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Is FlexShares International Quality Dividend ETF (IQDF) a Strong ETF Right Now?
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Designed to provide broad exposure to the World ETFs category of the market, the FlexShares International Quality Dividend ETF (IQDF - Free Report) is a smart beta exchange traded fund launched on 04/12/2013.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
IQDF is managed by Flexshares, and this fund has amassed over $517.44 million, which makes it one of the larger ETFs in the World ETFs. Before fees and expenses, IQDF seeks to match the performance of the Northern Trust International Quality Dividend Index.
The Northern Trust International Quality Dividend Index is designed to provide exposure to a high-quality income-oriented portfolio of long-only international securities issued by non-U.S.-based companies, with an emphasis on long-term capital growth and a targeted overall beta that is similar to that of the Northern Trust International Large Cap Index.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.47%.
It has a 12-month trailing dividend yield of 5.15%.
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.
Looking at individual holdings, Royal Bank Of Canada Common Stock Cad 0 (RY - Free Report) accounts for about 2.87% of total assets, followed by Bhp Group Ltd (BHP - Free Report) and Roche Holding Ag Common Stock Chf 0 (ROG - Free Report) .
Performance and Risk
The ETF has added about 8.58% and is down about -4.76% so far this year and in the past one year (as of 01/31/2023), respectively. IQDF has traded between $17.72 and $25.82 during this last 52-week period.
The ETF has a beta of 0.83 and standard deviation of 22.29% for the trailing three-year period, making it a medium risk choice in the space. With about 268 holdings, it effectively diversifies company-specific risk.
Alternatives
FlexShares International Quality Dividend 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.
FlexShares International Quality Dividend Defensive ETF (IQDE - Free Report) tracks Northern Trust International Quality Dividend Defensive Index and the FlexShares International Quality Dividend Dynamic ETF (IQDY - Free Report) tracks Northern Trust International Quality Dividend Dynamic Index. FlexShares International Quality Dividend Defensive ETF has $35.24 million in assets, FlexShares International Quality Dividend Dynamic ETF has $87.95 million. IQDE has an expense ratio of 0.47% and IQDY charges 0.47%.
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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Is FlexShares International Quality Dividend ETF (IQDF) a Strong ETF Right Now?
Designed to provide broad exposure to the World ETFs category of the market, the FlexShares International Quality Dividend ETF (IQDF - Free Report) is a smart beta exchange traded fund launched on 04/12/2013.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
IQDF is managed by Flexshares, and this fund has amassed over $517.44 million, which makes it one of the larger ETFs in the World ETFs. Before fees and expenses, IQDF seeks to match the performance of the Northern Trust International Quality Dividend Index.
The Northern Trust International Quality Dividend Index is designed to provide exposure to a high-quality income-oriented portfolio of long-only international securities issued by non-U.S.-based companies, with an emphasis on long-term capital growth and a targeted overall beta that is similar to that of the Northern Trust International Large Cap Index.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.47%.
It has a 12-month trailing dividend yield of 5.15%.
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.
Looking at individual holdings, Royal Bank Of Canada Common Stock Cad 0 (RY - Free Report) accounts for about 2.87% of total assets, followed by Bhp Group Ltd (BHP - Free Report) and Roche Holding Ag Common Stock Chf 0 (ROG - Free Report) .
Performance and Risk
The ETF has added about 8.58% and is down about -4.76% so far this year and in the past one year (as of 01/31/2023), respectively. IQDF has traded between $17.72 and $25.82 during this last 52-week period.
The ETF has a beta of 0.83 and standard deviation of 22.29% for the trailing three-year period, making it a medium risk choice in the space. With about 268 holdings, it effectively diversifies company-specific risk.
Alternatives
FlexShares International Quality Dividend 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.
FlexShares International Quality Dividend Defensive ETF (IQDE - Free Report) tracks Northern Trust International Quality Dividend Defensive Index and the FlexShares International Quality Dividend Dynamic ETF (IQDY - Free Report) tracks Northern Trust International Quality Dividend Dynamic Index. FlexShares International Quality Dividend Defensive ETF has $35.24 million in assets, FlexShares International Quality Dividend Dynamic ETF has $87.95 million. IQDE has an expense ratio of 0.47% and IQDY charges 0.47%.
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.