iShares MSCI Intl Value Factor ETF

IVLU

Market cap $2.9B

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.