Investors are flocking to global ex-U.S. stocks in what has been a strong year for foreign equities. Even before the Liberation Day tariff spike saw such stocks rise, many market watchers were already considering upgrading from an underweight position on international equities. Now, with the U.S. dollar much reduced from the start of the year, ex-U.S. equities could continue to appeal.
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The question then becomes identifying the right route into those stocks. The ETF ecosystem provides a wide variety of options to get ex-U.S. stocks exposure, but not all are created equal. Adding a quality view into the segment could really help investors not only see continued strength but also help particular strategies outperform.
The American Century Quality Diversified International ETF (QINT) provides a helpful option that can add that quality screen. QINT charges a 39 basis point fee to track the American Century Quality Diversified International Equity Index. The quality ex-U.S. stocks ETF focuses on large- and midcap stocks. In doing so, it emphasizes companies that offer sound financials, strong growth prospects, and attractive fundamentals.
Together, that has helped QINT outperform its category according to ETF Database data. QINT has returned 33.7% on a YTD basis, beating its ETF Database Category average in that time. The ETF has also returned 29.6% over the last year, outperforming its average in that time, as well.
That quality approach has led QINT to a different group of stocks than other international ETFs, intriguingly. It has large financials firms like Banco Bilbao Vizcaya Argentaria SA (BBVA) among its top holdings. Other key international names like Hermes International (HESAY), a top luxury good name worldwide, also appear in its top holdings.
Looking ahead, its focus on quality metrics could continue to set QINT apart. Rather than double down on the AI revolution in an international context, investors can get the diversification they really want with performance via an ETF like QINT.
VettaFi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for QINT, for which it receives an index licensing fee. However, QINTis not issued, sponsored, endorsed, or sold by VettaFi. VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of QINT.
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