iShares MSCI Intl Value Factor ETF

IVLU

시가총액 US$44.8억

The iShares MSCI Intl Value Factor ETF has delivered leading returns among international value ETFs since October 2021 and outperformed its parent index since inception. IVLU employs a sector-neutral, value-focused strategy with notable country concentration in Japan (30.5%) and sector tilt toward financials (29.6%). While IVLU has outpaced most peers recently, RAFI-based funds FNDF and PXF have delivered stronger long-term performance since IVLU's inception.

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IVLU provides diversified exposure to international large-cap value stocks in developed markets. The ETF currently has high exposure to stocks in Japan (31%) and has $4.3B in assets under management. IVLU selects stocks based on their trailing P/B, forward P/E, and trailing EV/CFO ratios. Its 12.54x trailing P/E is also quite cheap compared to peers, though not necessarily against itself. This article identifies FNDF and PXF as two potentially better choices. Specifically, I found them to be of higher quality than IVLU, which could explain their superior long-term returns.

iShares MSCI Intl Value Factor ETF offers value exposure with a portfolio of 351 international stocks, notably overweighting Japan and financials. IVLU has outperformed its benchmark IDEV by 1.4% annualized since inception and by 18 percentage points over the past year, highlighting recent value factor strength. The fund boasts a 152% 9-year dividend growth, but distributions have been volatile, with significant cuts in 2018 and 2020.

Financials have performed very well already, particularly in Europe, but remain quite reasonably priced with NIMs rather resilient to rate cuts. In Japan, they are benefiting from greater investment and capital market activity. iShares Edge MSCI Intl Value Factor ETF has been a great way to avoid the major hit to portfolios from the significantly lower USD on a YTD basis.

This ETF offers global equity exposure excluding the US, providing diversification from US-dominated world indices. It trades at a substantial discount to global and even emerging markets, with a reasonable dividend yield. The ETF is well-diversified, investing in over 300 companies, mainly in Japan and Europe, and avoids concentration risk.

iShares Edge MSCI Intl Value Factor ETF offers exposure to international value stocks and has outperformed its closest competitor, iShares MSCI EAFE Value ETF. The IVLU ETF has a well-diversified portfolio with over 350 holdings and a low expense ratio of 0.3%. Japan makes up nearly 1/3rd of IVLU's country allocation, which could pose risks due to potential currency crisis and disruptions in the market.