,000		206,117
8.90%, 1/15/2032		95,000		126,105
4.75%, 1/15/2043		225,000		227,672
5.29%, 12/8/2046		100,000		105,530

Jaguar Land Rover Automotive plc
7.75%, 10/15/2025(a)		140,000		152,085
5.88%, 1/15/2028(a)		410,000		416,417

PM General Purchaser LLC
9.50%, 10/1/2028(a)		395,000		435,981

Winnebago Industries, Inc.
6.25%, 7/15/2028(a)		100,000		108,588
				4,215,967

Banks – 1.0%

Goldman Sachs Capital I
6.35%, 2/15/2034		20,000		27,503

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			305

FlexShares® High Yield Value-Scored Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Banks – (continued)

UniCredit SpA
5.86%, 6/19/2032(a)(c)	$	200,000	$	221,962
7.30%, 4/2/2034(a)(c)		790,000		938,539
5.46%, 6/30/2035(a)(c)		940,000		1,011,419
				2,199,423

Beverages – 0.2%

Triton Water Holdings, Inc.
6.25%, 4/1/2029(a)		525,000		532,253

Biotechnology – 0.1%

Horizon Therapeutics USA, Inc.
5.50%, 8/1/2027(a)		220,000		235,675

Building Products – 0.9%

Associated Materials LLC
9.00%, 9/1/2025(a)		100,000		106,750

Cornerstone Building Brands, Inc.
6.13%, 1/15/2029(a)		190,000		203,530

CP Atlas Buyer, Inc.
7.00%, 12/1/2028(a)		335,000		347,916

Griffon Corp.
5.75%, 3/1/2028		405,000		433,075

PGT Innovations, Inc.
6.75%, 8/1/2026(a)		130,000		137,718

SRM Escrow Issuer LLC
6.00%, 11/1/2028(a)		525,000		557,114

Standard Industries, Inc.
3.38%, 1/15/2031(a)		220,000		205,936
				1,992,039

Capital Markets – 1.0%

Advisor Group Holdings, Inc.
10.75%, 8/1/2027(a)		230,000		255,975

AG Issuer LLC
6.25%, 3/1/2028(a)		250,000		259,687

Aretec Escrow Issuer, Inc.
7.50%, 4/1/2029(a)		265,000		271,877

FS Energy & Power Fund
7.50%, 8/15/2023(a)		185,000		188,257

Hightower Holding LLC
6.75%, 4/15/2029(a)		200,000		204,960


Investments	Principal Amount		Value

Capital Markets – (continued)

MSCI, Inc.
5.38%, 5/15/2027(a)	$	130,000	$	139,301

Nomura Holdings, Inc.
2.65%, 1/16/2025		640,000		669,248

StoneX Group, Inc.
8.63%, 6/15/2025(a)		140,000		150,063
				2,139,368

Chemicals – 2.9%

Ashland LLC
6.88%, 5/15/2043		45,000		56,781

Axalta Coating Systems LLC
3.38%, 2/15/2029(a)		150,000		145,952

Chemours Co. (The)
5.75%, 11/15/2028(a)		545,000		579,695

Cornerstone Chemical Co.
6.75%, 8/15/2024(a)		285,000		274,553

FXI Holdings, Inc.
7.88%, 11/1/2024(a)		185,000		191,475
12.25%, 11/15/2026(a)		267,000		309,412

Gates Global LLC
6.25%, 1/15/2026(a)		210,000		220,212

GCP Applied Technologies, Inc.
5.50%, 4/15/2026(a)		230,000		237,144

Hexion, Inc.
7.88%, 7/15/2027(a)		165,000		177,822

Illuminate Buyer LLC
9.00%, 7/1/2028(a)		305,000		341,981

Ingevity Corp.
4.50%, 2/1/2026(a)		150,000		153,721

Innophos Holdings, Inc.
9.38%, 2/15/2028(a)		55,000		59,984

Minerals Technologies, Inc.
5.00%, 7/1/2028(a)		120,000		126,120

NOVA Chemicals Corp.
4.88%, 6/1/2024(a)		195,000		206,018
5.00%, 5/1/2025(a)		135,000		143,691

Rain CII Carbon LLC
7.25%, 4/1/2025(a)		210,000		217,221

Rayonier AM Products, Inc.
7.63%, 1/15/2026(a)		335,000		356,733

SCIH Salt Holdings, Inc.
4.88%, 5/1/2028(a)		560,000		558,018
6.63%, 5/1/2029(a)		465,000		458,011

See Accompanying Notes to the Financial Statements.


306		FLEXSHARES SEMIANNUAL REPORT

FlexShares® High Yield Value-Scored Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Chemicals – (continued)

TPC Group, Inc.
10.50%, 8/1/2024(a)	$	610,000	$	571,113

Trinseo Materials Operating SCA
5.38%, 9/1/2025(a)		180,000		184,067
5.13%, 4/1/2029(a)		305,000		310,214

W.R. Grace & Co.-Conn.
4.88%, 6/15/2027(a)		305,000		318,344
				6,198,282

Commercial Services & Supplies – 4.0%

Allied Universal Holdco LLC
9.75%, 7/15/2027(a)		345,000		379,402

Aptim Corp.
7.75%, 6/15/2025(a)		300,000		260,593

APX Group, Inc.
7.88%, 12/1/2022		165,000		166,444
7.63%, 9/1/2023		150,000		154,219
6.75%, 2/15/2027(a)		390,000		419,866

Aramark Services, Inc.
6.38%, 5/1/2025(a)		375,000		399,375
5.00%, 2/1/2028(a)		175,000		183,207

Celestial-Saturn Merger Sub, Inc.
4.50%, 5/1/2028(a)		495,000		494,891

Cimpress plc
7.00%, 6/15/2026(a)		225,000		237,328

CoreCivic, Inc.
4.63%, 5/1/2023		275,000		278,510
8.25%, 4/15/2026		295,000		296,844
4.75%, 10/15/2027		150,000		135,811

Covanta Holding Corp.
6.00%, 1/1/2027		100,000		104,856

Garda World Security Corp.
8.75%, 5/15/2025(a)		45,000		47,109
4.63%, 2/15/2027(a)		380,000		380,475
9.50%, 11/1/2027(a)		250,000		276,304

GFL Environmental, Inc.
4.25%, 6/1/2025(a)		150,000		154,781
3.75%, 8/1/2025(a)		440,000		448,541
5.13%, 12/15/2026(a)		135,000		141,581

IAA, Inc.
5.50%, 6/15/2027(a)		100,000		105,250

Intrado Corp.
8.50%, 10/15/2025(a)		560,000		570,150


Investments	Principal Amount		Value

Commercial Services & Supplies – (continued)

KAR Auction Services, Inc.
5.13%, 6/1/2025(a)	$	370,000	$	375,620

Legends Hospitality Holding Co. LLC
5.00%, 2/1/2026(a)		160,000		165,400

Matthews International Corp.
5.25%, 12/1/2025(a)		180,000		187,406

Nielsen Finance LLC
5.63%, 10/1/2028(a)		195,000		208,163
5.88%, 10/1/2030(a)		125,000		137,031

Pitney Bowes, Inc.
6.88%, 3/15/2027(a)		275,000		281,531
7.25%, 3/15/2029(a)		240,000		246,300

Prime Security Services Borrower LLC
3.38%, 8/31/2027(a)		125,000		120,938
6.25%, 1/15/2028(a)		820,000		858,064

Stericycle, Inc.
5.38%, 7/15/2024(a)		200,000		207,669
3.88%, 1/15/2029(a)		45,000		44,996

Waste Pro USA, Inc.
5.50%, 2/15/2026(a)		150,000		153,436
				8,622,091

Communications Equipment – 0.4%

Avaya, Inc.
6.13%, 9/15/2028(a)		245,000		260,896

CommScope, Inc.
7.13%, 7/1/2028(a)		475,000		514,648
				775,544

Construction & Engineering – 0.8%

AECOM
5.13%, 3/15/2027		200,000		222,750

Brand Industrial Services, Inc.
8.50%, 7/15/2025(a)		620,000		634,180

New Enterprise Stone & Lime Co., Inc.
9.75%, 7/15/2028(a)		115,000		128,800

Pike Corp.
5.50%, 9/1/2028(a)		325,000		335,759

PowerTeam Services LLC
9.03%, 12/4/2025(a)		245,000		272,275

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			307

FlexShares® High Yield Value-Scored Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Construction & Engineering – (continued)

Weekley Homes LLC
4.88%, 9/15/2028(a)	$	120,000	$	124,229
				1,717,993

Consumer Finance – 1.4%

Credit Acceptance Corp.
5.13%, 12/31/2024(a)		165,000		170,552
6.63%, 3/15/2026		270,000		285,913

Enova International, Inc.
8.50%, 9/1/2024(a)		130,000		134,049

Finance of America Funding LLC
7.88%, 11/15/2025(a)		235,000		243,813

FirstCash, Inc.
4.63%, 9/1/2028(a)		290,000		298,368

Ford Motor Credit Co. LLC
4.69%, 6/9/2025		200,000		215,250
5.13%, 6/16/2025		440,000		481,206
4.13%, 8/4/2025		570,000		602,604
5.11%, 5/3/2029		200,000		218,812

PRA Group, Inc.
7.38%, 9/1/2025(a)		100,000		107,312

TMX Finance LLC
11.13%, 4/1/2023(a)		130,000		132,911
				2,890,790

Containers & Packaging – 1.8%

Berry Global, Inc.
5.63%, 7/15/2027(a)		200,000		213,250

Cascades, Inc.
5.38%, 1/15/2028(a)		250,000		260,882

Graham Packaging Co., Inc.
7.13%, 8/15/2028(a)		340,000		365,288

Greif, Inc.
6.50%, 3/1/2027(a)		100,000		105,964

Intelligent Packaging Ltd. Finco, Inc.
6.00%, 9/15/2028(a)		370,000		382,795

Intertape Polymer Group, Inc.
7.00%, 10/15/2026(a)		50,000		52,615

Mauser Packaging Solutions Holding Co.
5.50%, 4/15/2024(a)		400,000		402,242
7.25%, 4/15/2025(a)		920,000		895,850


Investments	Principal Amount		Value

Containers & Packaging – (continued)

Pactiv LLC
7.95%, 12/15/2025	$	160,000	$	178,400
8.38%, 4/15/2027		110,000		125,957

Reynolds Group Issuer, Inc.
4.00%, 10/15/2027(a)		90,000		89,103

Silgan Holdings, Inc.
4.13%, 2/1/2028		185,000		191,663

Trident TPI Holdings, Inc.
6.63%, 11/1/2025(a)		100,000		102,165

Trivium Packaging Finance BV
5.50%, 8/15/2026(a)(d)		280,000		293,429
8.50%, 8/15/2027(a)(d)		200,000		214,737
				3,874,340

Distributors – 0.7%

Resideo Funding, Inc.
6.13%, 11/1/2026(a)		98,000		103,651

Wolverine Escrow LLC
8.50%, 11/15/2024(a)		405,000		398,925
9.00%, 11/15/2026(a)		625,000		619,312
13.13%, 11/15/2027(a)		330,000		282,975
				1,404,863

Diversified Consumer Services – 0.4%

Adtalem Global Education, Inc.
5.50%, 3/1/2028(a)		545,000		547,044

Carriage Services, Inc.
6.63%, 6/1/2026(a)		100,000		105,556

Graham Holdings Co.
5.75%, 6/1/2026(a)		140,000		146,798

Midas Intermediate Holdco II LLC
7.88%, 10/1/2022(a)		30,000		29,552

Service Corp. International
7.50%, 4/1/2027		64,000		77,508
				906,458

Diversified Financial Services – 0.5%

ACE Cash Express, Inc.
12.00%, 12/15/2022(a)		45,000		38,362

CNG Holdings, Inc.
12.50%, 6/15/2024(a)		111,000		106,144

CPI CG, Inc.
8.63%, 3/15/2026(a)		210,000		219,809

See Accompanying Notes to the Financial Statements.


308		FLEXSHARES SEMIANNUAL REPORT

FlexShares® High Yield Value-Scored Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Diversified Financial Services – (continued)

Jefferies Finance LLC
6.25%, 6/3/2026(a)	$	200,000	$	210,500

Shift4 Payments LLC
4.63%, 11/1/2026(a)		125,000		130,684

Stena International SA
6.13%, 2/1/2025(a)		390,000		397,313
				1,102,812

Diversified Telecommunication Services – 4.5%

Altice France SA
5.50%, 1/15/2028(a)		615,000		634,366

CCO Holdings LLC
5.13%, 5/1/2027(a)		865,000		906,554
5.88%, 5/1/2027(a)		210,000		217,022
5.00%, 2/1/2028(a)		760,000		795,150
5.38%, 6/1/2029(a)		270,000		293,493
4.75%, 3/1/2030(a)		680,000		710,600
4.50%, 8/15/2030(a)		425,000		432,922
4.25%, 2/1/2031(a)		460,000		460,000
4.50%, 5/1/2032(a)		340,000		343,825

Lumen Technologies, Inc.
4.50%, 1/15/2029(a)		90,000		88,767

Sprint Capital Corp.
6.88%, 11/15/2028		180,000		227,030
8.75%, 3/15/2032		240,000		356,154

Telecom Italia Capital SA
6.00%, 9/30/2034		100,000		112,715
7.20%, 7/18/2036		150,000		186,890
7.72%, 6/4/2038		150,000		196,875

Telesat Canada
5.63%, 12/6/2026(a)		330,000		332,548
4.88%, 6/1/2027(a)		265,000		259,700
6.50%, 10/15/2027(a)		355,000		349,231

Virgin Media Finance plc
5.00%, 7/15/2030(a)		755,000		753,739

Virgin Media Secured Finance plc
5.50%, 5/15/2029(a)		550,000		588,775

Windstream Escrow LLC
7.75%, 8/15/2028(a)		905,000		944,630

Zayo Group Holdings, Inc.
4.00%, 3/1/2027(a)		365,000		362,942
				9,553,928


Investments	Principal Amount		Value

Electric Utilities – 0.8%

FirstEnergy Corp.
Series C, 7.38%, 11/15/2031	$	55,000	$	74,505
Series C, 5.35%, 7/15/2047(d)		125,000		145,210

NRG Energy, Inc.
7.25%, 5/15/2026		265,000		274,937
6.63%, 1/15/2027		310,000		323,470
5.75%, 1/15/2028		140,000		148,925

Terraform Global Operating LLC
6.13%, 3/1/2026(a)		75,000		77,142

Vistra Operations Co. LLC
5.50%, 9/1/2026(a)		250,000		258,437
5.63%, 2/15/2027(a)		320,000		333,584
				1,636,210

Electrical Equipment – 0.0%(e)

EnerSys
5.00%, 4/30/2023(a)		100,000		104,938

Energy Equipment & Services – 1.8%

Archrock Partners LP
6.25%, 4/1/2028(a)		585,000		612,376

Bristow Group, Inc.
6.88%, 3/1/2028(a)		255,000		258,830

CGG SA
8.75%, 4/1/2027(a)		330,000		331,742

CSI Compressco LP
7.50%, 4/1/2025(a)		148,000		150,683

Exterran Energy Solutions LP
8.13%, 5/1/2025		210,000		189,765

Oceaneering International, Inc.
4.65%, 11/15/2024		130,000		127,076
6.00%, 2/1/2028		190,000		186,024

Precision Drilling Corp.
7.75%, 12/15/2023		100,000		100,812
5.25%, 11/15/2024		165,000		158,916
7.13%, 1/15/2026(a)		200,000		198,375

Tervita Corp.
11.00%, 12/1/2025(a)		320,000		363,258

Transocean Guardian Ltd.
5.88%, 1/15/2024(a)		221,125		206,061

Transocean Phoenix 2 Ltd.
7.75%, 10/15/2024(a)		123,750		123,131

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			309

FlexShares® High Yield Value-Scored Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Energy Equipment & Services – (continued)

Transocean Pontus Ltd.
6.13%, 8/1/2025(a)	$	163,125	$	159,353

Transocean Poseidon Ltd.
6.88%, 2/1/2027(a)		225,000		214,172

Transocean Proteus Ltd.
6.25%, 12/1/2024(a)		123,000		119,752

Transocean Sentry Ltd.
5.38%, 5/15/2023(a)		86,459		82,136

USA Compression Partners LP
6.88%, 4/1/2026		255,000		267,735
				3,850,197

Entertainment – 1.2%

Allen Media LLC
10.50%, 2/15/2028(a)		150,000		160,852

Banijay Entertainment SASU
5.38%, 3/1/2025(a)		150,000		155,344

Lions Gate Capital Holdings LLC
5.50%, 4/15/2029(a)		660,000		662,475

Live Nation Entertainment, Inc.
4.88%, 11/1/2024(a)		235,000		239,758
5.63%, 3/15/2026(a)		300,000		312,450
6.50%, 5/15/2027(a)		300,000		331,875

Netflix, Inc.
5.88%, 11/15/2028		160,000		195,084

Playtika Holding Corp.
4.25%, 3/15/2029(a)		410,000		407,950

WMG Acquisition Corp.
3.00%, 2/15/2031(a)		95,000		89,400
				2,555,188

Equity Real Estate Investment Trusts (REITs) – 3.2%

Brookfield Property REIT, Inc.
5.75%, 5/15/2026(a)		600,000		627,750

GEO Group, Inc. (The)
5.13%, 4/1/2023		195,000		179,016
5.88%, 10/15/2024		517,000		416,185

Iron Mountain, Inc.
4.88%, 9/15/2027(a)		140,000		145,937
5.25%, 3/15/2028(a)		205,000		215,303
5.00%, 7/15/2028(a)		205,000		212,702
4.88%, 9/15/2029(a)		205,000		209,205
5.25%, 7/15/2030(a)		885,000		919,249
5.63%, 7/15/2032(a)		435,000		459,802


Investments	Principal Amount		Value

Equity Real Estate Investment Trusts (REITs) – (continued)

iStar, Inc.
4.75%, 10/1/2024	$	205,000	$	214,125
4.25%, 8/1/2025		210,000		213,244
5.50%, 2/15/2026		265,000		274,952

MGM Growth Properties Operating Partnership LP
5.63%, 5/1/2024		285,000		307,649

Service Properties Trust
4.65%, 3/15/2024		225,000		227,109

Uniti Group LP
7.13%, 12/15/2024(a)		290,000		299,758
7.88%, 2/15/2025(a)		550,000		593,313
4.75%, 4/15/2028(a)		375,000		374,160
6.50%, 2/15/2029(a)		800,000		796,560

XHR LP
6.38%, 8/15/2025(a)		190,000		201,611
				6,887,630

Food & Staples Retailing – 0.7%

Albertsons Cos., Inc.
4.63%, 1/15/2027(a)		535,000		557,068
5.88%, 2/15/2028(a)		280,000		298,571
3.50%, 3/15/2029(a)		155,000		149,000
4.88%, 2/15/2030(a)		130,000		135,512

C&S Group Enterprises LLC
5.00%, 12/15/2028(a)		255,000		254,031

SEG Holding LLC
5.63%, 10/15/2028(a)		125,000		131,719
				1,525,901

Food Products – 2.8%

B&G Foods, Inc.
5.25%, 9/15/2027		185,000		191,684

Chobani LLC
4.63%, 11/15/2028(a)		160,000		165,200

Del Monte Foods, Inc.
11.88%, 5/15/2025(a)		310,000		353,695

Kraft Heinz Foods Co.
6.75%, 3/15/2032(d)		110,000		145,407
6.88%, 1/26/2039		340,000		467,037
7.13%, 8/1/2039(a)		105,000		149,168
6.50%, 2/9/2040		70,000		92,599
5.00%, 6/4/2042		275,000		317,776
5.20%, 7/15/2045		245,000		290,146

See Accompanying Notes to the Financial Statements.


310		FLEXSHARES SEMIANNUAL REPORT

FlexShares® High Yield Value-Scored Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Food Products – (continued)
4.38%, 6/1/2046	$	205,000	$	219,081
4.88%, 10/1/2049		60,000		68,902

Pilgrim’s Pride Corp.
5.88%, 9/30/2027(a)		225,000		239,062

Post Holdings, Inc.
5.75%, 3/1/2027(a)		525,000		550,594
5.63%, 1/15/2028(a)		355,000		374,525
5.50%, 12/15/2029(a)		300,000		323,340
4.63%, 4/15/2030(a)		820,000		829,553
4.50%, 9/15/2031(a)		200,000		198,810

Sigma Holdco BV
7.88%, 5/15/2026(a)		310,000		310,387

Simmons Foods, Inc.
4.63%, 3/1/2029(a)		580,000		585,197
				5,872,163

Gas Utilities – 0.3%

Suburban Propane Partners LP
5.88%, 3/1/2027		150,000		156,656

Superior Plus LP
4.50%, 3/15/2029(a)		410,000		418,772
				575,428

Health Care Equipment & Supplies – 0.3%

Hill-Rom Holdings, Inc.
4.38%, 9/15/2027(a)		225,000		233,568

Hologic, Inc.
4.63%, 2/1/2028(a)		85,000		89,941

Ortho-Clinical Diagnostics, Inc.
7.25%, 2/1/2028(a)		249,000		273,620
				597,129

Health Care Providers & Services – 3.8%

AHP Health Partners, Inc.
9.75%, 7/15/2026(a)		110,000		119,329

Air Methods Corp.
8.00%, 5/15/2025(a)		75,000		70,500

Centene Corp.
5.38%, 6/1/2026(a)		475,000		496,375
4.63%, 12/15/2029		275,000		298,700
3.00%, 10/15/2030		120,000		119,204
2.50%, 3/1/2031		110,000		104,872


Investments	Principal Amount		Value

Health Care Providers & Services – (continued)

Community Health Systems, Inc.
6.88%, 4/15/2029(a)	$	1,260,000	$	1,318,533

DaVita, Inc.
4.63%, 6/1/2030(a)		290,000		293,988
3.75%, 2/15/2031(a)		170,000		161,713

Encompass Health Corp.
4.50%, 2/1/2028		300,000		311,621
4.75%, 2/1/2030		80,000		84,100

Global Medical Response, Inc.
6.50%, 10/1/2025(a)		235,000		240,875

Hadrian Merger Sub, Inc.
8.50%, 5/1/2026(a)		55,000		57,258

HCA, Inc.
3.50%, 9/1/2030		325,000		334,254

Legacy LifePoint Health LLC
4.38%, 2/15/2027(a)		230,000		230,294

LifePoint Health, Inc.
5.38%, 1/15/2029(a)		315,000		315,457

MEDNAX, Inc.
6.25%, 1/15/2027(a)		405,000		429,806

ModivCare, Inc.
5.88%, 11/15/2025(a)		315,000		335,434

Molina Healthcare, Inc.
4.38%, 6/15/2028(a)		155,000		159,456

Prime Healthcare Services, Inc.
7.25%, 11/1/2025(a)		430,000		463,202

Radiology Partners, Inc.
9.25%, 2/1/2028(a)		350,000		385,191

RP Escrow Issuer LLC
5.25%, 12/15/2025(a)		265,000		276,639

Select Medical Corp.
6.25%, 8/15/2026(a)		300,000		319,130

Surgery Center Holdings, Inc.
10.00%, 4/15/2027(a)		200,000		219,686

Tenet Healthcare Corp.
6.25%, 2/1/2027(a)		335,000		351,783

US Acute Care Solutions LLC
6.38%, 3/1/2026(a)		255,000		266,539

US Renal Care, Inc.
10.63%, 7/15/2027(a)		335,000		354,891
				8,118,830

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			311

FlexShares® High Yield Value-Scored Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Health Care Technology – 0.3%

IQVIA, Inc.
5.00%, 10/15/2026(a)	$	280,000	$	289,833
5.00%, 5/15/2027(a)		270,000		282,825
				572,658

Hotels, Restaurants & Leisure – 7.2%

1011778 BC ULC
4.25%, 5/15/2024(a)		205,000		207,936
4.38%, 1/15/2028(a)		290,000		294,335
4.00%, 10/15/2030(a)		350,000		341,707

Affinity Gaming
6.88%, 12/15/2027(a)		350,000		371,980

Arrow Bidco LLC
9.50%, 3/15/2024(a)		190,000		190,218

Bally’s Corp.
6.75%, 6/1/2027(a)		135,000		143,786

Boyd Gaming Corp.
6.00%, 8/15/2026		165,000		171,393
4.75%, 12/1/2027		150,000		153,982

Carlson Travel, Inc.
10.50%, 3/31/2025(a)(d)		155,000		161,781
6.75%, 12/15/2025(a)		270,000		255,150

CEC Entertainment LLC
6.75%, 5/1/2026(a)		430,000		427,442

Cedar Fair LP
5.50%, 5/1/2025(a)		350,000		367,400
5.38%, 4/15/2027		200,000		206,225

Churchill Downs, Inc.
5.50%, 4/1/2027(a)		100,000		104,038

Cirsa Finance International Sarl
7.88%, 12/20/2023(a)		200,000		204,250

Full House Resorts, Inc.
8.25%, 2/15/2028(a)		200,000		215,646

Hilton Domestic Operating Co., Inc.
5.75%, 5/1/2028(a)		135,000		145,439
4.88%, 1/15/2030		200,000		213,507
4.00%, 5/1/2031(a)		150,000		151,705
3.63%, 2/15/2032(a)		150,000		147,710

Hilton Worldwide Finance LLC
4.88%, 4/1/2027		150,000		156,003


Investments	Principal Amount		Value

Hotels, Restaurants & Leisure – (continued)

International Game Technology plc
6.50%, 2/15/2025(a)	$	300,000	$	332,625
6.25%, 1/15/2027(a)		287,000		322,786
5.25%, 1/15/2029(a)		300,000		318,488

Life Time, Inc.
5.75%, 1/15/2026(a)		595,000		615,182
8.00%, 4/15/2026(a)		300,000		315,801

Marriott Ownership Resorts, Inc.
6.50%, 9/15/2026		290,000		303,804

Merlin Entertainments Ltd.
5.75%, 6/15/2026(a)		230,000		243,469

Mohegan Gaming & Entertainment
8.00%, 2/1/2026(a)		740,000		751,988

Motion Bondco DAC
6.63%, 11/15/2027(a)		400,000		409,000

Peninsula Pacific Entertainment LLC
8.50%, 11/15/2027(a)		560,000		594,300

Powdr Corp.
6.00%, 8/1/2025(a)		100,000		105,625

Royal Caribbean Cruises Ltd.
9.13%, 6/15/2023(a)		320,000		353,667
11.50%, 6/1/2025(a)		625,000		724,806

Scientific Games International, Inc.
8.63%, 7/1/2025(a)		135,000		147,820

SeaWorld Parks & Entertainment, Inc.
9.50%, 8/1/2025(a)		110,000		119,578

Silversea Cruise Finance Ltd.
7.25%, 2/1/2025(a)		245,000		253,857

Six Flags Entertainment Corp.
4.88%, 7/31/2024(a)		295,000		297,639
5.50%, 4/15/2027(a)		165,000		170,824

Sizzling Platter LLC
8.50%, 11/28/2025(a)		235,000		238,690

Speedway Motorsports LLC
4.88%, 11/1/2027(a)		215,000		214,731

Travel & Leisure Co.
6.00%, 4/1/2027(d)		70,000		78,494

Vail Resorts, Inc.
6.25%, 5/15/2025(a)		225,000		239,062

See Accompanying Notes to the Financial Statements.


312		FLEXSHARES SEMIANNUAL REPORT

FlexShares® High Yield Value-Scored Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Hotels, Restaurants & Leisure – (continued)

Viking Cruises Ltd.
6.25%, 5/15/2025(a)	$	235,000	$	234,682
5.88%, 9/15/2027(a)		635,000		623,103
7.00%, 2/15/2029(a)		220,000		228,525

Viking Ocean Cruises Ship VII Ltd.
5.63%, 2/15/2029(a)		220,000		224,257

VOC Escrow Ltd.
5.00%, 2/15/2028(a)		400,000		408,500

Wynn Las Vegas LLC
4.25%, 5/30/2023(a)		100,000		102,812
5.50%, 3/1/2025(a)		680,000		726,991
5.25%, 5/15/2027(a)		580,000		613,739

Wynn Resorts Finance LLC
7.75%, 4/15/2025(a)		155,000		167,724

Yum! Brands, Inc.
4.75%, 1/15/2030(a)		170,000		182,116
3.63%, 3/15/2031		100,000		98,844
				15,395,162

Household Durables – 1.5%

Ashton Woods USA LLC
6.63%, 1/15/2028(a)		150,000		161,250

Beazer Homes USA, Inc.
7.25%, 10/15/2029		90,000		100,187

Brookfield Residential Properties, Inc.
6.38%, 5/15/2025(a)		110,000		112,876
6.25%, 9/15/2027(a)		425,000		451,709
4.88%, 2/15/2030(a)		325,000		325,000

CD&R Smokey Buyer, Inc.
6.75%, 7/15/2025(a)		145,000		154,969

Empire Communities Corp.
7.00%, 12/15/2025(a)		255,000		273,539

Installed Building Products, Inc.
5.75%, 2/1/2028(a)		75,000		79,017

LGI Homes, Inc.
6.88%, 7/15/2026(a)		100,000		104,250

Mattamy Group Corp.
4.63%, 3/1/2030(a)		375,000		379,537

New Home Co., Inc. (The)
7.25%, 10/15/2025(a)		160,000		168,539


Investments	Principal Amount		Value

Household Durables – (continued)

Newell Brands, Inc.
6.00%, 4/1/2046(d)	$	90,000	$	114,919

Shea Homes LP
4.75%, 4/1/2029(a)		245,000		248,375

Tempur Sealy International, Inc.
5.50%, 6/15/2026		205,000		211,570

WASH Multifamily Acquisition, Inc.
5.75%, 4/15/2026(a)		335,000		348,400
				3,234,137

Household Products – 0.3%

Central Garden & Pet Co.
4.13%, 10/15/2030		45,000		46,472

Kronos Acquisition Holdings, Inc.
5.00%, 12/31/2026(a)		300,000		302,907
7.00%, 12/31/2027(a)		330,000		320,493
				669,872

Independent Power and Renewable Electricity Producers – 0.3%

Calpine Corp.
5.00%, 2/1/2031(a)		110,000		108,494

Talen Energy Supply LLC
6.63%, 1/15/2028(a)		50,000		50,397
7.63%, 6/1/2028(a)		350,000		363,449

TransAlta Corp.
6.50%, 3/15/2040		35,000		40,162
				562,502

Insurance – 1.9%

Acrisure LLC
4.25%, 2/15/2029(a)		440,000		430,646

Alliant Holdings Intermediate LLC
4.25%, 10/15/2027(a)		200,000		201,754
6.75%, 10/15/2027(a)		515,000		539,205

Assurant, Inc.
7.00%, 3/27/2048(c)		240,000		271,800

AssuredPartners, Inc.
5.63%, 1/15/2029(a)		345,000		350,168

BroadStreet Partners, Inc.
5.88%, 4/15/2029(a)		265,000		269,359

Enstar Finance LLC
5.75%, 9/1/2040(c)		225,000		237,656

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			313

FlexShares® High Yield Value-Scored Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Insurance – (continued)

GTCR AP Finance, Inc.
8.00%, 5/15/2027(a)	$	95,000	$	101,412

Liberty Mutual Group, Inc.
7.80%, 3/15/2037(a)		275,000		356,674

NFP Corp.
6.88%, 8/15/2028(a)		1,140,000		1,197,844
				3,956,518

Interactive Media & Services – 0.4%

Cars.com, Inc.
6.38%, 11/1/2028(a)		260,000		271,991

Rackspace Technology Global, Inc.
5.38%, 12/1/2028(a)		385,000		393,559

TripAdvisor, Inc.
7.00%, 7/15/2025(a)		125,000		135,156
				800,706

Internet & Direct Marketing Retail – 1.0%

ANGI Group LLC
3.88%, 8/15/2028(a)		320,000		318,723

Getty Images, Inc.
9.75%, 3/1/2027(a)		150,000		160,659

Go Daddy Operating Co. LLC
5.25%, 12/1/2027(a)		200,000		209,500

Match Group Holdings II LLC
4.63%, 6/1/2028(a)		340,000		351,489
5.63%, 2/15/2029(a)		235,000		254,387
4.13%, 8/1/2030(a)		200,000		201,000

Photo Holdings Merger Sub, Inc.
8.50%, 10/1/2026(a)		485,000		531,708

QVC, Inc.
5.45%, 8/15/2034		100,000		103,054
				2,130,520

IT Services – 1.6%

Arches Buyer, Inc.
4.25%, 6/1/2028(a)		440,000		439,536
6.13%, 12/1/2028(a)		315,000		323,291

Austin BidCo, Inc.
7.13%, 12/15/2028(a)		150,000		152,531

Black Knight InfoServ LLC
3.63%, 9/1/2028(a)		645,000		636,215


Investments	Principal Amount		Value

IT Services – (continued)

Booz Allen Hamilton, Inc.
3.88%, 9/1/2028(a)	$	280,000	$	279,951

Cablevision Lightpath LLC
5.63%, 9/15/2028(a)		275,000		282,230

Endure Digital, Inc.
6.00%, 2/15/2029(a)		435,000		417,541

Gartner, Inc.
3.75%, 10/1/2030(a)		90,000		90,605

Northwest Fiber LLC
6.00%, 2/15/2028(a)		195,000		195,266
10.75%, 6/1/2028(a)		80,000		90,800

Presidio Holdings, Inc.
8.25%, 2/1/2028(a)		135,000		147,572

Unisys Corp.
6.88%, 11/1/2027(a)		295,000		324,131
				3,379,669

Leisure Products – 0.4%

Universal Entertainment Corp.
8.50%, 12/11/2024(a)		510,000		552,075

Vista Outdoor, Inc.
4.50%, 3/15/2029(a)		340,000		340,224
				892,299

Machinery – 1.6%

Amsted Industries, Inc.
4.63%, 5/15/2030(a)		200,000		204,375

ATS Automation Tooling Systems, Inc.
4.13%, 12/15/2028(a)		150,000		151,406

Cleaver-Brooks, Inc.
7.88%, 3/1/2023(a)		100,000		99,636

GrafTech Finance, Inc.
4.63%, 12/15/2028(a)		185,000		190,609

Granite US Holdings Corp.
11.00%, 10/1/2027(a)		75,000		84,375

HTA Group Ltd.
7.00%, 12/18/2025(a)		390,000		417,550

Husky III Holding Ltd.
13.00%, 2/15/2025(a)(b)		110,000		120,244

JPW Industries Holding Corp.
9.00%, 10/1/2024(a)		140,000		142,450

Manitowoc Co., Inc. (The)
9.00%, 4/1/2026(a)		185,000		200,609

See Accompanying Notes to the Financial Statements.


314		FLEXSHARES SEMIANNUAL REPORT

FlexShares® High Yield Value-Scored Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Machinery – (continued)

Navistar International Corp.
9.50%, 5/1/2025(a)	$	215,000	$	233,544

Park-Ohio Industries, Inc.
6.63%, 4/15/2027		210,000		215,364

Titan International, Inc.
7.00%, 4/30/2028(a)		265,000		273,312

Vertical Holdco GmbH
7.63%, 7/15/2028(a)		350,000		382,156

Vertical US Newco, Inc.
5.25%, 7/15/2027(a)		585,000		613,156

Wabash National Corp.
5.50%, 10/1/2025(a)		100,000		102,364
				3,431,150

Marine – 0.1%

Stena AB
7.00%, 2/1/2024(a)		310,000		315,005

Media – 9.7%

Advantage Sales & Marketing, Inc.
6.50%, 11/15/2028(a)		515,000		545,872

Belo Corp.
7.25%, 9/15/2027		175,000		204,498

Block Communications, Inc.
4.88%, 3/1/2028(a)		115,000		117,282

CSC Holdings LLC
7.50%, 4/1/2028(a)		265,000		292,486
6.50%, 2/1/2029(a)		675,000		747,053
5.75%, 1/15/2030(a)		1,450,000		1,543,343
4.63%, 12/1/2030(a)		285,000		278,944
3.38%, 2/15/2031(a)		270,000		253,530

Cumulus Media New Holdings, Inc.
6.75%, 7/1/2026(a)		285,000		294,133

Diamond Sports Group LLC
5.38%, 8/15/2026(a)		2,063,000		1,508,569
6.63%, 8/15/2027(a)		1,185,000		644,735

DISH DBS Corp.
5.00%, 3/15/2023		140,000		146,702
5.88%, 11/15/2024		1,385,000		1,500,420
7.75%, 7/1/2026		1,035,000		1,194,131
7.38%, 7/1/2028		680,000		733,506


Investments	Principal Amount		Value

Media – (continued)

GCI LLC
4.75%, 10/15/2028(a)	$	390,000	$	402,431

iHeartCommunications, Inc.
8.38%, 5/1/2027		560,000		601,580
5.25%, 8/15/2027(a)		170,000		176,338

Liberty Interactive LLC
8.50%, 7/15/2029		40,000		45,942
8.25%, 2/1/2030		300,000		346,749

McGraw Hill LLC
8.00%, 11/30/2024(a)		320,000		324,400

Meredith Corp.
6.88%, 2/1/2026		620,000		638,600

Midcontinent Communications
5.38%, 8/15/2027(a)		65,000		68,117

Nexstar Broadcasting, Inc.
5.63%, 7/15/2027(a)		500,000		528,913

Outfront Media Capital LLC
6.25%, 6/15/2025(a)		90,000		95,681

Radiate Holdco LLC
4.50%, 9/15/2026(a)		350,000		356,907
6.50%, 9/15/2028(a)		610,000		636,340

Sinclair Television Group, Inc.
5.13%, 2/15/2027(a)		270,000		267,639
5.50%, 3/1/2030(a)		325,000		323,758

Sirius XM Radio, Inc.
3.88%, 8/1/2022(a)		265,000		266,643
4.63%, 7/15/2024(a)		395,000		405,862
5.38%, 7/15/2026(a)		275,000		284,336
5.50%, 7/1/2029(a)		200,000		216,738
4.13%, 7/1/2030(a)		155,000		155,194

Spanish Broadcasting System, Inc.
9.75%, 3/1/2026(a)		195,000		188,305

TEGNA, Inc.
4.63%, 3/15/2028		95,000		97,141
5.00%, 9/15/2029		150,000		155,974

Terrier Media Buyer, Inc.
8.88%, 12/15/2027(a)		690,000		750,375

Townsquare Media, Inc.
6.88%, 2/1/2026(a)		145,000		151,344

Univision Communications, Inc.
5.13%, 2/15/2025(a)		405,000		412,373
6.63%, 6/1/2027(a)		405,000		439,425

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			315

FlexShares® High Yield Value-Scored Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Media – (continued)

UPC Holding BV
5.50%, 1/15/2028(a)	$	340,000	$	353,812

Urban One, Inc.
7.38%, 2/1/2028(a)		315,000		326,474

Videotron Ltd.
5.13%, 4/15/2027(a)		300,000		317,683

Virgin Media Vendor Financing Notes IV DAC
5.00%, 7/15/2028(a)		250,000		253,673

Ziggo Bond Co. BV
5.13%, 2/28/2030(a)		300,000		307,635

Ziggo BV
4.88%, 1/15/2030(a)		840,000		864,352
				20,765,938

Metals & Mining – 1.8%

Alcoa Nederland Holding BV
6.13%, 5/15/2028(a)		200,000		217,375

Allegheny Technologies, Inc.
7.88%, 8/15/2023(d)		250,000		272,839

Arconic Corp.
6.13%, 2/15/2028(a)		100,000		106,375

Century Aluminum Co.
7.50%, 4/1/2028(a)		170,000		179,389

Coeur Mining, Inc.
5.13%, 2/15/2029(a)		255,000		247,595

Compass Minerals International, Inc.
4.88%, 7/15/2024(a)		135,000		139,542
6.75%, 12/1/2027(a)		340,000		366,925

FMG Resources August 2006 Pty. Ltd.
4.38%, 4/1/2031(a)		165,000		171,618

IAMGOLD Corp.
5.75%, 10/15/2028(a)		290,000		301,971

Infrabuild Australia Pty. Ltd.
12.00%, 10/1/2024(a)		200,000		203,000

Joseph T Ryerson & Son, Inc.
8.50%, 8/1/2028(a)		291,000		322,086

JW Aluminum Continuous Cast Co.
10.25%, 6/1/2026(a)		150,000		158,784


Investments	Principal Amount		Value

Metals & Mining – (continued)

Kaiser Aluminum Corp.
6.50%, 5/1/2025(a)	$	150,000	$	159,375
4.63%, 3/1/2028(a)		175,000		180,046

New Gold, Inc.
7.50%, 7/15/2027(a)		260,000		282,451

TMS International Corp.
6.25%, 4/15/2029(a)		215,000		223,869

Warrior Met Coal, Inc.
8.00%, 11/1/2024(a)		230,000		235,354
				3,768,594

Mortgage Real Estate Investment Trusts (REITs) – 0.3%

New Residential Investment Corp.
6.25%, 10/15/2025(a)		335,000		340,863

Starwood Property Trust, Inc.
4.75%, 3/15/2025		200,000		208,750
				549,613

Multiline Retail – 0.3%

NMG Holding Co., Inc.
7.13%, 4/1/2026(a)		725,000		742,502

Oil, Gas & Consumable Fuels – 11.0%

Aethon United BR LP
8.25%, 2/15/2026(a)		475,000		505,578

Alliance Resource Operating Partners LP
7.50%, 5/1/2025(a)		265,000		251,087

Antero Midstream Partners LP
5.38%, 9/15/2024		225,000		229,078
7.88%, 5/15/2026(a)		270,000		294,637
5.75%, 3/1/2027(a)		250,000		253,125
5.75%, 1/15/2028(a)		295,000		300,983

Ascent Resources Utica Holdings LLC
7.00%, 11/1/2026(a)		310,000		314,720
8.25%, 12/31/2028(a)		150,000		161,308

Blue Racer Midstream LLC
6.63%, 7/15/2026(a)		85,000		88,024

California Resources Corp.
7.13%, 2/1/2026(a)		385,000		394,935

Callon Petroleum Co.
6.25%, 4/15/2023		410,000		390,711
6.13%, 10/1/2024		185,000		171,747
8.25%, 7/15/2025		70,000		64,575

See Accompanying Notes to the Financial Statements.


316		FLEXSHARES SEMIANNUAL REPORT

FlexShares® High Yield Value-Scored Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Oil, Gas & Consumable Fuels – (continued)

Calumet Specialty Products Partners LP
7.75%, 4/15/2023	$	150,000	$	150,172
11.00%, 4/15/2025(a)		325,000		354,913

Cheniere Energy, Inc.
4.63%, 10/15/2028(a)		100,000		104,390

Chesapeake Energy Corp.
5.50%, 2/1/2026(a)		195,000		205,969

Citgo Holding, Inc.
9.25%, 8/1/2024(a)		270,000		278,438

CITGO Petroleum Corp.
7.00%, 6/15/2025(a)		280,000		289,100

CNX Midstream Partners LP
6.50%, 3/15/2026(a)		160,000		165,800

CNX Resources Corp.
7.25%, 3/14/2027(a)		240,000		259,553

Colgate Energy Partners III LLC
7.75%, 2/15/2026(a)		190,000		190,185

Comstock Resources, Inc.
9.75%, 8/15/2026		270,000		293,903
6.75%, 3/1/2029(a)		130,000		132,958

Continental Resources, Inc.
5.75%, 1/15/2031(a)		125,000		145,161

Crestwood Midstream Partners LP
5.75%, 4/1/2025		100,000		102,875
5.63%, 5/1/2027(a)		150,000		152,957

CVR Energy, Inc.
5.25%, 2/15/2025(a)		165,000		166,031
5.75%, 2/15/2028(a)		155,000		157,325

DCP Midstream Operating LP
6.45%, 11/3/2036(a)		125,000		141,627

Energy Ventures Gom LLC
11.75%, 4/15/2026(a)		200,000		205,542

EnLink Midstream LLC
5.38%, 6/1/2029		50,000		50,062

EnLink Midstream Partners LP
4.85%, 7/15/2026		200,000		202,250
5.45%, 6/1/2047		100,000		84,390

Enviva Partners LP
6.50%, 1/15/2026(a)		220,000		231,000

EQM Midstream Partners LP
6.50%, 7/1/2027(a)		100,000		110,548


Investments	Principal Amount		Value

Oil, Gas & Consumable Fuels – (continued)
5.50%, 7/15/2028	$	70,000	$	74,442
4.75%, 1/15/2031(a)		250,000		247,799

Genesis Energy LP
6.50%, 10/1/2025		100,000		100,625
6.25%, 5/15/2026		450,000		442,406
8.00%, 1/15/2027		490,000		505,433
7.75%, 2/1/2028		565,000		571,390

Global Partners LP
7.00%, 8/1/2027		85,000		91,029

Great Western Petroleum LLC
12.00%, 9/1/2025(a)		160,000		139,200

Harvest Midstream I LP
7.50%, 9/1/2028(a)		215,000		232,282

Hilcorp Energy I LP
6.25%, 11/1/2028(a)		235,000		244,364

Indigo Natural Resources LLC
5.38%, 2/1/2029(a)		440,000		437,250

Ithaca Energy North Sea plc
9.38%, 7/15/2024(a)		200,000		200,810

Magnolia Oil & Gas Operating LLC
6.00%, 8/1/2026(a)		150,000		154,732

Martin Midstream Partners LP
11.50%, 2/28/2025(a)		115,000		119,025

Matador Resources Co.
5.88%, 9/15/2026		280,000		279,650

MEG Energy Corp.
7.13%, 2/1/2027(a)		305,000		326,054

Moss Creek Resources Holdings, Inc.
10.50%, 5/15/2027(a)		300,000		282,750

Murphy Oil Corp.
6.88%, 8/15/2024		213,000		218,059
5.75%, 8/15/2025		180,000		184,328

Natural Resource Partners LP
9.13%, 6/30/2025(a)		190,000		181,905

Neptune Energy Bondco plc
6.63%, 5/15/2025(a)		200,000		203,300

New Fortress Energy, Inc.
6.75%, 9/15/2025(a)		490,000		507,613
6.50%, 9/30/2026(a)		990,000		1,011,557

NGL Energy Partners LP
7.50%, 11/1/2023		340,000		332,137
6.13%, 3/1/2025		225,000		200,573
7.50%, 4/15/2026		270,000		241,394

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			317

FlexShares® High Yield Value-Scored Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Oil, Gas & Consumable Fuels – (continued)

Northern Oil and Gas, Inc.
8.13%, 3/1/2028(a)	$	375,000	$	385,892

Oasis Midstream Partners LP
8.00%, 4/1/2029(a)		295,000		302,289

Occidental Petroleum Corp.
3.45%, 7/15/2024		35,000		35,088
8.50%, 7/15/2027		215,000		261,897
7.15%, 5/15/2028		75,000		81,000
8.88%, 7/15/2030		125,000		160,781
6.63%, 9/1/2030		165,000		188,317
7.50%, 5/1/2031		230,000		274,267
7.88%, 9/15/2031		195,000		237,540
6.45%, 9/15/2036		325,000		369,288
Zero Coupon, 10/10/2036		600,000		306,000
4.30%, 8/15/2039		70,000		61,930
6.20%, 3/15/2040		75,000		79,875
4.50%, 7/15/2044		100,000		89,588
6.60%, 3/15/2046		110,000		121,439

Par Petroleum LLC
7.75%, 12/15/2025(a)		175,000		177,406

Parkland Corp.
5.88%, 7/15/2027(a)		120,000		127,926

PBF Logistics LP
6.88%, 5/15/2023		335,000		335,000

PIC AU Holdings LLC
10.00%, 12/31/2024(a)		305,000		280,600

Range Resources Corp.
4.88%, 5/15/2025		280,000		278,600
9.25%, 2/1/2026		130,000		142,913
8.25%, 1/15/2029(a)		405,000		439,885

Rockies Express Pipeline LLC
6.88%, 4/15/2040(a)		90,000		96,862

Rockpoint Gas Storage Canada Ltd.
7.00%, 3/31/2023(a)		100,000		101,437

Southwestern Energy Co.
6.45%, 1/23/2025(d)		480,000		519,000
7.75%, 10/1/2027		175,000		188,338
8.38%, 9/15/2028		130,000		142,998

Summit Midstream Holdings LLC
5.75%, 4/15/2025		140,000		118,110

Sunoco LP
5.50%, 2/15/2026		215,000		222,494


Investments	Principal Amount		Value

Oil, Gas & Consumable Fuels – (continued)
6.00%, 4/15/2027	$	155,000	$	163,184
4.50%, 5/15/2029(a)		65,000		65,731

Tallgrass Energy Partners LP
6.00%, 3/1/2027(a)		115,000		116,978
5.50%, 1/15/2028(a)		350,000		346,642
6.00%, 12/31/2030(a)		100,000		100,375

Teine Energy Ltd.
6.88%, 4/15/2029(a)		265,000		268,970

Topaz Solar Farms LLC
5.75%, 9/30/2039(a)		95,185		110,635

Vine Energy Holdings LLC
6.75%, 4/15/2029(a)		630,000		631,575

W&T Offshore, Inc.
9.75%, 11/1/2023(a)		355,000		313,953

Western Midstream Operating LP
6.50%, 2/1/2050(d)		100,000		113,276
				23,483,843

Paper & Forest Products – 0.3%

Mercer International, Inc.
5.13%, 2/1/2029(a)		235,000		243,225

Resolute Forest Products, Inc.
4.88%, 3/1/2026(a)		200,000		204,250

Schweitzer-Mauduit International, Inc.
6.88%, 10/1/2026(a)		85,000		90,190
				537,665

Personal Products – 0.3%

Avon Products, Inc.
6.50%, 3/15/2023(d)		110,000		118,181

Coty, Inc.
5.00%, 4/15/2026(a)		355,000		359,668

Prestige Brands, Inc.
5.13%, 1/15/2028(a)		145,000		152,160
				630,009

Pharmaceuticals – 1.2%

Bausch Health Americas, Inc.
8.50%, 1/31/2027(a)		500,000		557,500

Bausch Health Cos., Inc.
7.00%, 1/15/2028(a)		270,000		294,313

Catalent Pharma Solutions, Inc.
5.00%, 7/15/2027(a)		120,000		125,753

See Accompanying Notes to the Financial Statements.


318		FLEXSHARES SEMIANNUAL REPORT

FlexShares® High Yield Value-Scored Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Pharmaceuticals – (continued)

Cheplapharm Arzneimittel GmbH
5.50%, 1/15/2028(a)	$	335,000	$	348,819

Herbalife Nutrition Ltd.
7.88%, 9/1/2025(a)		245,000		266,992

HLF Financing Sarl LLC
7.25%, 8/15/2026(a)		265,000		277,256

Organon Finance 1 LLC
4.13%, 4/30/2028(a)		235,000		241,049
5.13%, 4/30/2031(a)		225,000		233,741

P&L Development LLC
7.75%, 11/15/2025(a)		165,000		175,803
				2,521,226

Professional Services – 0.3%

AMN Healthcare, Inc.
4.63%, 10/1/2027(a)		110,000		113,781

ASGN, Inc.
4.63%, 5/15/2028(a)		295,000		307,169

KBR, Inc.
4.75%, 9/30/2028(a)		85,000		85,956

Korn Ferry
4.63%, 12/15/2027(a)		160,000		167,176
				674,082

Real Estate Management & Development – 0.9%

Cushman & Wakefield US Borrower LLC
6.75%, 5/15/2028(a)		265,000		284,378

Forestar Group, Inc.
5.00%, 3/1/2028(a)		150,000		155,977

Howard Hughes Corp. (The)
5.38%, 8/1/2028(a)		170,000		180,073

Hunt Cos., Inc.
5.25%, 4/15/2029(a)		420,000		402,213

Kennedy-Wilson, Inc.
5.00%, 3/1/2031		75,000		77,757

Realogy Group LLC
7.63%, 6/15/2025(a)		135,000		147,692
5.75%, 1/15/2029(a)		620,000		644,254
				1,892,344


Investments	Principal Amount		Value

Road & Rail – 0.9%

AerCap Global Aviation Trust
6.50%, 6/15/2045(a)(c)	$	200,000	$	213,250

Avis Budget Car Rental LLC
5.75%, 7/15/2027(a)		70,000		73,981

Uber Technologies, Inc.
7.50%, 5/15/2025(a)		290,000		314,179
7.50%, 9/15/2027(a)		730,000		806,675
6.25%, 1/15/2028(a)		325,000		353,519

Watco Cos. LLC
6.50%, 6/15/2027(a)		140,000		149,363
				1,910,967

Semiconductors & Semiconductor Equipment – 0.0%(e)

Entegris, Inc.
4.63%, 2/10/2026(a)		100,000		103,469

Software – 2.1%

Blackboard, Inc.
10.38%, 11/15/2024(a)		45,000		47,559

Camelot Finance SA
4.50%, 11/1/2026(a)		225,000		233,156

Castle US Holding Corp.
9.50%, 2/15/2028(a)		190,000		195,957

CDK Global, Inc.
4.88%, 6/1/2027		120,000		127,049
5.25%, 5/15/2029(a)		40,000		42,950

Granite Merger Sub 2, Inc.
11.00%, 7/15/2027(a)		75,000		86,564

J2 Global, Inc.
4.63%, 10/15/2030(a)		500,000		512,480

LogMeIn, Inc.
5.50%, 9/1/2027(a)		390,000		407,016

NortonLifeLock, Inc.
5.00%, 4/15/2025(a)		135,000		137,012

Open Text Corp.
5.88%, 6/1/2026(a)		300,000		309,750

Open Text Holdings, Inc.
4.13%, 2/15/2030(a)		210,000		212,623

PTC, Inc.
3.63%, 2/15/2025(a)		220,000		226,121
4.00%, 2/15/2028(a)		135,000		138,911

Rocket Software, Inc.
6.50%, 2/15/2029(a)		365,000		369,928

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			319

FlexShares® High Yield Value-Scored Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Software – (continued)

SS&C Technologies, Inc.
5.50%, 9/30/2027(a)	$	770,000	$	818,991

Veritas US, Inc.
7.50%, 9/1/2025(a)		675,000		699,469
				4,565,536

Specialty Retail – 3.6%

99 Escrow Issuer, Inc.
7.50%, 1/15/2026(a)		225,000		215,761

AAG FH LP
9.75%, 7/15/2024(a)		100,000		97,753

Abercrombie & Fitch Management Co.
8.75%, 7/15/2025(a)		150,000		166,594

Academy Ltd.
6.00%, 11/15/2027(a)		240,000		255,751

BCPE Ulysses Intermediate, Inc.
7.75%, 4/1/2027(a)(b)		270,000		278,633

eG Global Finance plc
6.75%, 2/7/2025(a)		285,000		293,834

Ken Garff Automotive LLC
4.88%, 9/15/2028(a)		265,000		267,816

L Brands, Inc.
5.25%, 2/1/2028		175,000		192,063
7.50%, 6/15/2029		157,000		182,346
6.63%, 10/1/2030(a)		225,000		259,589

LBM Acquisition LLC
6.25%, 1/15/2029(a)		355,000		364,915

LSF9 Atlantis Holdings LLC
7.75%, 2/15/2026(a)		415,000		434,748

Murphy Oil USA, Inc.
5.63%, 5/1/2027		50,000		52,865
4.75%, 9/15/2029		180,000		189,225

Park River Holdings, Inc.
5.63%, 2/1/2029(a)		255,000		248,640

PetSmart, Inc.
4.75%, 2/15/2028(a)		250,000		257,529
7.75%, 2/15/2029(a)		725,000		787,053

Rent-A-Center, Inc.
6.38%, 2/15/2029(a)		300,000		325,725

Sonic Automotive, Inc.
6.13%, 3/15/2027		25,000		26,109


Investments	Principal Amount		Value

Specialty Retail – (continued)

Staples, Inc.
7.50%, 4/15/2026(a)	$	1,320,000	$	1,367,850
10.75%, 4/15/2027(a)		655,000		678,557

TPro Acquisition Corp.
11.00%, 10/15/2024(a)		190,000		209,950

White Cap Buyer LLC
6.88%, 10/15/2028(a)		425,000		451,567
				7,604,873

Technology Hardware, Storage & Peripherals – 0.5%

NCR Corp.
5.13%, 4/15/2029(a)		120,000		123,600
6.13%, 9/1/2029(a)		140,000		152,487

Seagate HDD Cayman
5.75%, 12/1/2034		50,000		57,307

Xerox Corp.
6.75%, 12/15/2039		25,000		27,795

Xerox Holdings Corp.
5.00%, 8/15/2025(a)		195,000		204,994
5.50%, 8/15/2028(a)		545,000		570,206
				1,136,389

Textiles, Apparel & Luxury Goods – 0.5%

Crocs, Inc.
4.25%, 3/15/2029(a)		240,000		244,267

Eagle Intermediate Global Holding BV
7.50%, 5/1/2025(a)		550,000		501,875

G-III Apparel Group Ltd.
7.88%, 8/15/2025(a)		95,000		102,778

William Carter Co. (The)
5.63%, 3/15/2027(a)		100,000		105,250

Wolverine World Wide, Inc.
5.00%, 9/1/2026(a)		200,000		204,625
				1,158,795

Thrifts & Mortgage Finance – 1.7%

Freedom Mortgage Corp.
7.63%, 5/1/2026(a)		395,000		412,378

Home Point Capital, Inc.
5.00%, 2/1/2026(a)		355,000		350,012

Ladder Capital Finance Holdings LLLP
REIT, 5.25%, 10/1/2025(a)		235,000		237,791
REIT, 4.25%, 2/1/2027(a)		235,000		231,010

See Accompanying Notes to the Financial Statements.


320		FLEXSHARES SEMIANNUAL REPORT

FlexShares® High Yield Value-Scored Bond Index Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Thrifts & Mortgage Finance – (continued)

Nationstar Mortgage Holdings, Inc.
5.50%, 8/15/2028(a)	$	680,000	$	687,650

NMI Holdings, Inc.
7.38%, 6/1/2025(a)		100,000		115,145

PennyMac Financial Services, Inc.
5.38%, 10/15/2025(a)		260,000		274,300

Provident Funding Associates LP
6.38%, 6/15/2025(a)		180,000		180,656

Quicken Loans LLC
3.63%, 3/1/2029(a)		200,000		195,375
3.88%, 3/1/2031(a)		150,000		146,087

United Wholesale Mortgage LLC
5.50%, 11/15/2025(a)		310,000		322,612
5.50%, 4/15/2029(a)		465,000		457,574
				3,610,590

Tobacco – 0.5%

Turning Point Brands, Inc.
5.63%, 2/15/2026(a)		155,000		160,507

Vector Group Ltd.
10.50%, 11/1/2026(a)		375,000		398,203
5.75%, 2/1/2029(a)		565,000		569,356
				1,128,066

Trading Companies & Distributors – 1.0%

Brightstar Escrow Corp.
9.75%, 10/15/2025(a)		280,000		306,035

Fortress Transportation & Infrastructure Investors LLC
6.50%, 10/1/2025(a)		345,000		359,231

Fortress Transportation and Infrastructure Investors LLC
9.75%, 8/1/2027(a)		375,000		433,594
5.50%, 5/1/2028(a)		330,000		342,375

Foundation Building Materials, Inc.
6.00%, 3/1/2029(a)		255,000		253,326

H&E Equipment Services, Inc.
3.88%, 12/15/2028(a)		120,000		117,300

Imola Merger Corp.
4.75%, 5/15/2029(a)		230,000		239,133
				2,050,994


Investments	Principal Amount		Value

Transportation Infrastructure – 0.1%

North Queensland Export Terminal Pty. Ltd.
4.45%, 12/15/2022(a)	$	315,000	$	296,763

Water Utilities – 0.1%

Solaris Midstream Holdings LLC
7.63%, 4/1/2026(a)		265,000		277,863

Wireless Telecommunication Services – 1.5%

C&W Senior Financing DAC
6.88%, 9/15/2027(a)		270,000		286,876

Connect Finco SARL
6.75%, 10/1/2026(a)		790,000		826,301

Hughes Satellite Systems Corp.
6.63%, 8/1/2026		295,000		326,963

Sprint Corp.
7.63%, 3/1/2026		165,000		202,538

T-Mobile USA, Inc.
4.50%, 2/1/2026		265,000		272,115
4.75%, 2/1/2028		40,000		42,800

Vmed O2 UK Financing I plc
4.25%, 1/31/2031(a)		1,055,000		1,022,031

Vodafone Group plc
7.00%, 4/4/2079(c)		240,000		292,957
				3,272,581
Total Corporate Bonds (Cost $202,135,975)				207,873,444
	Shares

COMMON STOCKS – 0.0%(e)

Oil, Gas & Consumable Fuels – 0.0%(e)

Whiting Petroleum Corp.* (Cost $30)		1		30
Total Investments – 97.3% (Cost $202,136,005)				207,873,474

Other assets less liabilities – 2.7%				5,712,510
NET ASSETS – 100.0%			$	213,585,984

*	Non-income producing security.

^(a)

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			321

FlexShares® High Yield Value-Scored Bond Index Fund (cont.)

^(b)

Payment in-kind security.

^(c)

Security issued at a fixed coupon rate, which converts to a variable rate at a future date. Rate shown is the rate in effect as of period end.

^(d)

^(e)

Represents less than 0.05% of net assets.

Percentages shown are based on Net Assets.

Abbreviations

SCA – Limited partnership with share capital



Aggregate gross unrealized appreciation	$	6,557,813
Aggregate gross unrealized depreciation		(1,049,171	)
Net unrealized appreciation	$	5,508,642
Federal income tax cost	$	202,364,832

See Accompanying Notes to the Financial Statements.


322		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares® Ready Access Variable Income Fund

April 30, 2021 (Unaudited)


Investments	Principal Amount		Value

CORPORATE BONDS – 90.3%

Aerospace & Defense – 0.6%

Boeing Co. (The)
2.30%, 8/1/2021	$	1,070,000	$	1,074,842
8.75%, 8/15/2021		827,000		845,749
1.17%, 2/4/2023		600,000		602,446
				2,523,037

Agricultural & Farm Machinery – 0.3%

CNH Industrial Capital LLC
3.88%, 10/15/2021		500,000		507,362
1.95%, 7/2/2023		730,000		750,622
				1,257,984

Agricultural Products – 0.8%

Cargill, Inc.
1.38%, 7/23/2023(a)		2,100,000		2,145,003
0.40%, 2/2/2024(a)		1,200,000		1,195,309
				3,340,312

Air Freight & Logistics – 0.2%

FedEx Corp.
2.63%, 8/1/2022		1,000,000		1,027,841

Airlines – 0.2%

Southwest Airlines Co.
4.75%, 5/4/2023		670,000		724,358

Apparel, Accessories & Luxury Goods – 0.4%

VF Corp.
2.05%, 4/23/2022		1,500,000		1,524,616

Asset Management & Custody Banks – 0.4%

Ameriprise Financial, Inc.
3.00%, 3/22/2022		900,000		921,996

Ares Capital Corp.
3.50%, 2/10/2023		700,000		730,095
				1,652,091

Automobile Manufacturers – 3.3%

BMW US Capital LLC
3.80%, 4/6/2023(a)		1,500,000		1,595,234
(SOFR + 0.53%), 0.54%, 4/1/2024(a) (b)		900,000		905,325


Investments	Principal Amount		Value

Automobile Manufacturers – (continued)

Daimler Finance North America LLC
(ICE LIBOR USD 3 Month + 0.90%), 1.09%, 2/15/2022(a) (b)	$	1,000,000	$	1,006,170
0.75%, 3/1/2024(a)		2,600,000		2,593,554

Hyundai Capital America
1.25%, 9/18/2023(a)		910,000		918,117
0.80%, 1/8/2024(a)		1,900,000		1,890,173

Nissan Motor Acceptance Corp.
(ICE LIBOR USD 3 Month + 0.63%), 0.82%, 9/21/2021(a) (b)		762,000		762,763
(ICE LIBOR USD 3 Month + 0.89%), 1.08%, 1/13/2022(a) (b)		1,500,000		1,504,931

Volkswagen Group of America Finance LLC
0.75%, 11/23/2022(a)		1,000,000		1,003,495
3.13%, 5/12/2023(a)		1,410,000		1,480,618
				13,660,380

Automotive Retail – 0.5%

AutoZone, Inc.
3.70%, 4/15/2022		2,000,000		2,048,548

Biotechnology – 0.6%

Gilead Sciences, Inc.
0.75%, 9/29/2023		2,300,000		2,303,909

Broadcasting – 0.2%

Fox Corp.
3.67%, 1/25/2022		800,000		819,413

Cable & Satellite – 0.3%

Comcast Corp.
(ICE LIBOR USD 3 Month + 0.63%), 0.81%, 4/15/2024(b)		1,100,000		1,112,708

Consumer Finance – 4.1%

American Honda Finance Corp.
(ICE LIBOR USD 3 Month + 0.37%), 0.57%, 5/10/2023(b)		2,500,000		2,509,126

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			323

FlexShares® Ready Access Variable Income Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Consumer Finance – (continued)
0.88%, 7/7/2023	$	2,670,000	$	2,696,914
(ICE LIBOR USD 3 Month + 0.42%), 0.60%, 9/8/2023(b)		600,000		602,947

Capital One Financial Corp.
(ICE LIBOR USD 3 Month + 0.95%), 1.14%, 3/9/2022(b)		235,000		236,507
(ICE LIBOR USD 3 Month + 0.72%), 0.91%, 1/30/2023(b)		1,500,000		1,510,948

Caterpillar Financial Services Corp.
(ICE LIBOR USD 3 Month + 0.22%), 0.41%, 1/6/2022(b)		2,710,000		2,713,047

General Motors Financial Co., Inc.
(ICE LIBOR USD 3 Month + 1.10%), 1.29%, 11/6/2021(b)		1,500,000		1,506,171
4.15%, 6/19/2023		765,000		817,550
1.70%, 8/18/2023		380,000		387,948
(SOFR + 0.76%), 0.77%, 3/8/2024(b)		800,000		803,272

PACCAR Financial Corp.
2.00%, 9/26/2022		200,000		204,833
2.65%, 4/6/2023		1,000,000		1,046,326

Toyota Motor Credit Corp.
1.15%, 5/26/2022		2,000,000		2,020,066
				17,055,655

Data Processing & Outsourced Services – 1.3%

Fidelity National Information Services, Inc.
0.60%, 3/1/2024		910,000		908,347

PayPal Holdings, Inc.
2.20%, 9/26/2022		900,000		922,375
1.35%, 6/1/2023		3,640,000		3,708,545
				5,539,267


Investments	Principal Amount		Value

Diversified Banks – 23.2%

Australia & New Zealand Banking Group Ltd.
2.30%, 6/1/2021	$	1,010,000	$	1,011,691
2.05%, 11/21/2022		1,900,000		1,953,707

Bank of America Corp.
3.30%, 1/11/2023		300,000		315,211
(ICE LIBOR USD 3 Month + 0.79%), 0.98%, 3/5/2024(b)		2,352,000		2,373,140
(SOFR + 0.73%), 0.74%, 10/24/2024(b)		4,200,000		4,221,924

Bank of Montreal
2.90%, 3/26/2022		1,500,000		1,536,582

Bank of Nova Scotia (The)
1.63%, 5/1/2023		2,000,000		2,049,251
(SOFR + 0.55%), 0.57%, 3/2/2026(b)		5,000,000		5,011,273

Banque Federative du Credit Mutuel SA
2.13%, 11/21/2022(a)		1,400,000		1,437,041
(ICE LIBOR USD 3 Month + 0.96%), 1.15%, 7/20/2023(a) (b)		1,000,000		1,016,563

Barclays Bank plc
1.70%, 5/12/2022		1,090,000		1,104,953

BNP Paribas SA
2.95%, 5/23/2022(a)		1,300,000		1,335,649

Canadian Imperial Bank of Commerce
(SOFR + 0.80%), 0.81%, 3/17/2023(b)		2,400,000		2,421,467

Citibank NA
(ICE LIBOR USD 3 Month + 0.57%), 0.74%, 7/23/2021(b)		900,000		900,641

Citigroup, Inc.
(SOFR + 0.67%), Zero Coupon, 5/1/2025(b)		950,000		951,413

Cooperatieve Rabobank UA
(ICE LIBOR USD 3 Month + 0.48%), 0.67%, 1/10/2023(b)		1,000,000		1,006,051
(SOFR + 0.30%), 0.31%, 1/12/2024(b)		2,000,000		2,002,164

See Accompanying Notes to the Financial Statements.


324		FLEXSHARES SEMIANNUAL REPORT

FlexShares® Ready Access Variable Income Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Diversified Banks – (continued)

DBS Group Holdings Ltd.
2.85%, 4/16/2022(a)	$	1,200,000	$	1,228,170

DNB Bank ASA
2.15%, 12/2/2022(a)		1,590,000		1,634,792

HSBC Holdings plc
3.26%, 3/13/2023(c)		1,100,000		1,126,311

ING Groep NV
3.15%, 3/29/2022		291,000		298,425
(SOFR + 1.01%), 1.02%, 4/1/2027(b)		4,000,000		4,013,640

JPMorgan Chase & Co.
4.63%, 5/10/2021		1,600,000		1,601,179
3.21%, 4/1/2023(c)		1,000,000		1,026,231
2.78%, 4/25/2023(c)		100,000		102,388
1.51%, 6/1/2024(c)		3,650,000		3,720,822

Lloyds Banking Group plc
2.86%, 3/17/2023(c)		2,600,000		2,653,495
1.33%, 6/15/2023(c)		400,000		403,805
4.05%, 8/16/2023		650,000		700,759

Mitsubishi UFJ Financial Group, Inc.
(ICE LIBOR USD 3 Month + 0.65%), 0.83%, 7/26/2021(b)		695,000		695,959
3.22%, 3/7/2022		700,000		717,272
2.62%, 7/18/2022		2,970,000		3,051,988
3.46%, 3/2/2023		500,000		526,908

Mizuho Financial Group, Inc.
(ICE LIBOR USD 3 Month + 0.88%), 1.06%, 9/11/2022(b)		600,000		605,806
(ICE LIBOR USD 3 Month + 0.84%), 1.02%, 7/16/2023(b)		700,000		704,703
(ICE LIBOR USD 3 Month + 0.85%), 1.03%, 9/13/2023(b)		2,250,000		2,267,514
(ICE LIBOR USD 3 Month + 0.61%), 0.79%, 9/8/2024(b)		3,100,000		3,111,829

National Securities Clearing Corp.
0.40%, 12/7/2023(a)		1,500,000		1,499,954


Investments	Principal Amount		Value

Diversified Banks – (continued)

Nordea Bank Abp
1.00%, 6/9/2023(a)	$	640,000	$	647,957

Royal Bank of Canada
(SOFR + 0.53%), 0.53%, 1/20/2026(b)		3,000,000		3,004,254
(SOFR + 0.57%), 0.58%, 4/27/2026(b)		2,000,000		2,000,300

Santander UK Group Holdings plc
2.88%, 8/5/2021		5,500,000		5,536,613

Santander UK plc
(ICE LIBOR USD 3 Month + 0.62%), 0.81%, 6/1/2021(b)		672,000		672,333

Skandinaviska Enskilda Banken AB
2.20%, 12/12/2022(a)		600,000		618,146
(ICE LIBOR USD 3 Month + 0.32%), 0.51%, 9/1/2023(a) (b)		3,000,000		3,006,173

Sumitomo Mitsui Financial Group, Inc.
2.06%, 7/14/2021		1,941,000		1,948,213
0.51%, 1/12/2024		300,000		299,476

Sumitomo Mitsui Trust Bank Ltd.
0.80%, 9/12/2023(a)		1,300,000		1,306,377

Swedbank AB
1.30%, 6/2/2023(a)		400,000		406,572
0.60%, 9/25/2023(a)		2,470,000		2,469,309

Toronto-Dominion Bank (The)
(ICE LIBOR USD 3 Month + 0.30%), 0.49%, 7/30/2021(b)		800,000		800,498
(SOFR + 0.24%), 0.25%, 1/6/2023(b)		3,000,000		3,002,678
0.45%, 9/11/2023		2,000,000		2,001,632

Wells Fargo Bank NA
(ICE LIBOR USD 3 Month + 0.62%), 0.81%, 5/27/2022(b)		1,000,000		1,000,402
(ICE LIBOR USD 3 Month + 0.66%), 0.85%, 9/9/2022(b)		1,000,000		1,002,427

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			325

FlexShares® Ready Access Variable Income Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Diversified Banks – (continued)

Westpac Banking Corp.
(ICE LIBOR USD 3 Month + 0.85%), 1.04%, 1/11/2022(b)	$	1,500,000	$	1,508,482
(ICE LIBOR USD 3 Month + 0.57%), 0.76%, 1/11/2023(b)		1,035,000		1,042,923
(ICE LIBOR USD 3 Month + 0.39%), 0.58%, 1/13/2023(b)		1,100,000		1,106,114
				95,721,550

Diversified Capital Markets – 3.5%

Credit Suisse AG
3.00%, 10/29/2021		250,000		253,280
(SOFR + 0.45%), 0.46%, 2/4/2022(b)		3,000,000		2,999,025
2.80%, 4/8/2022		2,300,000		2,353,015

Deutsche Bank AG
4.25%, 10/14/2021		3,160,000		3,213,753
(ICE LIBOR USD 3 Month + 1.19%), 1.38%, 11/16/2022(b)		1,250,000		1,258,891

Macquarie Bank Ltd.
2.10%, 10/17/2022(a)		700,000		718,070

UBS AG
(SOFR + 0.36%), 0.37%, 2/9/2024(a) (b)		3,000,000		3,001,653

UBS Group AG
3.49%, 5/23/2023(a)		620,000		639,554
				14,437,241

Diversified Chemicals – 0.8%

LYB International Finance III LLC
(ICE LIBOR USD 3 Month + 1.00%), 1.20%, 10/1/2023(b)		3,240,000		3,247,644

Electric Utilities – 3.8%

American Electric Power Co., Inc.
Series A, (ICE LIBOR USD 3 Month + 0.48%), 0.69%, 11/1/2023(b)		1,500,000		1,501,920


Investments	Principal Amount		Value

Electric Utilities – (continued)

Duke Energy Corp.
1.80%, 9/1/2021	$	315,000	$	316,210
3.55%, 9/15/2021		150,000		150,567
2.40%, 8/15/2022		250,000		255,906

Duke Energy Florida LLC
Series A, (ICE LIBOR USD 3 Month + 0.25%), 0.44%, 11/26/2021(b)		600,000		600,490

Duke Energy Progress LLC
Series A, (ICE LIBOR USD 3 Month + 0.18%), 0.37%, 2/18/2022(b)		2,600,000		2,599,796

Entergy Louisiana LLC
0.62%, 11/17/2023		1,500,000		1,501,778

NextEra Energy Capital Holdings, Inc.
2.40%, 9/1/2021		2,487,000		2,504,698
2.90%, 4/1/2022		1,352,000		1,384,361
(ICE LIBOR USD 3 Month + 0.27%), 0.45%, 2/22/2023(b)		2,221,000		2,221,338

PPL Electric Utilities Corp.
(ICE LIBOR USD 3 Month + 0.25%), 0.44%, 9/28/2023(b)		850,000		850,410

Southern Co. (The)
Series 21-A, 0.60%, 2/26/2024		1,940,000		1,936,964
				15,824,438

Financial Exchanges & Data – 1.0%

Intercontinental Exchange, Inc.
0.70%, 6/15/2023		1,600,000		1,607,681
(ICE LIBOR USD 3 Month + 0.65%), 0.83%, 6/15/2023(b)		1,300,000		1,300,458

Nasdaq, Inc.
0.45%, 12/21/2022		1,200,000		1,200,514
				4,108,653

Food Retail – 0.3%

7-Eleven, Inc.
(ICE LIBOR USD 3 Month + 0.45%), 0.65%, 8/10/2022(a) (b)		1,300,000		1,301,068

See Accompanying Notes to the Financial Statements.


326		FLEXSHARES SEMIANNUAL REPORT

FlexShares® Ready Access Variable Income Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Gas Utilities – 1.9%

CenterPoint Energy Resources Corp.
0.70%, 3/2/2023	$	1,420,000	$	1,420,959
3.55%, 4/1/2023		750,000		792,495

Eastern Energy Gas Holdings LLC
Series A, (ICE LIBOR USD 3 Month + 0.60%), 0.78%, 6/15/2021(b)		1,300,000		1,300,810

ONE Gas, Inc.
(ICE LIBOR USD 3 Month + 0.61%), 0.79%, 3/11/2023(b)		4,100,000		4,101,242

Southern Natural Gas Co. LLC
0.63%, 4/28/2023(a)		180,000		180,035
				7,795,541

Health Care Equipment – 1.8%

Becton Dickinson and Co.
(ICE LIBOR USD 3 Month + 1.03%), 1.21%, 6/6/2022(b)		2,000,000		2,017,823

DH Europe Finance II Sarl
2.05%, 11/15/2022		3,300,000		3,382,507

Stryker Corp.
0.60%, 12/1/2023		1,910,000		1,911,764
				7,312,094

Health Care Services – 0.3%

CVS Health Corp.
2.13%, 6/1/2021		620,000		620,325
2.75%, 12/1/2022		610,000		629,323
3.70%, 3/9/2023		14,000		14,820
				1,264,468

Home Improvement Retail – 0.1%

Lowe’s Cos., Inc.
3.12%, 4/15/2022		305,000		311,176

Homebuilding – 0.4%

DR Horton, Inc.
4.38%, 9/15/2022		500,000		520,908

Lennar Corp.
4.88%, 12/15/2023		940,000		1,029,272
				1,550,180


Investments	Principal Amount		Value

Household Appliances – 0.6%

Whirlpool Corp.
4.85%, 6/15/2021	$	2,448,000	$	2,460,470

Household Products – 0.2%

Clorox Co. (The)
3.80%, 11/15/2021		1,000,000		1,018,665

Industrial Conglomerates – 1.1%

General Electric Co.
(ICE LIBOR USD 3 Month + 0.30%), 0.48%, 5/13/2024(b)		3,000,000		2,962,034

Honeywell International, Inc.
(ICE LIBOR USD 3 Month + 0.23%), 0.41%, 8/19/2022(b)		1,200,000		1,200,848

Roper Technologies, Inc.
0.45%, 8/15/2022		290,000		290,419
				4,453,301

Industrial Machinery – 0.9%

Otis Worldwide Corp.
(ICE LIBOR USD 3 Month + 0.45%), 0.64%, 4/5/2023(b)		3,705,000		3,703,963

Insurance Brokers – 0.4%

Aon Corp.
2.20%, 11/15/2022		1,752,000		1,799,617

Integrated Oil & Gas – 2.3%

BP Capital Markets America, Inc.
2.94%, 4/6/2023		300,000		314,552

Chevron Corp.
1.14%, 5/11/2023		1,280,000		1,302,099

Chevron USA, Inc.
(ICE LIBOR USD 3 Month + 0.20%), 0.40%, 8/11/2023(b)		3,770,000		3,780,061

Exxon Mobil Corp.
1.57%, 4/15/2023		1,751,000		1,795,297

Saudi Arabian Oil Co.
1.25%, 11/24/2023(a)		200,000		202,614

Total Capital International SA
2.22%, 7/12/2021		2,200,000		2,204,705
				9,599,328

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			327

FlexShares® Ready Access Variable Income Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Integrated Telecommunication Services – 4.2%

AT&T, Inc.
(ICE LIBOR USD 3 Month + 0.95%), 1.13%, 7/15/2021(b)	$	2,891,000	$	2,896,198
(SOFR + 0.64%), 0.65%, 3/25/2024(b)		1,160,000		1,161,943
(ICE LIBOR USD 3 Month + 1.18%), 1.36%, 6/12/2024(b)		3,800,000		3,883,106

Bell Canada
Series US-3, 0.75%, 3/17/2024		3,000,000		2,997,480

Verizon Communications, Inc.
(ICE LIBOR USD 3 Month + 1.00%), 1.19%, 3/16/2022(b)		2,000,000		2,016,622
(SOFR + 0.50%), 0.51%, 3/22/2024(b)		400,000		401,865
(ICE LIBOR USD 3 Month + 1.10%), 1.30%, 5/15/2025(b)		1,000,000		1,024,815
(SOFR + 0.79%), 0.80%, 3/20/2026(b)		3,000,000		3,051,398
				17,433,427

Investment Banking & Brokerage – 3.2%

Charles Schwab Corp. (The)
(ICE LIBOR USD 3 Month + 0.32%), 0.50%, 5/21/2021(b)		965,000		965,050
3.25%, 5/21/2021		590,000		590,299
(SOFR + 0.50%), 0.51%, 3/18/2024(b)		1,640,000		1,651,092

Goldman Sachs Group, Inc. (The)
(SOFR + 0.41%), 0.42%, 1/27/2023(b)		1,000,000		999,903
(SOFR + 0.54%), 0.55%, 11/17/2023(b)		3,100,000		3,102,222

Morgan Stanley
2.75%, 5/19/2022		845,000		866,879
(ICE LIBOR USD 3 Month + 0.93%), 1.11%, 7/22/2022(b)		244,000		244,389
(SOFR + 0.70%), 0.71%, 1/20/2023(b)		1,200,000		1,203,273


Investments	Principal Amount		Value

Investment Banking & Brokerage – (continued)
0.56%, 11/10/2023(c)	$	3,560,000	$	3,564,661
				13,187,768

Life & Health Insurance – 1.3%

Athene Global Funding
1.20%, 10/13/2023(a)		2,400,000		2,424,046
(ICE LIBOR USD 3 Month + 0.73%), 0.93%, 1/8/2024(a) (b)		1,000,000		1,003,115

Jackson National Life Global Funding
(ICE LIBOR USD 3 Month + 0.48%), 0.66%, 6/11/2021(a)(b)		500,000		500,227

MetLife, Inc.
3.05%, 12/15/2022(d)		500,000		521,779

Protective Life Global Funding
0.63%, 10/13/2023(a)		900,000		902,383
				5,351,550

Managed Health Care – 1.1%

Cigna Corp.
(ICE LIBOR USD 3 Month + 0.89%), 1.07%, 7/15/2023(b)		2,000,000		2,025,177

UnitedHealth Group, Inc.
2.88%, 12/15/2021		1,020,000		1,036,724
2.88%, 3/15/2022		670,000		680,990
2.38%, 10/15/2022		800,000		824,616
				4,567,507

Multi-line Insurance – 0.1%

American International Group, Inc.
4.88%, 6/1/2022		320,000		335,092

Multi-Utilities – 2.5%

Consolidated Edison, Inc.
Series A, 0.65%, 12/1/2023		4,100,000		4,101,003

Consumers Energy Co.
0.35%, 6/1/2023		960,000		959,152

Dominion Energy, Inc.
Series D, (ICE LIBOR USD 3 Month + 0.53%), 0.71%, 9/15/2023(b)		2,000,000		2,001,962

See Accompanying Notes to the Financial Statements.


328		FLEXSHARES SEMIANNUAL REPORT

FlexShares® Ready Access Variable Income Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Multi-Utilities – (continued)

DTE Energy Co.
Series B, 3.30%, 6/15/2022	$	175,000	$	179,485
Series H, 0.55%, 11/1/2022		3,000,000		3,004,838
				10,246,440

Oil & Gas Exploration & Production – 1.5%

Canadian Natural Resources Ltd.
3.45%, 11/15/2021		4,123,000		4,158,734

Pioneer Natural Resources Co.
0.75%, 1/15/2024		2,000,000		2,000,974
				6,159,708

Oil & Gas Refining & Marketing – 2.6%

Phillips 66
4.30%, 4/1/2022		630,000		652,412
3.70%, 4/6/2023		600,000		635,752
(ICE LIBOR USD 3 Month + 0.62%), 0.81%, 2/15/2024(b)		3,800,000		3,807,265

Valero Energy Corp.
1.20%, 3/15/2024		5,840,000		5,873,343
				10,968,772

Oil & Gas Storage & Transportation – 0.2%

Enbridge, Inc.
(SOFR + 0.40%), 0.41%, 2/17/2023(b)		690,000		691,061

Other Diversified Financial Services – 0.4%

Siemens Financieringsmaatschappij NV
(SOFR + 0.43%), 0.44%, 3/11/2024(a) (b)		1,750,000		1,761,377

Packaged Foods & Meats – 2.2%

Hershey Co. (The)
3.10%, 5/15/2021		670,000		670,608

J M Smucker Co. (The)
3.00%, 3/15/2022		2,169,000		2,218,708

McCormick & Co., Inc.
0.90%, 2/15/2026		670,000		656,297

Mondelez International Holdings Netherlands BV
2.13%, 9/19/2022(a)		360,000		368,624


Investments	Principal Amount		Value

Packaged Foods & Meats – (continued)

Mondelez International, Inc.
0.63%, 7/1/2022	$	2,510,000	$	2,518,964

Tyson Foods, Inc.
2.25%, 8/23/2021		2,710,000		2,721,994
				9,155,195

Paper Products – 0.6%

Georgia-Pacific LLC
0.63%, 5/15/2024(a)		2,300,000		2,294,716

Pharmaceuticals – 2.1%

AstraZeneca plc
(ICE LIBOR USD 3 Month + 0.67%), 0.86%, 8/17/2023(b)		580,000		585,556

Bristol-Myers Squibb Co.
0.54%, 11/13/2023		2,700,000		2,703,111

Shire Acquisitions Investments Ireland DAC
2.88%, 9/23/2023		1,120,000		1,176,139

Utah Acquisition Sub, Inc.
3.15%, 6/15/2021		1,000,000		1,002,137

Viatris, Inc.
1.13%, 6/22/2022(a)		3,379,000		3,401,571
				8,868,514

Railroads – 1.1%

Union Pacific Corp.
3.20%, 6/8/2021		4,412,000		4,424,244

Regional Banks – 3.9%

Capital One Bank USA NA
2.01%, 1/27/2023(c)		3,150,000		3,186,028
3.38%, 2/15/2023		350,000		367,135

Citizens Bank NA
(ICE LIBOR USD 3 Month + 0.72%), 0.92%, 2/14/2022(b)		2,000,000		2,008,521
3.25%, 2/14/2022		1,088,000		1,110,630

Fifth Third Bancorp
2.60%, 6/15/2022		854,000		874,521

Fifth Third Bank NA
2.25%, 6/14/2021		460,000		460,264

KeyBank NA
(SOFR + 0.34%), 0.35%, 1/3/2024(b)		2,940,000		2,941,743

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			329

FlexShares® Ready Access Variable Income Fund (cont.)


Investments	Principal Amount		Value

CORPORATE BONDS – (continued)

Regional Banks – (continued)

Truist Bank
(ICE LIBOR USD 3 Month + 0.59%), 0.78%, 5/17/2022(b)	$	3,000,000	$	3,015,325

Truist Financial Corp.
3.05%, 6/20/2022		2,268,000		2,334,733
				16,298,900

Research & Consulting Services – 0.1%

Equifax, Inc.
(ICE LIBOR USD 3 Month + 0.87%), 1.06%, 8/15/2021(b)		400,000		400,812

Residential REITs – 0.2%

American Campus Communities Operating Partnership LP
REIT, 3.75%, 4/15/2023		985,000		1,037,887

Restaurants – 1.1%

McDonald’s Corp.
(ICE LIBOR USD 3 Month + 0.43%), 0.61%, 10/28/2021(b)		4,325,000		4,332,979

Starbucks Corp.
1.30%, 5/7/2022		290,000		293,299
				4,626,278

Soft Drinks – 1.1%

Keurig Dr Pepper, Inc.
3.55%, 5/25/2021		827,000		828,611
0.75%, 3/15/2024		3,700,000		3,701,543
				4,530,154

Specialized Finance – 0.3%

Element Fleet Management Corp.
1.60%, 4/6/2024(a)		500,000		505,877

NTT Finance Corp.
0.58%, 3/1/2024(a)		600,000		599,333
				1,105,210

Specialized REITs – 0.6%

American Tower Corp.
REIT, 2.25%, 1/15/2022		640,000		648,813


Investments	Principal Amount		Value

Specialized REITs – (continued)

Crown Castle International Corp.
REIT, 3.15%, 7/15/2023	$	1,800,000	$	1,898,612
				2,547,425

Specialty Chemicals – 0.1%

DuPont de Nemours, Inc.
2.17%, 5/1/2023		576,000		578,239

Technology Hardware, Storage & Peripherals – 0.6%

Dell International LLC
5.45%, 6/15/2023(a)		1,000,000		1,091,315

Hewlett Packard Enterprise Co.
3.50%, 10/5/2021		800,000		808,042
2.25%, 4/1/2023		400,000		412,174
				2,311,531

Trading Companies & Distributors – 1.3%

Air Lease Corp.
(ICE LIBOR USD 3 Month + 0.67%), 0.85%, 6/3/2021(b)		1,775,000		1,775,210
3.50%, 1/15/2022		960,000		980,197
3.75%, 2/1/2022		1,000,000		1,018,503
0.70%, 2/15/2024		1,000,000		992,421

GATX Corp.
4.75%, 6/15/2022		539,000		563,788
				5,330,119

Trucking – 1.5%

Penske Truck Leasing Co. LP
3.65%, 7/29/2021(a)		2,935,000		2,949,835

Ryder System, Inc.
3.45%, 11/15/2021		1,835,000		1,860,487
2.88%, 6/1/2022		1,200,000		1,229,870
				6,040,192

Wireless Telecommunication Services – 0.6%

Rogers Communications, Inc.
(ICE LIBOR USD 3 Month + 0.60%), 0.79%, 3/22/2022(b)		2,500,000		2,508,640
Total Corporate Bonds (Cost $371,409,302)				373,260,274

See Accompanying Notes to the Financial Statements.


330		FLEXSHARES SEMIANNUAL REPORT

FlexShares® Ready Access Variable Income Fund (cont.)


Investments	Principal Amount		Value

ASSET-BACKED SECURITIES – 6.7%

AmeriCredit Automobile Receivables Trust
Series 2020-3, Class A2, 0.42%, 3/18/2024	$	1,717,638	$	1,719,360
Series 2021-1, Class A2, 0.28%, 6/18/2024		2,000,000		2,000,104

BA Credit Card Trust
Series 2019-A1, Class A1, 1.74%, 1/15/2025		880,000		897,731

Barclays Dryrock Issuance Trust
Series 2019-1, Class A, 1.96%, 5/15/2025		700,000		714,908

BMW Vehicle Owner Trust
Series 2020-A, Class A2, 0.39%, 2/27/2023		768,990		769,492

Capital One Multi-Asset Execution Trust
Series 2019-A2, Class A2, 1.72%, 8/15/2024		900,000		917,731

CarMax Auto Owner Trust
Series 2020-3, Class A2A, 0.49%, 6/15/2023		248,995		249,256

Enterprise Fleet Financing LLC
Series 2019-2, Class A2, 2.29%, 2/20/2025(a)		710,503		722,168

Ford Credit Auto Owner Trust
Series 2020-A, Class A2, 1.03%, 10/15/2022		71,031		71,150
Series 2020-B, Class A2, 0.50%, 2/15/2023		1,273,755		1,274,814
Series 2020-C, Class A2, 0.25%, 10/15/2023		795,779		796,019

Ford Credit Floorplan Master Owner Trust A
Series 2019-1, Class A, 2.84%, 3/15/2024		500,000		511,348

GM Financial Automobile Leasing Trust
Series 2020-1, Class A3, 1.67%, 12/20/2022		550,000		554,759

GM Financial Consumer Automobile Receivables Trust
Series 2020-2, Class A2A, 1.50%, 3/16/2023		76,673		76,894


Investments	Principal Amount		Value

ASSET-BACKED SECURITIES – (continued)

Honda Auto Receivables Owner Trust
Series 2020-2, Class A2, 0.74%, 11/15/2022	$	385,461	$	386,094

Hyundai Auto Receivables Trust
Series 2020-B, Class A2, 0.38%, 3/15/2023		752,923		753,413

John Deere Owner Trust
Series 2020-B, Class A2, 0.41%, 3/15/2023		324,872		325,066

Mercedes-Benz Auto Lease Trust
Series 2020-B, Class A2, 0.31%, 2/15/2023		620,282		620,567

Mercedes-Benz Auto Receivables Trust
Series 2020-1, Class A2, 0.46%, 3/15/2023		596,919		597,490

Santander Drive Auto Receivables Trust
Series 2020-2, Class A2A, 0.62%, 5/15/2023		401,500		401,695
Series 2020-4, Class A2, 0.42%, 9/15/2023		1,603,587		1,604,738
Series 2021-1, Class A2, 0.29%, 11/15/2023		3,000,000		3,000,095

Synchrony Card Funding LLC
Series 2019-A1, Class A, 2.95%, 3/15/2025		2,000,000		2,046,996

Toyota Auto Receivables Owner Trust
Series 2020-C, Class A2, 0.36%, 2/15/2023		1,467,280		1,468,202

Verizon Owner Trust
Series 2020-A, Class A1A, 1.85%, 7/22/2024		1,500,000		1,529,411

Volkswagen Auto Loan Enhanced Trust
Series 2020-1, Class A2A, 0.93%, 12/20/2022		425,279		426,046

World Financial Network Credit Card Master Trust
Series 2019-B, Class A, 2.49%, 4/15/2026		1,000,000		1,024,828
Series 2019-C, Class A, 2.21%, 7/15/2026		1,000,000		1,026,400

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			331

FlexShares® Ready Access Variable Income Fund (cont.)


Investments	Principal Amount		Value

ASSET-BACKED SECURITIES – (continued)

World Omni Automobile Lease Securitization Trust
Series 2020-B, Class A2, 0.32%, 9/15/2023	$	1,256,933	$	1,257,485
Total Asset-Backed Securities (Cost $27,527,022)				27,744,260



MUNICIPAL BONDS – 1.8%

University of Missouri, System Facilities Revenue Bonds
Series 2020-A, 1.47%, 11/1/2023		1,000,000		1,028,008

City of New York
Series 2021-D, 0.43%, 8/1/2022		830,000		829,987
Series 2021-D, 0.59%, 8/1/2023		1,800,000		1,801,019

California Earthquake Authority
Series 2020-B, 1.33%, 7/1/2022		500,000		505,905

Miami-Dade County, Capital Asset Acquisition Special Obligation Bonds
Series 2020-B, 0.38%, 4/1/2023		1,110,000		1,110,502

New York Transportation Development Corp., Terminal 4 John F. Kennedy International Airport Project
Series 2020-B, 1.36%, 12/1/2021		1,000,000		1,005,422

Port Authority of New York & New Jersey
Series AAA, 1.09%, 7/1/2023		1,000,000		1,015,785
Total Municipal Bonds (Cost $7,237,351)				7,296,628



FOREIGN GOVERNMENT SECURITIES – 0.2%

Japan Bank for International Cooperation
1.75%, 1/23/2023 (Cost $798,507)		800,000		819,745


Investments	Principal Amount		Value

SHORT-TERM INVESTMENTS – 0.6%

COMMERCIAL PAPER – 0.6%

Waste Management, Inc.
0.40%, 8/9/2021(e) (f) (Cost $2,687,011)	$	2,690,000	$	2,688,158
Total Investments – 99.6% (Cost $409,659,193)				411,809,065

Other assets less liabilities – 0.4%				1,575,626
NET ASSETS – 100.0%			$	413,384,691

^(a)

^(b)

Variable or floating rate security, linked to the referenced benchmark. The interest rate shown is the rate in effect as of April 30, 2021.

^(c)

Security issued at a fixed coupon rate, which converts to a variable rate at a future date. Rate shown is the rate in effect as of period end.

^(d)

^(e)

Security exempt from registration under Section 4(2) of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees.

^(f)

The rate shown was the current yield as of April 30, 2021.

Percentages shown are based on Net Assets.

Abbreviations

ICE - Intercontinental Exchange

LIBOR - London Interbank Offered Rate

SOFR - Secured Overnight Financing Rate

USD - US Dollar



Aggregate gross unrealized appreciation	$	2,217,201
Aggregate gross unrealized depreciation		(67,329	)
Net unrealized appreciation	$	2,149,872
Federal income tax cost	$	409,659,193

See Accompanying Notes to the Financial Statements.


332		FLEXSHARES SEMIANNUAL REPORT

FlexShares® Ready Access Variable Income Fund (cont.)

FlexShares® Ready Access Variable Income Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2021:


Australia	1.8	%
Canada	7.9
Finland	0.2
France	1.4
Germany	3.6
Japan	4.0
Netherlands	1.8
Norway	0.4
Saudi Arabia	0.0	^†
Singapore	0.3
Sweden	1.6
Switzerland	2.2
United Kingdom	3.1
United States	71.3
Other¹	0.4
	100.0	%

^†	Amount represents less than 0.05%.

¹	Includes any non-fixed-income securities and net other assets (liabilities).

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			333

Schedule of Investments

FlexShares^®Core Select Bond Fund

April 30, 2021 (Unaudited)


Investments	Shares		Value

EXCHANGE TRADED FUNDS – 99.8%

FlexShares^® Credit-Scored US Corporate Bond Index Fund(a)		629,612	$	33,897,743

FlexShares^® Credit-Scored US Long Corporate Bond Index Fund(a)		96,968		5,645,477

FlexShares^® Disciplined Duration MBS Index Fund(a)		594,945		14,132,919

FlexShares^® Ready Access Variable Income Fund(a)		12,599		959,981

iShares 10+ Year Investment Grade Corporate Bond ETF		108,664		7,342,426

iShares 20+ Year Treasury Bond ETF		60,142		8,338,087

iShares 3-7 Year Treasury Bond ETF		24,686		3,219,795

iShares 5-10 Year Investment Grade Corporate Bond ETF		160,787		9,603,808

iShares 7-10 Year Treasury Bond ETF		41,114		4,686,585

iShares MBS ETF		129,806		14,130,681

iShares Trust iShares 1-5 Year Investment Grade Corporate Bond ETF		195,810		10,732,346
Total Exchange Traded Funds (Cost $112,525,577)				112,689,848
Total Investments – 99.8% (Cost $112,525,577)				112,689,848

Other assets less liabilities – 0.2%				261,650
NET ASSETS – 100.0%			$	112,951,498

^(a)

Investment in affiliated Fund. Northern Trust Investments, Inc. is the Investment Adviser to both the Fund and the affiliated Funds.

Percentages shown are based on Net Assets.



Aggregate gross unrealized appreciation	$	279,643
Aggregate gross unrealized depreciation		(540,982	)
Net unrealized appreciation	$	(261,339	)
Federal income tax cost	$	112,951,187

See Accompanying Notes to the Financial Statements.


334		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Core Select Bond Fund (cont.)

For the period ended April 30, 2021, the FlexShares^® Core Select Bond Fund was invested in securities of affiliated FlexShares^® Funds. The Schedules of Investments of the affiliated FlexShares^® Funds are located elsewhere in this Report.

Investment in a company which was affiliated for the period ended April 30, 2021, was as follows:


Security	Value October 31, 2020		Purchases at Cost		Sales Proceeds		Shares April 30, 2021		Value April 30, 2021		Change in Unrealized Appreciation (Depreciation)			Dividend Income		Realized Loss
FlexShares^® Credit-Scored US Corporate Bond Index Fund	$	44,169,956	$	12,739,771	$	22,247,212		629,612	$	33,897,743	$	(715,549	)	$	414,593	$	(49,223	)
FlexShares^® Credit-Scored US Long Corporate Bond Index Fund		13,498,994		2,958,648		9,912,537		96,968		5,645,477		(220,309	)		189,655		(679,319	)
FlexShares^® Disciplined Duration MBS Index Fund		19,196,179		2,539,290		7,379,689		594,945		14,132,919		(199,101	)		247,559		(23,760	)
FlexShares^® Ready Access Variable Income Fund		1,805,563		2,350,622		3,192,770		12,599		959,981		14			3,881		(3,448	)
	$	78,670,692	$	20,588,331	$	42,732,208		1,334,124	$	54,636,120	$	(1,134,945	)	$	855,688	$	(755,750	)

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			335

Notes to the Financial Statements April 30, 2021 (Unaudited)

1. Organization

FlexShares^® Trust (the “Trust”), a Maryland statutory trust, was formed on May 13, 2010, originally named NT ETF Trust and renamed FlexShares^® Trust as of April 12, 2011. The Trust is registered as an open-end management investment company under the Investment Company Act of 1940 (the “1940 Act”), as amended. The Trust consists of twenty-seven operational exchange-traded funds as of April 30, 2021 (each a “Fund” and collectively, the “Funds”).

The FlexShares^® US Quality Low Volatility Index Fund, FlexShares^® Developed Markets ex-US Quality Low Volatility Index Fund, FlexShares^® Emerging Markets Quality Low Volatility Index Fund, FlexShares^® Morningstar Global Upstream Natural Resources Index Fund, FlexShares^® STOXX^® Global Broad Infrastructure Index Fund, FlexShares^® Global Quality Real Estate Index Fund, FlexShares^® Real Assets Allocation Index Fund, FlexShares^® iBoxx 3-Year Target Duration TIPS Index Fund, FlexShares^® iBoxx 5-Year Target Duration TIPS Index Fund, FlexShares^® Credit-Scored US Corporate Bond Index Fund, FlexShares^® Credit-Scored US Long Corporate Bond Index Fund, and the FlexShares^® Ready Access Variable Income Fund are non-diversified series of the Trust, pursuant to the 1940 Act.

The FlexShares^® Morningstar US Market Factor Tilt Index Fund, FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares^® US Quality Large Cap Index Fund, FlexShares^® STOXX^® US ESG Select Index Fund (formerly known as the FlexShares^® STOXX^® US ESG Impact Index Fund), FlexShares^® STOXX^® Global ESG Select Index Fund (formerly known as the FlexShares^® STOXX^® Global ESG Impact Index Fund), FlexShares^® Quality Dividend Index Fund, FlexShares^® Quality Dividend Defensive Index Fund, FlexShares^® Quality Dividend Dynamic Index Fund, FlexShares^® International Quality Dividend Index Fund, FlexShares^® International Quality Dividend Defensive Index Fund, FlexShares^® International Quality Dividend Dynamic Index Fund, FlexShares^® Disciplined Duration MBS Index Fund, FlexShares^® High Yield Value-Scored Bond Index Fund and the FlexShares^® Core Select Bond Fund are diversified series of the Trust, pursuant to the 1940 Act.

Each Fund, except the FlexShares Ready Access Variable Income Fund and the FlexShares Core Select Bond Fund, seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of a specified benchmark index (each an “Underlying Index”). The FlexShares US Quality Low Volatility Index Fund, FlexShares Developed Markets ex-US Quality Low Volatility Index Fund, FlexShares Emerging Markets Quality Low Volatility Index Fund, FlexShares US Quality Large Cap Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund, FlexShares Quality Dividend Index Fund, FlexShares Quality Dividend Defensive Index Fund, FlexShares Quality Dividend Dynamic Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, FlexShares International Quality Dividend Dynamic Index Fund, FlexShares Credit-Scored US Corporate Bond Index Fund, FlexShares Credit-Scored US Long Corporate Bond Index Fund and the FlexShares High Yield Value-Scored Bond Index Fund seek to track Underlying Indexes developed by Northern Trust Investments, Inc. (“NTI” or “Investment Adviser”), an indirect subsidiary of Northern Trust Corporation. The FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund and FlexShares Morningstar Global Upstream Natural Resources Index Fund seek to track Underlying Indexes sponsored by Morningstar, Inc. The FlexShares STOXX^® US ESG Select Index Fund, FlexShares STOXX^® Global ESG Select Index Fund, and FlexShares STOXX^® Global Broad Infrastructure Index Fund seek to track Underlying Indexes sponsored by STOXX. The FlexShares iBoxx 3-Year Target Duration TIPS Index Fund and FlexShares iBoxx 5-Year Target Duration TIPS Index Fund seek to track Underlying Indexes sponsored by Markit Indexes Limited. The FlexShares Disciplined Duration MBS Index Fund seeks to track an Underlying Index sponsored by ICE Data Indexes, LLC.

The FlexShares Real Assets Allocation Index Fund is a fund of funds that seeks its investment objective by investing primarily in the shares of other FlexShares ETFs that are eligible for inclusion in its Underlying Index, rather than in


336		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

securities of individual companies. The FlexShares Core Select Bond Fund seeks to achieve its investment objective by investing, under normal circumstances in U.S. dollar-denominated investment-grade fixed-income securities either directly or indirectly through FlexShares ETFs, unaffiliated ETFs and other registered investment companies. The investment performance of each of the FlexShares Real Assets Allocation Index Fund and FlexShares Core Select Bond Fund is directly related to the performance of the underlying fund(s) in which it invests (“Underlying Fund”).

The FlexShares Ready Access Variable Income Fund and the FlexShares Core Select Bond Fund are actively managed and do not seek to replicate the performance of a specified index. The FlexShares Ready Access Variable Income Fund seeks maximum current income consistent with the preservation of capital and liquidity. The FlexShares Core Select Bond Fund seeks total return and preservation of capital. Each Fund, except the FlexShares Ready Access Variable Income Fund and the FlexShares Core Select Bond Fund, is referred to herein as an “Index Fund.” Each Fund is managed by the Investment Adviser.

2. Significant Accounting Policies

The Trust, which is an investment company, follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.” The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

Investment Valuation

Each Fund’s Net Asset Value (“NAV”) is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading, based on prices at the

time of closing provided that any U.S. fixed-income assets may be valued as of the announced closing time for trading in fixed-income instruments on any day that the Securities Industry and Financial Markets Association announces an early closing time. The NAV of a Fund is calculated by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding.

The investments of the Funds are valued at fair value pursuant to the pricing policy and procedures approved by the Trust’s Board of Trustees (“Board”). The Funds’ investments are valued using market quotations when available. When market quotations are not readily available, are deemed unreliable, or do not reflect material events occurring between the close of local markets and the time of valuation, the Funds value securities at fair value as determined in good faith in accordance with the Funds’ fair value pricing procedures as approved by the Board. Such circumstances include periods when trading in a security is suspended, the exchange or market on which a security trades closes early, the trading volume in a security is limited, corporate actions and announcements take place, or regulatory news affecting an issuer is released, such as government approvals. Additionally, the Trust, in its discretion, may make adjustments to the prices of securities held by a Fund if an event occurs after the publication of market values normally used by a Fund but before the time as of which the Fund calculates its NAV, depending on the nature and significance of the event, consistent with applicable regulatory guidance and the Trust’s fair value procedures. Other events that can trigger fair valuing of foreign securities include, for example, significant fluctuations in general market indicators, government actions, or natural disasters.

The use of fair valuation involves the risk that the values used by the Funds to price their investments may be higher or lower than the values used by other investment companies and investors to price the same investments. Fair value pricing involves subjective judgments and it is possible that a fair value determination for a portfolio security may be materially different than the value that could be realized upon the sale of such security. In addition, fair value pricing


		FLEXSHARES SEMIANNUAL REPORT			337

Notes to the Financial Statements (cont.)

could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by an Index Fund’s Underlying Index. This difference may adversely affect an Index Fund’s ability to track its Underlying Index. Portfolio securities of certain Funds are listed on foreign exchanges and their value may change on days when shareholders will not be able to purchase or sell Fund shares.

Security prices are generally provided by independent pricing services. Portfolio securities listed or traded on domestic securities exchanges or the NASDAQ/NMS, including dollar-denominated foreign securities or American Depositary Receipts (“ADRs”), are valued at the closing price, or last sale price, reported on the exchange or system where the security is principally traded. The closing price for securities traded on the NASDAQ/NMS is the Nasdaq Official Closing Price (“NOCP”). If there have been no sales for that day on the exchange or system where the security is principally traded, then the value is determined with reference to the last sale price, or the NOCP, if applicable, on any other exchange or system. If there have been no sales of the security for that day on any exchange or system, the security is valued at fair value pursuant to the Trust’s fair value procedures.

Securities that are traded regularly in the over-the-counter market (other than the NASDAQ/NMS), including securities listed on exchanges but primarily traded over-the-counter, are valued on the basis of bid quotes or the mean between the bid and asked quotes based upon quotes furnished by one or more broker-dealers or market makers for those securities. Securities that may be traded over-the-counter include equity securities, fixed-income securities, non-exchange-listed foreign securities, and certain derivative instruments. Fixed-income securities may be valued using prices provided directly from one or more broker-dealers, market makers, or independent third-party pricing services which may use matrix pricing and valuation models, as well as recent market transactions for the same or similar assets, to derive values when such prices are believed to reflect fair market values of such securities. Such prices may be determined by taking into account securities prices, yields, maturities, call features, ratings, prepayment speeds, credit risks, cash flows, institutional size trading in similar

groups of securities and developments related to specific securities. Fixed-income securities maturing within a relatively short period, less than 60 days, are valued at amortized cost when it approximates fair value.

Foreign equity securities are generally priced at the closing price or last sales price reported on the foreign exchange on which they are principally traded. If there have been no sales for that day on the primary exchange, then the value is determined with reference to the last sale price on any other exchange. If there have been no sales of the security for that day on any exchange, the security will be valued at fair value pursuant to the Trust’s fair value procedures. Spot and forward foreign currency exchange contracts generally are valued using an independent pricing service. The value of assets denominated in foreign currencies is converted into U.S. dollars using exchange rates deemed appropriate by NTI as Investment Adviser. Any use of a different rate from the rates used by the index provider may adversely affect the Fund’s ability to track its Underlying Index. The index provider determines the composition and relative weightings of the securities in the Underlying Index and publishes information regarding the market value of the Underlying Index.

Exchange-traded financial futures and options thereon are valued at the settlement price as established by the exchange on which they are traded. Over-the-counter options are valued at broker-provided bid prices, as are swaps. The foregoing prices may be obtained from one or more independent pricing services or, as needed or applicable, independent broker-dealers. If there was no sale on that day, and for other non-exchange traded derivatives, the contract is valued at fair value pursuant to the Trust’s fair value procedures.

Each Fund relies on various sources to calculate its NAV. The ability of the Funds’ administrator to calculate the NAV per share of the Funds is subject to operational risks associated with processing or human errors, systems or technology failures, and errors caused by third party service providers, data sources, or trading counterparties. Such failures may result in delays in the calculation of the Funds’ NAVs and/or the inability to calculate NAV over extended time periods. The Funds may be unable to recover any losses


338		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

associated with such failures, and it may be necessary for alternative procedures to be followed to price portfolio securities when determining the Funds’ NAVs.

Various inputs are used in determining the value of each Fund’s investments. These inputs are summarized in three levels listed below:

•

Level 1—Quoted prices in active markets for identical assets on the measurement date.

•

Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

•

Level 3—Significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, short-term debt securities may be valued at amortized cost, as long as amortized cost approximates the current fair value of a security, but since the valuation is not obtained from a quoted price in an active market, such securities are reflected as Level 2.

The following is a summary of the valuations as of April 30, 2021 for each Fund based upon the three levels defined above. Please refer to the Schedules of Investments to view equity and debt securities segregated by industry type, where applicable.


	Level 1 — Quoted Prices		Level 2 — Other Significant Observable Inputs		Level 3 — Significant Unobservable Inputs		Total

FlexShares US Quality Low Volatility Index Fund
Investments
Common Stocks*	$	144,210,727	$	—	$	—	$	144,210,727

Short-Term Investments		—		74,999		—		74,999

Total Investments	$	144,210,727	$	74,999	$	—	$	144,285,726

Other Financial Instruments
Assets

Futures Contracts	$	43,328	$	—	$	—	$	43,328

Total Other Financial Instruments	$	43,328	$	—	$	—	$	43,328


		FLEXSHARES SEMIANNUAL REPORT			339

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices		Level 2 — Other Significant Observable Inputs			Level 3 — Significant Unobservable Inputs		Total

FlexShares Developed Markets ex-US Quality Low Volatility Index Fund
Investments
Common Stocks*	$	85,810,100	$	—		$	—	$	85,810,100
Rights		10,141		—			—		10,141
Securities Lending Reinvestments

Repurchase Agreements		—		2,693,457			—		2,693,457

Total Investments	$	85,820,241	$	2,693,457		$	—	$	88,513,698

Other Financial Instruments
Assets
Futures Contracts	$	16,282	$	—		$	—	$	16,282
Forward Foreign Currency Contracts		—		7,426			—		7,426
Liabilities

Forward Foreign Currency Contracts		—		(8,122	)		—		(8,122	)

Total Other Financial Instruments	$	16,282	$	(696	)	$	—	$	15,586


	Level 1 — Quoted Prices		Level 2 — Other Significant Observable Inputs			Level 3 — Significant Unobservable Inputs		Total

FlexShares Emerging Markets Quality Low Volatility Index Fund
Investments
Common Stocks
Health Care Providers & Services	$	623,695	$	12,126		$	—	$	635,821
Multiline Retail		—		376			—		376
Specialty Retail		204,857		1,268			—		206,125
Other*		15,521,935		—			—		15,521,935

Corporate Bonds*		—		1			—		1

Total Investments	$	16,350,487	$	13,771		$	—	$	16,364,258

Other Financial Instruments
Assets
Futures Contracts	$	1,536	$	—		$	—	$	1,536
Forward Foreign Currency Contracts		—		374			—		374
Liabilities

Forward Foreign Currency Contracts		—		(16	)		—		(16	)

Total Other Financial Instruments	$	1,536	$	358		$	—	$	1,894


340		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices			Level 2 — Other Significant Observable Inputs			Level 3 — Significant Unobservable Inputs		Total

FlexShares Morningstar US Market Factor Tilt Index Fund
Investments
Common Stocks
IT Services	$	68,671,288		$	14,489		$	—	$	68,685,777
Other*		1,583,194,559			—			—		1,583,194,559
Rights		—			—			27,946		27,946
Warrants		45,988			—			—		45,988
Securities Lending Reinvestments
Certificates of Deposit		—			16,003,342			—		16,003,342

Repurchase Agreements		—			99,578,929			—		99,578,929

Total Investments	$	1,651,911,835		$	115,596,760		$	27,946	$	1,767,536,541

Other Financial Instruments
Assets

Futures Contracts	$	651,986		$	—		$	—	$	651,986

Total Other Financial Instruments	$	651,986		$	—		$	—	$	651,986


	Level 1 — Quoted Prices			Level 2 — Other Significant Observable Inputs			Level 3 — Significant Unobservable Inputs		Total

FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund
Investments
Closed End Funds	$	100,799		$	—		$	—	$	100,799
Common Stocks
Banks		64,532,259			1,126			—		64,533,385
Beverages		6,845,930			113,790			—		6,959,720
Construction & Engineering		12,994,209			—			416		12,994,625
Health Care Providers & Services		4,136,766			1,120			—		4,137,886
Pharmaceuticals		26,004,942			18			—		26,004,960
Other*		502,934,907			—			—		502,934,907
Rights		16,455			—			—		16,455
Warrants		6,885			—			—		6,885
Securities Lending Reinvestments

Repurchase Agreements		—			18,370,885			—		18,370,885

Total Investments	$	617,573,152		$	18,486,939		$	416	$	636,060,507

Other Financial Instruments
Assets
Futures Contracts	$	407,091		$	—		$	—	$	407,091
Forward Foreign Currency Contracts		—			43,535			—		43,535
Liabilities
Futures Contracts		(9,766	)		—			—		(9,766	)

Forward Foreign Currency Contracts		—			(53,418	)		—		(53,418	)

Total Other Financial Instruments	$	397,325		$	(9,883	)	$	—	$	387,442


		FLEXSHARES SEMIANNUAL REPORT			341

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices		Level 2 — Other Significant Observable Inputs			Level 3 — Significant Unobservable Inputs		Total

FlexShares Morningstar Emerging Markets Factor Tilt Index Fund
Investments
Common Stocks
Automobiles	$	7,864,175	$	87,072		$	—	$	7,951,247
Biotechnology		1,628,432		—			20,576		1,649,008
Capital Markets		6,880,208		27,316			—		6,907,524
Chemicals		12,776,854		42,830			—		12,819,684
Construction Materials		3,556,277		198,048			—		3,754,325
Electronic Equipment, Instruments & Components		11,249,072		—			1,643		11,250,715
Equity Real Estate Investment Trusts (REITs)		3,681,178		27,759			—		3,708,937
Food & Staples Retailing		2,507,876		570			—		2,508,446
Hotels, Restaurants & Leisure		1,870,291		1,631			11,814		1,883,736
Industrial Conglomerates		4,983,821		512,323			—		5,496,144
Oil, Gas & Consumable Fuels		13,510,058		1,792			—		13,511,850
Pharmaceuticals		4,964,120		—			3,897		4,968,017
Real Estate Management & Development		14,824,603		—			4,170		14,828,773
Textiles, Apparel & Luxury Goods		3,677,500		33,335			—		3,710,835
Transportation Infrastructure		3,601,443		107,523			—		3,708,966
Other*		233,987,076		—			—		233,987,076
Corporate Bonds*		—		11,869			—		11,869
Rights		—		6,746			—		6,746
Warrants		—		4,247			—		4,247
Securities Lending Reinvestments

Repurchase Agreements		—		2,462,892			—		2,462,892

Total Investments	$	331,562,984	$	3,525,953		$	42,100	$	335,131,037

Other Financial Instruments
Assets
Futures Contracts	$	22,001	$	—		$	—	$	22,001
Forward Foreign Currency Contracts		—		8,464			—		8,464
Liabilities

Forward Foreign Currency Contracts		—		(23,130	)		—		(23,130	)

Total Other Financial Instruments	$	22,001	$	(14,666	)	$	—	$	7,335


342		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices		Level 2 — Other Significant Observable Inputs		Level 3 — Significant Unobservable Inputs		Total

FlexShares US Quality Large Cap Index Fund
Investments
Common Stocks*	$	94,060,732	$	—	$	—	$	94,060,732
Securities Lending Reinvestments

Repurchase Agreements		—		263,694		—		263,694

Total Investments	$	94,060,732	$	263,694	$	—	$	94,324,426

Other Financial Instruments
Assets

Futures Contracts	$	42,247	$	—	$	—	$	42,247

Total Other Financial Instruments	$	42,247	$	—	$	—	$	42,247


	Level 1 — Quoted Prices		Level 2 — Other Significant Observable Inputs		Level 3 — Significant Unobservable Inputs		Total

FlexShares STOXX^® US ESG Select Index Fund
Investments
Common Stocks*	$	176,634,790	$	—	$	—	$	176,634,790
Securities Lending Reinvestments

Repurchase Agreements		—		57,104		—		57,104

Total Investments	$	176,634,790	$	57,104	$	—	$	176,691,894

Other Financial Instruments
Assets

Futures Contracts	$	110,922	$	—	$	—	$	110,922

Total Other Financial Instruments	$	110,922	$	—	$	—	$	110,922


		FLEXSHARES SEMIANNUAL REPORT			343

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices			Level 2 — Other Significant Observable Inputs			Level 3 — Significant Unobservable Inputs		Total

FlexShares STOXX^® Global ESG Select Index Fund
Investments
Common Stocks
Beverages	$	3,460,435		$	31,787		$	—	$	3,492,222
Other*		164,010,671			—			—		164,010,671
Rights		—			—			—		—
Warrants		2,065			—			—		2,065
Securities Lending Reinvestments

Repurchase Agreements		—			3,005,671			—		3,005,671

Total Investments	$	167,473,171		$	3,037,458		$	—	$	170,510,629

Other Financial Instruments
Assets
Futures Contracts	$	122,398		$	—		$	—	$	122,398
Forward Foreign Currency Contracts		—			792			—		792
Liabilities
Futures Contracts		(391	)		—			—		(391	)

Forward Foreign Currency Contracts		—			(707	)		—		(707	)

Total Other Financial Instruments	$	122,007		$	85		$	—	$	122,092


	Level 1 — Quoted Prices			Level 2 — Other Significant Observable Inputs			Level 3 — Significant Unobservable Inputs		Total

FlexShares Morningstar Global Upstream Natural Resources Index Fund
Investments
Common Stocks*	$	5,093,317,156		$	—		$	—	$	5,093,317,156
Securities Lending Reinvestments
Certificates of Deposit		—			12,003,080			—		12,003,080

Repurchase Agreements		—			24,663,701			—		24,663,701

Total Investments	$	5,093,317,156		$	36,666,781		$	—	$	5,129,983,937

Other Financial Instruments
Assets
Futures Contracts	$	1,246,427		$	—		$	—	$	1,246,427
Forward Foreign Currency Contracts		—			334,480			—		334,480
Liabilities
Futures Contracts		(32,316	)		—			—		(32,316	)

Forward Foreign Currency Contracts		—			(387,889	)		—		(387,889	)

Total Other Financial Instruments	$	1,214,111		$	(53,409	)	$	—	$	1,160,702


344		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices			Level 2 — Other Significant Observable Inputs			Level 3 — Significant Unobservable Inputs		Total

FlexShares STOXX^® Global Broad Infrastructure Index Fund
Investments
Common Stocks*	$	2,606,955,936		$	—		$	—	$	2,606,955,936
Securities Lending Reinvestments

Repurchase Agreements		—			15,057,745			—		15,057,745

Total Investments	$	2,606,955,936		$	15,057,745		$	—	$	2,622,013,681

Other Financial Instruments
Assets
Futures Contracts	$	744,215		$	—		$	—	$	744,215
Forward Foreign Currency Contracts		—			91,073			—		91,073
Liabilities
Futures Contracts		(18,752	)		—			—		(18,752	)

Forward Foreign Currency Contracts		—			(44,841	)		—		(44,841	)

Total Other Financial Instruments	$	725,463		$	46,232		$	—	$	771,695


	Level 1 — Quoted Prices			Level 2 — Other Significant Observable Inputs			Level 3 — Significant Unobservable Inputs		Total

FlexShares Global Quality Real Estate Index Fund
Investments
Common Stocks*	$	358,577,366		$	—		$	—	$	358,577,366
Securities Lending Reinvestments

Repurchase Agreements		—			10,941,163			—		10,941,163

Total Investments	$	358,577,366		$	10,941,163		$	—	$	369,518,529

Other Financial Instruments
Assets
Futures Contracts	$	138,856		$	—		$	—	$	138,856
Forward Foreign Currency Contracts		—			3,641			—		3,641
Liabilities
Futures Contracts		(2,793	)		—			—		(2,793	)

Forward Foreign Currency Contracts		—			(11,755	)		—		(11,755	)

Total Other Financial Instruments	$	136,063		$	(8,114	)	$	—	$	127,949


		FLEXSHARES SEMIANNUAL REPORT			345

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices		Level 2 — Other Significant Observable Inputs		Level 3 — Significant Unobservable Inputs		Total

FlexShares Real Assets Allocation Index Fund
Investments

Exchange Traded Funds	$	7,377,304	$	—	$	—	$	7,377,304

Total Investments	$	7,377,304	$	—	$	—	$	7,377,304


	Level 1 — Quoted Prices		Level 2 — Other Significant Observable Inputs		Level 3 — Significant Unobservable Inputs		Total

FlexShares Quality Dividend Index Fund
Investments
Common Stocks*	$	1,526,753,498	$	—	$	—	$	1,526,753,498
Securities Lending Reinvestments
Certificates of Deposit		—		10,002,084		—		10,002,084

Repurchase Agreements		—		57,036,663		—		57,036,663

Total Investments	$	1,526,753,498	$	67,038,747	$	—	$	1,593,792,245

Other Financial Instruments
Assets

Futures Contracts	$	326,483	$	—	$	—	$	326,483

Total Other Financial Instruments	$	326,483	$	—	$	—	$	326,483


	Level 1 — Quoted Prices		Level 2 — Other Significant Observable Inputs		Level 3 — Significant Unobservable Inputs		Total

FlexShares Quality Dividend Defensive Index Fund
Investments
Common Stocks*	$	477,637,708	$	—	$	—	$	477,637,708
Securities Lending Reinvestments

Repurchase Agreements		—		15,820,569		—		15,820,569

Total Investments	$	477,637,708	$	15,820,569	$	—	$	493,458,277

Other Financial Instruments
Assets

Futures Contracts	$	63,640	$	—	$	—	$	63,640

Total Other Financial Instruments	$	63,640	$	—	$	—	$	63,640


346		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices			Level 2 — Other Significant Observable Inputs			Level 3 — Significant Unobservable Inputs		Total

FlexShares Quality Dividend Dynamic Index Fund
Investments
Common Stocks*	$	19,939,725		$	—		$	—	$	19,939,725
Securities Lending Reinvestments

Repurchase Agreements		—			338,785			—		338,785

Total Investments	$	19,939,725		$	338,785		$	—	$	20,278,510

Other Financial Instruments
Assets

Futures Contracts		12,071			—			—		12,071

Total Other Financial Instruments	$	12,071		$	—		$	—	$	12,071


	Level 1 — Quoted Prices			Level 2 — Other Significant Observable Inputs			Level 3 — Significant Unobservable Inputs		Total

FlexShares International Quality Dividend Index Fund
Investments
Common Stocks*	$	570,988,369		$	—		$	—	$	570,988,369
Securities Lending Reinvestments

Repurchase Agreements		—			23,036,738			—		23,036,738

Total Investments	$	570,988,369		$	23,036,738		$	—	$	594,025,107

Other Financial Instruments
Assets
Futures Contracts	$	368,581		$	—		$	—	$	368,581
Forward Foreign Currency Contracts		—			43,618			—		43,618
Liabilities
Futures Contracts		(8,034	)		—			—		(8,034	)

Forward Foreign Currency Contracts		—			(85,140	)		—		(85,140	)

Total Other Financial Instruments	$	360,547		$	(41,522	)	$	—	$	319,025


		FLEXSHARES SEMIANNUAL REPORT			347

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices		Level 2 — Other Significant Observable Inputs			Level 3 — Significant Unobservable Inputs		Total

FlexShares International Quality Dividend Defensive Index Fund
Investments
Common Stocks
Beverages	$	39,160	$	160,885		$	—	$	200,045
Other*		70,939,157		—			—		70,939,157
Securities Lending Reinvestments

Repurchase Agreements		—		2,428,130			—		2,428,130

Total Investments	$	70,978,317	$	2,589,015		$	—	$	73,567,332

Other Financial Instruments
Assets
Futures Contracts	$	36,020	$	—		$	—	$	36,020
Forward Foreign Currency Contracts		—		1,857			—		1,857
Liabilities

Forward Foreign Currency Contracts		—		(14,680	)		—		(14,680	)

Total Other Financial Instruments	$	36,020	$	(12,823	)	$	—	$	23,197


	Level 1 — Quoted Prices		Level 2 — Other Significant Observable Inputs			Level 3 — Significant Unobservable Inputs		Total

FlexShares International Quality Dividend Dynamic Index Fund
Investments
Common Stocks
Industrial Conglomerates	$	433,153	$	481,049		$	—	$	914,202
Other*		54,168,482		—			—		54,168,482
Securities Lending Reinvestments

Repurchase Agreements		—		2,161,098			—		2,161,098

Total Investments	$	54,601,635	$	2,642,147		$	—	$	57,243,782

Other Financial Instruments
Assets
Futures Contracts	$	10,131	$	—		$	—	$	10,131
Forward Foreign Currency Contracts		—		1,886			—		1,886
Liabilities

Forward Foreign Currency Contracts		—		(3,498	)		—		(3,498	)

Total Other Financial Instruments	$	10,131	$	(1,612	)	$	—	$	8,519


348		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices		Level 2 — Other Significant Observable Inputs		Level 3 — Significant Unobservable Inputs		Total

FlexShares iBoxx 3-Year Target Duration TIPS Index Fund
Investments

U.S. Treasury Obligations	$	—	$	1,430,541,496	$	—	$	1,430,541,496

Total Investments	$	—	$	1,430,541,496	$	—	$	1,430,541,496


	Level 1 — Quoted Prices		Level 2 — Other Significant Observable Inputs		Level 3 — Significant Unobservable Inputs		Total

FlexShares iBoxx 5-Year Target Duration TIPS Index Fund
Investments
U.S. Treasury Obligations	$	—	$	599,496,820	$	—	$	599,496,820
Securities Lending Reinvestments

Repurchase Agreements		—		3,648,356		—		3,648,356

Total Investments	$	—	$	603,145,176	$	—	$	603,145,176


	Level 1 — Quoted Prices		Level 2 — Other Significant Observable Inputs		Level 3 — Significant Unobservable Inputs		Total

FlexShares Disciplined Duration MBS Index Fund
Investments

Mortgage-Backed Securities	$	—	$	106,867,362	$	—	$	106,867,362

Total Investments	$	—	$	106,867,362	$	—	$	106,867,362


	Level 1 — Quoted Prices		Level 2 — Other Significant Observable Inputs		Level 3 — Significant Unobservable Inputs		Total

FlexShares Credit-Scored US Corporate Bond Index Fund
Investments

Corporate Bonds*	$	—	$	286,954,476	$	—	$	286,954,476

Total Investments	$	—	$	286,954,476	$	—	$	286,954,476


		FLEXSHARES SEMIANNUAL REPORT			349

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices		Level 2 — Other Significant Observable Inputs		Level 3 — Significant Unobservable Inputs		Total

FlexShares Credit-Scored US Long Corporate Bond Index Fund
Investments

Corporate Bonds*	$	—	$	56,487,495	$	—	$	56,487,495

Total Investments	$	—	$	56,487,495	$	—	$	56,487,495


	Level 1 — Quoted Prices		Level 2 — Other Significant Observable Inputs		Level 3 — Significant Unobservable Inputs		Total

FlexShares High Yield Value-Scored Bond Index Fund
Investments
Common Stocks*	$	30	$	—	$	—	$	30

Corporate Bonds*		—		207,873,444		—		207,873,444

Total Investments	$	30	$	207,873,444	$	—	$	207,873,474


	Level 1 — Quoted Prices		Level 2 — Other Significant Observable Inputs		Level 3 — Significant Unobservable Inputs		Total

FlexShares Ready Access Variable Income Fund
Investments
Asset-Backed Securities	$	—	$	27,744,260	$	—	$	27,744,260
Corporate Bonds*		—		373,260,274		—		373,260,274
Municipal Bonds		—		7,296,628		—		7,296,628
Foreign Government Securities		—		819,745		—		819,745

Short-Term Investments		—		2,688,158		—		2,688,158

Total Investments	$	—	$	411,809,065	$	—	$	411,809,065


	Level 1 — Quoted Prices		Level 2 — Other Significant Observable Inputs		Level 3 — Significant Unobservable Inputs		Total

FlexShares Core Select Bond Fund
Investments

Exchange Traded Funds	$	112,689,848	$	—	$	—	$	112,689,848

Total Investments	$	112,689,848	$	—	$	—	$	112,689,848

*	See Schedules of Investments for segregation by industry type.


350		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

Foreign Securities

The FlexShares Developed Markets ex-US Quality Low Volatility Index Fund, FlexShares Emerging Markets Quality Low Volatility Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares STOXX^® Global ESG Select Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX^® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund (through its investment in its Underlying Funds), FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, and the FlexShares International Quality Dividend Dynamic Index Fund invest in publicly-traded equity securities of issuers in countries other than the United States of America (“U.S.”). Such investments include direct investments in non-U.S. dollar denominated securities traded outside the U.S. The Funds’ investments in foreign securities also may be in the form of ADRs and Global Depositary Receipts (“GDRs”) (collectively, “Depositary Receipts”) based on securities in their Underlying Indexes. ADRs are receipts that are traded in the United States evidencing ownership of the underlying foreign securities and are denominated in U.S. dollars. GDRs are receipts issued by a non-U.S. financial institution evidencing ownership of underlying foreign or U.S. securities and usually are denominated in foreign currencies. GDRs may not be denominated in the same currency as the securities they represent. Generally, GDRs are designed for use in foreign securities markets.

In addition to investment risks associated with the underlying issuer, ADRs and GDRs expose a Fund to risk associated with non-uniform terms that apply to ADR and GDR programs, credit exposure to the depository bank and to the sponsors and other parties with whom the depository bank establishes the programs, currency and liquidity risk. ADRs and GDRs are generally subject to the same risks as the foreign securities that they evidence or into which they may be converted.

To the extent a Fund invests in ADRs, such ADRs will be listed on a national securities exchange. To the extent a Fund

invests in GDRs, such GDRs will be listed on a foreign exchange. A Fund will not invest in any unlisted Depositary Receipt, any Depositary Receipt that NTI deems to be illiquid or any Depositary Receipt for which market quotations are not readily available. Generally, all Depositary Receipts must be sponsored.

The FlexShares Credit-Scored US Corporate Bond Index Fund, FlexShares Credit-Scored US Long Corporate Bond Index Fund and the FlexShares High Yield Value-Scored Bond Index Fund may invest in U.S. dollar denominated bonds of non-U.S. corporations to the extent such bonds are included in each Fund’s Underlying Index. The FlexShares Core Select Bond Fund may invest in U.S. dollar denominated bonds of non-U.S. corporations, either directly or indirectly through Underlying Funds, to achieve its investment objective.

The FlexShares Ready Access Variable Income Fund may invest, without limitation, in fixed-income securities and instruments of foreign issuers in developed and emerging markets, including debt securities of foreign governments.

Investing in foreign securities, including Depositary Receipts, may result in a Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in U.S. securities, due to less liquid markets, and adverse economic, political, diplomatic, financial, and regulatory factors. Foreign governments also may impose taxes and limits on investment and repatriation. Any of these events could cause the value of a Fund’s foreign investment to decline. To the extent that a Fund’s assets are significantly invested in a single country or geographic region, a Fund will be subject to the risks associated with that particular country or region.

The FlexShares Emerging Markets Quality Low Volatility Fund and FlexShares Morningstar Emerging Markets Factor Tilt Index Fund will invest primarily in emerging market countries. In addition, the FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX^® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund (through its investment in its Underlying Funds), FlexShares International Quality


		FLEXSHARES SEMIANNUAL REPORT			351

Notes to the Financial Statements (cont.)

Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, and the FlexShares International Quality Dividend Dynamic Index Fund may invest its assets in emerging market countries. The FlexShares Ready Access Variable Income Fund may invest up to 20% of its total assets in fixed-income securities and instruments of issuers in emerging markets. The markets of emerging market countries are less developed and less liquid, subject to greater price volatility and generally subject to increased economic, political, regulatory and other uncertainties than more developed foreign markets. The risks of foreign investment are increased when the issuer is located in a country with an emerging economy or securities market.

Inflation-Indexed Securities

The FlexShares iBoxx 3-Year Target Duration TIPS Index Fund and the FlexShares iBoxx 5-Year Target Duration TIPS Index Fund invest primarily in U.S. Treasury Inflation-Protected Securities (“TIPS”). The FlexShares Ready Access Variable Income Fund and the FlexShares Core Select Bond Fund (directly or through its Underlying Funds) may invest in inflation-indexed securities.

TIPS issued by the U.S. Treasury have varying maturities and pay interest on a semiannual basis equal to a fixed percentage of the inflation-adjusted principal amount. If the periodic adjustment rate measuring inflation falls, the principal value of TIPS will be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of TIPS, even during a period of deflation.

The value of TIPS is expected to change in response to changes in real interest rates. Real interest rates in turn are tied to the relationship between nominal interest rates and the rate of inflation. Therefore, if the rate of inflation rises at a faster rate than nominal interest rates, real interest rates might decline, leading to an increase in value of TIPS. In contrast, if nominal interest rates increase at a faster rate than inflation, real interest rates might rise, leading to a decrease in value of TIPS. Any increase in the principal

amount of TIPS will be considered taxable ordinary income, even though investors do not receive their principal until maturity.

While these securities are expected to be protected from long-term inflationary trends, short-term increases in inflation may lead to a decline in value. If interest rates rise due to reasons other than inflation, investors in these securities may not be protected to the extent that the increase is not reflected in the TIPS’ inflation measure.

The periodic adjustment of TIPS is tied to the Consumer Price Index for Urban Consumers (“CPI-U”), which is calculated monthly by the U.S. Bureau of Labor Statistics. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing, food, transportation and energy. There can be no assurance that the CPI-U will accurately measure the real rate of inflation in the prices of goods and services.

Mortgage-Backed Pass-Through Securities

The FlexShares Disciplined Duration MBS Index Fund invests primarily in U.S. agency mortgage-backed pass-through securities (“MBS”), a category of pass-through securities backed by pools of mortgages and issued by one of the following U.S. government agencies: the Federal National Mortgage Association (FNMA or Fannie Mae), the Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) or the Government National Mortgage Association (GNMA or Ginnie Mae) (each a “US Agency”). Under normal circumstances, the Fund will invest at least 80% of its total assets in the securities of its Underlying Index and in “to-be announced transactions” (“TBA transactions”) that represent securities in its Underlying Index. In a TBA transaction, the buyer and seller agree upon general trade parameters such as agency, coupon rate, settlement date, par amount and price. The actual pools delivered generally are determined two days prior to settlement.

Pending settlement of such TBA contracts, the FlexShares Disciplined Duration MBS Index Fund will invest in liquid, short-term instruments. The FlexShares Core Select Bond Fund may also invest either directly or through its Underlying Funds in MBS, including TBA transactions.


352		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

Mortgage Dollar Rolls

The FlexShares Disciplined Duration MBS Index Fund and the FlexShares Core Select Bond Fund (directly or through its Underlying Funds) may enter into mortgage dollar roll transactions. A mortgage dollar roll involves the sale by the Fund of securities for delivery in the future (generally within 30 days). The Fund simultaneously contracts with the same counterparty to repurchase substantially similar (same type, coupon and maturity) but not identical securities on a specified future date. During the roll period, the Fund will not be entitled to accrue interest and receive principal payments on the securities sold. However, the Fund benefits to the extent of any difference between (a) the price received for the securities sold and (b) the lower forward price for the future purchase and/or fee income plus the interest earned on the cash proceeds of the securities sold. Successful use of mortgage dollar rolls depends upon the Investment Adviser’s ability to predict correctly interest rates and mortgage prepayments. The use of this technique may diminish the investment performance of the Fund compared with what such performance would have been without the use of mortgage dollar rolls.

For financial reporting and tax purposes, a Fund treats mortgage dollar rolls as two separate transactions: one involving the purchase of a security and a separate transaction involving a sale. The Fund currently does not intend to enter into mortgage dollar rolls that are accounted for as financing and does not treat them as borrowings.

Repurchase Agreements

To the extent consistent with its investment policies, each Fund may enter into repurchase agreements under which it purchases securities (collateral) for cash from a seller and agrees to resell those securities to the same seller within a specified time at a specified price. During the term of a repurchase agreement, the market value of the underlying collateral, including accrued interest, is required to equal or exceed the market value of the repurchase agreement. The underlying collateral for tri-party repurchase agreements is held in accounts at JPMorgan Chase, the Fund’s custodian, and is not reflected in the assets of the Funds, at the Bank of New York or JPMorgan Chase which, in turn, holds

securities through the book-entry system at the Federal Reserve Bank of New York. The Fund is subject to credit risk on repurchase agreements to the extent that the counterparty fails to perform under the agreement and the value of the collateral received falls below the agreed repurchase price.

The Northern Trust Company, the parent of NTI, currently is a party to various Master Repurchase Agreements with a number of different counterparties, and acts as agent on behalf of various disclosed principals, including the Funds and various other accounts managed by NTI, in entering into repurchase agreements under the Master Repurchase Agreements. NTI administers and manages these repurchase agreements in accordance with and as part of its duties under its investment advisory agreement with the Funds and does not collect any additional fees from the Funds for such services. As of April 30, 2021, none of the Funds presented in these financial statements had repurchase agreements outstanding except as discussed below.

As of April 30, 2021, the FlexShares Developed Markets ex-US Quality Low Volatility Index Fund, FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares US Quality Large Cap Index Fund, FlexShares STOXX^® US ESG Select Index Fund, FlexShares STOXX^® Global ESG Select Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX^® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Quality Dividend Index Fund, FlexShares Quality Dividend Defensive Index Fund, FlexShares Quality Dividend Dynamic Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, FlexShares International Quality Dividend Dynamic Index Fund, and the FlexShares iBoxx 5-Year Target Duration TIPS Index Fund invested cash collateral for loans of portfolio securities in repurchase agreements, as reflected in the respective Schedule of Investments under the caption “Securities Lending Reinvestments.”


		FLEXSHARES SEMIANNUAL REPORT			353

Notes to the Financial Statements (cont.)

Securities Lending

Each Fund may lend securities to banks, brokers and dealers or other qualified institutions. In exchange, the Fund is required to receive minimum initial collateral value as follows:


Type of Loan	Minimum Initial Collateral Requirement

U.S. dollar denominated securities secured by U.S. dollar denominated government securities or cash collateral		102	%

U.S. dollar denominated securities secured by non-U.S. dollar denominated government securities or cash collateral		105	%

Non-U.S. dollar denominated securities secured by government securities or cash collateral in the same denomination as the lent securities		102	%

Non-U.S. dollar denominated securities secured by government securities or cash collateral in the different denomination from the lent securities		105	%

U.S. dollar and Non-U.S. dollar denominated securities secured by equity securities collateral		105	%

The collateral is maintained thereafter, at a value equal to at least 100% of the value of the securities loaned. The collateral amount is valued at the beginning of each business day and is compared to the market value of the loaned securities from the prior business day to determine if additional collateral is required. If additional collateral is required, a request is sent to the borrower.

Securities lending may represent no more than one-third of the value of a Fund’s total assets (including the loan collateral). JPMorgan Chase Bank, N.A. (the “Securities Lending Agent”) serves as the securities lending agent for the securities lending program of a Fund.

Collateral for loans of portfolio securities made by a Fund may consist of cash, cash equivalents, securities issued or guaranteed by the U.S. government or foreign governments or its agencies (or any combination thereof). Any cash collateral received by the Fund in connection with these loans may be invested in a variety of short-term investments, either

directly or indirectly through money market portfolios. The market value of securities on loan and the value of investments made with cash collateral received are disclosed in the Schedules of Investments. Securities lending income includes income from the securities lending program recorded when earned from the Securities Lending Agent and any fees charged to borrowers less expenses associated with the loan. The net amount is reflected in the Statement of Operations under “Securities lending income (net of fees).” The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day.

When a Fund lends its securities, it will continue to receive payments equal to the dividends and interest paid on the securities loaned and simultaneously may earn interest on the investment of the cash collateral.

A Fund will have the right to terminate a loan at any time and recall the loaned securities within the normal and customary settlement time for securities transactions. A Fund does not have the right to vote securities on loan, but can terminate the loan and regain the right to vote if a material event affecting the securities occurred. A borrower might become insolvent or refuse to honor its obligation to return the securities. In the event of a default by a borrower with respect to any loan, the Securities Lending Agent will exercise any and all remedies provided under the applicable borrower agreement. These remedies include purchasing replacement securities for the Fund by applying the collateral held from the defaulting borrower against the purchase cost of the replacement securities. If the proceeds from the collateral are less than the purchase cost of the replacement securities, the Securities Lending Agent is responsible for such shortfall, subject to certain limitations that are set forth in detail in the Securities Lending Agency Agreement. In this event, a Fund could experience delays in recovering its securities and possibly may incur a capital loss. Each Fund will be responsible for any loss that might result from its investment of the cash collateral it receives from a borrower.

In accordance with guidance presented in FASB Accounting Standard Update (“ASU”) 2014-11, Transfers and Servicing


354		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

(Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, liabilities under the outstanding securities lending transactions as of April 30, 2021, which were comprised of cash, were as follows:


Fund

FlexShares Developed Markets ex-US Quality Low Volatility Index Fund	$	2,693,459

FlexShares Morningstar US Market Factor Tilt Index Fund		115,578,792

FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		18,370,885

FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		2,462,892

FlexShares US Quality Large Cap Index Fund		263,694

FlexShares STOXX^® US ESG Select Index Fund		57,104

FlexShares STOXX^® Global ESG Select Index Fund		3,005,671

FlexShares Morningstar Global Upstream Natural Resources Index Fund		36,663,531

FlexShares STOXX^® Global Broad Infrastructure Index Fund		15,057,745

FlexShares Global Quality Real Estate Index Fund		10,941,163

FlexShares Quality Dividend Index Fund		67,036,561

FlexShares Quality Dividend Defensive Index Fund		15,820,569

FlexShares Quality Dividend Dynamic Index Fund		338,785

FlexShares International Quality Dividend Index Fund		23,036,738

FlexShares International Quality Dividend Defensive Index Fund		2,428,130

FlexShares International Quality Dividend Dynamic Index Fund		2,161,098

FlexShares iBoxx 5-Year Target Duration TIPS Index Fund		3,648,356

At April 30, 2021, the Securities Lending Agency Agreement does not permit the Funds to enforce a netting arrangement.

The cash collateral received from securities loaned as disclosed in the Statements of Assets and Liabilities is

collateralized by securities on loan as disclosed within the Schedules of Investments and such borrowings have maturities that are overnight and continuous.

Securities lending agreements may be subject to regulation as qualified financial contracts (“QFCs”). Regulations adopted by federal banking regulators under the Dodd-Frank Act, which took effect in 2019, require that certain QFCs with counterparties that are part of U.S. or foreign global systemically important banking organizations be amended to include contractual restrictions on close-out and cross-default rights. If a covered counterparty of a Fund or certain of the covered counterparty’s affiliates were to become subject to certain insolvency proceedings, the Fund may be temporarily unable to exercise certain default rights, and the QFC may be transferred to another entity. These requirements may impact a Fund’s credit and counterparty risks.

Derivative Contracts

Futures Contracts

All of the Index Funds may invest in futures contracts to help track the price and yield performance of their Underlying Indexes. At the time a Fund enters into a futures contract, it is generally required to make a margin deposit with the custodian of a specified amount of liquid assets. Subsequent payments to be made or received by the Funds equal to the change in contract value are recorded as variation margin payable or receivable and offset in unrealized gains or losses. Futures are marked to market each day with the change in value reflected in the unrealized gains or losses. A Fund recognizes a realized gain or loss when a contract is closed or expires. The Statements of Operations reflect unrealized gains or losses on open futures contracts, as “Net change in unrealized appreciation (depreciation) on futures contracts”, and any realized gains (losses) on closed futures contracts as “Net realized gain (loss) from Expiration or closing of futures contracts”.

The FlexShares Core Select Bond Fund may take long or short positions in futures to manage the Fund’s exposure to interest rate risk. When applicable, the Fund seeks to mitigate the potential impact of interest rates on the performance of bonds by entering into short positions in U.S.


		FLEXSHARES SEMIANNUAL REPORT			355

Notes to the Financial Statements (cont.)

Treasury futures or transactions in interest rate swaps. The Fund’s short positions in U.S. Treasury futures and interest rate swaps are not intended to mitigate credit spread risk or other factors influencing the price of bonds, which may have a greater impact than interest rates. In addition, when interest rates fall, long-only bond investments will perform better than the Fund’s investments. As of April 30, 2021, the FlexShares Core Select Bond Fund did not hold swaps.

As of April 30, 2021, the FlexShares US Quality Low Volatility Index Fund, FlexShares Developed Markets ex-US Quality Low Volatility Index Fund, FlexShares Emerging Markets Quality Low Volatility Index Fund, FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares US Quality Large Cap Index Fund, FlexShares STOXX^® US ESG Select Index Fund, FlexShares STOXX^® Global ESG Select Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX^® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Quality Dividend Index Fund, FlexShares Quality Dividend Defensive Index Fund, FlexShares Quality Dividend Dynamic Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, and the FlexShares International Quality Dividend Dynamic Index Fund had open futures contracts.

The use of futures contracts involves, to varying degrees, elements of market and counterparty risk, which may exceed the amounts recognized in the Statements of Assets and Liabilities. Futures contracts present the following risks: imperfect correlation between the change in market value of a Fund’s securities and the price of futures contracts; the possible inability to close a futures contract when desired; losses due to unanticipated market movements, which potentially are unlimited; and the possible inability of NTI to correctly predict the direction of securities prices, interest rates, currency exchange rates and other economic factors. Futures markets are highly volatile and the use of futures may increase the volatility of a Fund’s NAV. As a result of the low margin deposits normally required in futures

trading, a relatively small price movement in a futures contract may result in substantial losses to a Fund. Futures contracts may be illiquid, and exchanges may limit fluctuations in futures contract prices during a single day. Foreign exchanges or boards of trade generally do not offer the same protection as U.S. exchanges.

Foreign Currency Translations

Values of investments denominated in foreign currencies are converted into U.S. dollars using the prevailing market rates on the date of valuation as quoted by one or more banks or dealers that make a two-way market in such currencies (or a data service provider based on quotations received from such banks or dealers). Any use of a rate different from the rates used by an Index Fund’s index provider may affect a Fund’s ability to track its Underlying Index. The cost of purchases and proceeds from sales of investments, interest and dividend income are translated into U.S. dollars using the spot market rate of exchange prevailing on the respective dates of such transactions. “Net realized gain (loss) on foreign currency transactions” on the Statements of Operations include the effect of changes in exchange rates between trade date and settlement date on investment security transactions, foreign currency transactions and interest and dividends received, and the portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade date is included in “Net realized gain (loss) on investment in securities” on the Statements of Operations. Unrealized gains and losses on assets and liabilities, other than investments in securities, which result from changes in foreign currency exchange rates have been included in “Net change in unrealized appreciation (depreciation) on translation of other assets and liabilities denominated in foreign currencies” on the Statements of Operations.

Forward Foreign Currency Exchange Contracts


356		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

FlexShares STOXX^® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, FlexShares International Quality Dividend Dynamic Index Fund, and the FlexShares Ready Access Variable Income Fund may enter into forward foreign currency exchange contracts to facilitate local settlements or to protect against currency exposure in connection with its distributions to shareholders. The Index Funds, however, do not expect to engage in currency transactions for speculative purposes (e.g., for potential income or capital gain). The FlexShares Ready Access Variable Income Fund also may engage in forward foreign currency transactions for hedging purposes in order to protect against uncertainty in the level of future foreign currency exchange rates. The Fund, however, does not expect to engage in currency transactions for speculative purposes. All forward foreign currency exchange contracts held are “marked-to-market” daily at the applicable exchange rates and any resulting unrealized gains or losses are recorded. The Funds record realized gains or losses at the time the forward foreign currency exchange contract is offset by entering into a closing transaction or extinguished by delivery of the currency. The difference between the future foreign currency exchange rates at the date of entry into the contract and the rates at the reporting date are included in “Net change in unrealized appreciation (depreciation) on forward foreign currency contracts” in the Statements of Operations. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in U.S. Dollars without the delivery of foreign currency.

There are several risks associated with these contracts. One risk is the potential inability of counterparties to meet the terms of their contracts, and unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The contractual amounts of forward foreign currency exchange contracts do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. The Statements of Operations reflect (i) realized gains or losses, if any, in “Net realized gain (loss) from settlement of forward foreign currency contracts” and (ii) unrealized gains or

losses in “Net change in unrealized appreciation (depreciation) on forward foreign currency contracts”. Forward foreign currency exchange contracts are privately negotiated transactions and can have substantial price volatility. As a result, they offer less protection against default by the other party than is available for instruments traded on an exchange. The institutions that deal in forward foreign currency exchange contracts are not required to continue to make markets in the currencies they trade, and these markets can experience periods of illiquidity.

As of April 30, 2021, the FlexShares Developed Markets ex-US Quality Low Volatility Index Fund, FlexShares Emerging Markets Quality Low Volatility Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares STOXX Global ESG Select Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX^® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, and the FlexShares International Quality Dividend Dynamic Index Fund had open forward foreign currency contracts.

Offsetting of Financial Assets and Derivative Assets

The Funds’ accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the International Swaps and Derivatives Association (ISDA) Master Agreement or similar agreement does not result in an offset of reported amounts of financial assets and financial liabilities in the Statements of Assets and Liabilities across transactions between the Fund and the applicable counterparty. In the event of a default, the agreement provides the right for the non-defaulting party to liquidate the collateral and calculate the net exposure to the defaulting party or request additional collateral. The Funds’ right to setoff may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which a specific master netting agreement counterparty is subject.


		FLEXSHARES SEMIANNUAL REPORT			357

Notes to the Financial Statements (cont.)

For financial reporting purposes, the Trust can offset financial assets and financial liabilities of the FlexShares Developed Markets ex-US Quality Low Volatility Index Fund, FlexShares Emerging Markets Quality Low Volatility Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares STOXX^® Global ESG Select Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX^® Global Broad Infrastructure

Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund and the FlexShares International Quality Dividend Dynamic Index Fund that are subject to master netting arrangements or similar agreements in the Statements of Assets and Liabilities. The following table presents the gross and net amounts of these assets and liabilities:


				Gross Amounts Not Offset in the Statement of Assets and Liabilities
		Gross Amounts of Assets presented in Statements of Assets and Liabilities		Financial Instruments			Cash Collateral Received		Net Amount
FlexShares Developed Markets ex-US Quality Low Volatility Index Fund	Foreign Currency Contracts — Bank Of New York	$	4,776	$	—		$	—	$	4,776
	Foreign Currency Contracts — BNP Paribas SA		403		(403	)		—		—
	Foreign Currency Contracts — Citibank NA		257		(257	)		—		—
	Foreign Currency Contracts — Morgan Stanley		1,990		(1,990	)		—		—
	Total	$	7,426	$	(2,650	)	$	—	$	4,776
FlexShares Emerging Markets Quality Low Volatility Index Fund	Foreign Currency Contracts — BNP Paribas SA	$	143	$	—		$	—		143
	Foreign Currency Contracts — Citibank NA		94		—			—		94
	Foreign Currency Contracts — Morgan Stanley		137		—			—		137
	Total	$	374	$	—		$	—	$	374
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund	Foreign Currency Contracts — BNP Paribas SA	$	3,294	$	(362	)	$	—	$	2,932
	Foreign Currency Contracts — Morgan Stanley		24,181		(24,181	)		—		—
	Foreign Currency Contracts — Toronto-Dominion Bank (The)		16,060		—			—		16,060
	Total	$	43,535	$	(24,543	)	$	—	$	18,992
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund	Foreign Currency Contracts — BNP Paribas SA	$	346	$	(346	)	$	—	$	—
	Foreign Currency Contracts — Citibank NA		1,928		(1,928	)		—		—
	Foreign Currency Contracts — Goldman Sachs & Co.		5,986		—			—		5,986
	Foreign Currency Contracts — Toronto-Dominion Bank (The)		204		—			—		204
	Total	$	8,464	$	(2,274	)	$	—	$	6,190
FlexShares STOXX^® Global ESG Select Index Fund	Foreign Currency Contracts — Citibank NA	$	552	$	—		$	—	$	552
	Foreign Currency Contracts — JPMorgan Chase Bank		240		—			—		240
	Total	$	792	$	—		$	—	$	792


358		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


				Gross Amounts Not Offset in the Statement of Assets and Liabilities
		Gross Amounts of Assets presented in Statements of Assets and Liabilities		Financial Instruments			Cash Collateral Received		Net Amount
FlexShares Morningstar Global Upstream Natural Resources Index Fund	Foreign Currency Contracts — BNP Paribas SA	$	38,689	$	(10,937	)	$	—	$	27,752
	Foreign Currency Contracts — Citibank NA		23,314		(23,314	)		—		—
	Foreign Currency Contracts — Goldman Sachs & Co.		6,294		—			—		6,294
	Foreign Currency Contracts — JPMorgan Chase Bank		68,590		—			—		68,590
	Foreign Currency Contracts — Morgan Stanley		76,312		(46,391	)		—		29,921
	Foreign Currency Contracts — Toronto-Dominion Bank (The)		121,281		(121,281	)		—		—
	Total	$	334,480	$	(201,923	)	$	—	$	132,557
FlexShares STOXX^® Global Broad Infrastructure Index Fund	Foreign Currency Contracts — BNP Paribas SA	$	1,022	$	—		$	—	$	1,022
	Foreign Currency Contracts — Citibank NA		4,765		—			—		4,765
	Foreign Currency Contracts — JPMorgan Chase Bank		40		(40	)		—		—
	Foreign Currency Contracts — Morgan Stanley		19,485		(19,485	)		—		—
	Foreign Currency Contracts — Toronto-Dominion Bank (The)		65,761		(4,792	)		—		60,969
	Total	$	91,073	$	(24,317	)	$	—	$	66,756
FlexShares Global Quality Real Estate Index Fund	Foreign Currency Contracts — Citibank NA	$	76	$	(76	)	$	—	$	—
	Foreign Currency Contracts — JPMorgan Chase Bank		1,014		(495	)		—		519
	Foreign Currency Contracts — Morgan Stanley		2,543		(124	)		—		2,419
	Foreign Currency Contracts — Toronto-Dominion Bank (The)		8		(8	)		—		—
	Total	$	3,641	$	(703	)	$	—	$	2,938
FlexShares International Quality Dividend Index Fund	Foreign Currency Contracts — Bank Of New York	$	1,354	$	—		$	—	$	1,354
	Foreign Currency Contracts — Goldman Sachs & Co.		24,038		(188	)		—		23,850
	Foreign Currency Contracts — JPMorgan Chase Bank		1,382		—			—		1,382
	Foreign Currency Contracts — Morgan Stanley		10,592		(10,592	)		—		—
	Foreign Currency Contracts — Toronto-Dominion Bank (The)		6,004		(2,781	)		—		3,223
	Foreign Currency Contracts — UBS AG		248		—			—		248
	Total	$	43,618	$	(13,561	)	$	—	$	30,057
FlexShares International Quality Dividend Defensive Index Fund	Foreign Currency Contracts — BNP Paribas SA	$	135	$	(135	)	$	—		—
	Foreign Currency Contracts — Citibank NA		716		(716	)		—		—
	Foreign Currency Contracts — JPMorgan Chase Bank		421		—			—		421
	Foreign Currency Contracts — Morgan Stanley		585		(585	)		—		—
	Total	$	1,857	$	(1,436	)	$	—	$	421


		FLEXSHARES SEMIANNUAL REPORT			359

Notes to the Financial Statements (cont.)


					Gross Amounts Not Offset in the Statement of Assets and Liabilities
		Gross Amounts of Assets presented in Statements of Assets and Liabilities			Financial Instruments			Cash Collateral Received		Net Amount
FlexShares International Quality Dividend Dynamic Index Fund	Foreign Currency Contracts — BNP Paribas SA	$	87		$	—		$	—	$	87
	Foreign Currency Contracts — Citibank NA		304			—			—		304
	Foreign Currency Contracts — JPMorgan Chase Bank		202			(70	)		—		132
	Foreign Currency Contracts — Morgan Stanley		951			(951	)		—		—
	Foreign Currency Contracts — Toronto-Dominion Bank (The)		342			(342	)		—		—
	Total	$	1,886		$	(1,363	)	$	—	$	523


					Gross Amounts Not Offset in the Statement of Assets and Liabilities
		Gross Amounts of Liabilities presented in Statements of Assets and Liabilities			Financial Instruments			Cash Collateral Pledged		Net Amount
FlexShares Developed Markets ex-US Quality Low Volatility Index Fund	Foreign Currency Contracts — BNP Paribas SA	$	(939	)	$	403		$	—	$	(536	)
	Foreign Currency Contracts — Citibank NA		(3,013	)		257			—		(2,756	)
	Foreign Currency Contracts — Morgan Stanley		(3,466	)		1,990			—		(1,476	)
	Foreign Currency Contracts — Toronto-Dominion Bank (The)		(704	)		—			—		(704	)
	Total	$	(8,122	)	$	2,650		$	—	$	(5,472	)
FlexShares Emerging Markets Quality Low Volatility Index Fund	Foreign Currency Contracts — Toronto-Dominion Bank (The)	$	(16	)	$	—		$	—	$	(16	)
	Total	$	(16	)	$	—		$	—	$	(16	)
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund	Foreign Currency Contracts — Bank Of New York	$	(4,752	)	$	—		$	—	$	(4,752	)
	Foreign Currency Contracts — BNP Paribas SA		(362	)		362			—		—
	Foreign Currency Contracts — Citibank NA		(10,863	)		—			—		(10,863	)
	Foreign Currency Contracts — Goldman Sachs & Co.		(2,445	)		—			—		(2,445	)
	Foreign Currency Contracts — JPMorgan Chase Bank		(2,272	)		—			—		(2,272	)
	Foreign Currency Contracts — Morgan Stanley		(32,724	)		24,181			—		(8,543	)
	Total	$	(53,418	)	$	24,543		$	—	$	(28,875	)
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund	Foreign Currency Contracts — BNP Paribas SA	$	(567	)	$	346		$	—	$	(221	)
	Foreign Currency Contracts — Citibank NA		(22,563	)		1,928			—		(20,635	)
	Total	$	(23,130	)	$	2,274		$	—	$	(20,856	)
FlexShares STOXX^® Global ESG Select Index Fund	Foreign Currency Contracts — Morgan Stanley	$	(707	)	$	—		$	—	$	(707	)
	Total	$	(707	)		—		$	—	$	(707	)


360		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


					Gross Amounts Not Offset in the Statement of Assets and Liabilities
		Gross Amounts of Liabilities presented in Statements of Assets and Liabilities			Financial Instruments		Cash Collateral Pledged		Net Amount
FlexShares Morningstar Global Upstream Natural Resources Index Fund	Foreign Currency Contracts — Bank of New York	$	(1,231	)	$	—	$	—	$	(1,231	)
	Foreign Currency Contracts — BNP Paribas SA		(10,937	)		10,937		—		—
	Foreign Currency Contracts — Citibank NA		(140,210	)		23,314		—		(116,896	)
	Foreign Currency Contracts — Morgan Stanley		(46,391	)		46,391		—		—
	Foreign Currency Contracts — Toronto-Dominion Bank (The)		(189,120	)		121,281		—		(67,839	)
	Total	$	(387,889	)	$	201,923	$	—	$	(185,966	)
FlexShares STOXX^® Global Broad Infrastructure Index Fund	Foreign Currency Contracts — JPMorgan Chase Bank	$	(19,414	)	$	40	$	—	$	(19,374	)
	Foreign Currency Contracts — Morgan Stanley		(20,634	)		19,484		—		(1,150	)
	Foreign Currency Contracts — Toronto-Dominion Bank (The)		(4,793	)		4,793		—		—
	Total	$	(44,841	)	$	24,317	$	—	$	(20,524	)
FlexShares Global Quality Real Estate Index Fund	Foreign Currency Contracts — Citibank NA	$	(730	)	$	76	$	—	$	(654	)
	Foreign Currency Contracts — Goldman Sachs & Co.		(388	)		—		—		(388	)
	Foreign Currency Contracts — JPMorgan Chase Bank		(495	)		495		—		—
	Foreign Currency Contracts — Morgan Stanley		(124	)		124		—		—
	Foreign Currency Contracts — Toronto-Dominion Bank (The)		(10,018	)		8		—		(10,010	)
	Total	$	(11,755	)	$	703	$	—	$	(11,052	)
FlexShares International Quality Dividend Index Fund	Foreign Currency Contracts — BNP Paribas SA	$	(6,509	)	$	—	$	—	$	(6,509	)
	Foreign Currency Contracts — Citibank NA		(48,127	)		—		—		(48,127	)
	Foreign Currency Contracts — Goldman Sachs & Co.		(188	)		188		—		—
	Foreign Currency Contracts — Morgan Stanley		(27,535	)		10,592		—		(16,943	)
	Foreign Currency Contracts — Toronto-Dominion Bank (The)		(2,781	)		2,781		—		—
	Total	$	(85,140	)	$	13,561	$	—	$	(71,579	)
FlexShares International Quality Dividend Defensive Index Fund	Foreign Currency Contracts — BNP Paribas SA	$	(10,003	)	$	135	$	—	$	(9,868	)
	Foreign Currency Contracts — Citibank NA		(1,368	)		716		—		(652	)
	Foreign Currency Contracts — Morgan Stanley		(3,309	)		584		—		(2,725	)
	Total	$	(14,680	)	$	1,435	$	—	$	(13,245	)
FlexShares International Quality Dividend Dynamic Index Fund	Foreign Currency Contracts — Bank Of New York	$	(96	)	$	—	$	—	$	(96	)
	Foreign Currency Contracts — Goldman Sachs & Co.		(149	)		—		—		(149	)
	Foreign Currency Contracts — JPMorgan Chase Bank		(70	)		70		—		—
	Foreign Currency Contracts — Morgan Stanley		(2,068	)		951		—		(1,117	)
	Foreign Currency Contracts — Toronto-Dominion Bank (The)		(1,115	)		342		—		(773	)
	Total	$	(3,498	)	$	1,363	$	—	$	(2,135	)


		FLEXSHARES SEMIANNUAL REPORT			361

Notes to the Financial Statements (cont.)

The following tables indicate the location of derivative-related items on the Statements of Assets and Liabilities as well as the effect of derivative instruments on the Statements of Operations during the reporting period.

Fair Value of Derivative Instruments as of April 30, 2021


Derivatives by risk type	Statements of Assets and Liabilities Location	Fund	Value

Equity Index Futures Contracts	Assets — Unrealized appreciation on futures contracts*	FlexShares US Quality Low Volatility Index Fund	$	43,328

Equity Index Futures Contracts	Assets — Unrealized appreciation on futures contracts*	FlexShares Developed Markets ex-US Quality Low Volatility Index Fund		16,282

Foreign Currency Contracts	Assets — Unrealized appreciation on forward foreign currency contracts	FlexShares Developed Markets ex-US Quality Low Volatility Index Fund		7,426

Foreign Currency Contracts	Liabilities — Unrealized depreciation on forward foreign currency contracts	FlexShares Developed Markets ex-US Quality Low Volatility Index Fund		(8,122	)

Equity Index Futures Contracts	Assets — Unrealized appreciation on futures contracts*	FlexShares Emerging Markets Quality Low Volatility Index Fund		1,536

Foreign Currency Contracts	Assets — Unrealized appreciation on forward foreign currency contracts	FlexShares Emerging Markets Quality Low Volatility Index Fund		374

Foreign Currency Contracts	Liabilities — Unrealized depreciation on forward foreign currency contracts	FlexShares Emerging Markets Quality Low Volatility Index Fund		(16	)

Equity Index Futures Contracts	Assets — Unrealized appreciation on futures contracts*	FlexShares Morningstar US Market Factor Tilt Index Fund		651,986

Equity Index Futures Contracts	Assets — Unrealized appreciation on futures contracts*	FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		407,091

Equity Index Futures Contracts	Liabilities — Unrealized depreciation on futures contracts*	FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		(9,766	)

Foreign Currency Contracts	Assets — Unrealized appreciation on forward foreign currency contracts	FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		43,535

Foreign Currency Contracts	Liabilities — Unrealized depreciation on forward foreign currency contracts	FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		(53,418	)

Equity Index Futures Contracts	Assets — Unrealized appreciation on futures contracts*	FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		22,001

Foreign Currency Contracts	Assets — Unrealized appreciation on forward foreign currency contracts	FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		8,464

Foreign Currency Contracts	Liabilities — Unrealized depreciation on forward foreign currency contracts	FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		(23,130	)

Equity Index Futures Contracts	Assets — Unrealized appreciation on futures contracts*	FlexShares US Quality Large Cap Index Fund		42,247

Equity Index Futures Contracts	Assets — Unrealized appreciation on futures contracts*	FlexShares STOXX^® US ESG Select Index Fund		110,922

Equity Index Futures Contracts	Assets — Unrealized appreciation on futures contracts*	FlexShares STOXX^® Global ESG Select Index Fund		122,398


362		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


Derivatives by risk type	Statements of Assets and Liabilities Location	Fund	Value

Equity Index Futures Contracts	Liabilities — Unrealized depreciation on futures contracts*	FlexShares STOXX^® Global ESG Select Index Fund	$	(391	)

Foreign Currency Contracts	Assets — Unrealized appreciation on forward foreign currency contracts	FlexShares STOXX^® Global ESG Select Index Fund		792

Foreign Currency Contracts	Liabilities — Unrealized depreciation on forward foreign currency contracts	FlexShares STOXX^® Global ESG Select Index Fund		(707	)

Equity Index Futures Contracts	Assets — Unrealized appreciation on futures contracts*	FlexShares Morningstar Global Upstream Natural Resources Index Fund		1,246,427

Equity Index Futures Contracts	Liabilities — Unrealized depreciation on futures contracts*	FlexShares Morningstar Global Upstream Natural Resources Index Fund		(32,316	)

Foreign Currency Contracts	Assets — Unrealized appreciation on forward foreign currency contracts	FlexShares Morningstar Global Upstream Natural Resources Index Fund		334,480

Foreign Currency Contracts	Liabilities — Unrealized depreciation on forward foreign currency contracts	FlexShares Morningstar Global Upstream Natural Resources Index Fund		(387,889	)

Equity Index Futures Contracts	Assets — Unrealized appreciation on futures contracts*	FlexShares STOXX^® Global Broad Infrastructure Index Fund		744,215

Equity Index Futures Contracts	Liabilities — Unrealized depreciation on futures contracts*	FlexShares STOXX^® Global Broad Infrastructure Index Fund		(18,752	)

Foreign Currency Contracts	Assets — Unrealized appreciation on forward foreign currency contracts	FlexShares STOXX^® Global Broad Infrastructure Index Fund		91,073

Foreign Currency Contracts	Liabilities — Unrealized depreciation on forward foreign currency contracts	FlexShares STOXX^® Global Broad Infrastructure Index Fund		(44,841	)

Equity Index Futures Contracts	Assets — Unrealized appreciation on futures contracts*	FlexShares Global Quality Real Estate Index Fund		138,856

Equity Index Futures Contracts	Liabilities — Unrealized depreciation on futures contracts*	FlexShares Global Quality Real Estate Index Fund		(2,793	)

Foreign Currency Contracts	Assets — Unrealized appreciation on forward foreign currency contracts	FlexShares Global Quality Real Estate Index Fund		3,641

Foreign Currency Contracts	Liabilities — Unrealized depreciation on forward foreign currency contracts	FlexShares Global Quality Real Estate Index Fund		(11,755	)

Equity Index Futures Contracts	Assets — Unrealized appreciation on futures contracts*	FlexShares Quality Dividend Index Fund		326,483

Equity Index Futures Contracts	Assets — Unrealized appreciation on futures contracts*	FlexShares Quality Dividend Defensive Index Fund		63,640

Equity Index Futures Contracts	Assets — Unrealized appreciation on futures contracts*	FlexShares Quality Dividend Dynamic Index Fund		12,071

Equity Index Futures Contracts	Assets — Unrealized appreciation on futures contracts*	FlexShares International Quality Dividend Index Fund		368,581

Equity Index Futures Contracts	Liabilities — Unrealized depreciation on futures contracts*	FlexShares International Quality Dividend Index Fund		(8,034	)


		FLEXSHARES SEMIANNUAL REPORT			363

Notes to the Financial Statements (cont.)


Derivatives by risk type	Statements of Assets and Liabilities Location	Fund	Value

Foreign Currency Contracts	Assets — Unrealized appreciation on forward foreign currency contracts	FlexShares International Quality Dividend Index Fund	$	43,618

Foreign Currency Contracts	Liabilities — Unrealized depreciation on forward foreign currency contracts	FlexShares International Quality Dividend Index Fund		(85,140	)

Equity Index Futures Contracts	Assets — Unrealized appreciation on futures contracts*	FlexShares International Quality Dividend Defensive Index Fund		36,020

Foreign Currency Contracts	Assets — Unrealized appreciation on forward foreign currency contracts	FlexShares International Quality Dividend Defensive Index Fund		1,857

Foreign Currency Contracts	Liabilities — Unrealized depreciation on forward foreign currency contracts	FlexShares International Quality Dividend Defensive Index Fund		(14,680	)

Equity Index Futures Contracts	Assets — Unrealized appreciation on futures contracts*	FlexShares International Quality Dividend Dynamic Index Fund		10,131

Foreign Currency Contracts	Assets — Unrealized appreciation on forward foreign currency contracts	FlexShares International Quality Dividend Dynamic Index Fund		1,886

Foreign Currency Contracts	Liabilities — Unrealized depreciation on forward foreign currency contracts	FlexShares International Quality Dividend Dynamic Index Fund		(3,498	)

*	Includes cumulative appreciation/depreciation on futures contracts as reported in the Schedule of Investments. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts.

The Effect of Derivative Instruments on the Statements of Operations for the Period Ended April 30, 2021


Derivatives by risk type	Location of Gain or (Loss) on Derivatives on the Statements of Operations	Fund	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation) on Derivatives

Equity Index Futures Contracts	Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts	FlexShares US Quality Low Volatility Index Fund	$	70,495		$	49,377

Equity Index Futures Contracts	Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts	FlexShares Developed Markets ex-US Quality Low Volatility Index Fund		109,798			45,689

Foreign Currency Contracts	Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts	FlexShares Developed Markets ex-US Quality Low Volatility Index Fund		(8,564	)		(2,417	)


364		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


Derivatives by risk type	Location of Gain or (Loss) on Derivatives on the Statements of Operations	Fund	Realized Gain or (Loss) on Derivatives		Change in Unrealized Appreciation or (Depreciation) on Derivatives

Equity Index Futures Contracts	Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts	FlexShares Emerging Markets Quality Low Volatility Index Fund	$	36,910	$	(180	)

Foreign Currency Contracts	Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts	FlexShares Emerging Markets Quality Low Volatility Index Fund		98		358

Equity Index Futures Contracts	Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts	FlexShares Morningstar US Market Factor Tilt Index Fund		3,004,394		824,992

Equity Index Futures Contracts	Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts	FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		2,384,258		975,733

Foreign Currency Contracts	Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts	FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		28,430		50,318

Equity Index Futures Contracts	Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts	FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		730,771		(32,868	)

Foreign Currency Contracts	Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts	FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		32,497		(26,882	)

Equity Index Futures Contracts	Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts	FlexShares US Quality Large Cap Index Fund		95,629		55,229


		FLEXSHARES SEMIANNUAL REPORT			365

Notes to the Financial Statements (cont.)


Derivatives by risk type	Location of Gain or (Loss) on Derivatives on the Statements of Operations	Fund	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation) on Derivatives

Equity Index Futures Contracts	Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts	FlexShares STOXX^® US ESG Select Index Fund	$	182,593		$	126,130

Equity Index Futures Contracts	Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts	FlexShares STOXX^® Global ESG Select Index Fund		250,436			162,946

Foreign Currency Contracts	Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts	FlexShares STOXX^® Global ESG Select Index Fund		(9,953	)		(3,046	)

Equity Index Futures Contracts	Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts	FlexShares Morningstar Global Upstream Natural Resources Index Fund		6,325,267			2,041,353

Foreign Currency Contracts	Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts	FlexShares Morningstar Global Upstream Natural Resources Index Fund		429,933			(129,055	)

Equity Index Futures Contracts	Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts	FlexShares STOXX^® Global Broad Infrastructure Index Fund		3,745,579			1,464,636

Foreign Currency Contracts	Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts	FlexShares STOXX^® Global Broad Infrastructure Index Fund		(81,179	)		72,607

Equity Index Futures Contracts	Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts	FlexShares Global Quality Real Estate Index Fund		1,221,303			157,364


366		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


Derivatives by risk type	Location of Gain or (Loss) on Derivatives on the Statements of Operations	Fund	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation) on Derivatives

Foreign Currency Contracts	Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts	FlexShares Global Quality Real Estate Index Fund	$	(23,840	)	$	(7,496	)

Equity Index Futures Contracts	Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts	FlexShares Quality Dividend Index Fund		1,236,691			448,353

Equity Index Futures Contracts	Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts	FlexShares Quality Dividend Defensive Index Fund		264,512			97,822

Equity Index Futures Contracts	Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts	FlexShares Quality Dividend Dynamic Index Fund		9,621			12,071

Equity Index Futures Contracts	Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts	FlexShares International Quality Dividend Index Fund		2,455,293			948,899

Foreign Currency Contracts	Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts	FlexShares International Quality Dividend Index Fund		159,607			(76,327	)

Equity Index Futures Contracts	Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts	FlexShares International Quality Dividend Defensive Index Fund		244,680			85,914

Foreign Currency Contracts	Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts	FlexShares International Quality Dividend Defensive Index Fund		(22,594	)		(13,904	)


		FLEXSHARES SEMIANNUAL REPORT			367

Notes to the Financial Statements (cont.)

Derivatives by risk type

Location of Gain or (Loss) on
Derivatives on the Statements of
Operations

Fund

Realized
Gain or
(Loss) on
Derivatives

Change in Unrealized
Appreciation or
(Depreciation) on
Derivatives

Equity Index Futures Contracts

Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts

FlexShares International Quality Dividend Dynamic Index Fund

64,200

23,616

Foreign Currency Contracts

Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts

FlexShares International Quality Dividend Dynamic Index Fund

635

(1,804

)

At April 30, 2021, the volume of derivative activities, which represents activities throughout the period, was as follows:


	Foreign Exchange Contracts				Equity Contracts								Interest Rate future
Fund	Number of Trades		Average Notional Amount		Number of Trades Long		Average Notional Balance Long		Number of Trades Short		Average Notional Balance Short		Number of Trades Long		Average Notional Balance Long		Number of Trades Short		Average Notional Balance Short

FlexShares US Quality Low Volatility Index Fund		—	$	—		8	$	288,201		—	$	—		—	$	—		—	$	—

FlexShares Developed Markets Ex-US Quality Low Volatility Index Fund		99		75,950		22		149,599		—		—		—		—		—		—

FlexShares Emerging Markets Quality Low Volatility Index Fund		6		119,768		19		100,099		—		—		—		—		—		—

FlexShares Morningstar US Market Factor Tilt Index Fund		—		—		74		688,218		—		—		—		—		—		—

FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		62		634,463		67		666,190		—		—		—		—		—		—

FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		36		216,357		36		470,781		—		—		—		—		—		—

FlexShares US Quality Large Cap Index Fund		—		—		11		189,303		—		—		—		—		—		—

FlexShares STOXX US ESG Select Index Fund		—		—		20		258,037		—		—		—		—		—		—

FlexShares STOXX Global ESG Select Index Fund		12		78,129		38		166,298		—		—		—		—		—		—

FlexShares Morningstar Global Upstream Natural Resources Index Fund		158		851,439		245		843,960		—		—		—		—		—		—

FlexShares STOXX Global Broad Infrastructure Index Fund		66		463,970		159		574,592		—		—		—		—		—		—

FlexShares Global Quality Real Estate Index Fund		54		94,585		73		332,264		—		—		—		—		—		—


368		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


	Foreign Exchange Contracts				Equity Contracts								Interest Rate future
Fund	Number of Trades		Average Notional Amount		Number of Trades Long		Average Notional Balance Long		Number of Trades Short		Average Notional Balance Short		Number of Trades Long		Average Notional Balance Long		Number of Trades Short		Average Notional Balance Short

FlexShares Quality Dividend Index Fund		—	$	—		46	$	1,087,569		—	$	—		—	$	—		—	$	—

FlexShares Quality Dividend Defensive Index Fund		—		—		38		277,447		—		—		—		—		—		—

FlexShares Quality Dividend Dynamic Index Fund		—		—		4		188,122		—		—		—		—		—		—

FlexShares International Quality Dividend Index Fund		141		382,435		123		441,300		—		—		—		—		—		—

FlexShares International Quality Dividend Defensive Index Fund		31		108,193		42		133,246		—		—		—		—		—		—

FlexShares International Quality Dividend Dynamic Index Fund		92		27,830		22		86,787		—		—		—		—		—		—

Taxes and Distributions

Each Fund has qualified and intends to continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net capital gains to shareholders. Accordingly, no provision for federal and state income taxes is required in the financial statements.

As of October 31, 2020, management of the Funds has reviewed all open tax years and major jurisdictions and concluded that there is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next 12 months. On an ongoing basis management will monitor the tax positions taken to determine if adjustment to conclusions are necessary based on factors including but not limited to further implementation on guidance expected from FASB and on-going analysis of tax law, regulation, and interpretations thereof.

3. Investment Transactions and Related Income and Expense

Throughout the reporting period, investment transactions are accounted for no later than one business day following

the trade date. For financial reporting purposes, investment transactions are accounted for on the trade date on the last business day of the reporting period.

Interest income is recognized on an accrual basis. Bond discount is accreted and premium is amortized using the effective yield method. Dividend income is recorded on the ex-dividend date, or as soon as information is available. Gains or losses realized on sales of securities are determined using the specific identification method by comparing the identified cost of the security lot sold with the net sales proceeds.

Each Fund except the FlexShares iBoxx 3-Year Target Duration TIPs Index Fund, FlexShares iBoxx 5-Year Target Duration TIPs Index Fund and the FlexShares High Yield Value-Scored Bond Index Fund may hold the securities of real estate investment trusts (“REITs”). Distributions from such investments may be comprised of return of capital, capital gains and income. The actual character of amounts received during the year is not known until after the REIT’s fiscal year end. The Fund records the character of distributions received from REITs during the year based on estimates available. The characterization of distributions received by the Fund may be subsequently revised based on information received from the REITs after their tax reporting periods concluded.

All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the


		FLEXSHARES SEMIANNUAL REPORT			369

Notes to the Financial Statements (cont.)

foreign markets in which a Fund invests. These foreign taxes, if any, are paid by the Funds and disclosed in the Statements of Operations. Foreign taxes payable, if any, are reflected in the Funds’ Statements of Assets and Liabilities.

Expenses directly attributable to a Fund are charged to that Fund, while expenses which are attributable to more than one Fund are allocated among the respective Funds based upon relative net assets or another reasonable basis.

4. Investment Advisory Fees

NTI serves as the Investment Adviser of the Funds pursuant to the Investment Advisory Agreement. The Investment Adviser is responsible for making investment decisions for the Funds and for placing purchase and sale orders for portfolio securities, subject to the general supervision of the Board.

As compensation for its advisory services and assumption of certain Fund expenses, NTI is entitled to a unitary management fee (“Management Fee”), computed daily and payable monthly, at the annual rates set forth in the table below (expressed as a percentage of each Fund’s respective average daily net assets).

From the Management Fee, NTI pays most of the expenses of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services (“Covered Expenses”). Covered Expenses do not include the following fees under the Investment Advisory Agreement: interest expenses, brokerage commissions and other trading expenses, fees and expenses of the independent trustees and their independent legal counsel, taxes and other extraordinary costs such as litigation and other expenses not incurred in the ordinary course of business.

The Management Fee rate payable by each Fund is set forth in the following table:


Fund	Unitary Management Fee

FlexShares US Quality Low Volatility Index Fund		0.22	%

FlexShares Developed Markets ex-US Quality Low Volatility Index Fund		0.32	%


Fund	Unitary Management Fee

FlexShares Emerging Markets Quality Low Volatility Index Fund		0.40	%

FlexShares Morningstar US Market Factor Tilt Index Fund		0.25	%

FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		0.39	%

FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		0.59	%

FlexShares US Quality Large Cap Index Fund		0.32	%

FlexShares STOXX^® US ESG Select Index Fund		0.32	%

FlexShares STOXX^® Global ESG Select Index Fund		0.42	%

FlexShares Morningstar Global Upstream Natural Resources Index Fund		0.46	%

FlexShares STOXX^® Global Broad Infrastructure Index Fund		0.47	%

FlexShares Global Quality Real Estate Index Fund		0.45	%

FlexShares Real Assets Allocation Index Fund		0.57	%

FlexShares Quality Dividend Index Fund		0.37	%

FlexShares Quality Dividend Defensive Index Fund		0.37	%

FlexShares Quality Dividend Dynamic Index Fund		0.37	%

FlexShares International Quality Dividend Index Fund		0.47	%

FlexShares International Quality Dividend Defensive Index Fund		0.47	%

FlexShares International Quality Dividend Dynamic Index Fund		0.47	%

FlexShares iBoxx 3-Year Target Duration TIPS Index Fund		0.18	%

FlexShares iBoxx 5-Year Target Duration TIPS Index Fund		0.18	%

FlexShares Disciplined Duration MBS Index Fund		0.20	%


370		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


Fund	Unitary Management Fee

FlexShares Credit-Scored US Corporate Bond Index Fund		0.22	%

FlexShares Credit-Scored US Long Corporate Bond Index Fund		0.22	%

FlexShares High Yield Value-Scored Bond Index Fund		0.37	%

FlexShares Ready Access Variable Income Fund		0.25	%

FlexShares Core Select Bond Fund		0.35	%

Effective March 1, 2021, the Investment Adviser has contractually agreed until March 1, 2022, to reimburse a portion of the operating expenses of each Fund (other than acquired fund fees and expenses (“AFFE”)) so the “Total Annual Fund Operating Expenses After Expense Reimbursement” do not exceed the Fund’s Management Fee plus (+) .0049%. In the case of the FlexShares Real Assets Allocation Index Fund, the Investment Adviser has contractually agreed until March 1, 2022 to waive Management Fees or reimburse certain expenses in an amount equal to the AFFE attributable to the Fund’s investments in its Underlying Fund. In the case of the FlexShares Core Select Bond Fund, the Investment Adviser has contractually agreed until March 1, 2022 to waive Management Fees or reimburse certain expenses in an amount equal to the sum of (a) any AFFE incurred by the Fund that are attributable to the Fund’s investment in Underlying Funds managed by NTI or an investment adviser controlling, controlled by, or under common control with NTI (“Affiliated Funds”); and (b) 0.05% or such lesser amount in AFFE incurred by the Fund that are attributable to the Fund’s investment in Underlying Funds that are not Affiliated Funds. AFFE are expenses incurred indirectly by the Fund through its ownership of shares in other investment companies. Because AFFE are not direct expenses of the Fund, they are not reflected on the Fund’s financial statements. After these dates, the Investment Adviser and a Fund may mutually agree to extend the contractual arrangements. The Board may terminate the contractual arrangements at any time if it determines that it is in the best interest of a Fund and its shareholders. These expenses and the reimbursements are shown as “Investment advisory fees reimbursed” on the Statements of Operations.

In addition, effective October 29, 2018, NTI contractually agreed to reimburse the Funds for certain other fees and expenses that are not Covered Expenses. These fees and expenses and the reimbursements are shown as Other expenses and Other expenses reimbursed, respectively, in the Statements of Operations.

The Investment Adviser may voluntarily waive or reimburse additional management fees. Amounts waived or reimbursed by the Investment Adviser may not be recouped by the Investment Adviser. These waivers and/or reimbursements are shown as Expenses waived and/or reimbursed by Advisor on the Statements of Operations. During the six months ended April 30, 2021, the Investment Adviser did not voluntarily waive or reimburse additional management fees.

5. Administration Fees

JPMorgan Chase Bank, N.A. (the “Administrator”) serves as administrator of the Funds. The Administrator provides certain administrative services to the Funds. For these services, the Administrator is entitled to certain fees and reasonable out-of-pocket expenses. These fees and expenses are Covered Expenses as defined above.

6. Custodian Fees

JPMorgan Chase Bank, N.A. (the “Custodian”) acts as custodian for the Funds in accordance with a Global Custody Agreement. The Custodian holds cash, securities and other assets of the Funds as required by the 1940 Act. As compensation for the services rendered under the agreement, the Custodian is entitled to fees and reasonable out-of-pocket expenses. These fees and expenses are Covered Expenses as defined above.

7. Trustees Fees

The Trust compensates each Trustee who is not an officer, director or employee of Northern Trust Corporation, or its subsidiaries, for his or her services as a Trustee of the Trust and as a member of Board committees.

The Trust has adopted a DC Plan for its Trustees who are not officers of Northern Trust or NTI. Under the DC Plan, Independent Trustees may elect to defer all or a portion of


		FLEXSHARES SEMIANNUAL REPORT			371

Notes to the Financial Statements (cont.)

their compensation. The amount deferred is adjusted periodically based upon the performance of the investment options selected by the Trustees. The investment options currently available under the DC Plan are the FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares STOXX^® US ESG Select Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Quality Dividend Index Fund, FlexShares iBoxx 5-Year Target Duration TIPS Index Fund, and the FlexShares Ready Access Variable Income Fund. Expenses related to the DC Plan are stated on the Statements of Operations.

8. Distribution and Service Plan

Foreside Fund Services, LLC (the “Distributor”) serves as the Funds’ distributor and distributes Creation Units (as described in Note 9) for each Fund on an agency basis. The Distributor does not receive a fee from the Funds for its distribution services. However, it receives compensation from NTI for its services as distributor pursuant to a separate letter agreement between it and NTI.

The Trust has adopted a Distribution and Service Plan (“the Plan”) pursuant to Rule 12b-1 under the 1940 Act. Payments to financial intermediaries under the Plan are tied directly to their own out-of-pocket expenses. The Plan has not been implemented with respect to the Funds. The Plan may not be implemented without further Board approval. The maximum distribution fee is 0.25% of each Fund’s respective average daily net assets under the Plan. The Funds did not pay any 12b-1 fees during the fiscal period.

9. Issuance and Redemption of Fund Shares

Each Fund only issues and redeems shares to Authorized Participants in exchange for the deposit or delivery of a basket of assets (securities and/or cash), in large blocks known as Creation Units, each of which is comprised of a specified number of shares.

Retail investors may only purchase and sell fund shares in the secondary market through a broker-dealer and such

transactions may be subject to customary commission and fee rates imposed by the broker-dealer.

Authorized Participants may pay transaction fees to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units. The transaction fees are paid directly to the Fund and used to offset Fund custody fees. Certain fees or costs associated with Creation Unit purchases may be paid by NTI in certain circumstances. In addition, the Trust may from time to time waive the standard transaction fee. The net custody fees charged to the Fund are paid for by the Investment Adviser through the Fund’s Unitary Fee. Transaction fees remaining in the Funds were as follows:


Fund	As of April 30, 2021		As of October 31, 2020

FlexShares US Quality Low Volatility Index Fund	$	4,200	$	3,150

FlexShares Developed Markets ex-US Quality Low Volatility Index Fund		9,000		6,750

FlexShares Emerging Markets Quality Low Volatility Index Fund		8,000		—

FlexShares Morningstar US Market Factor Tilt Index Fund		12,000		21,000

FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		60,000		80,000

FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		75,000		—

FlexShares US Quality Large Cap Index Fund		6,500		3,000

FlexShares STOXX^® US ESG Select Index Fund		7,700		1,400

FlexShares STOXX^® Global ESG Select Index Fund		43,000		7,500

FlexShares Morningstar Global Upstream Natural Resources Index Fund		105,001		21,000

FlexShares STOXX^® Global Broad Infrastructure Index Fund		66,000		26,000

FlexShares Global Quality Real Estate Index Fund		20,000		12,000


372		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


Fund	As of April 30, 2021		As of October 31, 2020

FlexShares Quality Dividend Index Fund	$	11,600	$	10,550

FlexShares Quality Dividend Defensive Index Fund		8,450		4,950

FlexShares Quality Dividend Dynamic Index Fund		1,100		1,100

FlexShares International Quality Dividend Index Fund		32,501		15,000

FlexShares International Quality Dividend Defensive Index Fund		5,000		5,000

FlexShares International Quality Dividend Dynamic Index Fund		32,000		5,000

FlexShares Disciplined Duration MBS Index Fund		4,400		4,800

FlexShares Credit-Scored US Corporate Bond Index Fund		4,000		4,000

FlexShares Credit-Scored US Long Corporate Bond Index Fund		2,500		500

FlexShares High Yield Value-Scored Bond Index Fund		5,500		3,000

FlexShares Ready Access Variable Income Fund		2,275		3,675

The FlexShares Real Assets Allocation Index Fund, FlexShares iBoxx 3-Year Target Duration TIPS Index Fund, FlexShares iBoxx 5-Year Target Duration TIPS Index Fund and the FlexShares Core Select Bond Fund do not charge standard creation unit transaction fees.

10. Investment Transactions

For the period ended April 30, 2021, the FlexShares iBoxx 3-Year Target Duration TIPS Index, FlexShares iBoxx 5-Year Target Duration TIPS Index and FlexShares Disciplined Duration MBS Index Funds invested solely in U.S. Government securities. The cost of securities purchased by each Fund and proceeds from sales of securities, excluding short-

term securities, derivatives and in-kind transactions for the period ended April 30, 2021, were as follows:


Fund	Purchases		Sales

FlexShares US Quality Low Volatility Index Fund	$	27,800,020	$	28,146,401

FlexShares Developed Markets ex-US Quality Low Volatility Index Fund		21,447,200		20,073,896

FlexShares Emerging Markets Quality Low Volatility Index Fund		7,737,478		3,688,873

FlexShares Morningstar US Market Factor Tilt Index Fund		170,100,952		170,682,238

FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		67,003,074		75,484,792

FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		78,703,750		45,891,757

FlexShares US Quality Large Cap Index Fund		16,199,008		16,017,373

FlexShares STOXX^® US ESG Select Index Fund		26,017,452		25,758,393

FlexShares STOXX^® Global ESG Select Index Fund		31,930,445		31,005,477

FlexShares Morningstar Global Upstream Natural Resources Index Fund		732,929,288		611,756,758

FlexShares STOXX^® Global Broad Infrastructure Index Fund		227,338,689		205,463,751

FlexShares Global Quality Real Estate Index Fund		73,131,666		70,474,750

FlexShares Real Assets Allocation Index Fund		598,541		609,715

FlexShares Quality Dividend Index Fund		386,397,618		385,216,703

FlexShares Quality Dividend Defensive Index Fund		127,900,451		128,201,436

FlexShares Quality Dividend Dynamic Index Fund		4,203,576		4,401,071

FlexShares International Quality Dividend Index Fund		176,217,366		176,069,177


		FLEXSHARES SEMIANNUAL REPORT			373

Notes to the Financial Statements (cont.)


Fund	Purchases		Sales

FlexShares International Quality Dividend Defensive Index Fund	$	20,918,077	$	21,607,491

FlexShares International Quality Dividend Dynamic Index Fund		18,028,349		10,825,597

FlexShares iBoxx 3-Year Target Duration TIPS Index Fund^†		405,813,310		411,983,122

FlexShares iBoxx 5-Year Target Duration TIPS Index Fund^††		142,527,185		145,171,942

FlexShares Disciplined Duration MBS Index Fund^†††		190,951,290		179,677,670

FlexShares Credit-Scored US Corporate Bond Index Fund		152,327,078		61,980,978

FlexShares Credit-Scored US Long Corporate Bond Index Fund		32,094,376		19,753,411

FlexShares High Yield Value-Scored Bond Index Fund		166,394,550		156,785,018

FlexShares Ready Access Variable Income Fund^††††		168,349,226		167,751,855

FlexShares Core Select Bond Fund		50,763,170		50,604,085

^†	Include $405,813,310 in purchases and $411,983,122 in sales in U.S. Government Securities.

^††

Include $142,527,185 in purchases and $145,171,942 in sales in U.S. Government Securities.

^†††

Include $4,697,055 in purchases and $4,700,750 in sales in U.S. Government Securities.

^††††

Include $— in purchases and $18,015,784 in sales in U.S. Government Securities.

11. In-Kind Transactions

During the period ended April 30, 2021, certain Funds received securities in exchange for subscriptions of shares (subscriptions-in-kind). For the period ended April 30, 2021, the fair value of the securities received for subscriptions for each Fund was as follows:


Fund	Fair Value

FlexShares US Quality Low Volatility Index Fund	$	24,757,576

FlexShares Developed Markets ex-US Quality Low Volatility Index Fund		9,406,063


Fund	Fair Value

FlexShares Emerging Markets Quality Low Volatility Index Fund	$	1,280,087

FlexShares Morningstar US Market Factor Tilt Index Fund		69,435,498

FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		5,928,160

FlexShares US Quality Large Cap Index Fund		6,786,429

FlexShares STOXX^® US ESG Select Index Fund		87,591,720

FlexShares STOXX^® Global ESG Select Index Fund		30,448,519

FlexShares Morningstar Global Upstream Natural Resources Index Fund		942,556,255

FlexShares STOXX^® Global Broad Infrastructure Index Fund		358,879,522

FlexShares Global Quality Real Estate Index Fund		48,827,434

FlexShares Real Assets Allocation Index Fund		1,639,862

FlexShares Quality Dividend Index Fund		143,811,892

FlexShares Quality Dividend Defensive Index Fund		53,685,627

FlexShares Quality Dividend Dynamic Index Fund		2,708,842

FlexShares International Quality Dividend Index Fund		15,185,911

FlexShares International Quality Dividend Dynamic Index Fund		16,559,580

FlexShares iBoxx 3-Year Target Duration TIPS Index Fund		124,927,460

FlexShares iBoxx 5-Year Target Duration TIPS Index Fund		23,529,405

FlexShares Core Select Bond Fund		15,934,965

During the period ended April 30, 2021, certain Funds delivered securities in exchange for redemption of shares (redemptions-in-kind). For financial reporting purposes, the Funds recorded net realized gains and losses in connection with each transaction. For the period ended


374		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

April 30, 2021, the fair value and realized gain (losses) of the securities transferred for redemptions for each Fund were as follows:


Fund	Fair Value		Net Realized Gains (Losses)

FlexShares US Quality Low Volatility Index Fund	$	13,589,852	$	3,645,305

FlexShares Morningstar US Market Factor Tilt Index Fund		19,501,938		10,062,359

FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		19,214,492		3,586,561

FlexShares US Quality Large Cap Index Fund		5,372,103		1,841,892

FlexShares STOXX^® US ESG Select Index Fund		32,142,344		13,765,161

FlexShares STOXX^® Global ESG Select Index Fund		6,729,191		1,734,784

FlexShares Morningstar Global Upstream Natural Resources Index Fund		74,783,155		18,819,343

FlexShares Global Quality Real Estate Index Fund		20,957,509		2,563,098

FlexShares Quality Dividend Index Fund		205,580,130		71,082,713

FlexShares Quality Dividend Defensive Index Fund		80,778,689		23,752,355

FlexShares International Quality Dividend Index Fund		13,657,341		2,149,355

FlexShares International Quality Dividend Defensive Index Fund		1,528,532		266,094

FlexShares iBoxx 3-Year Target Duration TIPS Index Fund		165,673,460		10,347,059

FlexShares iBoxx 5-Year Target Duration TIPS Index Fund		33,172,559		3,130,725

FlexShares Core Select Bond Fund		9,318,234		788,873

12. Guarantees and Indemnifications

In the normal course of business each Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and that provide general indemnifications. Additionally, under the Funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. The Funds’ maximum exposure under these arrangements is unknown, as it involves possible future claims that may or may not be made against the Funds.

13. New Accounting Pronouncements

In March 2020, the FASB issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848) “Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”), which provides optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the London Interbank Offered Rate (“LIBOR”) and other interbank-offered based reference rates as of the end of 2021. The new guidance is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022, and the adoption of ASU 2020-04 is elective. Management does not believe this update has a material impact on the Funds’ financial statements and disclosures.

14. LIBOR Transition

Certain of the Funds’ investments, payment obligations and financing terms may be based on floating rates, such as LIBOR, Euro Interbank Offered Rate and other similar types of reference rates (each, a “Reference Rate”). On July 27, 2017, the Chief Executive of the UK Financial Conduct Authority (FCA), which regulates LIBOR, announced that the FCA will no longer persuade nor compel banks to submit rates for the calculation of LIBOR and certain other Reference Rates after 2021. The FCA and ICE Benchmark Administrator have since announced that most LIBOR settings will no longer be published after December 31, 2021 and a majority of U.S. dollar LIBOR settings will cease publication after June 30, 2023. The U.S. Federal Reserve, based on the recommendations of the New York Federal Reserve’s


		FLEXSHARES SEMIANNUAL REPORT			375

Notes to the Financial Statements (cont.)

Alternative Reference Rate Committee comprised of major derivative market participants and their regulators), has begun publishing SOFR that is intended to replace U.S. dollar LIBOR. Proposals for alternative reference rates for other currencies have also been announced or have already begun publication. Uncertainty related to the liquidity impact of the change in rates, and how to appropriately adjust these rates at the time of transition, poses risks for the Funds. The effect of any changes to, or discontinuation of, LIBOR on the Funds will depend on, among other things, (1) existing fallback or termination provisions in individual contracts, and (2) whether, how, and when industry participants develop and adopt new reference rates and fallbacks for both legacy and new instruments and contracts. The expected discontinuation of LIBOR could have a significant impact on the financial markets in general and may also present heightened risk to market participants, including public companies, investment advisers, investment companies, and broker-dealers. The risks associated with this discontinuation and transition will be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Accordingly, it is difficult to predict the full impact of the transition away from LIBOR on the Funds until new reference rates and fallbacks for both legacy and new instruments and contracts are commercially accepted and market practices become settled. Until then, the Funds may continue to invest in instruments that reference such rates or otherwise use such Reference Rates due to favorable liquidity or pricing.

15. Legal Proceedings

On or about February 14, 2020, Marc S. Kirschner, as Trustee for NWHI Litigation Trust (the “Trust”), and Wilmington Savings Fund Society, FSB, as successor indenture trustee for various notes issued by Nine West Holdings, Inc. (together with the Trustee, “Plaintiffs”), filed separate complaints in the United States District Court for the Northern District of Illinois (case nos. 20-cv-01129 and 20-cv-01136, respectively) against a group of defendants that includes the FlexShares Morningstar US Market Factor Tilt Index Fund in its capacity as a former public shareholder of The Jones Group Inc. (“Jones Group”). The claims in these actions stem from a series of merger transactions (“Transactions”)

entered into by Jones Group in 2014 that allegedly rendered Jones Group insolvent. The FlexShares Morningstar US Market Factor Tilt Index Fund allegedly received $224,910 as a result of the Transactions. The Plaintiffs seek to clawback these proceeds for the benefit of the Trust and the noteholders on the basis that they allegedly were fraudulent conveyances.

During the quarter ended June 30, 2020, the Judicial Panel on Multidistrict Litigation ordered the transfer of these actions and several substantially similar actions filed in other districts to the Southern District of New York for consolidated pre-trial proceedings. On June 29, 2020, the former public shareholder defendants, including FlexShares Morningstar US Market Factor Tilt Index Fund, filed a motion to dismiss on the basis that the payments made to them in connection with the Transactions were shielded from the fraudulent conveyance claims under Section 546(e) of the Bankruptcy Code. On August 27, 2020, all fraudulent conveyance claims against the former public shareholder defendants were dismissed. Plaintiffs appealed from that decision and the actions are currently on appeal before the U.S. Court of Appeals for the Second Circuit.

Since it is presently not possible to determine the outcome of these matters, no provision has been made in the financial statements for their ultimate resolution. In management of the Fund’s opinion, the final resolution of the above legal matters will not have a material adverse effect on the Fund’s financial statements. The Fund intends to vigorously defend these actions.

16. Coronavirus (COVID-19) Pandemic

The outbreak of a respiratory disease caused by a novel coronavirus was first detected in December 2019 and has spread internationally. The outbreak and efforts to contain its spread have resulted in closing borders and quarantines, restricting international and domestic travel, enhanced health screenings, cancellations, disrupted supply chains and customer activity, responses by businesses (including changes to operations and reducing staff), and have produced general concern and uncertainty. The impact of the coronavirus pandemic, and other epidemics and pandemics that may arise in the future could adversely affect national


376		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

and global economies, individual companies and the market in general in a manner and for a period of time that cannot be foreseen at the present time and may adversely affect the value, volatility and liquidity of securities held by a Fund. In addition, during periods of market disruption or other abnormal market conditions, the Funds’ exposure to the risks described in their respective prospectuses and statements of additional information will likely increase. In the event of a pandemic or an outbreak, there can be no assurance that the Funds and their service providers will be able to maintain normal business operations for an extended period of time or will not lose the services of key personnel on a temporary or long-term basis due to illness or other reasons, and could otherwise disrupt the ability of the Fund’s service providers to perform essential services. Certain economic and market conditions arising out of a pandemic or outbreak could result in a Fund’s inability to achieve its investment objectives, cause the postponement of reconstitution or rebalance dates for benchmark or underlying indices, adversely affect the prices and liquidity of the securities and other instruments in which a Fund invests, negatively impact a Fund’s performance, and cause losses on your investment in a Fund. Management is monitoring the development of the pandemic, which was ongoing as of the date of the financial statements, and is evaluating its impact on the financial position and operating results of the Funds.

17. Subsequent Events

Management has evaluated subsequent events for the Funds through the date the financial statements were issued, and has concluded that there are no recognized or non-recognized subsequent events relevant for financial statement disclosure, other than the items noted below.

Effective June 1, 2021, the name of the FlexShares^® STOXX^® US ESG Impact Index Fund was changed to FlexShares^® STOXX^® US ESG Select Index Fund and the name of the FlexShares^® STOXX^® Global ESG Impact Index Fund was changed to FlexShares^® STOXX^® Global ESG Select Index Fund.


		FLEXSHARES SEMIANNUAL REPORT			377

Fund Expenses (Unaudited)

As a shareholder, you incur two types of costs: (1) Transaction costs for purchasing and selling shares and (2) ongoing costs, including advisory and other Fund expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

Actual Expenses

The actual expense examples are based on an investment of $1,000 invested at the beginning of a six month period and held through the period ended April 30, 2021.

The first line under each Fund in the following tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The hypothetical expense examples are based on an investment of $1,000 invested at the beginning of a six month period and held through the period ended April 30, 2021.

The second line under each Fund in the following table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as brokerage commissions on purchases or sales of Fund shares. Therefore, the second line for each Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.


	Beginning Account Value		Ending Account Value 04/30/21		Expenses Paid During the Period *		Annualized Expense Ratio During Period

FlexShares^® US Quality Low Volatility Index Fund

Actual	$	1,000.00	$	1,210.00	$	1.21		0.22	%

Hypothetical	$	1,000.00	$	1,023.70	$	1.10		0.22	%

FlexShares^® Developed Markets ex-US Quality Low Volatility Index Fund

Actual	$	1,000.00	$	1,166.60	$	1.72		0.32	%

Hypothetical	$	1,000.00	$	1,023.21	$	1.61		0.32	%

FlexShares^® Emerging Markets Quality Low Volatility Index Fund

Actual	$	1,000.00	$	1,149.80	$	2.13		0.40	%

Hypothetical	$	1,000.00	$	1,022.81	$	2.01		0.40	%


378		FLEXSHARES SEMIANNUAL REPORT

Fund Expenses (cont.)


	Beginning Account Value		Ending Account Value 04/30/21		Expenses Paid During the Period *		Annualized Expense Ratio During Period

FlexShares^® Morningstar US Market Factor Tilt Index Fund

Actual	$	1,000.00	$	1,386.90	$	1.48		0.25	%

Hypothetical	$	1,000.00	$	1,023.55	$	1.25		0.25	%

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund

Actual	$	1,000.00	$	1,339.20	$	2.26		0.39	%

Hypothetical	$	1,000.00	$	1,022.86	$	1.96		0.39	%

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund

Actual	$	1,000.00	$	1,326.20	$	3.40		0.59	%

Hypothetical	$	1,000.00	$	1,021.87	$	2.96		0.59	%

FlexShares^® US Quality Large Cap Index Fund

Actual	$	1,000.00	$	1,295.90	$	1.82		0.32	%

Hypothetical	$	1,000.00	$	1,023.21	$	1.61		0.32	%

FlexShares^® STOXX^® US ESG Select Index Fund

Actual	$	1,000.00	$	1,297.70	$	1.82		0.32	%

Hypothetical	$	1,000.00	$	1,023.21	$	1.61		0.32	%

FlexShares^® STOXX^® Global ESG Select Index Fund

Actual	$	1,000.00	$	1,293.90	$	2.39		0.42	%

Hypothetical	$	1,000.00	$	1,022.71	$	2.11		0.42	%

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund

Actual	$	1,000.00	$	1,428.90	$	2.77		0.46	%

Hypothetical	$	1,000.00	$	1,022.51	$	2.31		0.46	%

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund

Actual	$	1,000.00	$	1,213.30	$	2.58		0.47	%

Hypothetical	$	1,000.00	$	1,022.46	$	2.36		0.47	%

FlexShares^® Global Quality Real Estate Index Fund

Actual	$	1,000.00	$	1,277.90	$	2.54		0.45	%

Hypothetical	$	1,000.00	$	1,022.56	$	2.26		0.45	%

FlexShares^® Real Assets Allocation Index Fund(a)

Actual	$	1,000.00	$	1,288.60	$	0.62		0.11	%

Hypothetical	$	1,000.00	$	1,024.25	$	0.55		0.11	%

FlexShares^® Quality Dividend Index Fund

Actual	$	1,000.00	$	1,279.90	$	2.09		0.37	%

Hypothetical	$	1,000.00	$	1,022.96	$	1.86		0.37	%


		FLEXSHARES SEMIANNUAL REPORT			379

Fund Expenses (cont.)


	Beginning Account Value		Ending Account Value 04/30/21		Expenses Paid During the Period *		Annualized Expense Ratio During Period

FlexShares^® Quality Dividend Defensive Index Fund

Actual	$	1,000.00	$	1,250.20	$	2.06		0.37	%

Hypothetical	$	1,000.00	$	1,022.96	$	1.86		0.37	%

FlexShares^® Quality Dividend Dynamic Index Fund

Actual	$	1,000.00	$	1,336.20	$	2.14		0.37	%

Hypothetical	$	1,000.00	$	1,022.96	$	1.86		0.37	%

FlexShares^® International Quality Dividend Index Fund

Actual	$	1,000.00	$	1,316.80	$	2.70		0.47	%

Hypothetical	$	1,000.00	$	1,022.46	$	2.36		0.47	%

FlexShares^® International Quality Dividend Defensive Index Fund

Actual	$	1,000.00	$	1,283.20	$	2.66		0.47	%

Hypothetical	$	1,000.00	$	1,022.46	$	2.36		0.47	%

FlexShares^® International Quality Dividend Dynamic Index Fund

Actual	$	1,000.00	$	1,393.30	$	2.79		0.47	%

Hypothetical	$	1,000.00	$	1,022.46	$	2.36		0.47	%

FlexShares^® iBoxx 3-Year Target Duration TIPS Index Fund

Actual	$	1,000.00	$	1,040.30	$	0.91		0.18	%

Hypothetical	$	1,000.00	$	1,023.90	$	0.90		0.18	%

FlexShares^® iBoxx 5-Year Target Duration TIPS Index Fund

Actual	$	1,000.00	$	1,031.40	$	0.91		0.18	%

Hypothetical	$	1,000.00	$	1,023.90	$	0.90		0.18	%

FlexShares^® Disciplined Duration MBS Index Fund

Actual	$	1,000.00	$	1,000.00	$	0.99		0.20	%

Hypothetical	$	1,000.00	$	1,023.80	$	1.00		0.20	%

FlexShares^® Credit-Scored US Corporate Bond Index Fund

Actual	$	1,000.00	$	1,003.10	$	1.09		0.22	%

Hypothetical	$	1,000.00	$	1,023.70	$	1.10		0.22	%

FlexShares^® Credit-Scored US Long Corporate Bond Index Fund

Actual	$	1,000.00	$	989.00	$	1.08		0.22	%

Hypothetical	$	1,000.00	$	1,023.70	$	1.10		0.22	%

FlexShares^® High Yield Value-Scored Bond Index Fund

Actual	$	1,000.00	$	1,108.40	$	1.93		0.37	%

Hypothetical	$	1,000.00	$	1,022.96	$	1.86		0.37	%


380		FLEXSHARES SEMIANNUAL REPORT

Fund Expenses (cont.)


	Beginning Account Value		Ending Account Value 04/30/21		Expenses Paid During the Period *		Annualized Expense Ratio During Period

FlexShares^® Ready Access Variable Income Fund

Actual	$	1,000.00	$	1,002.80	$	1.24		0.25	%

Hypothetical	$	1,000.00	$	1,023.55	$	1.25		0.25	%

FlexShares^® Core Select Bond Fund(a)

Actual	$	1,000.00	$	991.10	$	0.89		0.18	%

Hypothetical	$	1,000.00	$	1,023.90	$	0.90		0.18	%

*	Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period).

^(a)

Annualized expense ratio and expenses paid during the period do not include fees and expenses of the Underlying Fund(s) in which the Fund invests.


		FLEXSHARES SEMIANNUAL REPORT			381

Liquidity Risk Management Program (Unaudited)

FlexShares Trust (the “Trust”), on behalf of each of its series (each, a “Fund” and, collectively, the “Funds”), has adopted and implemented a liquidity risk management program (the “Program”) as required by rule 22e-4 under the Investment Company Act of 1940, as amended (the “Rule”). The Program seeks to assess, manage and review each Fund’s Liquidity Risk. “Liquidity Risk” is defined as the risk that a Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund.

The Trust’s Board of Trustees (the “Board”) has appointed Northern Trust Investments, Inc. (“NTI”), the investment adviser to the Funds, as the program administrator for the Program. NTI has delegated oversight of the Program to the Northern Trust Asset Management Credit & Liquidity Risk Committee (the “Committee”).

At a meeting of the Board held during the six-month period ended April 30, 2021, the Board received and reviewed the annual written report of the Committee, on behalf of NTI (the “Report”), concerning the operation of the Program. The Report addressed the operation of the Program and assessed its adequacy and effectiveness of implementation.

The Report summarized the operation of the Program and the information and factors considered by the Committee in reviewing the adequacy and effectiveness of the Program’s implementation with respect to each Fund. Such information and factors included, among other things: (i) the liquidity risk framework used to assess, manage, and periodically review each Fund’s Liquidity Risk and the results of this assessment; (ii) the methodology and inputs used to classify the liquidity of each Fund’s portfolio investments and the Committee’s assessment that each Fund’s strategy is appropriate for an exchange-traded fund structured as an open-end fund; (iii) that each Fund held primarily highly liquid assets (investments that the Fund anticipates can be converted to cash within 3 business days or less in current market conditions without significantly changing their market value); (iv) that none of the Funds required the establishment of a highly liquid investment minimum (as defined in the Rule) and the methodology for that determination; and (v) confirmation that none of the Funds had breached the 15% maximum threshold on illiquid investments (i.e., any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven days or less without the sale or disposition significantly changing the market value of the investment) and the procedures for monitoring compliance with the limit. The Report also summarized the changes made to the Program over the course of the year.

The Committee concluded, and reported to the Board, that the Program was being effectively implemented and that the Program was reasonably designed to assess and manage each Fund’s Liquidity Risk.

There can be no assurance that the Program will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the Fund’s exposure to Liquidity Risk and other risks to which an investment in the Fund may be subject.


382		FLEXSHARES SEMIANNUAL REPORT

Supplemental Information (Unaudited)

Principal Risks

As with any investment, you could lose all or part of your investment in a Fund, and the Fund’s performance could trail that of other investments. In addition to the discussion of the risks of certain of the Funds’ investments included in Note 2, some of the principal risks of investment in the Funds are summarized below. A more complete description of principal risks is included in each Fund’s Prospectus.

The following risks apply to all of the Funds:

Cyber Security and Operational Risk

Cyber security and operational risk is the risk that the Fund and its service providers may experience disruptions that arise from breaches in cyber security, human error, processing and communications errors, counterparty or third-party errors, technology or systems failures, any of which may have an adverse impact on the Fund. Failures or breaches of the electronic systems of the Fund, the Investment Adviser, distributor, and other service providers, market makers, Authorized Participants or the issuers of securities in which the Fund invests have the ability to cause disruptions and negatively impact the Fund’s business operations, potentially resulting in financial losses to the Fund and its shareholders.

Derivatives Risk

Changes in the value of a derivative instrument may not correlate perfectly with the underlying asset, rate or index, and the Funds could lose more than the principal amount invested.

Market Trading Risk

Each Fund’s shares are listed on a securities exchange, which presents risks including the potential lack of an active market for Fund shares, losses from trading in secondary markets, and disruption in the creation/redemption process of the Funds. Any of these factors may lead to the Funds’ shares trading at a premium or discount to NAV.

Valuation Risk

The sale price the Funds could receive for a security may differ from the Funds’ valuation of the security, particularly for securities that trade in low volume or volatile markets, or that are valued using a fair value methodology.

Authorized Participant Concentration Risk

Only an Authorized Participant may engage in creation or redemption transactions directly with the Funds. The Funds have a limited number of institutions that act as Authorized Participants. To the extent that these institutions exit the business or are unable to proceed with creation and/or redemption orders with respect to the Funds and no other Authorized Participant is able to step forward to create or redeem Creation Units, Fund shares may trade at a discount to NAV and possibly face trading halts and/or delisting. This risk may be heightened for a Fund if it invests in non-U.S. securities or other securities or instruments that are less widely traded. Such securities or instruments often involve greater settlement and operational issues and capital costs for Authorized Participants.

Market Risk

Market risk is the risk that general market conditions, such as real or perceived adverse economic or political conditions, inflation, changes in interest rates, lack of liquidity in the bond markets, volatility in the equities market or adverse investor sentiment could cause the value of your investment in a Fund to decline. Market disruptions caused by local or regional


		FLEXSHARES SEMIANNUAL REPORT			383

Supplemental Information (cont.)

events such as war, acts of terrorism, the spread of infectious illness (including epidemics and pandemics) or other public health issues, recessions or other events or adverse investor sentiment could have a significant impact on the Fund and its investments and could result in the Fund’s shares trading at increased premiums or discounts to the Fund’s NAV. The outbreak of COVID-19, a respiratory disease caused by a novel coronavirus, has negatively affected the worldwide economy, the financial health of individual companies and the market in significant and unforeseen ways. The future impact of COVID-19 is currently unknown. The effects to public health, business and market conditions resulting from the COVID-19 pandemic may have a significant negative impact on the performance of the Fund’s investments. Market risk also includes the risk that a particular style of investing, such as growth or value, may underperform the market generally. The value of the securities in which a Fund invests may go up or down in response to the prospects of individual issuers and/or general economic conditions. Securities markets may experience great short-term volatility and may fall sharply at times. Different markets may behave differently from each other and a foreign market may move in the opposite direction from the U.S. market. Price changes may be temporary or last for extended periods. You could lose money over short periods due to fluctuation in a Fund’s NAV in response to market movements, and over longer periods during market downturns.

The following risk applies only to the Index Funds:

Tracking Error Risk

Tracking error risk is the risk that an Index Fund’s performance may vary substantially from the performance of the Underlying Index it tracks as a result of imperfect correlation between a Fund’s securities and those of the Underlying Index. Imperfect correlation may result from share purchases and redemptions, expenses, accepting custom baskets, changes in the Underlying Indexes, asset valuations, foreign currency valuations, market impact, corporate actions (such as mergers and spinoffs), legal restrictions (such as tax-related diversification requirements that apply to the Funds but not to the Underlying Index) and timing variances, among other factors.

Calculation Methodology Risk

Each of the Index Funds is subject to Calculation Methodology Risk. This is the risk that the Underlying Index’s calculation methodology or sources of information may not provide an accurate assessment of included issuers or correct valuation of securities, nor is the availability or timeliness of the production of the Index guaranteed.

The following risks apply to each Fund, as disclosed:

Concentration Risk

Each of the Funds, except the FlexShares iBoxx 3-Year Target Duration TIPS Index Fund and FlexShares iBoxx 5-Year Target Duration TIPS Index Fund, is subject to Concentration Risk. To the extent that the investments of these Funds are concentrated in the securities of issuers in a particular region, country, market, industry, sector or asset class, the Funds may be subject to increased price volatility and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that region, country, market, industry, sector or asset class.

Interest Rate/Maturity Risk

The FlexShares iBoxx 3-Year Target Duration TIPS Index Fund, FlexShares iBoxx 5-Year Target Duration TIPS Index Fund, FlexShares Disciplined Duration MBS Index Fund, FlexShares Credit-Scored US Corporate Bond Index Fund, FlexShares Credit-Scored US Long Corporate Bond Index Fund, FlexShares High Yield Value-Scored Bond Index Fund, FlexShares Ready Access Variable Income Fund, and FlexShares Core Select Bond Fund are subject to the risk that the value of the Funds’ fixed-income assets will decline because of rising interest rates. The magnitude of this decline will often be greater for longer-term fixed


384		FLEXSHARES SEMIANNUAL REPORT

Supplemental Information (cont.)

income securities than shorter-term fixed-income securities. Duration is a measure used to determine the sensitivity of a security’s price to changes in interest rates. The longer a security’s duration, the more sensitive it will be to changes in interest rates.

MLP Risk

The FlexShares STOXX^® Global Broad Infrastructure Index Fund and FlexShares Real Assets Allocation Index Fund (including through its investment in its Underlying Fund(s)) may invest in Master Limited Partnerships (“MLPs”). The FlexShares STOXX^® Global Broad Infrastructure Index Fund may not invest more than 25% of its net assets in MLPs. MLP Risk is the risk that accompanies an investment in MLP units. Investing in MLPs involves certain risks related to investing in the underlying assets of the MLPs and risks associated with pooled investment vehicles. MLPs that concentrate in a particular industry or a particular geographic region are subject to risks associated with such industry or region. MLPs may also be sensitive to changes in interest rates and, during periods of interest rate volatility, limited capital markets access and/or low commodities pricing and may not provide attractive returns. The benefit derived from the Fund’s investment in MLPs is largely dependent on the MLPs being treated as partnerships for federal income tax purposes. If any of the MLPs owned by the Fund were treated as corporations for U.S. federal income tax purposes, the after-tax return to the Fund with respect to its investment in such MLPs would be materially reduced, which could cause a decline in the value of the Fund’s shares. The Fund must include its allocable share of the MLP’s taxable income in its taxable income, whether or not it receives a distribution of cash from the MLP. In such case, the Fund may have to liquidate securities to make required distributions to the Fund’s shareholders.

Non-diversification Risk

The FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX^® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund, FlexShares iBoxx 3-Year Target Duration TIPS Index Fund, FlexShares iBoxx 5-Year Target Duration TIPS Index Fund, FlexShares Credit-Scored US Corporate Bond Index Fund, FlexShares Credit-Scored US Long Corporate Bond Index Fund, FlexShares Ready Access Variable Income Fund, FlexShares US Quality Low Volatility Index Fund, FlexShares Developed Markets ex-US Quality Low Volatility Index Fund, and FlexShares Emerging Markets Quality Low Volatility Index Fund are non-diversified series of the Trust, pursuant to the 1940 Act. The performance of these Funds may depend on the performance of a small number of issuers because the Funds may invest a large percentage of its assets in securities issued by or representing a small number of issuers.

Large Cap Risk

The FlexShares US Quality Large Cap Index Fund, FlexShares STOXX^® US ESG Select Index Fund, FlexShares STOXX^® Global ESG Select Index Fund, FlexShares Quality Dividend Index Fund, FlexShares Quality Dividend Defensive Index Fund, FlexShares Quality Dividend Dynamic Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, FlexShares International Quality Dividend Dynamic Index Fund, FlexShares US Quality Low Volatility Index Fund, FlexShares Developed Markets ex-US Quality Low Volatility Index Fund, and FlexShares Emerging Markets Quality Low Volatility Index Fund are subject to the risk that returns on investments in stocks of large U.S. companies could trail the returns on investments in stocks of smaller and mid-sized companies. In addition, larger companies may grow more slowly or be slower to respond to business developments than smaller companies.

Mid Cap Stock Risk

The FlexShares STOXX^® US ESG Select Index Fund, FlexShares STOXX^® Global ESG Select Index Fund, FlexShares US Quality Low Volatility Index Fund, FlexShares Developed Markets ex-US Quality Low Volatility Index Fund, and FlexShares Emerging


		FLEXSHARES SEMIANNUAL REPORT			385

Supplemental Information (cont.)

Markets Quality Low Volatility Index Fund may invest in stocks of mid-sized companies which may be subject to more abrupt or erratic market movements than stocks of larger, more established companies. Mid-sized companies may have limited product lines or financial resources, and may be dependent upon a particular niche of the market.

Mid and Small Cap Stock Risk

The FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX^® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund (including through its investment in its Underlying Fund(s)), FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, and FlexShares International Quality Dividend Dynamic Index Fund may invest in stocks of smaller companies which may be more volatile than stocks of larger, more established companies. Small companies may have limited product lines or financial resources, or may be dependent upon a small or inexperienced management group, and their securities may trade less frequently and in lower volume than the securities of larger companies, which could lead to higher transaction costs. Generally the smaller the company size, the greater the risk.

Value Investing Risk

The FlexSharesMorningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares US Quality Large Cap Index Fund, FlexShares Global Quality Real Estate Index Fund, and FlexShares Real Assets Allocation Index Fund’s (including through its investment in its Underlying Fund(s)) investment in companies whose securities are believed to be undervalued, relative to their underlying profitability, may not appreciate in value as anticipated.

ESG Investment Risk

The FlexShares STOXX^® US ESG Select Index Fund and FlexShares STOXX^® Global ESG Select Index Fund are subject to the risk that because the methodology of the Underlying Index selects and assigns weights to securities of issuers for nonfinancial reasons, the Fund may underperform the broader equity market or other funds that do not utilize ESG criteria when selecting investments.

High Portfolio Turnover Risk

The FlexShares STOXX^® US ESG Select Index Fund, FlexShares Ready Access Variable Income Fund, FlexShares Core Select Bond Fund, FlexShares iBoxx 3-Year Target Duration TIPS Index Fund, FlexShares Disciplined Duration MBS Index Fund, FlexShares Credit-Scored US Long Corporate Bond Index Fund, and FlexShares High Yield Value-Scored Bond Index Fund are subject to the risk that active and frequent trading of the Fund’s portfolio securities may result in increased transaction costs to the Fund, including brokerage commissions, dealer mark-ups and other transaction costs, which could reduce the Fund’s return.

Global Natural Resources Risk

The FlexShares Morningstar Global Upstream Natural Resources Index Fund (which is also an Underlying Fund of FlexShares Real Assets Allocation Index Fund) is subject to the risks associated with investment in the global natural resources sector in addition to the general risk of the stock market. The natural resources sector can significantly be affected by events relating to U.S. and foreign political and economic developments and environmental and other government regulations, as well as other factors including, but not limited to: commodity price volatility, technological developments and natural or man-made disasters. Declines in the demand for, or prices of, natural resources generally would be expected to contribute to declines in the


386		FLEXSHARES SEMIANNUAL REPORT

Supplemental Information (cont.)

value of the Fund’s equity securities. Such declines may occur quickly and without warning and may negatively impact the value of the Fund and your investment.

Hedging Risk

The FlexShares Core Select Bond Fund is subject to the risk that the Fund’s short positions in U.S. Treasury futures and transactions in interest rate swaps will not completely eliminate interest rate risk of long positions in bonds. In certain falling interest rate environments, the Fund’s hedging strategy could result in disproportionately larger losses in the short U.S. Treasury futures and interest rate swaps positions as compared to gains in the long bond positions attributable to interest rate changes.

Corporate Bond Risk

The FlexShares Credit-Scored US Corporate Bond Index Fund and FlexShares Credit-Scored US Long Corporate Bond Index Fund invest primarily in bonds issued by corporations. Corporate debt securities are subject to the risk of the issuer’s inability to meet principal and interest payments on the obligation and may also be subject to price volatility due to such factors as interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity. When interest rates rise, the value of corporate debt can be expected to decline. Debt securities with longer maturities tend to be more sensitive to interest rate movements than those with shorter maturities.

Interest Rate Risk

The FlexShares STOXX^® Global Broad Infrastructure Index Fund and FlexShares Global Quality Real Estate Index Fund (which is also an Underlying Fund of FlexShares Real Assets Allocation Index Fund) are subject to the risk that rising interest rates may adversely affect the Fund. Increases in interest rates typically lower the present value of a REIT’s future earnings stream, and may make financing property purchases and improvements more costly. Because the market price of REIT stocks may change based upon investors’ collective perceptions of future earnings, the value of the Fund may decline when investors anticipate or experience rising interest rates.

Cash Transactions Risk

The FlexShares Disciplined Duration MBS Index Fund and FlexShares Ready Access Variable Income Fund may effect a creation or redemption order of its shares entirely for cash, rather than for in-kind securities. Paying redemption proceeds entirely in cash rather than through in-kind delivery of portfolio securities may require the Fund to dispose of or sell portfolio securities or other assets at an inopportune time to obtain the cash needed to meet redemption orders. This may cause a Fund to sell a security or other financial instrument and recognize a capital gain or loss that might not have been incurred if it had not effected a redemption order entirely for cash. As a result, the Fund may pay out higher or lower annual capital gains distributions than ETFs that meet redemption orders entirely in-kind with portfolio securities. The use of all cash creations and redemption orders may also cause a Fund’s shares to trade in the secondary market at wider bid-ask spreads and/or greater premiums or discounts to the Fund’s NAV. To the extent that the maximum additional variable charge for cash creation or cash redemption transactions is insufficient to cover the transaction costs of purchasing or selling portfolio securities, the Fund’s performance could be negatively impacted.

China Investment Risk

The FlexShares Emerging Markets Quality Low Volatility Index Fund, and FlexShares Morningstar Emerging Markets Factor Tilt Index Fund expects to have significant investment in securities of Chinese issuers. Investment exposure to China subjects a Fund to risks specific to China. China may be subject to considerable degrees of economic, political and social instability. China is a developing market and demonstrates significantly higher volatility from time to time in comparison to developed


		FLEXSHARES SEMIANNUAL REPORT			387

Supplemental Information (cont.)

markets. Over the past 25 years, the Chinese government has undertaken reform of economic and market practices and expansion of the sphere for private ownership of property in China. However, Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with other neighboring countries, including military conflicts in response to such events, may also disrupt economic development in China and result in a greater risk of currency fluctuations, currency convertibility, interest rate fluctuations and higher rates of inflation. The Chinese economy is export-driven and highly reliant on trade. Reduction in spending on Chinese products and services, institution of tariffs or other trade barriers, or a downturn in any of the economies of China’s key trading partners, such as the United States, Japan and South Korea, may have an adverse impact on the Chinese economy.

Currency Risk

The FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares STOXX^® Global ESG Select Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX ^® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, FlexShares International Quality Dividend Dynamic Index Fund, FlexShares Ready Access Variable Income Fund, FlexShares Developed Markets ex-US Quality Low Volatility Index Fund, and FlexShares Emerging Markets Quality Low Volatility Index Fund may invest in securities denominated in foreign currencies. While each Fund’s investments may be denominated in foreign currencies, the portfolio securities and other assets held by each Fund are valued in U.S. dollars. Price fluctuations may occur in the dollar value of foreign securities because of changing currency exchange rates. Currency exchange rates may fluctuate significantly over short periods of time causing a Fund’s NAV to fluctuate as well. Currency exchange rates can be affected unpredictably by the intervention or the failure to intervene by U.S. or foreign governments or central banks, or by currency controls or political developments in the U.S. or abroad. To the extent that a Fund’s total assets, adjusted to reflect the Fund’s net position after giving effect to currency transactions, are denominated in the currencies of foreign countries, that Fund will be more susceptible to the risk of adverse economic and political developments within those countries.

Foreign Securities Risk

The FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares STOXX^® Global ESG Select Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX^® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, FlexShares International Quality Dividend Dynamic Index Fund, FlexShares Developed Markets ex-US Quality Low Volatility Index Fund, FlexShares Emerging Markets Quality Low Volatility Index Fund, and FlexShares Ready Access Variable Income Fund will invest in foreign securities. Foreign securities include direct investments in non-U.S. dollar-denominated securities traded primarily outside of the United States and dollar-denominated securities of foreign issuers. Foreign securities also include indirect investments such as American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”). ADRs are U.S. dollar-denominated receipts representing shares of foreign-based corporations. ADRs are receipts that are traded in the U.S., and entitle the holder to all dividend and capital gain distributions that are paid out on the underlying foreign shares. GDRs are receipts that often trade on foreign exchanges. They represent ownership in an underlying foreign or U.S. security and generally are denominated in a foreign currency.


388		FLEXSHARES SEMIANNUAL REPORT

Supplemental Information (cont.)

Emerging Markets Risk

The FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Real Assets Allocation Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, FlexShares International Quality Dividend Dynamic Index Fund, FlexShares Emerging Markets Quality Low Volatility Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX^®Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, and FlexShares Ready Access Variable Income Fund invest in emerging market countries. The risks of foreign investment are increased when the issuer is located in a country with an emerging economy or securities market. Political and economic structures in many of these countries may be undergoing significant evolution and rapid development, and these countries may lack the social, political and economic stability characteristics of developed countries. The securities laws of emerging market countries may be relatively new and unsettled and, consequently, there is a risk of rapid and unpredictable change in laws regarding foreign investment, securities regulation, title to securities and shareholder rights. Global factors and foreign actions may inhibit the flow of foreign capital on which a country is dependent to sustain its growth. In general, securities markets of emerging countries are less liquid, are especially subject to greater price volatility, have smaller market capitalizations, and have problems with securities registration and custody. These securities markets also have less government regulation and are not subject to as extensive and frequent accounting, financial and other reporting requirements as the securities markets of more developed countries. In addition, because the securities settlement procedures are less developed in these countries, a Fund may be required to deliver securities before receiving payment and also may be unable to complete transactions during market disruptions. As a result of these and other risks, investments in these countries generally present a greater risk of loss to a Fund.

Japan Investment Risk

The FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, and FlexShares Developed Markets ex-US Quality Low Volatility Index Fund expects to have significant investment in securities of Japanese issuers. The Japanese economy may be subject to considerable degrees of economic, political and social instability, which could negatively impact Japanese issuers. In recent times, Japan’s economic growth rate has remained low, and it may remain low in the future. In addition, Japan is subject to the risk of natural disasters, such as earthquakes, volcanic eruptions, typhoons and tsunamis, which could negatively affect a Fund. The growth of Japan’s economy has historically lagged that of its Asian neighbors and other major developed economies. The Japanese economy is heavily dependent on international trade and has been adversely affected by trade tariffs, other protectionist measures, competition from emerging economies and the economic conditions of its trading partners. Japan’s relations with its neighbors, particularly China, North Korea, South Korea and Russia, have at times been strained due to territorial disputes, historical animosities and defense concerns. Most recently, the Japanese government has shown concern over the increased nuclear and military activity by North Korea. Strained relations may cause uncertainty in the Japanese markets and adversely affect the overall Japanese economy in times of crisis. China has become an important trading partner with Japan, yet the countries’ political relationship has become strained. Should political tension increase, it could adversely affect the economy, especially the export sector, and destabilize the region as a whole.

U.S. Issuer Risk

The FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares US Quality Large Cap Index Fund, FlexShares STOXX US ESG Select Index Fund, FlexShares STOXX Global ESG Select Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund, FlexShares Quality Dividend Index Fund, FlexShares Quality Dividend Defensive Index Fund, FlexShares Quality Dividend Dynamic Index Fund, FlexShares Disciplined Duration MBS Index Fund, FlexShares Credit-Scored U.S. Corporate Bond Index Fund, FlexShares Credit-Scored US Long Corporate Bond Index Fund,


		FLEXSHARES SEMIANNUAL REPORT			389

Supplemental Information (cont.)

FlexShares High Yield Value-Scored Bond Index Fund, FlexShares US Quality Low Volatility Index Fund, FlexShares Ready Access Variable Income Fund, and FlexShares Core Select Bond Fund has significant exposure to U.S. issuers. Decreasing imports or exports, changes in trade regulations and/or an economic recession in the United States may have a material adverse effect on the U.S. economy. The financial crisis that began in 2007 caused a significant decline in the value and liquidity of issuers in the United States. Policy and legislative changes in the United States are changing many aspects of financial and other regulation and may have a significant effect on the U.S. markets generally, as well as the value of certain securities. In addition, a continued rise in the U.S. public debt level or U.S. austerity measures may adversely affect U.S. economic growth and the securities to which the Funds have exposure.

The following risks apply to the FlexShares Quality Dividend Index Fund, FlexShares Quality Dividend Defensive Index Fund, FlexShares Quality Dividend Dynamic Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, and FlexShares International Quality Dividend Dynamic Index Fund:

Dividend Risk

The Fund is subject to the risk that an issuer of stock held by a Fund may choose not to declare a dividend or the dividend rate might not remain at current levels. Dividend paying stocks might not experience the same level of earnings growth or capital appreciation as non-dividend paying stocks. A Fund’s performance during a broad market advance could suffer because dividend paying stocks may not experience the same capital appreciation as non-dividend paying stocks.

Volatility Risk

The Fund is subject to the risk that the actual level of volatility experienced by a Fund may be greater or lower than the targeted overall volatility of the Fund’s Underlying Index. Although a Fund’s Underlying Index is designed to have a targeted overall volatility, there is no guarantee that it will have the targeted overall volatility. A Fund will continue to seek to track the Underlying Index even if the Underlying Index does not have the targeted overall volatility. There is also the risk that a Fund may experience volatility greater or lower than that of the Underlying Index as a result of tracking error. A portfolio of securities with greater volatility is generally considered to have a higher risk profile than a portfolio with lower volatility.

The following risk applies to the FlexShares Global Quality Real Estate Index Fund (which is also an Underlying Fund of the FlexShares Real Assets Allocation Index Fund):

Real Estate Securities Risk

The Fund is subject to the risks associated with investment in the real estate sector in addition to the general risk of the stock market. Investing in securities of real estate companies will make the Fund more susceptible to risks associated with the ownership of real estate and with the real estate industry in general, as well as risks that relate specifically to the way in which real estate companies are organized and operated. Real estate companies may have lower trading volumes and may be subject to more abrupt or erratic price movements than the overall securities markets. The value of real estate securities may underperform other sectors of the economy or broader equity markets. To the extent that the Fund concentrates its investments in the real estate sector, it may be subject to greater risk of loss than if it were diversified across different industry sectors.

The following risk applies to the FlexShares Global Quality Real Estate Index Fund (which is also an Underlying Fund of FlexShares Real Assets Allocation Index Fund) and FlexShares STOXX^® Global Broad Infrastructure Index Fund:


390		FLEXSHARES SEMIANNUAL REPORT

Supplemental Information (cont.)

Real Estate Investment Trust (REIT) Risk

The Fund is subject to the risk that the Fund’s investments will be affected by factors affecting REITs and the real estate sector generally. Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real estate industry in general. REITs whose underlying properties are concentrated in a particular industry or geographic region are also subject to risks affecting such industries and regions. By investing in REITs through the Fund, a shareholder will bear expenses of the REITs in addition to expenses of the Fund.

The following risk apply to the FlexShares Real Assets Allocation Index Fund:

Fund of Funds Risk (or Underlying Funds Risk)

The Fund is subject to the risk that the Fund’s investment performance largely depends on the investment performance of the Underlying Fund(s) in which it primarily invests. The Fund’s NAV will change with changes in the value of the Underlying Fund(s) and other securities in which the Fund invests based on their market valuations.

An investment in the Fund will entail more costs and expenses than direct investments in the Underlying Fund(s). The Fund will indirectly pay a proportional share of the expenses of the Underlying Fund(s) in which it invests (including operating expenses and management fees), in addition to the fees and expenses it pays directly. As the Fund’s allocation to an Underlying Fund changes from time to time, or to the extent that the expense ratio of an Underlying Fund changes, the weighted average operating expenses borne by the Fund may increase or decrease.

The following risks apply to the FlexShares Disciplined Duration MBS Index Fund, FlexShares Credit-Scored US Corporate Bond Index Fund, FlexShares Credit-Scored US Long Corporate Bond Index Fund, FlexShares High Yield Value-Scored Bond Index Fund, FlexShares Ready Access Variable Income Fund, and FlexShares Core Select Bond Fund:

Credit (or Default) Risk

The Fund is subject to the risk that the inability or unwillingness of an issuer or guarantor of a fixed-income security, or a counterparty to a TBA, repurchase or other transaction, to meet its payment or other financial obligations will adversely affect the value of the Fund’s investments and its returns. The credit quality of a debt security or of the issuer of a debt security held by the Fund could deteriorate rapidly, which may impair the Fund’s liquidity or cause a deterioration in the Fund’s NAV. The Fund could also be delayed or hindered in its enforcement of rights against an issuer, guarantor or counterparty. The degree of credit risk depends on the issuer’s or counterparty’s financial condition and on the terms of the securities.

Debt Extension Risk

The Fund is subject to the risk that an issuer will exercise its right to pay principal on an obligation held by the Fund (such as a mortgage-backed security) later than expected. This may happen during a period of rising interest rates. Under these circumstances, the value of the obligation will decrease and the Fund will suffer from the inability to invest in higher yielding securities.

Liquidity Risk

The Fund is subject to the risk that certain portfolio securities may be less liquid than others, which may make them difficult or impossible to sell at the time and the price that the Fund would like, adversely affecting the value of the Fund’s investments and its returns.


		FLEXSHARES SEMIANNUAL REPORT			391

Supplemental Information (cont.)

Prepayment (or Call) Risk

The Fund is subject to the risk that prepayment of the underlying mortgages or other collateral of some fixed-income securities may result in a decreased rate of return and a decline in value of those securities.

U.S. Government Securities Risk

The FlexShares Disciplined Duration MBS Index Fund, FlexShares Ready Access Variable Income Fund and FlexShares Core Select Bond Fund are subject to the risk that the U.S. government will not provide financial support to its agencies, instrumentalities or sponsored enterprises if it is not obligated to do so by law. Many U.S. government securities that may be purchased by the Fund are not backed by the full faith and credit of the United States. It is possible that the issuers of such securities will not have the funds to meet their payment obligations in the future.

Mortgage-Related and Other Asset-Backed Risks

The FlexShares Ready Access Variable Income Fund and FlexShares Core Select Bond Fund is subject to the risks of investing in mortgage-related and other asset-backed securities, including Interest Rate/Maturity Risk, Debt Extension Risk and Prepayment (or Call) Risk.

The following risk applies to the FlexShares Disciplined Duration MBS Index Fund:

Mortgage Backed Pass-Through Securities Risk

The Fund is subject to the risk of investing in mortgage-backed securities issued by a U.S. Agency. These securities may not be backed by the full faith and credit of the U.S. government. Mortgage-backed securities are subject to Credit (or Default) Risk, Interest Rate/ Maturity Risk, Debt Extension Risk and Prepayment (or Call) Risk. Because of these risks, mortgage-backed securities react differently to changes in interest rates than other bonds. Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of certain mortgage-backed securities.

The following risks apply to the FlexShares High Yield Value-Scored Bond Index Fund:

Distressed Securities Risk

Distressed securities risk is the substantial risk of investing in distressed securities that is in addition to the risks of investing in non-investment grade securities generally. NTI defines securities issued by companies whose financial condition is troubled or uncertain and that may be involved in bankruptcy proceedings, reorganizations or financial restructurings as “distressed securities.” Distressed securities are speculative and involve a substantial risk that principal will not be paid. In addition, the Fund will generally not receive interest payments on the distressed securities and may incur costs to protect its investment. These securities may present a substantial risk of default. The Fund may incur additional expenses to the extent it is required to seek recovery upon a default in the payment of principal of or interest on its portfolio holdings. In any reorganization or liquidation proceeding relating to a portfolio company, the Fund may lose its entire investment or may be required to accept cash or securities with a value less than its original investment. Distressed securities and any securities received in an exchange for such securities may be subject to restrictions on resale.

High Yield Securities Risk

High yield securities risk is the risk that the Fund will be subject to greater credit risk, price volatility and risk of loss than if it invested primarily in investment grade securities, which can adversely impact the Fund’s return and net asset value. High yield securities are considered highly speculative and are subject to increased risk of an issuer’s inability to make principal and


392		FLEXSHARES SEMIANNUAL REPORT

Supplemental Information (cont.)

interest payments. The Fund’s Underlying Index is designed to be comprised of securities with the potential for higher yields as compared to the overall high yield corporate bond market. As such, the Fund is expected to exhibit greater sensitivity to market fluctuations.

Substantial Volatility Risk

Substantial volatility risk is the risk that the value of the securities in the Fund’s portfolio may fluctuate, sometimes rapidly and unpredictably at a greater level than the overall market. There is a risk that the Fund could have substantial volatility.

Value Score Risk

Value score risk is the risk that the Fund’s investment in companies whose securities are believed to be undervalued will not appreciate in value as anticipated. Although the Underlying Index is designed to measure a portfolio of bonds of companies with the potential for higher yields and less risk of insolvency relative to the Parent Index, there is no assurance that the Underlying Index or Fund will be comprised of such securities. Accordingly, the Fund may be subject to greater credit risk, price volatility and risk of loss relative to the Parent Index.

The following risk applies to the FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, FlexShares International Quality Dividend Dynamic Index Fund, FlexShares Credit-Scored US Corporate Bond Index Fund, FlexShares Credit-Scored US Long Corporate Bond Index Fund, FlexShares Ready Access Variable Income Fund, FlexShares Core Select Bond Fund, FlexShares US Quality Low Volatility Index Fund, FlexShares Developed Markets ex-US Quality Low Volatility Index Fund, and FlexShares Emerging Markets Quality Low Volatility Index Fund:

Financial Sector Risk

The Fund is subject to the risk that the Fund will be impacted by events affecting the U.S. and/or non-U.S. financial sectors if it invests a relatively large percentage of its assets in those sectors, adversely affecting the Fund’s performance. The U.S. and non-U.S. financial sectors can be significantly affected by changes in interest rates, government regulation, the rate of corporate and consumer debt defaulted, price competitions and the availability and cost of capital funds, among other factors. The impact of changes in capital requirements and recent or future regulation of any individual financial company, or of the financials sector as a whole, cannot be predicted. In recent years, cyberattacks and technology malfunctions and failures have become increasingly frequent in this sector and have caused significant losses to companies in this sector, which may negatively impact the Fund.

The following risk applies to the FlexShares US Quality Low Volatility Index Fund, FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares US Quality Large Cap Index Fund, FlexShares STOXX US ESG Select Index Fund, FlexShares STOXX Global ESG Select Index Fund, FlexShares Quality Dividend Index Fund, FlexShares Quality Dividend Defensive Index Fund, and FlexShares Quality Dividend Dynamic Index Fund:

Information Technology Sector Risk

The Fund is subject to the risk that the Fund will be impacted by events affecting the U.S. information technology sector if it invests a relatively large percentage of its assets in that sector, adversely affecting the Fund’s price.

The following risk applies to the FlexShares US Quality Low Volatility Index Fund, FlexShares Developed Markets ex-US Quality Low Volatility Index Fund, FlexShares Emerging Markets Quality Low Volatility Index Fund, FlexShares Morningstar US Market


		FLEXSHARES SEMIANNUAL REPORT			393

Supplemental Information (cont.)

Factor Tilt Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares US Quality Large Cap Index Fund, FlexShares STOXX US ESG Select Index Fund, FlexShares STOXX Global ESG Select Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund, FlexShares Quality Dividend Index Fund, FlexShares Quality Dividend Defensive Index Fund, FlexShares Quality Dividend Dynamic Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, and FlexShares International Quality Dividend Dynamic Index Fund:

Equity Securities Risk

Each Fund invests in equity securities, primarily in the form of common stocks. Each of these Funds may also invest in preferred stocks and REITs. Preferred stocks are securities that represent an ownership interest providing the holder with claims on the issuer’s earnings and assets before common stock owners but after bond owners. REITs are pooled investment vehicles that invest primarily in real estate or real estate related loans.

Equity securities are subject to changes in value that may be attributable to market perception of a particular issuer, general stock market fluctuations that affect all issuers, or as a result of such factors as a company’s business performance, investor perceptions, stock market trends and general economic conditions. The equity securities owned by a Fund may be more volatile and underperform other asset classes and the general securities markets.

The following risks apply to the FlexShares US Quality Low Volatility Index Fund, FlexShares Developed Markets ex-US Quality Low Volatility Index Fund, and FlexShares Emerging Markets Quality Low Volatility Index Fund:

Large Shareholder Risk

Certain shareholders, including other funds advised by the Investment Adviser, may from time to time own a substantial amount of the Fund’s shares. In addition, a third party investor, the Investment Adviser or an affiliate of the Investment Adviser, an authorized participant, a lead market maker, or another entity may invest in the Fund and hold its investment for a limited period of time solely to facilitate commencement of the Fund or to facilitate the Fund’s achieving a specified size or scale. There can be no assurance that any large shareholder would not redeem its investment, that the size of the Fund would be maintained at such levels or that the Fund would continue to meet applicable listing requirements. Redemptions by large shareholders could have a significant negative impact on the Fund. In addition, transactions by large shareholders may account for a large percentage of the trading volume on Fund’s listing exchange and may, therefore, have a material upward or downward effect on the market price of the shares.

To the extent a significant percentage of the shares of a Fund are owned or controlled by a small number of account shareholders (or a single account shareholder), including funds or accounts over which the Investment Adviser or an affiliate of the Investment Adviser has investment discretion, the Fund is subject to the risk that those shareholders may purchase or redeem Fund shares in significant amounts rapidly or unexpectedly, including as a result of an asset allocation decision made by the Investment Adviser or an affiliate of the Investment Adviser and may adversely affect a Fund’s performance if the Investment Adviser is forced to sell portfolio securities or invest cash when the Investment Adviser would not otherwise choose to do so. Redemptions of a large number of shares may affect the liquidity of a Fund’s portfolio, increase the Fund’s transaction costs, and accelerate the realization of taxable income and/or gains.


394		FLEXSHARES SEMIANNUAL REPORT

Supplemental Information (cont.)

Low Volatility Risk

Although the Underlying Index is designed to have overall volatility that is lower than that of the Parent Index, there is no guarantee it will be successful. Securities or other assets in the Fund’s portfolio may be subject to price volatility and the prices may not be any less volatile than the market as a whole and could be more volatile. Events or financial circumstances affecting individual securities or sectors may increase the volatility of a Fund. The price of a security may fluctuate due to factors affecting markets generally or particular industries. The market prices of the securities or other assets in a Fund’s portfolio may fluctuate, sometimes rapidly and unpredictably. The Fund will continue to seek to track the Underlying Index even if the Underlying Index does not have lower overall volatility than the Parent Index. There is also the risk that a Fund may experience volatility greater than that of its Parent Index as a result of tracking error. A portfolio of securities with greater volatility is generally considered to have a higher risk profile than a portfolio with lower volatility. In addition, a large redemption could result in a Fund’s current expenses being allocated over a smaller asset base, leading to an increase in the Fund’s gross expense ratio. Large purchases of a Fund’s shares may also adversely affect the Fund’s performance to the extent that a Fund is delayed in investing new cash or otherwise maintains a larger cash position than it ordinarily would to the extent that the Fund accepts cash for an order for the purchase of creation units of the Fund’s shares.

Passive Investment Risk

The FlexShares US Quality Low Volatility Index Fund, FlexShares Developed Markets ex-US Quality Low Volatility Index Fund, FlexShares Emerging Markets Quality Low Volatility Index Fund, FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares US Quality Large Cap Index Fund, FlexShares STOXX US ESG Select Index Fund, FlexShares STOXX Global ESG Select Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund, FlexShares Quality Dividend Index Fund, FlexShares Quality Dividend Defensive Index Fund, FlexShares Quality Dividend Dynamic Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, FlexShares International Quality Dividend Dynamic Index Fund, FlexShares iBoxx 3-Year Target Duration TIPS Index Fund, FlexShares iBoxx 5-Year Target Duration TIPS Index Fund, FlexShares Disciplined Duration MBS Index Fund, FlexShares Credit-Scored U.S. Corporate Bond Index Fund, FlexShares Credit-Scored US Long Corporate Bond Index Fund, and FlexShares High Yield Value-Scored Bond Index Fund are not actively managed. Each Fund may be affected by a general decline in the market segments relating to its Underlying Index. Each Fund invests in securities included in, or representative of, its Underlying Index regardless of their investment merit. NTI does not attempt to take defensive positions in any market conditions, including declining markets.

Premium/Discount Information

Information about the differences between the daily market prices on secondary markets for shares of the Funds and the Funds’ net asset values for various time periods, as applicable, is available by visiting the Funds’ website at flexshares.com.


		FLEXSHARES SEMIANNUAL REPORT			395

For More Information (Unaudited)

Portfolio Holdings

FlexShares^®Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year an exhibit to its reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov.

Proxy Voting

FlexShares^® Trust Proxy Voting Policies and Procedures are available upon request and without charge by calling 1-855-FLEXETF (1-855-353-9383) or by visiting the Funds’ website flexshares.com or the SEC’s website at sec.gov. Each Fund’s portfolio securities voting record for the 12-month period ended June 30 is available upon request and without charge by calling 1-855-FLEXETF (1-855-353-9383) or by visiting the SEC’s website at sec.gov.


396		FLEXSHARES SEMIANNUAL REPORT

LOGO

FlexShares^® Trust

50 S. LaSalle Street

Chicago, IL 60603

800.595.9111

www.flexshares.com

FlexShares^® is a registered trademark of NTI. Morningstar^® is a registered trademark of Morningstar, Inc. (“Morningstar”). Morningstar^® US Market Factor Tilt Index^SM, Morningstar^® Developed Markets ex-US Factor Tilt Index^SM, Morningstar^® Emerging Markets Factor Tilt Index^SM, and Morningstar^® Global Upstream Natural Resources Index^SM are service marks of Morningstar, Inc. STOXX and its licensors (the “Licensors”) have no relationship to FlexShares^® Trust other than the licensing of the STOXX^® USA ESG Select KPIs Index, STOXX^® Global ESG Select KPIs Index and STOXX^® Global Broad Infrastructure Index and the related trademarks for use in connection with the FlexShares^® STOXX^® US ESG Select Index Fund, FlexShares^® STOXX^® Global ESG Select Index Fund and FlexShares^®STOXX^® Global Broad Infrastructure Index Fund, respectively. The iBoxx 3-Year Target Duration TIPS Index and iBoxx 5-Year Target Duration TIPS Index are each the property of Markit North America, Inc. (“Markit”) and have been licensed for use in connection the FlexShares iBoxx 3-Year Target Duration TIPS Index Fund and the FlexShares iBoxx 5-Year Target Duration TIPS Index Fund, respectively. Northern Trust Quality Low Volatility Index^SM, Northern Trust Developed Markets ex-US Quality Low Volatility Index^SM, Northern Trust Emerging Markets Quality Low Volatility Index^SM, Northern Trust Quality Large Cap Index^SM, Northern Trust Quality Dividend Index^SM, Northern Trust Quality Dividend Dynamic Index^SM, Northern Trust Quality Dividend Defensive Index^SM, Northern Trust International Quality Dividend Index^SM, Northern Trust Quality Dividend Dynamic Index^SM, Northern Trust International Quality Dividend Defensive Index^SM, Northern Trust Global Quality Real Estate Index^SM, Northern Trust Credit-Scored US Corporate Bond Index^SM, Northern Trust Credit-Scored US Long Corporate Bond Index^SM, Northern Trust Real Assets Allocation Index^SM, Northern Trust High Yield US Corporate Bond Index^SM, and Northern Trust High Yield Value-Scored US Corporate Bond Index^SM are service marks of NTI and have been licensed for use by FlexShares Trust. The ICE^® BofAML^® Constrained Duration US Mortgage Backed Securities Index^SM are trademarks of ICE Data Indices, LLC or its affiliates (“ICE”) and have been licensed for use by NTI.

FS00238-0621

Item 2. Code of Ethics.

Not applicable for this reporting period.

Item 3. Audit Committee Financial Expert.

Not applicable for this reporting period.

Item 4. Principal Accountant Fees and Services.

Not applicable for this reporting period.

Item 5. Audit Committee of Listed Registrants.

Not applicable for this reporting period.

Item 6. Investments.

(a)	Schedule I – Investments in Securities of Unaffiliated Issuers.

The complete schedule of investments is included in the report to shareholders in Item 1 of this Form N-CSR.

(b)	Securities Divested of in accordance with Section 13(c) of the Investment Company Act of 1940.

Not Applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not Applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not Applicable.

Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not Applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.

Item 11. Controls and Procedures.

(a)

The Registrant’s principal executive officer and principal financial officer, or persons performing similar functions, have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 as of a date within 90 days of the filing date of this report.

(b)

There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a—3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not Applicable.

Item 13. Exhibits.

(a)(1)

Not applicable for this reporting period.

(a)(2)

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(3)

Not Applicable.

(a)(4)

Not Applicable.

(b)	Certifications required by Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 is attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FlexShares^® Trust

By:

/s/Peter K. Ewing

Peter K. Ewing

President and Principal Executive Officer

July 2, 2021

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:

/s/Peter K. Ewing

Peter K. Ewing

President and Principal Executive Officer

July 2, 2021

By:

/s/Randal Rein

Randal Rein

Treasurer and Principal Financial Officer

July 2, 2021

FlexShares Trust (QLC) N-CSRSCertified semi-annual shareholder report (management investment company)