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Is iShares Edge MSCI Multifactor Intl ETF (INTF) a Strong ETF Right Now?
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A smart beta exchange traded fund, the iShares Edge MSCI Multifactor Intl 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?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
INTF is managed by Blackrock, and this fund has amassed over $783.70 million, which makes it one of the larger ETFs in the Broad Developed World ETFs. Before fees and expenses, INTF seeks to match the performance of the MSCI World ex USA Diversified Multi-Factor Index.
The MSCI World ex USA Diversified Multi-Factor Index is designed to select equity securities from MSCI World ex USA Index that have high exposure to four investment style factors: value, quality, momentum and low size, while maintaining a level of risk similar to that of the Parent 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.
Annual operating expenses for INTF are 0.30%, which makes it on par with most peer products in the space.
INTF's 12-month trailing dividend yield is 4.53%.
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, Roche Holding Par Ag (ROG - Free Report) accounts for about 4.90% of total assets, followed by Koninklijke Philips Nv (PHIA) and Rio Tinto Plc (RIO - Free Report) .
Its top 10 holdings account for approximately 25.07% of INTF's total assets under management.
Performance and Risk
The ETF has lost about -21.33% so far this year and is down about -17.03% in the last one year (as of 05/11/2020). In the past 52-week period, it has traded between $17.43 and $27.44.
The fund has a beta of 0.91 and standard deviation of 19.78% for the trailing three-year period, which makes INTF a medium risk choice in this particular space. With about 221 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Edge MSCI Multifactor Intl 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 FTSE AllWorld exUS ETF (VEU - Free Report) tracks FTSE All-World ex US Index and the Vanguard FTSE Developed Markets ETF (VEA - Free Report) tracks FTSE Developed All Cap ex US Index. Vanguard FTSE AllWorld exUS ETF has $21.71 billion in assets, Vanguard FTSE Developed Markets ETF has $66.18 billion. VEU has an expense ratio of 0.08% 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 Edge MSCI Multifactor Intl ETF (INTF) a Strong ETF Right Now?
A smart beta exchange traded fund, the iShares Edge MSCI Multifactor Intl 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?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
INTF is managed by Blackrock, and this fund has amassed over $783.70 million, which makes it one of the larger ETFs in the Broad Developed World ETFs. Before fees and expenses, INTF seeks to match the performance of the MSCI World ex USA Diversified Multi-Factor Index.
The MSCI World ex USA Diversified Multi-Factor Index is designed to select equity securities from MSCI World ex USA Index that have high exposure to four investment style factors: value, quality, momentum and low size, while maintaining a level of risk similar to that of the Parent 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.
Annual operating expenses for INTF are 0.30%, which makes it on par with most peer products in the space.
INTF's 12-month trailing dividend yield is 4.53%.
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, Roche Holding Par Ag (ROG - Free Report) accounts for about 4.90% of total assets, followed by Koninklijke Philips Nv (PHIA) and Rio Tinto Plc (RIO - Free Report) .
Its top 10 holdings account for approximately 25.07% of INTF's total assets under management.
Performance and Risk
The ETF has lost about -21.33% so far this year and is down about -17.03% in the last one year (as of 05/11/2020). In the past 52-week period, it has traded between $17.43 and $27.44.
The fund has a beta of 0.91 and standard deviation of 19.78% for the trailing three-year period, which makes INTF a medium risk choice in this particular space. With about 221 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Edge MSCI Multifactor Intl 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 FTSE AllWorld exUS ETF (VEU - Free Report) tracks FTSE All-World ex US Index and the Vanguard FTSE Developed Markets ETF (VEA - Free Report) tracks FTSE Developed All Cap ex US Index. Vanguard FTSE AllWorld exUS ETF has $21.71 billion in assets, Vanguard FTSE Developed Markets ETF has $66.18 billion. VEU has an expense ratio of 0.08% 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.