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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 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.
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.
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.
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
Managed by Blackrock, INTF has amassed assets over $944.94 million, making it one of the larger ETFs in the 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
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 this ETF are 0.15%, making it one of the least expensive products in the space.
The fund has a 12-month trailing dividend yield of 2.73%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Novo Nordisk Class B (NOVOB) accounts for about 2.15% of the fund's total assets, followed by Nestle Sa (NESN) and Asml Holding Nv (ASML - Free Report) .
The top 10 holdings account for about 13.17% of total assets under management.
Performance and Risk
Year-to-date, the iShares International Equity Factor ETF has gained about 7.76% so far, and is up roughly 25.61% over the last 12 months (as of 10/11/2023). INTF has traded between $20.88 and $27.65 in this past 52-week period.
The fund has a beta of 0.88 and standard deviation of 16.53% 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 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 $56.70 billion in assets, Vanguard FTSE Developed Markets ETF has $109.61 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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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 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.
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.
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.
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
Managed by Blackrock, INTF has amassed assets over $944.94 million, making it one of the larger ETFs in the 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
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 this ETF are 0.15%, making it one of the least expensive products in the space.
The fund has a 12-month trailing dividend yield of 2.73%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Novo Nordisk Class B (NOVOB) accounts for about 2.15% of the fund's total assets, followed by Nestle Sa (NESN) and Asml Holding Nv (ASML - Free Report) .
The top 10 holdings account for about 13.17% of total assets under management.
Performance and Risk
Year-to-date, the iShares International Equity Factor ETF has gained about 7.76% so far, and is up roughly 25.61% over the last 12 months (as of 10/11/2023). INTF has traded between $20.88 and $27.65 in this past 52-week period.
The fund has a beta of 0.88 and standard deviation of 16.53% 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 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 $56.70 billion in assets, Vanguard FTSE Developed Markets ETF has $109.61 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.