BlackRock’s (NYSE: BLK) iShares unit, the world’s largest issuer of exchange traded funds, expanded its already successful lineup of factor-based ETFs with last week’s launches of two international factor funds.
The iShares MSCI International Developed Momentum Factor ETF (NYSEArca: IMTM) and the iShares MSCI International Developed Quality Factor ETF (NYSEArca: IQLT) debuted last week. Like their U.S.-focused counterparts, the new ETFs seek to isolate sources of returns not typically found with traditional market capitalization-weighted funds.
“iShares MSCI International Developed Momentum Factor ETF seeks to track the performance of an index that measures the performance of large- and mid-cap developed international stocks exhibiting relatively higher momentum characteristics, while iShares MSCI International Developed Quality Factor ETF seeks to track the investment results of an index that measures the performance of large- and mid-cap developed international stocks as identified through three fundamental variables: return on equity, earnings variability and debt-to-equity,” according to a statement issued by BlackRock.
IMTM takes a factor-driven approach to the EAFE countries. The new ETF features an almost 29.6% weight to Japan with another combined 31% allocated to Canada and Switzerland. None of IMTM’s 269 holdings command a weight of more than 5.3%. The ETF’s top 10 holdings include Novartis (NYSE: NVS), Teva Pharmaceuticals (NasdaqGS: TEVA) and Toronto Dominion Bank (NYSE: TD). [Some ETF Dividends Could be Stung by Franc Surge]
IMTM charges 0.3% per year.