Yahoo Finance Is iShares International Equity Factor ETF (INTF) a Strong ETF Right Now?
The iShares International Equity Factor ETF (INTF) made its debut on 04/28/2015, and is a smart beta exchange traded fund that provides broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Blackrock. It has amassed assets over $926.25 million, making it one of the larger ETFs in the World ETFs. This particular fund, before fees and expenses, seeks to match the performance of the MSCI World ex USA Diversified Multi-Factor Index.
The STOXX International Equity Factor Index composes of global developed market large and mid-capitalization stocks, excluding the US, that have favourable exposure to target style factors subject to constraints.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Annual operating expenses for INTF are 0.15%, which makes it one of the least expensive products in the space.
The fund has a 12-month trailing dividend yield of 2.60%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Nestle Sa (NESN) accounts for about 1.89% of the fund's total assets, followed by Novo Nordisk Class B (NOVOB) and Asml Holding Nv (ASML).
The top 10 holdings account for about 12.96% of total assets under management.
Performance and Risk
Year-to-date, the iShares International Equity Factor ETF has gained about 7.88% so far, and was up about 3.66% over the last 12 months (as of 05/29/2023). INTF has traded between $20.83 and $27.24 in this past 52-week period.
The fund has a beta of 0.87 and standard deviation of 17.14% for the trailing three-year period, which makes INTF a medium risk choice in this particular space. With about 495 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares International Equity Factor ETF is not a suitable option for investors seeking to outperform the World ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
Vanguard Total International Stock ETF (VXUS) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $55.12 billion in assets, Vanguard FTSE Developed Markets ETF has $110.13 billion. VXUS has an expense ratio of 0.07% and VEA charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares International Equity Factor ETF (INTF): ETF Research Reports
ASML Holding N.V. (ASML) : Free Stock Analysis Report
Vanguard FTSE Developed Markets ETF (VEA): ETF Research Reports
Vanguard Total International Stock ETF (VXUS): ETF Research Reports
