A Multi-Factor Approach to International Equities

The quality metric may define stocks based on consistency in earnings and balance sheet strength. Historically, high-quality stocks have outperformed lower-quality names since speculators may engage in lottery-like behavior.

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.

The $523.5 million INTF tracks the MSCI World ex USA Diversified Multiple-Factor Index and holds nearly 220 stocks. INTF allocates 19% of its weight to industrial stocks while the financial services and consumer discretionary sectors combine for a third of the fund’s weight.

Japan and the U.K. combine for 41% of INTF’s geographic exposure while France and Switzerland combine for about 22%. INTF charges 0.30% per year, or $30 on a $10,000 investment.

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