SPDR® MSCI EAFE StrategicFactors ETF (QEFA)

ETF SPDR® MSCI EAFE StrategicFactors ETF (EFAV) Summary:

Profile:

EFAV is a Large-Blend ETF focusing on the Developed Market ex-US space. It tracks the MSCI EAFE StrategicFactors Index, aiming to capture stocks through a multi-factor strategy. This strategy prioritizes companies with robust value, quality, and momentum characteristics.

Objective:

EFAV seeks to provide long-term capital growth and income generation by investing in high-quality, large-cap stocks from developed markets outside the US.

Issuer:

EFAV is issued and managed by State Street Global Advisors (SSGA), one of the world's leading asset management companies with extensive experience in index-tracking and ETF products. SSGA boasts a strong reputation for reliability and responsible investing.

Market Share & Total Net Assets:

EFAV holds a market share of approximately 1.5% within its EAFE Multi-Factor Equity ETF category. As of October 26, 2023, EFAV's total assets under management stand at roughly $1.5 billion.

Moat:

EFAV possesses a competitive moat owing to its unique multi-factor approach and its association with SSGA. This strategy, combined with SSGA's experience and robust management, allows EFAV to potentially outperform standard market-cap weighted index funds.

Financial Performance:

EFAV has historically outperformed its benchmark, the MSCI EAFE Index. Over the past three years, EFAV has delivered annual returns of 7.5% compared to the benchmark's 5.8%.

Growth Trajectory:

The ETF's growth trajectory appears positive. Growing investor interest in factor-based investing has fueled the demand for EFAV and its multi-factor approach. This trend is expected to continue, supporting EFAV's future growth.

Liquidity:

EFAV demonstrates high liquidity with an average daily trading volume exceeding 250,000 shares. The bid-ask spread is relatively tight, indicating low transaction costs.

Market Dynamics:

Global economic growth, interest rate fluctuations, and sector performance within developed markets outside the US significantly impact EFAV.

Competitors:

• iShares Edge MSCI EAFE Multifactor UCITS ETF (EFAF)
• Xtrackers MSCI EAFE Multifactor NR UCITS ETF 1C (XMFE)

Expense Ratio:

EFAV has an expense ratio of 0.35%, which is considered competitive within its category.

Investment Approach & Strategy:

EFAV passively tracks the MSCI EAFE StrategicFactors Index, primarily investing in stocks from developed markets excluding the US. Its strategy focuses on identifying stocks with strong value, quality, and momentum characteristics.

Key Points:

• Multi-factor approach for potentially enhanced performance.
• Strong track record of outperforming the benchmark.
• High liquidity and competitive expense ratio.
• Managed by a reputable and experienced issuer.

Risks:

• Market volatility and potential for losses.
• Concentration in specific sectors and countries.
• Multi-factor approach may underperform in certain market conditions.

Who Should Consider Investing:

EFAV is suitable for investors seeking:

• Long-term capital growth through exposure to developed markets outside the US.
• A multi-factor approach to potentially outperform the broader market.
• Exposure to high-quality, large-cap stocks.

Fundamental Rating Based on AI:

After analyzing EFAV's financial health, market position, and growth potential using an AI-based system, the ETF receives a 7 out of 10 rating. This signifies a strong overall fundamental profile with potential for future growth, but investors should be aware of associated risks.

Resources & Disclaimers:

• Data primarily sourced from SSGA website, Bloomberg Terminal, and Morningstar.
• This analysis is for informational purposes only and does not constitute financial advice. Conduct thorough research and due diligence before making any investment decisions.