Investing is an individualized activity and choosing the right investments starts with understanding your financial goals. International Value ETFs are funds that provide investors with exposure to countries other than the United States (for US investors). These funds highlight a variety of value metrics that may include both emerging and developed markets in foreign countries. Some are diversified and others or not, depending on their underlying mandates. Which International Value ETF is best for you? We offer the top five for your examination with multiple types to present an overview of the options.
1. Legg Mason International Low Volatility High Dividend ETF (LVHI)
If you're looking for an International Value ETF with low volatility in the hedged equity category then this might be worth your consideration. The issuer of this fund is Legg Mason in an ETF structure with a 0.40 percent expense ratio, which is among the lowest. This fund has been listed since July 27, 2016, with four years' tracking on performance. The ETF tracks the QS International Low Volatility High Dividend Hedged Index. The fund is classified in the large-cap value equity sectors under broad developed markets. The AUM of this fund is $55.3 million with 3.5 million shares outstanding. The 1-month average volume is 4,122, according to ETFDB.
2. Victory Shares International High Dividend Volatility Weighted ETF
If you're looking for an International Value exchange-traded fund that is volatility weighted, this might be a good choice for you. ETFDB explains that this fund is in the foreign large-cap equities category in the broad developed markets region. The issuer of this ETF structured fund is Victory Capital. It was launched on August 19, 2015, and it tracks the CEMP International High Dividend 100 Volatility Weighted Index. The expense ratio is 0.45 percent. The AUM of the fund is $60.5 million with 2.3 million shares. The one-month trading volume is 3,030 with a 3 month average of 3,868. The top 15 holdings for this ETF include SoftBank Corp Japan Tobacco Inc, Mitsubishi Corp, Tesco PLC, Telenor ASA, Swisscom AG, Power Assets Holdings Ltd, KT&G Corp, Singapore Telecommunications Ltd, GlaxoSmithKline PLC, Telia Company AB, Henderson Land Development Co Ltd, Red Electra Corporacion SA, Hang Seng Bank Ltd, and Telstra Corporation Ltd. The investment ratios are fairly evenly distributed among the large-cap investment interests. The distribution works favorably among the diversified market sectors to compensate for poor performance in one sector by the potential for higher performance in others.
3. Aberdeen Standard Physical Gold Shares ETF (SGOL)
Aberdeen Stanard Physical Gold Shares ETF is the lowest-cost gold ETF with an expense ratio of 0.17 percent. According to Aberdeen Standard, SGOL is listed on the NYSE Arca. The inception date for the fund is September 9, 2009. It is classified as an international value ETF with the holdings for the trust allocated in physical gold bullion bars that are held in secure vaults. The benchmarks are transparent with a daily post of the bar lit on aberdeenstandardetfs.us. Metal is priced from the London Bullion Market Association specs for Good Delivery. Inspectorate International performs a physical inspection of the gold held within the vaults twice a year and once randomly and unannounced. The location of the physically-backed gold commodity is in Zurich Switzerland and London, UK. An attractive feature of this ETF is that it has high liquidity with easy access.
4. iShares MSCI Intl Value Factor ETF (IVLU)
According to the iShares website provides investors exposure to mid and large-cap developed international stocks. The valuations are lower based on fundamentals. This fund manages the risk within a stock allocation. The inception date for the iShares MSCI Intl Value Factor ETF is June 16, 2015, listed on the New York Stock Exchange Arca. As of October of 2020, the net assets of IVLU were $477,126,319 with 24 million shares outstanding. It is listed in the equity class and benchmarked by the MSCI World ex USA Enhanced Value Index. The average daily volume as of October 2020 was 29. The number of holdings as of this date was 331. The fund provides exposure to a variety of international markets within its portfolio. We've listed them per weighting. They include Japan, The United Kingdom, France, Germany, Switzerland, Italy, The Netherlands, Hong Kong, Canada, Spain, and Australia. The management fees are 0.30 percent.
5. American Century Quality Diversified International ETF (QINT)
According to the American Century website, The QINT ETF is a fund that is designed to provide core international exposure for investors to high value and growth companies with a focus on developed markets. This fund tracks the American Century Quality Diversified International Index. Management of the fund seeks to identify quality companies with fundamentals that meet the criteria of the developers of the fund with attractive value and growth characteristics. The unique methodology employed by the fund management responds to prevailing market conditions through adjustment of exposure to value and growth styles. Risk is managed through position limits. An emphasis is placed on larger-cap volatile securities. The inception date of QINT is September 10, 2018, listed on the New York Stock Exchange Arca. The index provider is Alpha Vee Solutions Ltd. As of October of 2020, the total assets of this fund were $110,462,359.64 with 2,550,000 shares outstanding with Benchmark from Alpha Vee American Century Diversified International Equity Index. The gross expense ratio is 0.39 percent.
The top ten holdings for the QINT fund are Fortescue Metals Group LTD, Roche Holding AG, Nintendo Co Ltd, Swedish Match AB, EMS-Chemie Holding AG, Canadian Pacific Railway Ltd, Ono Pharmaceutical Co Ltd, Hoya Corp, Neste Oyj, and Singapore Exchange Ltd. Investments are geographically the most concentrated in Japan and holdings at 25 percent for this country. Other nations represented in the investment portfolio include the United Kingdom, Canada, Switzerland, France, Australia, China, Sweden, Germany, and the Netherlands.
Written by Allen Lee
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