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Best Long-Term Performance International Large Cap Value ETFs 1.1

The International (Foreign) Large Cap Value asset class is a difficult asset class to research. The reason being is that there haven’t been funds available for very long in this asset class. The older mutual funds available in this asset class have only been around since the mid 1990’s. The oldest ETF available in this category is the BLDRS Developed Markets 100 ADR Index Fund (ADRD), inception December 2002. So, without significant fund data to compare this asset class with others, I am relying heavily on the expertise of historians, academic studies and reliable financial experts.

So, what do the experts have to save about the International Large Cap Value asset class:

 

 

Now we have a historical reference that tells us that the Foreign Large Cap Value asset class has the potential to outperform the U.S. Large Cap Blend asset class, aka the S&P 500. Although the potential for outperformance does exist, Foreign Large Cap Value has drastically underperformed the S&P 500 since 1995 (see chart below). With this information, I believe investors should do an extra amount of due diligence before investing in this asset class. As for me, I have committed a portion of our portfolio to the International Large Cap Value asset class because I believe the reward is worth the risk and I want this asset class in my portfolio as another diversifier.

U.S. Large Cap Blend vs International Large Cap Value January 1995 – February 2018

Source: Portfolio Visualizer

I used the TD Ameritrade ETF screener and the Morningstar Portfolio manager tool to find 12 ETFs in the Foreign Large Cap Value Morningstar category that are 10 years old or older. I have compared each fund head-to-head with back testing tools at Portfolio Visualizer and ranked all 12 funds in order of long-term performance. Here are the results:

Source: Morningstar

Although I ranked all these funds head-to-head, I have only posted the results for the top 4 funds. If you would like to see comparisons of the other funds, please check out the excellent tools available at Portfolio Visualizer.

FGD vs DWM vs PXF vs IDV: January 2008 – February 2018

Source: Portfolio Visualizer

Let’s take a deeper dive into the top 4 ETFs in the Foreign Large Cap Value category by looking at their fund descriptions, objectives and strategies:

 

Thank you for reading this article; please share it with a friend.

Very Respectfully, Micah McDonald, aka the Deep Value ETF Accumulator

Disclosure: We own shares of FGD and intend to purchase more shares in the future. I am not an investment advisor. Before investing in any fund mentioned in this article please do your own due diligence or seek professional advice from a Registered Investment Advisor.

 

 

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