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Is iShares International Equity Factor ETF (INTF) a Strong ETF Right Now?
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A smart beta exchange traded fund, the iShares International Equity Factor ETF (INTF - Free Report) debuted on 04/28/2015, and offers broad exposure to the Broad Developed World ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is sponsored by Blackrock. It has amassed assets over $797.08 million, making it one of the average sized ETFs in the Broad Developed World ETFs. Before fees and expenses, this particular fund 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
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for INTF are 0.15%, which makes it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 6.27%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, 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 2.03% of the fund's total assets, followed by Novo Nordisk Class B (NOVO) and Royal Bank Of Canada (RY - Free Report) .
The top 10 holdings account for about 13.51% of total assets under management.
Performance and Risk
The ETF has lost about -20.77% so far this year and is down about -19.50% in the last one year (as of 09/21/2022). In the past 52-week period, it has traded between $22.39 and $30.24.
The fund has a beta of 0.85 and standard deviation of 22.22% for the trailing three-year period, which makes INTF a medium risk choice in this particular space. With about 489 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares International Equity Factor ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Total International Stock ETF (VXUS - Free Report) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA - Free Report) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $44.81 billion in assets, Vanguard FTSE Developed Markets ETF has $89.41 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 Broad Developed 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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Is iShares International Equity Factor ETF (INTF) a Strong ETF Right Now?
A smart beta exchange traded fund, the iShares International Equity Factor ETF (INTF - Free Report) debuted on 04/28/2015, and offers broad exposure to the Broad Developed World ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is sponsored by Blackrock. It has amassed assets over $797.08 million, making it one of the average sized ETFs in the Broad Developed World ETFs. Before fees and expenses, this particular fund 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
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for INTF are 0.15%, which makes it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 6.27%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, 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 2.03% of the fund's total assets, followed by Novo Nordisk Class B (NOVO) and Royal Bank Of Canada (RY - Free Report) .
The top 10 holdings account for about 13.51% of total assets under management.
Performance and Risk
The ETF has lost about -20.77% so far this year and is down about -19.50% in the last one year (as of 09/21/2022). In the past 52-week period, it has traded between $22.39 and $30.24.
The fund has a beta of 0.85 and standard deviation of 22.22% for the trailing three-year period, which makes INTF a medium risk choice in this particular space. With about 489 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares International Equity Factor ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Total International Stock ETF (VXUS - Free Report) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA - Free Report) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $44.81 billion in assets, Vanguard FTSE Developed Markets ETF has $89.41 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 Broad Developed 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.