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Is iShares International Equity Factor ETF (INTF) a Strong ETF Right Now?
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Making its debut on 04/28/2015, smart beta exchange traded fund iShares International Equity Factor ETF (INTF - Free Report) provides investors broad exposure to the Foreign Large Blend ETF 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.
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.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other 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
The fund is sponsored by Blackrock. It has amassed assets over $1.47 billion, making it one of the average sized ETFs in the Foreign Large Blend ETF. This particular fund, before fees and expenses, 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.16% for this ETF, which makes it one of the cheaper products in the space.
INTF's 12-month trailing dividend yield is 3.15%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Looking at individual holdings, Novartis Ag accounts for about 1.92% of total assets, followed by Nestle Sa (NESN) and Asml Holding Nv (ASML - Free Report) .
INTF's top 10 holdings account for about 11.58% of its total assets under management.
Performance and Risk
The ETF return is roughly 11.94% so far this year and is up about 13.30% in the last one year (as of 04/29/2025). In the past 52-week period, it has traded between $27.60 and $32.15.
The ETF has a beta of 0.78 and standard deviation of 16.90% for the trailing three-year period, making it a medium risk choice in the space. With about 484 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 $85.13 billion in assets, Vanguard FTSE Developed Markets ETF has $149.58 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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Is iShares International Equity Factor ETF (INTF) a Strong ETF Right Now?
Making its debut on 04/28/2015, smart beta exchange traded fund iShares International Equity Factor ETF (INTF - Free Report) provides investors broad exposure to the Foreign Large Blend ETF 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.
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.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other 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
The fund is sponsored by Blackrock. It has amassed assets over $1.47 billion, making it one of the average sized ETFs in the Foreign Large Blend ETF. This particular fund, before fees and expenses, 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.16% for this ETF, which makes it one of the cheaper products in the space.
INTF's 12-month trailing dividend yield is 3.15%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Looking at individual holdings, Novartis Ag accounts for about 1.92% of total assets, followed by Nestle Sa (NESN) and Asml Holding Nv (ASML - Free Report) .
INTF's top 10 holdings account for about 11.58% of its total assets under management.
Performance and Risk
The ETF return is roughly 11.94% so far this year and is up about 13.30% in the last one year (as of 04/29/2025). In the past 52-week period, it has traded between $27.60 and $32.15.
The ETF has a beta of 0.78 and standard deviation of 16.90% for the trailing three-year period, making it a medium risk choice in the space. With about 484 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 $85.13 billion in assets, Vanguard FTSE Developed Markets ETF has $149.58 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.