Launched on 04/28/2015, the iShares International Equity Factor ETF (INTF) 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?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
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.
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.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Blackrock, and has been able to amass over $2.17 billion, which makes 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
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.
Operating expenses on an annual basis are 0.16% for this ETF, which makes it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 2.88%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
When you look at individual holdings, Novartis Ag (NOVN) accounts for about 1.86% of the fund's total assets, followed by Asml Holding Nv (ASML) and Novo Nordisk Class B (NOVO).
The top 10 holdings account for about 11.54% of total assets under management.
Performance and Risk
The ETF has added about 21.13% so far this year and it's up approximately 20.48% in the last one year (as of 07/01/2025). In the past 52-week period, it has traded between $27.60 and $34.51
The fund has a beta of 0.80 and standard deviation of 16.21% for the trailing three-year period, which makes INTF a medium risk choice in this particular space. With about 480 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) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $94.8 billion in assets, Vanguard FTSE Developed Markets ETF has $162.26 billion. VXUS has an expense ratio of 0.05% and VEA changes 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares International Equity Factor ETF (INTF): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
