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Asset Class: International Developed ex-U.S. Market
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Long-Term Performance: 6.85% CAGR
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Correlation to U.S. Markets: 0.71
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U.S. Large Cap Blend Performance: 10.89% CAGR
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Back test timeframe: January 1986 – April 2022
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Oldest ETF back tested: iShares MSCI EAFE ETF (EFA)
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Long-Term Performance: 5.13% CAGR
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Correlation to U.S. Markets: 0.88
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S&P 500 Performance: 8.46% CAGR
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Back test timeframe: September 2001 – April 2022
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Number of ETFs available in this asset class: 146
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Number of ETFs in this asset class that are 10-years old or older: 28
International Developed ex-US Market vs U.S. Large Cap Blend (aka S&P 500): January 1986 – April 2022
EFA vs SPY: September 2001 – April 2022
EFA vs SPY: August 17, 2001 – April 29, 2022
The Deep Value ETF Accumulator rankings for the 28 oldest Foreign Large Cap ETFs:
The 4 top ranked Foreign Large Cap ETFs head-to-head comparisons:
DBEF vs AADR vs DNL vs FGD: July 2011 – April 2022
DBEF vs AADR vs DNL vs FGD: June 9, 2011 – April 29, 2022
Stated objectives of 4 top ranked Foreign Large Cap ETFs:
DBEF – Xtrackers MSCI EAFE Hedged Equity ETF (the “Fund”) seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI EAFE US Dollar Hedged Index (the “Underlying Index”). The MSCI EAFE US Dollar Hedged Index represents a close estimation of the performance that can be achieved by hedging the currency exposures of its parent index, the MSCI EAFE Index, to the USD, the “home” currency for the hedged index. The index is 100% hedged to the USD by selling each foreign currency forward at the one-month Forward weight. The parent index is composed of large and mid cap stocks across 21 Developed Markets (DM) countries.
AADR – The AdvisorShares Dorsey Wright ADR ETF (Ticker: AADR) is an actively managed strategy that seeks long-term capital appreciation using a technical, systematically-driven investment approach that seeks to outperform international benchmarks such as the MSCI EAFE Index and the BNY Mellon Classic ADR Index. AADR is managed by Dorsey, Wright & Associates, LLC, a firm renowned for their core philosophy of relative strength investing, which AADR’s investment focus follows. Relative strength investing involves buying securities that have appreciated in price more than the other securities in their investment universe and holding those securities until they exhibit sell signals. AADR’s investment process is purely systematic and removes any human emotion from the day-to-day decision making. In implementing AADR’s strategy, Dorsey Wright measures relative strength across both macroeconomic sector and international equity models and then takes an unconstrained approach to selecting securities for its international portfolio. The investment strategy does not give consideration to the allocation between developed and emerging markets, and will allocate between the two depending on global price trends.
DNL – WisdomTree Global ex‐U.S. Quality Dividend Growth Fund** seeks to track the investments results of dividend-paying companies with growth characteristics in developed and emerging equity markets, ex-U.S. Gain exposure to targeted developed international and emerging markets, ex-U.S. equity from dividend growing companies with quality and growth characteristics. Use to replace global ex-U.S. passive or active or dividend oriented active managers.
FGD – First Trust Dow Jones Global Select Dividend Index Fund is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the Dow Jones Global Select Dividend Index. The Index universe is defined as all component companies of the 25 developed-market country indexes in the Dow Jones Global Indexes (DJGI) family. To be considered for the Index, companies in the Index universe must pass eligibility screens for dividend quality and liquidity. The company must: Pay a current dividend. Have a current-year dividend-per-share ratio that is greater than or equal to its five-year average annual dividend-per-share ratio. Have a five-year average payout ratio of less than or equal to 60% for U.S. and European companies; or less than or equal to 80% for all other countries. Have a minimum three-month daily average trading volume of $3 million. Stocks meeting all eligibility requirements are ranked by dividend yield. The top 100 highest-yielding stocks are selected for inclusion in the Index, subject to buffers designed to limit turnover by favoring current Index components: Stocks in the Index universe are ranked in descending order by indicated annual dividend yield, defined as a stock’s unadjusted indicated annual dividend (not including any special dividends) divided by its unadjusted price. All current Index component stocks that are among the top 150 stocks are included in the Index. Noncomponent stocks are added to the Index based on their rankings until the component count reaches 100. Component weightings are assigned based on dividend yield. Weights of individual component stocks are capped at 10%. The Index is reconstituted and adjusted annually in March.
Thank you for taking time to read this article. If you found it useful, please share it with a friend.
Respectfully yours, Micah McDonald, aka the Deep Value ETF Accumulator
Previous Deep Value ETF Accumulator articles on Foreign Large Cap ETFs:
4 Best Long-Term Performance International Large Cap Value ETFs 1.5
4 Best Long-Term Performance Foreign Large Cap Growth ETFs 1.5
Disclosure: We currently own shares of DBEF and we intend to buy more shares in the future. I am not a professional investment advisor. Please perform your own due diligence or seek the advice of a Registered Investment Advisor before investing in any security mentioned in this article. This website contains affiliate links to M1 Finance and Google AdSense.