International Small-Cap Blend Equity

International small-cap blend mutual funds and ETFs invest the majority of their... International small-cap blend mutual funds and ETFs invest the majority of their assets in smaller companies outside of the U.S. They can be actively or passively managed. Most of the assets are usually invested in developed markets such as Canada, Australia, New Zealand, France, Germany, Japan, and the U.K. These funds may also own some U.S. securities, but these holdings tend to be less than 20% of the total. Small caps are stocks with market capitalizations under US$1 billion. Value stocks tend to exhibit slower-than-average growth, they are more likely to pay dividends, which can increase an investor’s total return. Accordingly, they tend to trade at lower valuations (price-earnings ratios, for example), than growth stocks, which are companies projected to grow at a faster rate than the stock market average, based on measures such as book value, revenue, and earnings per share. Accordingly, they tend to trade at higher valuations (price-earnings ratios, for example), than value stocks. This is because they are typically valued more for their potential years from now, rather than their current revenue or earnings. Blend funds aim to focus on the right combination of stocks, which can provide a balance between value and growth stock attributes. International small-cap blend mutual funds and ETFs can invest in a range of sectors. However, common sectors include financial services, communications, information technology, energy, consumer discretionary, consumer staples, and industrials. Funds that have a greater concentration in value stocks will tend to exhibit less volatility than a fund solely focused on growth stocks. By contrast, a fund with a greater concentration in growth stocks will tend to exhibit more volatility but offer investors the chance for higher returns. Small-cap funds tend to be more volatile than mid or large-cap funds, so they may not be appropriate for more conservative investors. Last Updated: 11/04/2024 View more View less

International small-cap blend mutual funds and ETFs invest the majority of their assets in smaller companies outside of the U.S. They can be actively or passively managed. Most of the assets are usually... International small-cap blend mutual funds and ETFs invest the majority of their assets in smaller companies outside of the U.S. They can be actively or passively managed. Most of the assets are usually invested in developed markets such as Canada, Australia, New Zealand, France, Germany, Japan, and the U.K. These funds may also own some U.S. securities, but these holdings tend to be less than 20% of the total. Small caps are stocks with market capitalizations under US$1 billion. Value stocks tend to exhibit slower-than-average growth, they are more likely to pay dividends, which can increase an investor’s total return. Accordingly, they tend to trade at lower valuations (price-earnings ratios, for example), than growth stocks, which are companies projected to grow at a faster rate than the stock market average, based on measures such as book value, revenue, and earnings per share. Accordingly, they tend to trade at higher valuations (price-earnings ratios, for example), than value stocks. This is because they are typically valued more for their potential years from now, rather than their current revenue or earnings. Blend funds aim to focus on the right combination of stocks, which can provide a balance between value and growth stock attributes. International small-cap blend mutual funds and ETFs can invest in a range of sectors. However, common sectors include financial services, communications, information technology, energy, consumer discretionary, consumer staples, and industrials. Funds that have a greater concentration in value stocks will tend to exhibit less volatility than a fund solely focused on growth stocks. By contrast, a fund with a greater concentration in growth stocks will tend to exhibit more volatility but offer investors the chance for higher returns. Small-cap funds tend to be more volatile than mid or large-cap funds, so they may not be appropriate for more conservative investors. Last Updated: 11/04/2024 View more View less