Investors have a big appetite for international equities diversification right now, and no wonder. Foreign equities have leapt forward amid U.S. turbulence Of course, the future remains uncertain, and the same international stocks that did so well in 1H may not do the same looking ahead. As the market settles into the second half of the year, it may be worth looking to a quality screen to find the international stocks with real staying power. A quality international equities diversification approach, like that of QINT, may prove a standout.
See more: Top International Equity ETF AVDE Up More Than $2.5 Billion YTD
The American Century Quality Diversified International ETF (QINT ) charges a 39 basis point fee. The ETF tracks the American Century Quality Diversified International Equity Index. In doing so, it looks for large and midcap stocks with strong growth potential and financials. It focuses on larger, more stable companies that show those healthy fundamentals relative to their prices. What’s more, the strategy shifts its growth versus value lean depending on market circumstances.
QINT & Quality International Equities
Not only has that performance helped QINT perform well YTD, it has also proved a durable source of return long term. The international equities diversification ETF has returned 23.55% YTD. That healthy performance beat both its ETF Database Category and FactSet Segment averages in that time. Those metrics come in at 19.7% and 14.8%, respectively. Over five years, per ETF Database data, QINT has returned 10%, beating its averages in that longer time frame, too.
That quality approach has helped the fund reach those performance metrics, but what about the stocks in which it invests? According to ETF Database analysis, the fund leans on segments like financials, a traditional quality-screen darling, but also manufacturing and health tech. Intriguingly, however, it is Hermes International SCA (HESAF), that holds the largest weight in the ETF. Looking ahead, adding a fund like QINT could provide a helpful layer of quality-focused screening to the rush for international equities.
VettaFi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for OINT, for which it receives an index licensing fee. However, QINT is not issued, sponsored, endorsed, or sold by VettaFi. VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of QINT.
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