INTF Profile
The iShares International Equity Factor ETF aims to offer investors strategic exposure to international equities by focusing on factors that drive long-term performance. Managed by BlackRock, Inc., the fund is designed to invest at least 80% of its assets in securities that constitute its underlying index, or in investments with similar economic characteristics. This approach ensures that the ETF closely tracks the performance of the index it aims to replicate.
The underlying index is derived from the STOXX Global 1800 ex USA Index, which encompasses large- and mid-capitalization equity securities from developed and emerging markets outside the United States. The index is optimized to emphasize five key investment factors: momentum, quality, value, low volatility, and size. This factor-based strategy is intended to capture diverse sources of return by focusing on stocks that exhibit strong performance characteristics across these factors.
The factor optimization process employed by the fund is designed to enhance exposure to these target factors, which are known to contribute to superior risk-adjusted returns. Momentum refers to stocks with strong recent performance trends, while quality focuses on companies with robust financial health and profitability. Value targets undervalued stocks with attractive price-to-earnings ratios, low volatility seeks stocks with stable price movements, and size emphasizes smaller companies with growth potential.
By leveraging this factor-based approach, the iShares International Equity Factor ETF provides investors with a diversified portfolio of international equities that are strategically selected to capitalize on various performance drivers. The funds focus on multiple factors aims to deliver enhanced returns and manage risk, offering a sophisticated investment solution for those looking to gain exposure to global equity markets outside the U.S.
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