FlexShares Trust

LOGO

FlexShares^® Trust

Semiannual Report

April 30, 2022

LOGO

Table of Contents



Statements of Assets and Liabilities			2

Statements of Operations			10

Statements of Changes in Net Assets			18

Financial Highlights			34

Schedules of Investments			67

FlexShares^® US Quality Low Volatility Index Fund			67

FlexShares^® Developed Markets ex-US Quality Low Volatility Index Fund			71

FlexShares^® Emerging Markets Quality Low Volatility Index Fund			78

FlexShares^® Morningstar US Market Factor Tilt Index Fund			83

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund			125

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund			172

FlexShares^® US Quality Large Cap Index Fund			221

FlexShares^® STOXX^® US ESG Select Index Fund			226

FlexShares^® STOXX^® Global ESG Select Index Fund			233

FlexShares^® ESG & Climate US Large Cap Core Index Fund			248

FlexShares^® ESG & Climate Developed Markets ex-US Core Index Fund			253

FlexShares^® ESG & Climate Emerging Markets Core Index Fund			262

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund			268

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund			275

FlexShares^® Global Quality Real Estate Index Fund			282

FlexShares^® Real Assets Allocation Index Fund			287

FlexShares^® Quality Dividend Index Fund			288

FlexShares^® Quality Dividend Defensive Index Fund			293

FlexShares^® Quality Dividend Dynamic Index Fund			298

FlexShares^® International Quality Dividend Index Fund			305

FlexShares^® International Quality Dividend Defensive Index Fund			310

FlexShares^® International Quality Dividend Dynamic Index Fund			317

FlexShares^® iBoxx 3-Year Target Duration TIPS Index Fund			324

FlexShares^® iBoxx 5-Year Target Duration TIPS Index Fund			325

FlexShares^® Disciplined Duration MBS Index Fund			326

FlexShares^® Credit-Scored US Corporate Bond Index Fund			331

FlexShares^® Credit-Scored US Long Corporate Bond Index Fund			347

FlexShares^® High Yield Value-Scored Bond Index Fund			356

FlexShares^® ESG & Climate High Yield Corporate Core Index Fund			375

FlexShares^® ESG & Climate Investment Grade Corporate Core Index Fund			390

FlexShares^® Ready Access Variable Income Fund			399

FlexShares^® Core Select Bond Fund			412

Notes to the Financial Statements			415

Fund Expenses			463

Liquidity Risk Management Program			467

Approval of Advisory Agreement			468

Supplemental Information			471

For More Information			484

LOGO

FlexShares^® Trust

Statements of Assets and Liabilities April 30, 2022 (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	$	140,491,034	$	66,363,409	$	14,445,142		$	942,368,425
Affiliate securities, at cost		—		—		—			457,315
Securities Lending Reinvestments, at cost		—		968,888		—			224,504,072

Securities, at value†		159,611,468		67,897,986		14,728,604			1,487,531,138
Affiliate securities, at value		—		—		—			639,322
Securities Lending Reinvestments, at value		—		968,888		—			224,509,853
Cash		1,915,287		296,153		140,681			8,181,959
Cash segregated at broker*		5,266		121,465		25,220			889,559
Foreign cash††		—		494,578		75,429			—
Restricted cash**		—		—		—			—
Due from Authorized Participant		—		—		—			—
Unrealized appreciation on forward foreign currency contracts		—		46,852		—			—
Receivables:
Dividends and interest		109,539		497,488		25,636			951,748
Securities lending income		755		663		—			38,534
Capital shares issued		—		—		—			—
Investment adviser		601		298		56			6,657
Securities sold		—		—		—			—
Variation margin on futures contracts		—		—		1,456			—

Total Assets		161,642,916		70,324,371		14,997,082			1,722,748,770


LIABILITIES
Cash overdraft		—		—		—			—
Unrealized depreciation on forward foreign currency contracts		—		19,702		7			—
Due to brokers		36,890		—		—			—
Payables:
Cash collateral received from securities loaned		—		968,888		—			224,498,570
Deferred compensation (Note 7)		6,668		3,769		670			160,443
Investment advisory fees (Note 4)		30,557		19,272		4,981			326,831
Trustee fees (Note 7)		1,318		649		139			15,215
Securities purchased		—		—		—			302,616
Deferred non-US capital gains taxes		—		—		26,014			—
Due to Authorized Participant		—		—		—			—
Variation margin on futures contracts		44,808		44,736		—			452,746
Capital shares redeemed		—		—		—			1,708
Other		700		2,250		—			1,500

Total Liabilities		120,941		1,059,266		31,811			225,759,629

Net Assets	$	161,521,975	$	69,265,105	$	14,965,271		$	1,496,989,141


NET ASSETS CONSIST OF:
Paid-in capital	$	138,978,179	$	68,069,095	$	15,170,847		$	912,802,399
Distributable earnings (loss)		22,543,796		1,196,010		(205,576	)		584,186,742

Net Assets	$	161,521,975	$	69,265,105	$	14,965,271		$	1,496,989,141


Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)		3,100,001		2,700,001		600,001			9,400,001
Net Asset Value	$	52.10	$	25.65	$	24.94		$	159.25

† Securities on loan, at value	$	8,082,484	$	1,820,532	$	—		$	273,615,671
†† Cost of foreign cash	$	—	$	509,148	$	75,724		$	—

*	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	$	497,335,966		$	240,653,989		$	121,600,985	$	171,124,663
Affiliate securities, at cost		—			—			—		126,155
Securities Lending Reinvestments, at cost		20,154,710			1,939,381			—		248,877

Securities, at value†		541,709,255			268,198,880			138,992,889		180,067,420
Affiliate securities, at value		—			—			—		112,840
Securities Lending Reinvestments, at value		20,154,710			1,939,381			—		248,877
Cash		2,907,819			152,492			1,706,009		667,652
Cash segregated at broker*		1,303,381			155,851			295,182		95,953
Foreign cash††		4,620,790			348,121			—		—
Restricted cash**		—			—			—		—
Due from Authorized Participant		—			—			—		—
Unrealized appreciation on forward foreign currency contracts		145,305			34,473			—		—
Receivables:
Dividends and interest		5,222,318			737,952			106,364		156,018
Securities lending income		38,309			12,346			1,101		762
Capital shares issued		—			—			1,186,821		—
Investment adviser		2,613			1,414			598		846
Securities sold		10,873,352			66,126			—		—
Variation margin on futures contracts		130,532			—			—		—

Total Assets		587,108,384			271,647,036			142,288,964		181,350,368


LIABILITIES
Cash overdraft		—			—			—		—
Unrealized depreciation on forward foreign currency contracts		264,535			8,641			—		—
Due to brokers		—			—			—		—
Payables:
Cash collateral received from securities loaned		20,154,710			1,939,381			—		248,877
Deferred compensation (Note 7)		91,412			45,819			6,663		8,145
Investment advisory fees (Note 4)		187,985			138,090			38,806		50,862
Trustee fees (Note 7)		5,706			2,992			1,164		1,587
Securities purchased		3,877			69			1,162,180		—
Deferred non-US capital gains taxes		—			824,320			—		—
Due to Authorized Participant		—			3,469			—		—
Variation margin on futures contracts		—			29,584			56,016		49,363
Capital shares redeemed		12,872,599			—			—		—
Other		13,500			50,000			2,500		—

Total Liabilities		33,594,324			3,042,365			1,267,329		358,834

Net Assets	$	553,514,060		$	268,604,671		$	141,021,635	$	180,991,534


NET ASSETS CONSIST OF:
Paid-in capital	$	611,403,371		$	302,405,456		$	125,063,483	$	167,061,361
Distributable earnings (loss)		(57,889,311	)		(33,800,785	)		15,958,152		13,930,173

Net Assets	$	553,514,060		$	268,604,671		$	141,021,635	$	180,991,534


Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)		8,600,001			5,000,001			3,075,001		1,825,001
Net Asset Value	$	64.36		$	53.72		$	45.86	$	99.17

† Securities on loan, at value	$	79,077,868		$	9,267,693		$	10,583,830	$	3,994,982
†† Cost of foreign cash	$	4,790,050		$	335,967		$	—	$	—

*	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^® ESG & Climate US Large Cap Core Index Fund			FlexShares^® ESG & Climate Developed Markets ex-US Core Index Fund			FlexShares^® ESG & Climate Emerging Markets Core Index Fund

ASSETS
Securities, at cost	$	141,113,185		$	13,715,807		$	19,041,956		$	4,943,860
Affiliate securities, at cost		—			—			—			—
Securities Lending Reinvestments, at cost		2,134,066			—			—			—

Securities, at value†		162,192,893			12,976,705			17,759,098			4,831,794
Affiliate securities, at value		—			—			—			—
Securities Lending Reinvestments, at value		2,134,066			—			—			—
Cash		765,397			86,523			119,601			62,950
Cash segregated at broker*		175,072			200			41,040			6,998
Foreign cash††		626,875			1,022			67,947			1,363
Restricted cash**		429	⁽¹⁾		—			11,524			441,975
Due from Authorized Participant		—			—			—			—
Unrealized appreciation on forward foreign currency contracts		48,271			—			11,248			—
Receivables:
Dividends and interest		482,476			7,047			57,615			1,394
Securities lending income		2,330			—			—			—
Capital shares issued		—			—			—			—
Investment adviser		815			—			44			2
Securities sold		4,490,739			—			271			—
Variation margin on futures contracts		—			—			—			—

Total Assets		170,919,363			13,071,497			18,068,388			5,346,476


LIABILITIES
Cash overdraft		—			—			—			—
Unrealized depreciation on forward foreign currency contracts		12,365			—			12,994			—
Due to brokers		—			—			—			—
Payables:
Cash collateral received from securities loaned		2,134,495			—			—			—
Deferred compensation (Note 7)		9,483			30			60			—
Investment advisory fees (Note 4)		59,538			722			1,661			240
Trustee fees (Note 7)		1,615			10			46			8
Securities purchased		4,876,451			27,193			79			—
Deferred non-US capital gains taxes		—			—			—			34
Due to Authorized Participant		—			—			11,524			441,975
Variation margin on futures contracts		72,291			2,548			7,383			1,545
Capital shares redeemed		—			—			—			—
Other		13,000			2,500			13,500			—

Total Liabilities		7,179,238			33,003			47,247			443,802

Net Assets	$	163,740,125		$	13,038,494		$	18,021,141		$	4,902,674


NET ASSETS CONSIST OF:
Paid-in capital	$	135,703,467		$	13,788,265		$	19,322,886		$	5,000,000
Distributable earnings (loss)		28,036,658			(749,771	)		(1,301,745	)		(97,326	)

Net Assets	$	163,740,125		$	13,038,494		$	18,021,141		$	4,902,674


Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)		1,250,001			275,000			400,000			100,000
Net Asset Value	$	130.99		$	47.41		$	45.05		$	49.03

† Securities on loan, at value	$	9,543,032		$	—		$	—		$	—
†† Cost of foreign cash	$	644,419		$	1,051		$	69,511		$	1,376

*	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.

⁽¹⁾

Uninvested cash collateral received for securities on loan in the amount of $429.

See Accompanying Notes to the Financial Statements.


4		FLEXSHARES SEMIANNUAL REPORT

Statements of Assets and Liabilities (cont.)


	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

ASSETS
Securities, at cost	$	6,127,170,314	$	2,321,364,371		$	369,596,680	$	—
Affiliate securities, at cost		—		—			—		51,938,053
Securities Lending Reinvestments, at cost		202,359,834		38,469,275			6,052,675		—

Securities, at value†		8,090,675,445		2,520,492,194			405,054,763		—
Affiliate securities, at value		—		—			—		52,218,833
Securities Lending Reinvestments, at value		202,364,005		38,469,275			6,052,675		—
Cash		21,917,643		5,818,003			11,047,912		2,130
Cash segregated at broker*		4,831,220		3,299,588			1,401,965		—
Foreign cash††		7,844,669		5,340,092			2,056,825		—
Restricted cash**		80,357		472,628	⁽¹⁾		—		—
Due from Authorized Participant		117,365		—			—		—
Unrealized appreciation on forward foreign currency contracts		2,243,935		1,093,330			13,046		—
Receivables:
Dividends and interest		21,566,199		6,316,072			698,897		—
Securities lending income		48,761		34,334			5,302		—
Capital shares issued		13,500,535		—			—		—
Investment adviser		24,031		10,359			1,795		138
Securities sold		4,433,543		3,710,928			13,394		1,348,611
Variation margin on futures contracts		—		—			—		—

Total Assets		8,369,647,708		2,585,056,803			426,346,574		53,569,712


LIABILITIES
Cash overdraft		—		—			—		—
Unrealized depreciation on forward foreign currency contracts		2,246,482		1,154,235			84,549		—
Due to brokers		—		—			—		—
Payables:
Cash collateral received from securities loaned		202,348,694		38,480,637			6,052,675		—
Deferred compensation (Note 7)		568,944		168,757			31,415		1,008
Investment advisory fees (Note 4)		3,115,096		1,022,232			163,452		5,503
Trustee fees (Note 7)		40,060		22,364			3,515		116
Securities purchased		13,176,214		7,688			—		1,357,358
Deferred non-US capital gains taxes		1,204,319		1,413,613			—		—
Due to Authorized Participant		80,357		1,465,300			—		—
Variation margin on futures contracts		1,580,640		641,389			314,712		—
Capital shares redeemed		4,514,160		2,729,005			—		—
Other		49,500		10,000			2,000		—

Total Liabilities		228,924,466		47,115,220			6,652,318		1,363,985

Net Assets	$	8,140,723,242	$	2,537,941,583		$	419,694,256	$	52,205,727


NET ASSETS CONSIST OF:
Paid-in capital	$	7,051,246,245	$	2,458,245,199		$	394,147,294	$	52,232,038
Distributable earnings (loss)		1,089,476,997		79,696,384			25,546,962		(26,311	)

Net Assets	$	8,140,723,242	$	2,537,941,583		$	419,694,256	$	52,205,727


Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)		180,900,001		46,500,001			6,300,001		1,575,001
Net Asset Value	$	45.00	$	54.58		$	66.62	$	33.15

† Securities on loan, at value	$	543,174,950	$	130,306,071		$	42,566,894	$	—
†† Cost of foreign cash	$	8,179,562	$	5,419,233		$	2,116,480	$	—

*	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.

⁽¹⁾

Uninvested cash collateral received for securities on loan in the amount of $11,362.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			5

Statements of Assets and Liabilities (cont.)


	FlexShares^® Quality Dividend Index Fund		FlexShares^® Quality Dividend Defensive Index Fund		FlexShares^® Quality Dividend Dynamic Index Fund		FlexShares^® International Quality Dividend Index Fund

ASSETS
Securities, at cost	$	1,327,698,109	$	337,126,729	$	17,097,999	$	563,553,925
Affiliate securities, at cost		—		—		—		—
Securities Lending Reinvestments, at cost		147,554,010		26,521,823		228,520		15,101,779

Securities, at value†		1,617,736,640		389,915,667		20,410,215		553,427,055
Affiliate securities, at value		—		—		—		—
Securities Lending Reinvestments, at value		147,555,458		26,521,823		228,520		15,101,779
Cash		7,960,699		4,608,540		211,300		6,088,953
Cash segregated at broker*		776,002		532,538		44,538		1,512,064
Foreign cash††		—		—		—		4,777,993
Restricted cash**		—		—		—		—
Due from Authorized Participant		—		—		—		—
Unrealized appreciation on forward foreign currency contracts		—		—		—		324,486
Receivables:
Dividends and interest		2,054,001		492,518		27,479		4,520,829
Securities lending income		39,908		9,476		487		28,562
Capital shares issued		—		—		—		—
Investment adviser		6,685		1,787		93		2,508
Securities sold		—		—		2,217		—
Variation margin on futures contracts		—		—		—		168,649

Total Assets		1,776,129,393		422,082,349		20,924,849		585,952,878


LIABILITIES
Cash overdraft		—		—		—		—
Unrealized depreciation on forward foreign currency contracts		—		—		—		471,165
Due to brokers		—		—		—		—
Payables:
Cash collateral received from securities loaned		147,549,869		26,521,823		228,520		15,101,779
Deferred compensation (Note 7)		178,024		43,153		6,093		73,676
Investment advisory fees (Note 4)		517,623		129,025		6,588		227,880
Trustee fees (Note 7)		13,813		3,886		189		5,339
Securities purchased		—		—		—		10,583
Deferred non-US capital gains taxes		—		—		—		—
Due to Authorized Participant		—		—		—		—
Variation margin on futures contracts		340,842		164,200		8,960		—
Capital shares redeemed		—		—		—		—
Other		6,000		4,250		750		8,500

Total Liabilities		148,606,171		26,866,337		251,100		15,898,922

Net Assets	$	1,627,523,222	$	395,216,012	$	20,673,749	$	570,053,956


NET ASSETS CONSIST OF:
Paid-in capital	$	1,313,665,811	$	335,213,884	$	16,700,838	$	724,658,056
Distributable earnings (loss)		313,857,411		60,002,128		3,972,911		(154,604,100	)

Net Assets	$	1,627,523,222	$	395,216,012	$	20,673,749	$	570,053,956


Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)		29,150,001		7,400,001		350,001		25,000,001
Net Asset Value	$	55.83	$	53.41	$	59.07	$	22.80

† Securities on loan, at value	$	195,375,435	$	37,545,141	$	1,202,024	$	52,163,598
†† Cost of foreign cash	$	—	$	—	$	—	$	4,859,556

*	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^® 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

ASSETS
Securities, at cost	$	60,098,632		$	79,879,120		$	2,166,008,617		$	823,613,215
Affiliate securities, at cost		—			—			—			—
Securities Lending Reinvestments, at cost		1,465,336			1,766,975			—			—

Securities, at value†		61,300,121			75,802,678			2,151,600,078			811,141,771
Affiliate securities, at value		—			—			—			—
Securities Lending Reinvestments, at value		1,465,336			1,766,975			—			—
Cash		195,829			966,768			491,403			158,433
Cash segregated at broker*		134,083			188,634			—			—
Foreign cash††		523,209			232,341			—			—
Restricted cash**		—			—			—			—
Due from Authorized Participant		—			—			—			—
Unrealized appreciation on forward foreign currency contracts		50,107			36,125			—			—
Receivables:
Dividends and interest		583,722			528,137			2,427,238			1,127,970
Securities lending income		3,763			6,056			3,434			3,703
Capital shares issued		—			—			—			5,306,928
Investment adviser		283			360			3,914			2,516
Securities sold		342,374			—			1,754,393			—
Variation margin on futures contracts		—			—			—			—

Total Assets		64,598,827			79,528,074			2,156,280,460			817,741,321


LIABILITIES
Cash overdraft		—			—			—			—
Unrealized depreciation on forward foreign currency contracts		3,639			4,996			—			—
Due to brokers		—			—			—			—
Payables:
Cash collateral received from securities loaned		1,465,336			1,766,975			—			—
Deferred compensation (Note 7)		9,781			5,951			259,068			94,231
Investment advisory fees (Note 4)		25,907			31,245			306,582			120,362
Trustee fees (Note 7)		632			632			9,102			5,541
Securities purchased		—			—			1,753,133			5,308,233
Deferred non-US capital gains taxes		—			28,216			—			—
Due to Authorized Participant		330,089			—			—			—
Variation margin on futures contracts		42,159			48,868			—			—
Capital shares redeemed		—			—			—			—
Other		3,500			3,500			—			—

Total Liabilities		1,881,043			1,890,383			2,327,885			5,528,367

Net Assets	$	62,717,784		$	77,637,691		$	2,153,952,575		$	812,212,954


NET ASSETS CONSIST OF:
Paid-in capital	$	84,671,666		$	95,694,025		$	2,190,678,485		$	818,744,665
Distributable earnings (loss)		(21,953,882	)		(18,056,334	)		(36,725,910	)		(6,531,711	)

Net Assets	$	62,717,784		$	77,637,691		$	2,153,952,575		$	812,212,954


Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)		2,900,001			2,900,001			83,804,000			30,600,001
Net Asset Value	$	21.63		$	26.77		$	25.70		$	26.54

† Securities on loan, at value	$	5,080,629		$	5,315,295		$	196,220,377		$	97,755,280
†† Cost of foreign cash	$	530,158		$	237,430		$	—		$	—

*	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^® 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

ASSETS
Securities, at cost	$	109,644,947		$	264,573,693		$	56,021,111		$	920,190,750
Affiliate securities, at cost		—			—			—			—
Securities Lending Reinvestments, at cost		—			—			—			—

Securities, at value†		102,737,009			242,634,200			46,122,793			852,591,488
Affiliate securities, at value		—			—			—			—
Securities Lending Reinvestments, at value		—			—			—			—
Cash		4,516,197			3,046,551			604,761			14,769,186
Cash segregated at broker*		—			—			—			—
Foreign cash††		—			—			—			—
Restricted cash**		—			—			—			—
Due from Authorized Participant		—			—			—			—
Unrealized appreciation on forward foreign currency contracts		—			—			—			—
Receivables:
Dividends and interest		299,285			2,176,164			577,397			15,988,229
Securities lending income		—			—			—			—
Capital shares issued		—			—			—			—
Investment adviser		419			1,219			238			2,284
Securities sold		7,422,473			10,293,639			2,940,480			72,884,924
Variation margin on futures contracts		—			—			—			—

Total Assets		114,975,383			258,151,773			50,245,669			956,236,111


LIABILITIES
Cash overdraft		—			—			—			—
Unrealized depreciation on forward foreign currency contracts		—			—			—			—
Due to brokers		—			—			—			—
Payables:
Cash collateral received from securities loaned		—			—			—			—
Deferred compensation (Note 7)		7,517			16,117			3,628			14,990
Investment advisory fees (Note 4)		18,182			45,715			8,885			262,802
Trustee fees (Note 7)		981			2,927			545			3,272
Securities purchased		6,905,561			11,942,357			3,256,159			79,449,553
Deferred non-US capital gains taxes		—			—			—			—
Due to Authorized Participant		—			—			—			—
Variation margin on futures contracts		—			—			—			—
Capital shares redeemed		—			—			—			—
Other		1,600			1,500			—			6,500

Total Liabilities		6,933,841			12,008,616			3,269,217			79,737,117

Net Assets	$	108,041,542		$	246,143,157		$	46,976,452		$	876,498,994


NET ASSETS CONSIST OF:
Paid-in capital	$	122,095,074		$	272,242,675		$	57,927,253		$	953,344,046
Distributable earnings (loss)		(14,053,532	)		(26,099,518	)		(10,950,801	)		(76,845,052	)

Net Assets	$	108,041,542		$	246,143,157		$	46,976,452		$	876,498,994


Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)		5,050,001			5,100,001			1,000,001			19,750,001
Net Asset Value	$	21.39		$	48.26		$	46.98		$	44.38

† 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

Statements of Assets and Liabilities (cont.)


	FlexShares^® ESG & Climate High Yield Corporate Core Index Fund			FlexShares^® ESG & Climate Investment Grade Corporate Core Index Fund			FlexShares^® Ready Access Variable Income Fund			FlexShares^® Core Select Bond Fund

ASSETS
Securities, at cost	$	28,972,681		$	50,547,346		$	649,815,804		$	99,696,307
Affiliate securities, at cost		—			—			—			55,521,156
Securities Lending Reinvestments, at cost		—			—			—			33,593,976

Securities, at value†		26,237,737			43,698,860			644,113,868			91,442,997
Affiliate securities, at value		—			—			—			51,571,715
Securities Lending Reinvestments, at value		—			—			—			33,593,976
Cash		645,872			579,968			91,226,039			1,010,570
Cash segregated at broker*		—			—			—			—
Foreign cash††		—			—			—			—
Restricted cash**		—			—			—			—
Due from Authorized Participant		—			—			—			—
Unrealized appreciation on forward foreign currency contracts		—			—			—			—
Receivables:
Dividends and interest		406,664			391,929			2,686,327			—
Securities lending income		—			—			—			7,137
Capital shares issued		—			—			—			—
Investment adviser		143			181			1,017			463
Securities sold		887,087			1,104,000			—			—
Variation margin on futures contracts		—			—			—			28,144

Total Assets		28,177,503			45,774,938			738,027,251			177,655,002


LIABILITIES
Cash overdraft		—			—			—			—
Unrealized depreciation on forward foreign currency contracts		—			—			—			—
Due to brokers		—			—			—			18,191
Payables:
Cash collateral received from securities loaned		—			—			—			33,593,976
Deferred compensation (Note 7)		225			341			33,164			6,534
Investment advisory fees (Note 4)		4,695			4,526			122,953			25,672
Trustee fees (Note 7)		449			359			2,118			1,038
Securities purchased		1,216,663			964,505			89,645,769			—
Deferred non-US capital gains taxes		—			—			—			—
Due to Authorized Participant		—			—			—			—
Variation margin on futures contracts		—			—			—			—
Capital shares redeemed		—			—			—			—
Other		—			500			4,725			—

Total Liabilities		1,222,032			970,231			89,808,729			33,645,411

Net Assets	$	26,955,471		$	44,804,707		$	648,218,522		$	144,009,591


NET ASSETS CONSIST OF:
Paid-in capital	$	30,234,795		$	52,238,513		$	654,233,797		$	160,387,482
Distributable earnings (loss)		(3,279,324	)		(7,433,806	)		(6,015,275	)		(16,377,891	)

Net Assets	$	26,955,471		$	44,804,707		$	648,218,522		$	144,009,591


Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)		600,000			1,050,000			8,675,001			6,175,001
Net Asset Value	$	44.93		$	42.67		$	74.72		$	23.32

† Securities on loan, at value	$	—		$	—		$	—		$	32,557,764
†† 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			9

FlexShares^® Trust

Statements of Operations

For the six months ended April 30, 2022 (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	$	1,193,609		$	1,145,160		$	166,485		$	13,272,117
Income from non-cash dividends		—			—			13,562			—
Dividend income received from affiliate		—			—			—			9,423
Interest income		130			—			—			—
Securities lending income (net of fees) (Note 2)		6,064			3,009			—			212,126
Foreign withholding tax on dividends		(4,353	)		(109,880	)		(13,852	)		(4,008	)
Foreign withholding tax on interest		—			—			—			—

Total Investment Income		1,195,450			1,038,289			166,195			13,489,658


EXPENSES
Deferred compensation (Note 7)		1,361			614			123			13,598
Investment advisory fees		180,812			121,016			30,864			2,043,187
Trustee fees (Note 7)		4,653			2,188			451			48,803
Other expenses (Note 4)		—			—			—			157

Total Gross Expenses Before Fees Reimbursed		186,826			123,818			31,438			2,105,745


Less:
Investment advisory fees reimbursed (Note 4)		(2,033	)		(1,004	)		(206	)		(23,798	)

Total Net Expenses		184,793			122,814			31,232			2,081,947

Net Investment Income (Loss)		1,010,657			915,475			134,963			11,407,711


NET REALIZED GAIN (LOSS) FROM:
Transactions in investment securities of affiliated issuers		—			—			—			20,169
Transactions in investment securities		(1,551,542	)		(1,323,627	)		(83,332	)⁽¹⁾		(1,069,726	)
In-kind redemptions on investments in affiliated securities		—			—			—			13,626
In-kind redemptions on investments in securities		5,744,045			1,241,765			—			54,260,141
Expiration or closing of futures contracts		(69,400	)		(119,449	)		(31,753	)		(314,133	)
Settlement of forward foreign currency contracts		—			25,132			72			—
Foreign currency transactions		—			(3,822	)		(20,474	)		—

Net Realized Gain (Loss)		4,123,103			(180,001	)		(135,487	)		52,910,077


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		(11,715,147	)		(6,053,559	)		(733,385	)⁽²⁾		(237,064,958	)⁽³⁾
Securities lending		—			—			—			5,737
Futures contracts		(48,083	)		(21,986	)		3,067			(789,471	)
Forward foreign currency contracts		—			21,933			(9	)		—
Translation of other assets and liabilities denominated in foreign currencies		—			(40,781	)		898			—

Net Change in Unrealized Appreciation (Depreciation)		(11,763,230	)		(6,094,393	)		(729,429	)		(237,848,692	)

Net Realized and Unrealized Gain (Loss)		(7,640,127	)		(6,274,394	)		(864,916	)		(184,938,615	)

Net Increase (Decrease) in Net Assets Resulting from Operations	$	(6,629,470	)	$	(5,358,919	)	$	(729,953	)	$	(173,530,904	)

⁽¹⁾

Net of non-US capital gains tax of $(19,367).

⁽²⁾

Net of deferred non-US capital gains tax of $26,014.

⁽³⁾

Includes $(163,655) change in unrealized depreciation on investments in affiliates.

See Accompanying Notes to the Financial Statements.


10		FLEXSHARES SEMIANNUAL REPORT

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	$	10,405,483		$	4,418,994		$	1,071,545		$	1,433,150
Income from non-cash dividends		—			253,587			—			—
Dividend income received from affiliate		—			—			—			—
Interest income		22			—			—			—
Securities lending income (net of fees) (Note 2)		243,739			89,117			5,511			2,600
Foreign withholding tax on dividends		(1,042,971	)		(537,647	)		(166	)		—
Foreign withholding tax on interest		—			(4	)		—			—

Total Investment Income		9,606,273			4,224,047			1,076,890			1,435,750


EXPENSES
Deferred compensation (Note 7)		4,991			2,567			1,197			1,572
Investment advisory fees		1,196,702			925,867			229,134			308,509
Trustee fees (Note 7)		18,279			9,449			4,143			5,535
Other expenses (Note 4)		—			—			—			—

Total Gross Expenses Before Fees Reimbursed		1,219,972			937,883			234,474			315,616


Less:
Investment advisory fees reimbursed (Note 4)		(9,134	)		(4,940	)		(1,948	)		(2,600	)

Total Net Expenses		1,210,838			932,943			232,526			313,016

Net Investment Income (Loss)		8,395,435			3,291,104			844,364			1,122,734


NET REALIZED GAIN (LOSS) FROM:
Transactions in investment securities of affiliated issuers		—			—			—			—
Transactions in investment securities		7,317,415			(4,821,059	)		(653,740	)		312,817
In-kind redemptions on investments in affiliated securities		—			—			—			—
In-kind redemptions on investments in securities		4,531,591			1,021,235			1,459,816			6,876,076
Expiration or closing of futures contracts		(690,178	)		(557,490	)		(96,634	)		(10,571	)
Settlement of forward foreign currency contracts		(282,644	)		43,407			—			—
Foreign currency transactions		(247,224	)		(29,927	)		—			—

Net Realized Gain (Loss)		10,628,960			(4,343,834	)		709,442			7,178,322


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		(90,152,176	)		(31,205,508	)⁽¹⁾		(13,886,299	)		(31,469,908	)⁽²⁾
Securities lending		—			—			—			—
Futures contracts		193,236			72,241			(97,564	)		(88,860	)
Forward foreign currency contracts		3,515			16,596			—			—
Translation of other assets and liabilities denominated in foreign currencies		(544,866	)		7,149			—			—

Net Change in Unrealized Appreciation (Depreciation)		(90,500,291	)		(31,109,522	)		(13,983,863	)		(31,558,768	)

Net Realized and Unrealized Gain (Loss)		(79,871,331	)		(35,453,356	)		(13,274,421	)		(24,380,446	)

Net Increase (Decrease) in Net Assets Resulting from Operations	$	(71,475,896	)	$	(32,162,252	)	$	(12,430,057	)	$	(23,257,712	)

⁽¹⁾

Net of deferred non-US capital gains tax of $824,320.

⁽²⁾

Includes $(13,315) change in unrealized depreciation on investments in affiliates.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			11

Statements of Operations (cont.)


	FlexShares^® STOXX^® Global ESG Select Index Fund			FlexShares^® ESG & Climate US Large Cap Core Index Fund			FlexShares^® ESG & Climate Developed Markets ex-US Core Index Fund			FlexShares^® ESG & Climate Emerging Markets Core Index Fund
										April 20, 2022* through April 30, 2022

INVESTMENT INCOME
Dividend income	$	1,792,696		$	25,453		$	171,481		$	1,585
Income from non-cash dividends		—			—			—			—
Dividend income received from affiliate		—			—			—			—
Interest income		4			4			—			—
Securities lending income (net of fees) (Note 2)		10,757			—			—			—
Foreign withholding tax on dividends		(103,274	)		—			(17,295	)		(12	)
Foreign withholding tax on interest		—			—			—			—

Total Investment Income		1,700,183			25,457			154,186			1,573


EXPENSES
Deferred compensation (Note 7)		1,485			32			65			—
Investment advisory fees		375,518			1,742			4,952			240
Trustee fees (Note 7)		5,303			73			192			8
Other expenses (Note 4)		—			—			—			—

Total Gross Expenses Before Fees Reimbursed		382,306			1,847			5,209			248


Less:
Investment advisory fees reimbursed (Note 4)		(2,660	)		(12	)		(59	)		(2	)

Total Net Expenses		379,646			1,835			5,150			246

Net Investment Income (Loss)		1,320,537			23,622			149,036			1,327


NET REALIZED GAIN (LOSS) FROM:
Transactions in investment securities of affiliated issuers		—			—			—			—
Transactions in investment securities		127,710			(16,243	)		(106,156	)		—
In-kind redemptions on investments in affiliated securities		—			—			—			—
In-kind redemptions on investments in securities		8,341,868			—			—			—
Expiration or closing of futures contracts		(166,170	)		(424	)		(4,908	)		—
Settlement of forward foreign currency contracts		60,192			—			(1,058	)		—
Foreign currency transactions		(68,327	)		(10	)		(1,311	)		15,018

Net Realized Gain (Loss)		8,295,273			(16,677	)		(113,433	)		15,018


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		(30,189,604	)		(905,044	)		(1,388,179	)		(112,100	)⁽¹⁾
Securities lending		—			—			—			—
Futures contracts		(96,809	)		(3,792	)		(7,397	)		(1,547	)
Forward foreign currency contracts		25,067			—			(399	)		—
Translation of other assets and liabilities denominated in foreign currencies		(25,960	)		(29	)		(3,169	)		(24	)

Net Change in Unrealized Appreciation (Depreciation)		(30,287,306	)		(908,865	)		(1,399,144	)		(113,671	)

Net Realized and Unrealized Gain (Loss)		(21,992,033	)		(925,542	)		(1,512,577	)		(98,653	)

Net Increase (Decrease) in Net Assets Resulting from Operations	$	(20,671,496	)	$	(901,920	)	$	(1,363,541	)	$	(97,326	)

*	Commencement of investment operations.

⁽¹⁾

Net of deferred non-US capital gains tax of $34.

See Accompanying Notes to the Financial Statements.


12		FLEXSHARES SEMIANNUAL REPORT

Statements of Operations (cont.)


	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

INVESTMENT INCOME
Dividend income	$	149,621,192		$	40,005,252		$	7,319,886		$	—
Income from non-cash dividends		—			—			—			—
Dividend income received from affiliate		—			—			—			519,421
Interest income		—			—			—			—
Securities lending income (net of fees) (Note 2)		525,747			261,538			30,343			—
Foreign withholding tax on dividends		(4,988,679	)		(2,373,783	)		(259,507	)		—
Foreign withholding tax on interest		—			—			—			—

Total Investment Income		145,158,260			37,893,007			7,090,722			519,421


EXPENSES
Deferred compensation (Note 7)		56,271			21,229			3,567			293
Investment advisory fees		16,267,150			6,073,103			975,594			114,110
Trustee fees (Note 7)		178,430			74,732			12,364			899
Other expenses (Note 4)		—			—			—			—

Total Gross Expenses Before Fees Reimbursed		16,501,851			6,169,064			991,525			115,302


Less:
Investment advisory fees reimbursed (Note 4)		(48,017	)		(34,536	)		(5,607	)		(92,527	)

Total Net Expenses		16,453,834			6,134,528			985,918			22,775

Net Investment Income (Loss)		128,704,426			31,758,479			6,104,804			496,646


NET REALIZED GAIN (LOSS) FROM:
Transactions in investment securities of affiliated issuers		—			—			—			(118,244	)
Transactions in investment securities		20,174,687	⁽¹⁾		(10,433,847	)⁽²⁾		5,358,727			—
In-kind redemptions on investments in affiliated securities		—			—			—			—
In-kind redemptions on investments in securities		185,481,517			17,923,478			9,813,262			—
Expiration or closing of futures contracts		1,287,196			280,685			(563,298	)		—
Settlement of forward foreign currency contracts		(371,371	)		(814,306	)		129,114			—
Foreign currency transactions		(288,006	)		(1,076,972	)		(335,595	)		—

Net Realized Gain (Loss)		206,284,023			5,879,038			14,402,210			(118,244	)


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		845,093,338	⁽³⁾		(148,485,385	)⁽⁴⁾		(37,255,755	)		(880,549	)⁽⁵⁾
Securities lending		4,122			—			—			—
Futures contracts		(1,750,302	)		(394,717	)		(430,722	)		—
Forward foreign currency contracts		(396,904	)		189,928			(65,575	)		—
Translation of other assets and liabilities denominated in foreign currencies		(975,849	)		(381,474	)		(120,149	)		—

Net Change in Unrealized Appreciation (Depreciation)		841,974,405			(149,071,648	)		(37,872,201	)		(880,549	)

Net Realized and Unrealized Gain (Loss)		1,048,258,428			(143,192,610	)		(23,469,991	)		(998,793	)

Net Increase (Decrease) in Net Assets Resulting from Operations	$	1,176,962,854		$	(111,434,131	)	$	(17,365,187	)	$	(502,147	)

⁽¹⁾

Net of non-US capital gains tax of $(106,667).

⁽²⁾

Net of non-US capital gains tax of $(270,661).

⁽³⁾

Net of deferred non-US capital gains tax of $1,204,319.

⁽⁴⁾

Net of deferred non-US capital gains tax of $1,413,613.

⁽⁵⁾

Includes $(880,549) change in unrealized depreciation on investments in affiliates.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			13

Statements of Operations (cont.)


	FlexShares^® Quality Dividend Index Fund			FlexShares^® Quality Dividend Defensive Index Fund			FlexShares^® Quality Dividend Dynamic Index Fund			FlexShares^® International Quality Dividend Index Fund

INVESTMENT INCOME
Dividend income	$	20,390,013		$	5,065,894		$	257,130		$	15,934,672
Income from non-cash dividends		—			—			—			811,787
Dividend income received from affiliate		—			—			—			—
Interest income		—			—			—			—
Securities lending income (net of fees) (Note 2)		170,127			33,364			1,912			89,113
Foreign withholding tax on dividends		—			—			—			(1,734,429	)
Foreign withholding tax on interest		—			—			—			—

Total Investment Income		20,560,140			5,099,258			259,042			15,101,143


EXPENSES
Deferred compensation (Note 7)		13,603			3,665			178			4,883
Investment advisory fees		3,078,009			804,707			40,588			1,415,866
Trustee fees (Note 7)		47,405			12,640			638			17,544
Other expenses (Note 4)		—			—			—			—

Total Gross Expenses Before Fees Reimbursed		3,139,017			821,012			41,404			1,438,293


Less:
Investment advisory fees reimbursed (Note 4)		(20,992	)		(5,844	)		(292	)		(8,624	)

Total Net Expenses		3,118,025			815,168			41,112			1,429,669

Net Investment Income (Loss)		17,442,115			4,284,090			217,930			13,671,474


NET REALIZED GAIN (LOSS) FROM:
Transactions in investment securities of affiliated issuers		—			—			—			—
Transactions in investment securities		(18,520,962	)		(2,204,777	)		(49,825	)		(3,065,921	)
In-kind redemptions on investments in affiliated securities		—			—			—			—
In-kind redemptions on investments in securities		45,753,634			27,975,823			778,103			218,774
Expiration or closing of futures contracts		(131,838	)		(401,500	)		(8,836	)		(1,313,325	)
Settlement of forward foreign currency contracts		—			—			—			(292,926	)
Foreign currency transactions		—			—			—			(425,365	)

Net Realized Gain (Loss)		27,100,834			25,369,546			719,442			(4,878,763	)


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		(98,362,111	)		(44,031,131	)		(1,966,035	)		(72,065,005	)
Securities lending		1,412			—			—			—
Futures contracts		(638,373	)		(202,718	)		(18,436	)		193,749
Forward foreign currency contracts		—			—			—			(49,356	)
Translation of other assets and liabilities denominated in foreign currencies		—			—			—			(352,947	)

Net Change in Unrealized Appreciation (Depreciation)		(98,999,072	)		(44,233,849	)		(1,984,471	)		(72,273,559	)

Net Realized and Unrealized Gain (Loss)		(71,898,238	)		(18,864,303	)		(1,265,029	)		(77,152,322	)

Net Increase (Decrease) in Net Assets Resulting from Operations	$	(54,456,123	)	$	(14,580,213	)	$	(1,047,099	)	$	(63,480,848	)

See Accompanying Notes to the Financial Statements.


14		FLEXSHARES SEMIANNUAL REPORT

Statements of Operations (cont.)


	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

INVESTMENT INCOME
Dividend income	$	1,729,649		$	1,965,934		$	—		$	—
Income from non-cash dividends		—			238,616			—			—
Dividend income received from affiliate		—			—			—			—
Interest income		—			—			50,037,599			23,268,093
Securities lending income (net of fees) (Note 2)		12,359			18,223			15,005			25,313
Foreign withholding tax on dividends		(166,188	)		(237,448	)		—			—
Foreign withholding tax on interest		—			—			—			—

Total Investment Income		1,575,820			1,985,325			50,052,604			23,293,406


EXPENSES
Deferred compensation (Note 7)		559			629			13,618			6,156
Investment advisory fees		161,740			189,344			1,473,464			689,050
Administration fees (Note 5)		—			—			—			30,372
Trustee fees (Note 7)		2,022			2,295			40,686			20,970
Other expenses (Note 4)		—			—			—			—

Total Gross Expenses Before Fees Reimbursed		164,321			192,268			1,527,768			746,548


Less:
Investment advisory fees reimbursed (Note 4)		(980	)		(1,081	)		(14,446	)		(38,965	)

Total Net Expenses		163,341			191,187			1,513,322			707,583

Net Investment Income (Loss)		1,412,479			1,794,138			48,539,282			22,585,823


NET REALIZED GAIN (LOSS) FROM:
Transactions in investment securities of affiliated issuers		—			—			—			—
Transactions in investment securities		(574,608	)		(1,168,302	)⁽¹⁾		2,845,499			(1,012,790	)
In-kind redemptions on investments in affiliated securities		—			—			—			—
In-kind redemptions on investments in securities		170,629			—			716,750			3,494,379
Expiration or closing of futures contracts		(188,337	)		(189,274	)		—			—
Settlement of forward foreign currency contracts		54,271			26,991			—			—
Foreign currency transactions		(115,711	)		(56,934	)		—			—

Net Realized Gain (Loss)		(653,756	)		(1,387,519	)		3,562,249			2,481,589


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		(6,389,061	)		(9,033,158	)⁽²⁾		(67,325,074	)		(52,098,191	)
Securities lending		—			—			—			—
Futures contracts		(11,945	)		(36,517	)		—			—
Forward foreign currency contracts		32,947			27,067			—			—
Translation of other assets and liabilities denominated in foreign currencies		(36,844	)		(36,142	)		—			—

Net Change in Unrealized Appreciation (Depreciation)		(6,404,903	)		(9,078,750	)		(67,325,074	)		(52,098,191	)

Net Realized and Unrealized Gain (Loss)		(7,058,659	)		(10,466,269	)		(63,762,825	)		(49,616,602	)

Net Increase (Decrease) in Net Assets Resulting from Operations	$	(5,646,180	)	$	(8,672,131	)	$	(15,223,543	)	$	(27,030,779	)

⁽¹⁾

Net of non-US capital gains tax of $(12,828).

⁽²⁾

Net of deferred non-US capital gains tax of $28,216.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			15

Statements of Operations (cont.)


	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

INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	—
Income from non-cash dividends		—			—			—			—
Dividend income received from affiliate		—			—			—			—
Interest income		472,547			3,041,687			990,633			21,535,086
Securities lending income (net of fees) (Note 2)		—			—			—			—
Foreign withholding tax on dividends		—			—			—			—
Foreign withholding tax on interest		—			—			—			—

Total Investment Income		472,547			3,041,687			990,633			21,535,086


EXPENSES
Deferred compensation (Note 7)		861			2,335			456			5,574
Investment advisory fees		114,676			326,620			60,537			1,308,214
Trustee fees (Note 7)		3,311			9,166			1,696			17,406
Other expenses (Note 4)		—			—			—			—

Total Gross Expenses Before Fees Reimbursed		118,848			338,121			62,689			1,331,194


Less:
Investment advisory fees reimbursed (Note 4)		(1,421	)		(4,412	)		(890	)		(6,488	)

Total Net Expenses		117,427			333,709			61,799			1,324,706

Net Investment Income (Loss)		355,120			2,707,978			928,834			20,210,380


NET REALIZED GAIN (LOSS) FROM:
Transactions in investment securities of affiliated issuers		—			—			—			—
Transactions in investment securities		(2,107,164	)		(4,201,144	)		(1,187,296	)		(12,607,175	)
In-kind redemptions on investments in affiliated securities		—			—			—			—
In-kind redemptions on investments in securities		—			—			—			416,638
Expiration or closing of futures contracts		—			—			—			—
Settlement of forward foreign currency contracts		—			—			—			—
Foreign currency transactions		—			—			—			—

Net Realized Gain (Loss)		(2,107,164	)		(4,201,144	)		(1,187,296	)		(12,190,537	)


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		(7,132,054	)		(23,096,542	)		(11,754,532	)		(67,666,055	)
Securities lending		—			—			—			—
Futures contracts		—			—			—			—
Forward foreign currency contracts		—			—			—			—
Translation of other assets and liabilities denominated in foreign currencies		—			—			—			—

Net Change in Unrealized Appreciation (Depreciation)		(7,132,054	)		(23,096,542	)		(11,754,532	)		(67,666,055	)

Net Realized and Unrealized Gain (Loss)		(9,239,218	)		(27,297,686	)		(12,941,828	)		(79,856,592	)

Net Increase (Decrease) in Net Assets Resulting from Operations	$	(8,884,098	)	$	(24,589,708	)	$	(12,012,994	)	$	(59,646,212	)

See Accompanying Notes to the Financial Statements.


16		FLEXSHARES SEMIANNUAL REPORT

Statements of Operations (cont.)


	FlexShares^® ESG & Climate High Yield Corporate Core Index Fund			FlexShares^® ESG & Climate Investment Grade Corporate Core Index Fund			FlexShares^® Ready Access Variable Income Fund			FlexShares^® Core Select Bond Fund

INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	560,150
Income from non-cash dividends		—			—			—			—
Dividend income received from affiliate		—			—			—			693,931
Interest income		737,431			519,508			1,831,683			612
Securities lending income (net of fees) (Note 2)		—			—			—			24,279
Foreign withholding tax on dividends		—			—			—			—
Foreign withholding tax on interest		—			—			—			—

Total Investment Income		737,431			519,508			1,831,683			1,278,972


EXPENSES
Deferred compensation (Note 7)		273			388			3,657			1,000
Investment advisory fees		39,628			28,207			572,073			230,238
Trustee fees (Note 7)		1,339			1,442			10,558			3,658
Other expenses (Note 4)		—			—			—			—

Total Gross Expenses Before Fees Reimbursed		41,240			30,037			586,288			234,896


Less:
Investment advisory fees reimbursed (Note 4)		(788	)		(701	)		(3,055	)		(96,965	)

Total Net Expenses		40,452			29,336			583,233			137,931

Net Investment Income (Loss)		696,979			490,172			1,248,450			1,141,041


NET REALIZED GAIN (LOSS) FROM:
Transactions in investment securities of affiliated issuers		—			—			—			(2,540,954	)
Transactions in investment securities		(446,707	)		(590,220	)		(464,835	)		(353,649	)
In-kind redemptions on investments in affiliated securities		—			—			—			(8,868	)
In-kind redemptions on investments in securities		(72,176	)		—			—			58,605
Expiration or closing of futures contracts		—			—			—			(5,785	)
Settlement of forward foreign currency contracts		—			—			—			—
Foreign currency transactions		—			—			—			—

Net Realized Gain (Loss)		(518,883	)		(590,220	)		(464,835	)		(2,850,651	)


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		(2,325,179	)		(6,165,917	)		(6,347,887	)		(12,608,855	)⁽¹⁾
Securities lending		—			—			—			—
Futures contracts		—			—			—			28,144
Forward foreign currency contracts		—			—			—			—
Translation of other assets and liabilities denominated in foreign currencies		—			—			—			—

Net Change in Unrealized Appreciation (Depreciation)		(2,325,179	)		(6,165,917	)		(6,347,887	)		(12,580,711	)

Net Realized and Unrealized Gain (Loss)		(2,844,062	)		(6,756,137	)		(6,812,722	)		(15,431,362	)

Net Increase (Decrease) in Net Assets Resulting from Operations	$	(2,147,083	)	$	(6,265,965	)	$	(5,564,272	)	$	(14,290,321	)

⁽¹⁾

Includes $(4,010,788) change in unrealized depreciation on investments in affiliates.

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			17

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, 2022 (Unaudited)			Year Ended October 31, 2021			Six Months Ended April 30, 2022 (Unaudited)			Year Ended October 31, 2021

OPERATIONS
Net investment income (loss)	$	1,010,657		$	1,643,691		$	915,475		$	2,226,694
Net realized gain (loss)		4,123,103			9,877,154			(180,001	)		4,060,236
Net change in unrealized appreciation (depreciation)		(11,763,230	)		29,486,420			(6,094,393	)		8,924,507


Net Increase (Decrease) in Net Assets
Resulting from Operations		(6,629,470	)		41,007,265			(5,358,919	)		15,211,437


DISTRIBUTIONS TO SHAREHOLDERS
Distributable earnings		(931,512	)		(1,694,565	)		(880,977	)		(2,249,889	)

Total distributions		(931,512	)		(1,694,565	)		(880,977	)		(2,249,889	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		29,086,514			56,108,720			8,149,550			13,390,874
Cost of shares redeemed		(21,078,049	)		(44,870,466	)		(8,015,506	)		(16,728,469	)

Net Increase (Decrease) from Capital Transactions		8,008,465			11,238,254			134,044			(3,337,595	)

Total Increase (Decrease) in Net Assets		447,483			50,550,954			(6,105,852	)		9,623,953


NET ASSETS
Beginning of Period	$	161,074,492		$	110,523,538		$	75,370,957		$	65,747,004

End of Period	$	161,521,975		$	161,074,492		$	69,265,105		$	75,370,957


SHARE TRANSACTIONS
Beginning of period		2,950,001			2,700,001			2,700,001			2,800,001
Shares issued		—			—			100,000			—
Shares issued in-kind		550,000			1,150,000			200,000			500,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		(400,000	)		(900,000	)		(300,000	)		(600,000	)

Shares Outstanding, End of Period		3,100,001			2,950,001			2,700,001			2,700,001

⁽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^® Emerging Markets Quality Low Volatility Index Fund						FlexShares^® Morningstar US Market Factor Tilt Index Fund
	Six Months Ended April 30, 2022 (Unaudited)			Year Ended October 31, 2021			Six Months Ended April 30, 2022 (Unaudited)			Year Ended October 31, 2021

OPERATIONS
Net investment income (loss)	$	134,963		$	384,138		$	11,407,711		$	20,467,734
Net realized gain (loss)		(135,487	)		204,217			52,910,077			125,723,634
Net change in unrealized appreciation (depreciation)		(729,429	)		669,161			(237,848,692	)		436,303,767


Net Increase (Decrease) in Net Assets
Resulting from Operations		(729,953	)		1,257,516			(173,530,904	)		582,495,135


DISTRIBUTIONS TO SHAREHOLDERS
Distributable earnings		(148,467	)		(269,007	)		(11,284,311	)		(19,993,786	)

Total distributions		(148,467	)		(269,007	)		(11,284,311	)		(19,993,786	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		—			5,276,872			44,415,344			95,734,574
Cost of shares redeemed		—			—			(89,630,006	)		(106,003,334	)

Net Increase (Decrease) from Capital Transactions		—			5,276,872			(45,214,662	)		(10,268,760	)

Total Increase (Decrease) in Net Assets		(878,420	)		6,265,381			(230,029,877	)		552,232,589


NET ASSETS
Beginning of Period	$	15,843,691		$	9,578,310		$	1,727,019,018		$	1,174,786,429

End of Period	$	14,965,271		$	15,843,691		$	1,496,989,141		$	1,727,019,018


SHARE TRANSACTIONS
Beginning of period		600,001			400,001			9,650,001			9,700,001
Shares issued		—			—			—			—
Shares issued in-kind		—			200,000			250,000			600,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		—			—			(500,000	)		(650,000	)

Shares Outstanding, End of Period		600,001			600,001			9,400,001			9,650,001

⁽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^® Morningstar Developed Markets ex-US Factor Tilt Index Fund						FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund
	Six Months Ended April 30, 2022 (Unaudited)			Year Ended October 31, 2021			Six Months Ended April 30, 2022 (Unaudited)			Year Ended October 31, 2021

OPERATIONS
Net investment income (loss)	$	8,395,435		$	15,324,867		$	3,291,104		$	7,624,187
Net realized gain (loss)		10,628,960			21,856,890			(4,343,834	)		25,611,349
Net change in unrealized appreciation (depreciation)		(90,500,291	)		152,302,928			(31,109,522	)		31,176,773


Net Increase (Decrease) in Net Assets
Resulting from Operations		(71,475,896	)		189,484,685			(32,162,252	)		64,412,309


DISTRIBUTIONS TO SHAREHOLDERS
Distributable earnings		(12,030,789	)		(13,410,048	)		(5,433,825	)		(6,011,707	)

Total distributions		(12,030,789	)		(13,410,048	)		(5,433,825	)		(6,011,707	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		14,615,863			44,016,396			—			50,124,591
Cost of shares redeemed		(26,233,611	)		(70,468,136	)		(28,171,247	)		—

Net Increase (Decrease) from Capital Transactions		(11,617,748	)		(26,451,740	)		(28,171,247	)		50,124,591

Total Increase (Decrease) in Net Assets		(95,124,433	)		149,622,897			(65,767,324	)		108,525,193


NET ASSETS
Beginning of Period	$	648,638,493		$	499,015,596		$	334,371,995		$	225,846,802

End of Period	$	553,514,060		$	648,638,493		$	268,604,671		$	334,371,995


SHARE TRANSACTIONS
Beginning of period		8,800,001			9,200,001			5,500,001			4,700,001
Shares issued		—			—			—			—
Shares issued in-kind		200,000			600,000			—			800,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		(400,000	)		(1,000,000	)		(500,000	)		—

Shares Outstanding, End of Period		8,600,001			8,800,001			5,000,001			5,500,001

⁽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^® US Quality Large Cap Index Fund						FlexShares^® STOXX^® US ESG Select Index Fund
	Six Months Ended April 30, 2022 (Unaudited)			Year Ended October 31, 2021			Six Months Ended April 30, 2022 (Unaudited)			Year Ended October 31, 2021

OPERATIONS
Net investment income (loss)	$	844,364		$	1,172,409		$	1,122,734		$	2,051,388
Net realized gain (loss)		709,442			5,820,892			7,178,322			25,495,358
Net change in unrealized appreciation (depreciation)		(13,983,863	)		26,126,364			(31,558,768	)		24,935,787


Net Increase (Decrease) in Net Assets
Resulting from Operations		(12,430,057	)		33,119,665			(23,257,712	)		52,482,533


DISTRIBUTIONS TO SHAREHOLDERS
Distributable earnings		(800,199	)		(1,136,947	)		(1,155,791	)		(1,955,493	)

Total distributions		(800,199	)		(1,136,947	)		(1,155,791	)		(1,955,493	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		13,543,283			54,387,819			30,792,000			115,766,022
Cost of shares redeemed		(3,766,641	)		(13,737,728	)		(17,029,708	)		(63,701,888	)

Net Increase (Decrease) from Capital Transactions		9,776,642			40,650,091			13,762,292			52,064,134

Total Increase (Decrease) in Net Assets		(3,453,614	)		72,632,809			(10,651,211	)		102,591,174


NET ASSETS
Beginning of Period	$	144,475,249		$	71,842,440		$	191,642,745		$	89,051,571

End of Period	$	141,021,635		$	144,475,249		$	180,991,534		$	191,642,745


SHARE TRANSACTIONS
Beginning of period		2,875,001			2,025,001			1,700,001			1,125,001
Shares issued		—			—			—			—
Shares issued in-kind		275,000			1,150,000			275,000			1,200,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		(75,000	)		(300,000	)		(150,000	)		(625,000	)

Shares Outstanding, End of Period		3,075,001			2,875,001			1,825,001			1,700,001

⁽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			21

Statements of Changes in Net Assets (cont.)


	FlexShares^® STOXX^® Global ESG Select Index Fund						FlexShares^® ESG & Climate US Large Cap Core Index Fund
	Six Months Ended April 30, 2022 (Unaudited)			Year Ended October 31, 2021			Six Months Ended April 30, 2022 (Unaudited)			September 20, 2021* through October 31, 2021

OPERATIONS
Net investment income (loss)	$	1,320,537		$	2,456,041		$	23,622		$	2,838
Net realized gain (loss)		8,295,273			13,795,248			(16,677	)		(534	)
Net change in unrealized appreciation (depreciation)		(30,287,306	)		34,498,730			(908,865	)		167,182


Net Increase (Decrease) in Net Assets
Resulting from Operations		(20,671,496	)		50,750,019			(901,920	)		169,486


DISTRIBUTIONS TO SHAREHOLDERS
Distributable earnings		(1,268,473	)		(2,324,712	)		(17,337	)		—

Total distributions		(1,268,473	)		(2,324,712	)		(17,337	)		—


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		14,352,430			53,795,593			11,288,265			—
Cost of shares redeemed		(14,389,810	)		(27,826,718	)		—			—

Net Increase (Decrease) from Capital Transactions		(37,380	)		25,968,875			11,288,265			—

Total Increase (Decrease) in Net Assets		(21,977,349	)		74,394,182			10,369,008			169,486


NET ASSETS
Beginning of Period	$	185,717,474		$	111,323,292		$	2,669,486		$	2,500,000	^(2),(3)

End of Period	$	163,740,125		$	185,717,474		$	13,038,494		$	2,669,486


SHARE TRANSACTIONS
Beginning of period		1,250,001			1,050,001			50,000			50,000	⁽²⁾
Shares issued		50,000			—			—			—
Shares issued in-kind		50,000			400,000			225,000			—
Shares redeemed		—			—			—			—
Shares redeemed in-kind		(100,000	)		(200,000	)		—			—

Shares Outstanding, End of Period		1,250,001			1,250,001			275,000			50,000

*	Commencement of investment operations.

⁽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.

⁽²⁾

Amount includes the initial subscription.

⁽³⁾

Includes amounts paid in capital from the Authorized Participant in addition to the order’s original cash component. This amount is made to offset taxes, commissions, and price differences from the NAV that would otherwise impact the fund on these order trades.

See Accompanying Notes to the Financial Statements.


22		FLEXSHARES SEMIANNUAL REPORT

Statements of Changes in Net Assets (cont.)


	FlexShares^® ESG & Climate Developed Markets ex-US Core Index Fund						FlexShares^® ESG & Climate Emerging Markets Core Index Fund
	Six Months Ended April 30, 2022 (Unaudited)			September 20, 2021* through October 31, 2021			April 20, 2022* through April 30, 2022

OPERATIONS
Net investment income (loss)	$	149,036		$	15,775		$	1,327
Net realized gain (loss)		(113,433	)		(777	)		15,018
Net change in unrealized appreciation (depreciation)		(1,399,144	)		103,891			(113,671	)


Net Increase (Decrease) in Net Assets
Resulting from Operations		(1,363,541	)		118,889			(97,326	)


DISTRIBUTIONS TO SHAREHOLDERS
Distributable earnings		(57,093	)		—			—

Total distributions		(57,093	)		—			—


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		14,322,715			—			—
Cost of shares redeemed		—			—			—

Net Increase (Decrease) from Capital Transactions		14,322,715			—			—

Total Increase (Decrease) in Net Assets		12,902,081			118,889			(97,326	)


NET ASSETS
Beginning of Period	$	5,119,060		$	5,000,171	^(2),(3)	$	5,000,000	^(2),(3)

End of Period	$	18,021,141		$	5,119,060		$	4,902,674


SHARE TRANSACTIONS
Beginning of period		100,000			100,000	⁽²⁾		100,000	⁽²⁾
Shares issued		—			—			—
Shares issued in-kind		300,000			—			—
Shares redeemed		—			—			—
Shares redeemed in-kind		—			—			—

Shares Outstanding, End of Period		400,000			100,000			100,000

*	Commencement of investment operations.

⁽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.

⁽²⁾

Amount includes the initial subscription.

⁽³⁾

See Accompanying Notes to the Financial Statements.


		FLEXSHARES SEMIANNUAL REPORT			23

Statements of Changes in Net Assets (cont.)


	FlexShares^® Morningstar Global Upstream Natural Resources Index Fund						FlexShares^® STOXX^® Global Broad Infrastructure Index Fund
	Six Months Ended April 30, 2022 (Unaudited)			Year Ended October 31, 2021			Six Months Ended April 30, 2022 (Unaudited)			Year Ended October 31, 2021

OPERATIONS
Net investment income (loss)	$	128,704,426		$	188,997,153		$	31,758,479		$	61,807,665
Net realized gain (loss)		206,284,023			(71,904,345	)		5,879,038			117,716,133
Net change in unrealized appreciation (depreciation)		841,974,405			1,409,046,021			(149,071,648	)		271,965,150


Net Increase (Decrease) in Net Assets
Resulting from Operations		1,176,962,854			1,526,138,829			(111,434,131	)		451,488,948


DISTRIBUTIONS TO SHAREHOLDERS
Distributable earnings		(128,767,470	)		(167,354,837	)		(34,319,736	)		(58,905,802	)

Total distributions		(128,767,470	)		(167,354,837	)		(34,319,736	)		(58,905,802	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		1,436,199,035			1,894,646,901			93,605,875			754,964,371
Cost of shares redeemed		(396,381,443	)		(125,446,435	)		(53,816,491	)		(360,237,628	)

Net Increase (Decrease) from Capital Transactions		1,039,817,592			1,769,200,466			39,789,384			394,726,743
	&nb