The momentum theme helps investors target stocks with higher relative performance that may continue to maintain its strong performance over the near-term.
The value strategy has been a long-standing investment theme, favoring stocks that are relatively cheap to fundamentals. Value stocks have also historically outperformed growth stocks over the long-term.
INTF can be an alternative to traditional EAFE exposure because the smart beta ETF’s country weights are similar. For example, INTF allocates a combined 53% of its geographic weight to Japan, the U.K. and Switzerland. Overall, 15 countries are represented in the ETF. Ten of those countries are European and six are Eurozone members.
INTF has a small-cap counterpart in the form of the iShares FactorSelect MSCI Intl Small-Cap ETF (NYSEArca: ISCF). That new ETF follows the MSCI World exUSA SmallCap Diversified Multi-Factor Index. ISCF holds almost 660 stocks and like INTF, its large-cap peer, ISCF is heavy on Japanese and British stocks as those countries combine for over ISCF’s weight.
For more information on smart beta ETFs, visit our smart beta category.