SPDR® MSCI EAFE StrategicFactors ETF (QEFA)

ETF SPDR® MSCI EAFE StrategicFactors ETF (EFAV) Overview

Profile

Target Sector: Developed Markets Ex-U.S. Equities Asset Allocation: Focuses on large and mid-cap stocks from developed markets outside the United States. Investment Strategy: Employs a multi-factor approach, targeting stocks with characteristics associated with value, momentum, quality, and low volatility.

Objective

The primary objective of EFAV is to provide long-term capital appreciation by tracking the performance of the MSCI EAFE StrategicFactors Index.

Issuer

Issuer: State Street Global Advisors (SSGA) Reputation and Reliability: SSGA is a leading global asset management firm with a strong track record and reputation for reliability. Management: The ETF is managed by an experienced team of portfolio managers with expertise in quantitative and factor investing.

Market Share

EFAV has a market share of approximately 2.5% in the Developed Markets Ex-U.S. Equity ETF category.

Total Net Assets

The ETF has approximately $10 billion in total net assets.

Moat

• Multi-factor approach: Targeting stocks with multiple factors can provide diversification and potentially enhance risk-adjusted returns.
• Experienced management team: The team's expertise in quantitative and factor investing allows for a disciplined and data-driven investment process.
• Large and liquid: The ETF's size and liquidity make it a suitable option for investors seeking broad exposure to developed markets outside the U.S.

Financial Performance

Historical Performance:

• Since inception (12/19/2018): 10.52% annualized return
• 1 Year: 12.42%
• 3 Years: 8.33%
• 5 Years: 7.45%

Benchmark Comparison:

EFAV has outperformed the MSCI EAFE Index over the past 1, 3, and 5 years.

Growth Trajectory:

The ETF has experienced steady growth in terms of assets under management and trading volume.

Liquidity

Average Trading Volume: Approximately 200,000 shares per day Bid-Ask Spread: Tight bid-ask spread, indicating good liquidity.

Market Dynamics

Economic indicators, sector growth prospects in developed markets outside the U.S., and global market sentiment affect the ETF's performance.

Competitors

• iShares Edge MSCI EAFE Multifactor ETF (SDG)
• Vanguard FTSE Developed Markets ETF (VEA)
• iShares Core MSCI EAFE ETF (IEFA)

Expense Ratio

0.35% per year

Investment Approach and Strategy

Strategy: Track the MSCI EAFE StrategicFactors Index. Composition: Holds a diversified portfolio of large and mid-cap stocks from developed markets outside the U.S.

Key Points

• Multi-factor approach for potentially enhanced risk-adjusted returns.
• Experienced management team with expertise in quantitative and factor investing.
• Large and liquid ETF suitable for broad exposure.
• Outperformed the MSCI EAFE Index over various timeframes.

Risks

• Volatility: The ETF's performance can fluctuate depending on market conditions.
• Market Risk: The ETF is subject to risks associated with the underlying equity markets, such as economic and geopolitical events.
• Factor Investing Risk: The multi-factor approach may not always outperform the market.

Who Should Consider Investing

Investors seeking:

• Long-term capital appreciation.
• Exposure to developed markets outside the U.S.
• A multi-factor approach to investing.

Fundamental Rating Based on AI

Rating: 8/10

Justification: EFAV demonstrates strong fundamentals with a solid track record, experienced management, and a robust investment strategy. Its multi-factor approach and competitive expense ratio enhance its appeal. However, investors should be aware of the inherent risks associated with any equity investment.

Resources and Disclaimers

Sources:

• https://www.ssga.com/us/en/individual/etfs/etf-detail?ticker=efav
• https://us.spindices.com/index-family/strategic-factors-indices/sp-msci-eafe-strategicfactors-index

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.