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Is iShares International Equity Factor ETF (INTF) a Strong ETF Right Now?

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Launched on 04/28/2015, the iShares International Equity Factor ETF (INTF - Free Report) is a smart beta exchange traded fund offering broad exposure to the Foreign Large Blend ETF category of the market.

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.

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.

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.

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

Managed by Blackrock, INTF has amassed assets over $1.32 billion, making it one of the average sized ETFs in the Foreign Large Blend ETF. INTF seeks to match the performance of the MSCI World ex USA Diversified Multi-Factor Index before fees and expenses.

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

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 one of the cheaper products in the space, this ETF has annual operating expenses of 0.16%.

The fund has a 12-month trailing dividend yield of 3.29%.

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.

When you look at individual holdings, Novartis Ag accounts for about 1.81% of the fund's total assets, followed by Novo Nordisk Class B (NOVO) and Asml Holding Nv (ASML - Free Report) .

Its top 10 holdings account for approximately 12.11% of INTF's total assets under management.

Performance and Risk

Year-to-date, the iShares International Equity Factor ETF has gained about 7.42% so far, and is up about 10.33% over the last 12 months (as of 02/25/2025). INTF has traded between $28.08 and $31.79 in this past 52-week period.

The fund has a beta of 0.87 and standard deviation of 16.09% for the trailing three-year period, which makes INTF a medium risk choice in this particular space. With about 474 holdings, it effectively diversifies company-specific risk.

Alternatives

IShares International Equity Factor ETF is a reasonable option for investors seeking to outperform the Foreign Large Blend ETF 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 $79.89 billion in assets, Vanguard FTSE Developed Markets ETF has $143.49 billion. VXUS has an expense ratio of 0.05% and VEA charges 0.03%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large Blend ETF.

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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