Investors have lots of options in the crucial international equities ETF space. How does one decide between funds? Finding the right factor or style screen can help separate the wheat from the chaff. The American Century Quality Diversified International ETF (QINT ) has outperformed its average thanks in no small part to its quality screen.
Key Takeaways
- The quality international equities ETF QINT has outperformed its average recently amid global volatility
- By emphasizing quality names, it could outdo market cap-weighted alternatives
- Investors want diversification in an uncertain period, and QINT may offer a solution.
QINT charges a 34 basis point (bps) fee to track the American Century Quality Diversified International Equity Index. In doing so, it looks for midcap global stocks outside the U.S. with strong growth potential, attractive fundamentals, and sound financials. Its index operators look to limit risk via less volatile firms, balancing growth and value stocks as needed.
That has helped QINT outperform the ETF Database Foreign Large Cap Equities category average over the last month and year. QINT has returned 41.4% over the last twelve months according to ETF Database data. The fund has added just under $91 million in net inflows over the last three months on net, as well.
See more: How Active ETFs Are Helping Meet Rising Demand for Muni Bonds
International Equities Success
The quality international equities ETF has seen its price rise above its 50 and 200-day Simple Moving Averages (SMAs) as well according to its tech chart on YCharts. That commonly indicates a buy signal and a good opportunity to get into the ETF.
As other international equities ETFs face the year’s severe geopolitical volatility, QINT’s quality screen can help find firms durable enough to produce even in tough times. What’s more, by emphasizing diversification, too, it can offer even more of that durability as a security in and of itself.
Looking ahead, as tech stock concentration risk continues to pose challenges to domestic U.S. equities and portfolios and volatility-driven energy costs loom abroad, finding the right option can be daunting. With a quality screen, the international equities ETF QINT could prove an appealing opportunity to outperform in the coming months.
For more news, information, and analysis, visit the Core Strategies Content Hub.
VettaFi LLC (“VettaFi”) is the index provider for QINT for which it receives an index licensing fee. However, QINT is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of QINT.
