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Asset Class: International ex-U.S. Value Equities
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Long-Term Performance: 5.36% CAGR
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Correlation to U.S. Markets: 0.79
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U.S. Large Cap Blend Performance: 10.89% CAGR
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Back test timeframe: January 1995 – November 2021
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Oldest ETF back tested: iShares MSCI EAFE Value ETF (EFV)
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Long-Term Performance: 3.11% CAGR
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Correlation to U.S. Markets: 0.86
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S&P 500 Performance: 10.58% CAGR
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Back test timeframe: September 2005 – November 2021
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Number of ETFs available in this asset class: 42
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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 2021
EFV vs SPY: September 2005 – November 2021
EFV vs SPY: August 5, 2005 – December 14, 2021
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 PID vs PXF vs DWM: December 2007 – November 2021
FGD vs PID vs PXF vs DWM: November 27, 2007 – December 14, 2021
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. 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.
PID – The Invesco International Dividend Achievers™ ETF (Fund) is based on the NASDAQ International Dividend Achievers™ Index (Index). The Fund will normally invest at least 90% of its total assets in dividend-paying common stocks and other securities that comprise the Index. The Index is designed to identify an international group of American Depository Receipts, Global Depositary Receipts and non-U.S. common or ordinary stocks that have qualified as International Dividend Achievers™. These companies have increased their aggregate annual regular cash dividend payments consistently for at least each of the last five consecutive years. The Index is computed using the net return, which withholds applicable taxes for non-resident investors. The Fund and the Index are reconstituted annually in March and rebalanced quarterly in March, June, September and December.
PXF – The Invesco FTSE RAFI Developed Markets ex-U.S. ETF (Fund) is based on the FTSE RAFI Developed ex U.S. 1000 Index (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.
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.
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 1.4
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 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.