FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund (TLTD), are poised to do very well in the U.S. and the international space. There are a few reasons for this. Historically, looking at the macro picture during recovery tends to be the prime time for the size and value factors. The stocks tend to be very depressed in the perceiving contraction. Coming out of that contraction, they tend to do quite well. From an interest rate perspective, things also look very good. “When they have a situation that we’re in right now of a bare steepening yield curve,” Hunstad explains, “You generally have a positive outlook on longer-term growth, and not a lot of risk of that central bank engineered contraction. That’s very good for both the size and the value factors.”