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Asset Class: International ex-U.S. Value Equities
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Long-Term Performance: 5.18% CAGR
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Correlation to U.S. Markets: 0.79
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U.S. Large Cap Blend Performance: 10.29% CAGR
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Back test timeframe: January 1995 – November 2020
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Oldest ETF back tested: iShares MSCI EAFE Value ETF (EFV)
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Long-Term Performance: 2.67% CAGR
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Correlation to U.S. Markets: 0.87
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S&P 500 Performance: 9.55% CAGR
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Back test timeframe: September 2005 – November 2020
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Number of ETFs available in this asset class: 35
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Number of ETFs in this asset class that are 10-years old or older: 10
International ex-US Value vs U.S. Large Cap Blend (aka S&P 500): January 1995 – November 2020
EFV vs SPY: September 2005 – November 2020
EFV vs SPY: August 5th, 2005 – December 4th, 2020
The Deep Value ETF Accumulator rankings for the 10 oldest International Large Cap Value ETFs:
The 4 top ranked International Large Cap Value ETFs head-to-head comparisons:
FGD vs DWM vs PXF vs IDV: December 2007 – November 2020
FGD vs DWM vs PXF vs IDV: November 27, 2007 – December 4, 2020
FGD vs DWM: December 2007 – November 2020
DWM vs PXF: July 2007 – November 2020
PXF vs IDV: July 2007 – November 2020
Stated objectives of 4 top ranked International Large Cap Value ETFs:
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. Non-component 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.
DWM – WisdomTree International Equity Fund** seeks to track the investment results of dividend-paying companies in the developed world ex the U.S. and Canada. Gain exposure to developed international world, ex-U.S. and Canada all cap equity from dividend paying companies. Use to complement or replace international developed all cap broad based active and passive strategies. Use to satisfy demand for growth potential and income focus.
PXF – The Invesco FTSE RAFI Developed Markets ex-U.S. ETF (the “Fund”) is based on the FTSE RAFI Developed ex U.S. 1000 Index (the “Index”). The Fund will generally invest at least 90% of its total assets in securities that comprise the Index as well as American depositary receipts (ADRs) and global depositary receipts (GDRs) that represent securities in the Index. The Index is designed to track the performance of the largest developed market equities (excluding the US), selected based on the following four fundamental measures of firm size: book value, cash flow, sales and dividends. The equities with the highest fundamental strength are weighted according to their fundamental scores. The Index is computed using the net return, which withholds applicable taxes for non-resident investors. The Fund and the Index are reconstituted annually.
IDV – The iShares International Select Dividend ETF seeks to track the investment results of an index composed of relatively high dividend paying equities in non-U.S. developed markets. Exposure to established, high-quality international companies. Access to developed market stocks that have provided consistently high dividend yields over time. Use to expand income strategies to international markets.
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 article on International Large Cap Value ETFs:
4 Best Long-Term Performance International Large Cap Value ETFs 1.3
Disclosure: We currently own shares of FGD and we intend to buy more shares in the future. I am not a professional investment advisor. Please perform you 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.