Expanding on its suite of “Core” exchange traded funds, iShares has launched a broader international developed markets option to help investors gain more comprehensive exposure to foreign stocks.
BlackRock’s iShares recently rolled out the iShares Core MSCI International Developed Markets ETF (NYSEArca: IDEV). IDEV comes with a 0.07% expense ratio.
The new international developed markets ETF will try to reflect the performance of the MSCI World ex USA Investable Market Index, which is comprised of small-, mid- and large-cap developed market equities outside the United States.
The underlying index includes company stocks from North America, Europe, Australasia and the Far East regions, and consisted of securities from 22 developed market countries, including Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom.
“With this welcome addition to the Core, investors now have the option of ‘all in one’ international exposure through IDEV, or more targeted exposure through IEFA which can be customized with exposure to Canada,” Martin Small, Head of U.S iShares, said in a note.
BlackRock’s iShares also offers a similar option, the iShares Core MSCI EAFE ETF (NYSEArca: IEFA). However, IEFA does not include exposure to Canada and focuses on EAFE or developed Europe, Australia, Asia and Far East countries.
“International markets have the potential to provide growth and diversification in different economic cycles,” Heidi Richardson, Head of Investment Strategy for U.S. iShares, said in a note. “Investors looking for a more complete international exposure may consider IDEV given it includes Canada, a large developed equity market representing around 9% of the total market outside the U.S. Canadian equity markets have sector weightings towards financials and commodities, which may also appeal.”
IDEV’s top country weights include Japan 22.7%, U.K. 16.2%, Canada 9.0%, France 8.5%, Germany 8.1%, Switzerland 7.4%, Australia 6.6%, Hong Kong 3.1%, Netherlands 3.0%, Sweden 2.9%, Spain 2.9% and Italy 2.2%.
The fund’s sector weights include financials 21.8%, industrials 14.9%, consumer discretionary 11.6%, consumer staples 10.2%, health care 9.4%, materials 8.6%, energy 6.3%, information technology 6.0%, real estate 4.4%, telecom 3.8% and utilities 3.0%. Top holdings include Nestle SA 1.4%, Roche Holding 1.0%, Novartis 1.0%, HSBC Holdings 0.9% and Toyota Motor 0.8%.
For more information on new fund products, visit our new ETFs category.