International Value Equity

International value mutual funds and ETFs invest the majority of their assets... International value mutual funds and ETFs invest the majority of their assets in non-U.S. developed markets. These typically include nations in Europe (Germany, France, Spain, the U.K., and Italy, as well as the Scandinavian countries). Some may also have exposure to emerging markets. They may own companies of different market capitalizations, and pursue different investing strategies. However, large cap stocks are the most common in these funds. Value investing is the opposite of growth investing, which seeks to own companies that may exhibit faster growth than the market average. Value investing can also be beneficial if a company pays out healthy dividend yields, which can increase an investor’s total return. Due to their relatively conservative nature, value stocks tend to trade at lower valuations (price-earnings ratios, for example), than growth stocks. On one hand, international value companies can be good investments if they continue to exhibit solid financial performance, or turn around struggling parts of their business. On the other hand, an international value stock that loses market share or bleeds cash may significantly decline in price. Funds focused on international value companies may have a large concentration in the infrastructure, transportation, energy, and financial services sectors. International value mutual funds and ETFs are usually appropriate for more conservative investors who aren’t comfortable with heightened levels of volatility. Although international exposure comes with its own set of risks, including currency fluctuations and unfavorable geopolitical environment. Last Updated: 11/04/2024 View more View less

International value mutual funds and ETFs invest the majority of their assets in non-U.S. developed markets. These typically include nations in Europe (Germany, France, Spain, the U.K., and Italy, as well as the... International value mutual funds and ETFs invest the majority of their assets in non-U.S. developed markets. These typically include nations in Europe (Germany, France, Spain, the U.K., and Italy, as well as the Scandinavian countries). Some may also have exposure to emerging markets. They may own companies of different market capitalizations, and pursue different investing strategies. However, large cap stocks are the most common in these funds. Value investing is the opposite of growth investing, which seeks to own companies that may exhibit faster growth than the market average. Value investing can also be beneficial if a company pays out healthy dividend yields, which can increase an investor’s total return. Due to their relatively conservative nature, value stocks tend to trade at lower valuations (price-earnings ratios, for example), than growth stocks. On one hand, international value companies can be good investments if they continue to exhibit solid financial performance, or turn around struggling parts of their business. On the other hand, an international value stock that loses market share or bleeds cash may significantly decline in price. Funds focused on international value companies may have a large concentration in the infrastructure, transportation, energy, and financial services sectors. International value mutual funds and ETFs are usually appropriate for more conservative investors who aren’t comfortable with heightened levels of volatility. Although international exposure comes with its own set of risks, including currency fluctuations and unfavorable geopolitical environment. Last Updated: 11/04/2024 View more View less