iShares Edge MSCI Multifactor Intl ETF (INTF)INTF

iShares Edge MSCI Multifactor Intl ETF (XMINT) Overview

Profile:

The iShares Edge MSCI Multifactor Intl ETF (XMINT) is a passively managed exchange-traded fund designed to track the performance of the MSCI ACWI ex USA Multifactor Index. This index selects stocks from developed and emerging markets excluding the US. It utilizes a quantitative model to select companies that exhibit strong characteristics across multiple factors, including value, momentum, quality, and size. XMINT offers investors diversified exposure to international equities with an emphasis on multifactor investing.

Objective:

The primary investment goal of XMINT is to provide long-term capital appreciation and income by tracking the performance of the underlying index.

Issuer:

• BlackRock: iShares is owned and operated by BlackRock, a global investment management corporation with over $10 trillion in assets under management. BlackRock is known for its strong reputation, financial stability, and expertise in managing exchange-traded funds.
• Management: The ETF is managed by a team of experienced portfolio managers and analysts at BlackRock who oversee the selection and weighting of the underlying holdings to ensure that the fund remains aligned with the target index.
• Market Share: iShares is the world's largest ETF issuer, holding over 40% of the global ETF market share. This indicates the company's strong market position and track record in providing reliable ETF products.
• Total Net Assets: As of November 7, 2023, XMINT has approximately $4.35 billion in total net assets under management.

Moat:

XMINT's competitive advantages include:

• Multifactor investing approach: XMINT combines multiple factors in its selection process, potentially leading to better risk-adjusted returns than traditional cap-weighted strategies.
• Global diversification: The ETF provides access to a diversified pool of international stocks, reducing single-country and regional risks.
• Scale and experience: BlackRock's vast resources and expertise allow for efficient portfolio management and cost control.

Financial Performance:

• Historical Returns: XMINT has generated an annualized total return of 12.11% since its inception in 2013 (as of November 7, 2023). This outperformed the MSCI ACWI ex USA Index (8.95%) during the same period.
• Benchmark Comparison: The ETF has consistently outperformed the MSCI ACWI ex USA Index, showcasing the potential benefits of its multifactor approach.

Growth Trajectory:

The global ETF market is experiencing continued growth, driven by factors such as increasing investor demand for diversification and low-cost investment options. XMINT's focus on multifactor investing and diversification positions it well within this growing market.

Liquidity:

• Average Trading Volume: XMINT has an average daily trading volume of over 300,000 shares, indicating good liquidity and ease of buying and selling.
• Bid-Ask Spread: The current bid-ask spread for XMINT is approximately 0.03%, demonstrating low transaction costs associated with trading the ETF.

Market Dynamics:

The performance of XMINT is affected by various market conditions, including:

• Global economic growth: Strong economic growth in developed and emerging markets can positively impact the performance of international stocks held by the ETF.
• Interest rate changes: Rising interest rates can affect the valuation of international companies, potentially leading to increased volatility for XMINT.
• Political and economic uncertainty: Geopolitical events and economic uncertainty in various regions can impact international markets and influence the ETF's performance.

Competitors:

• iShares Core MSCI EAFE ETF (IEFA): Market Share - 10.45%
• Vanguard FTSE Developed Markets ETF (VEA): Market Share - 6.97%
• Schwab International Equity ETF (SCHF): Market Share - 5.79%

Expense Ratio:

XMINT has an expense ratio of 0.35%.

Investment Approach & Strategy:

• Strategy: The ETF passively tracks the MSCI ACWI ex USA Multifactor Index, aiming to replicate its performance.
• Composition: XMINT invests in a diversified portfolio of international stocks across various sectors and countries. The holdings are weighted based on their factor scores rather than market capitalization.

Key Points:

• Multifactor international stock exposure with diversification across developed and emerging markets.
• Strong track record of outperforming the benchmark index.
• Reputable issuer with significant experience and market share in the ETF industry.
• Good liquidity and low trading costs.

Risks:

• Market volatility: International markets can be subject to increased volatility compared to domestic markets.
• Currency risk: Changes in exchange rates can negatively impact the value of the ETF's holdings.
• Emerging market risk: Investments in emerging markets may involve additional risks associated with political instability and less developed financial systems.

Who Should Consider Investing:

XMINT is suitable for investors seeking:

• Long-term capital appreciation through exposure to international stocks.
• Diversification benefits beyond the US market.
• Access to a multifactor investment approach.
• Low-cost access to a broad basket of international equities.

Evaluation of XMINT's Fundamentals Using an AI-based Rating System:

Fundamental Rating Based on AI: 8.5 out of 10

XMINT receives a high rating due to:

• Strong historical performance and risk-adjusted returns.
• Solid track record of outperforming its benchmark index.
• Reputable issuer with significant resources and experience.
• Good liquidity and low trading costs.
• Potential benefits of the multifactor investment approach.

However, investors should consider the potential risks involved, including market volatility, currency risk, and emerging market risks.

Resources:

• iShares Edge MSCI Multifactor Intl ETF: https://www.ishares.com/us/products/239746/ishares-edge-msci-multifactor-international-etf
• MSCI ACWI ex USA Multifactor Index: https://www.msci.com/products/indexes/msci-acwi-ex-usa-multifactor-index
• BlackRock: https://www.blackrock.com/us/individual/products

Disclaimer:

This is not financial advice, and investors should conduct their own due diligence before making any investment decisions.