International Large-Cap Value Equity

International large-cap value mutual Funds and ETFs invest in large-cap stocks outside... International large-cap value mutual Funds and ETFs invest in large-cap stocks outside of the U.S. deemed to be undervalued on a fundamental basis. These funds typically own shares in Europe (Germany, France, Spain, the U.K., and Italy, as well as the Scandinavian countries), Japan, Canada, and Australia. Some may also have exposure to emerging markets or other developed markets. 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. Depending on the mandate, the fund or ETF can invest in companies deemed to be undervalued based on current factors such as book value, earnings per share, revenue, or free cash flow. Value stocks tend to trade at lower valuations (price-earnings ratios, for example), than growth stocks. Large-cap stocks are typically defined as having a market capitalization greater than US$10 billion. On one hand, 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, a value stock that loses market share or bleeds cash may significantly decline in price. Funds focused on international large-cap value companies typically have a large concentration in the energy, materials, and financial services sectors. International large-cap value mutual Funds and ETFs are usually appropriate for more conservative investors who aren’t comfortable with heightened levels of volatility. However, investors should be aware of risks associated with these funds, including currency fluctuations and unfavorable geopolitical environment. Last Updated: 11/04/2024 View more View less

International large-cap value mutual Funds and ETFs invest in large-cap stocks outside of the U.S. deemed to be undervalued on a fundamental basis. These funds typically own shares in Europe (Germany, France, Spain,... International large-cap value mutual Funds and ETFs invest in large-cap stocks outside of the U.S. deemed to be undervalued on a fundamental basis. These funds typically own shares in Europe (Germany, France, Spain, the U.K., and Italy, as well as the Scandinavian countries), Japan, Canada, and Australia. Some may also have exposure to emerging markets or other developed markets. 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. Depending on the mandate, the fund or ETF can invest in companies deemed to be undervalued based on current factors such as book value, earnings per share, revenue, or free cash flow. Value stocks tend to trade at lower valuations (price-earnings ratios, for example), than growth stocks. Large-cap stocks are typically defined as having a market capitalization greater than US$10 billion. On one hand, 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, a value stock that loses market share or bleeds cash may significantly decline in price. Funds focused on international large-cap value companies typically have a large concentration in the energy, materials, and financial services sectors. International large-cap value mutual Funds and ETFs are usually appropriate for more conservative investors who aren’t comfortable with heightened levels of volatility. However, investors should be aware of risks associated with these funds, including currency fluctuations and unfavorable geopolitical environment. Last Updated: 11/04/2024 View more View less