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Is Invesco S&P International Developed Quality ETF (IDHQ) a Strong ETF Right Now?
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The Invesco S&P International Developed Quality ETF (IDHQ - Free Report) made its debut on 06/13/2007, and is a smart beta exchange traded fund that provides broad exposure to the Foreign Large Growth 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 work great for investors who believe in market efficiency. They provide 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.
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.
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
The fund is managed by Invesco, and has been able to amass over $661.7 million, which makes it one of the larger ETFs in the Foreign Large Growth ETF. IDHQ, before fees and expenses, seeks to match the performance of the S&P Quality Developed ex US LargeMidCap Index.
The S&P Quality Developed ex US LargeMidCap Index tracks the performance of stocks in the S&P Developed Ex-US LargeMidCap Index that have the highest quality score, which is calculated based on three fundamental measures, return on equity, accruals ratio and financial leverage ratio.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
With the least expensive product in the space, this ETF has annual operating expenses of 0.29%.
It's 12-month trailing dividend yield comes in at 2.33%.
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.
When you look at individual holdings, Asml Holding Nv (ASML) accounts for about 5.85% of the fund's total assets, followed by Sk Hynix Inc (Y8085F100) and Roche Holding Ag (ROG).
IDHQ's top 10 holdings account for about 36.26% of its total assets under management.
Performance and Risk
The ETF has added roughly 5.43% so far this year and is up roughly 20.35% in the last one year (as of 03/10/2026). In the past 52-week period, it has traded between $27.24 and $39.84
IDHQ has a beta of 0.87 and standard deviation of 14.75% for the trailing three-year period, which makes the fund a low risk choice in the space. With about 208 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco S&P International Developed Quality ETF is a reasonable option for investors seeking to outperform the Foreign Large Growth ETF segment of the market. However, there are other ETFs in the space which investors could consider.
VictoryShares International Free Cash Flow Growth ETF (GRIN) tracks VICTORY INTL GROWTH FREE CASH FLOW INDEX and the Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ) tracks Dorsey Wright Developed Markets Technical Leaders Index. VictoryShares International Free Cash Flow Growth ETF has $241.58 million in assets, Invesco Dorsey Wright Developed Markets Momentum ETF has $689.23 million. GRIN has an expense ratio of 0.56% and PIZ changes 0.80%.
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 Growth 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 Invesco S&P International Developed Quality ETF (IDHQ) a Strong ETF Right Now?
The Invesco S&P International Developed Quality ETF (IDHQ - Free Report) made its debut on 06/13/2007, and is a smart beta exchange traded fund that provides broad exposure to the Foreign Large Growth 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 work great for investors who believe in market efficiency. They provide 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.
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.
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
The fund is managed by Invesco, and has been able to amass over $661.7 million, which makes it one of the larger ETFs in the Foreign Large Growth ETF. IDHQ, before fees and expenses, seeks to match the performance of the S&P Quality Developed ex US LargeMidCap Index.
The S&P Quality Developed ex US LargeMidCap Index tracks the performance of stocks in the S&P Developed Ex-US LargeMidCap Index that have the highest quality score, which is calculated based on three fundamental measures, return on equity, accruals ratio and financial leverage ratio.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
With the least expensive product in the space, this ETF has annual operating expenses of 0.29%.
It's 12-month trailing dividend yield comes in at 2.33%.
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.
When you look at individual holdings, Asml Holding Nv (ASML) accounts for about 5.85% of the fund's total assets, followed by Sk Hynix Inc (Y8085F100) and Roche Holding Ag (ROG).
IDHQ's top 10 holdings account for about 36.26% of its total assets under management.
Performance and Risk
The ETF has added roughly 5.43% so far this year and is up roughly 20.35% in the last one year (as of 03/10/2026). In the past 52-week period, it has traded between $27.24 and $39.84
IDHQ has a beta of 0.87 and standard deviation of 14.75% for the trailing three-year period, which makes the fund a low risk choice in the space. With about 208 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco S&P International Developed Quality ETF is a reasonable option for investors seeking to outperform the Foreign Large Growth ETF segment of the market. However, there are other ETFs in the space which investors could consider.
VictoryShares International Free Cash Flow Growth ETF (GRIN) tracks VICTORY INTL GROWTH FREE CASH FLOW INDEX and the Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ) tracks Dorsey Wright Developed Markets Technical Leaders Index. VictoryShares International Free Cash Flow Growth ETF has $241.58 million in assets, Invesco Dorsey Wright Developed Markets Momentum ETF has $689.23 million. GRIN has an expense ratio of 0.56% and PIZ changes 0.80%.
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 Growth 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.