iShares MSCI Intl Quality Factor ETF (IQLT)

Overview

The iShares MSCI International Quality Factor ETF (IQLT) seeks to track the investment results of an index composed of international developed market stocks with high quality characteristics like high return on equity, stable year-over-year earnings growth, and low financial leverage.

Reputation and Reliability

BlackRock is a well-established and reputable global investment management firm, known for its extensive ETF offerings and reliable investment strategies.

Management Expertise

BlackRock has a large team of experienced portfolio managers and analysts specializing in various investment strategies, including factor-based investing.

Goal

The fund aims to provide investment results that correspond to the price and yield performance of the MSCI World ex USA Sector Neutral Quality Index.

Investment Approach and Strategy

Strategy: The ETF aims to track a specific index, the MSCI World ex USA Sector Neutral Quality Index, by investing in stocks exhibiting high quality characteristics.

Composition The ETF primarily holds stocks from international developed markets, selected based on quality factors such as return on equity, earnings stability, and low financial leverage.

Market Share: IQLT's market share is significant within the international quality factor ETF category.

Total Net Assets (AUM): 4702661671

Key Competitors

• SPDR MSCI International Quality Mix ETF (IQIX)
• Dimensional International Core Equity Market ETF (DFAI)

Competitive Landscape

The competitive landscape consists of other ETFs offering exposure to international equities with a quality factor tilt. IQLT benefits from BlackRock's brand recognition and extensive distribution network, while competitors may offer slightly different index methodologies or lower expense ratios. IQLT's larger AUM provides greater liquidity, a significant advantage.

Historical Performance: The fund's historical performance can be assessed by reviewing its returns over 1-year, 3-year, 5-year, and 10-year periods.

Benchmark Comparison: IQLTu2019s performance should be compared to the MSCI World ex USA Index to evaluate its effectiveness in delivering quality factor returns.

Expense Ratio: 0.3

Average Trading Volume

IQLT generally has sufficient liquidity, with a robust average daily trading volume facilitating easy buying and selling.

Bid-Ask Spread

IQLT's bid-ask spread is typically tight, reflecting its high liquidity and lowering transaction costs for investors.

Market Environment Factors

Economic growth in developed international markets, interest rate policies, and sector-specific trends can influence IQLTu2019s performance.

Growth Trajectory

IQLT's growth trajectory is tied to the increasing popularity of factor-based investing and the performance of international developed markets. There are no recent major changes to the strategy or holdings.

Competitive Edge

IQLT benefits from the scale and brand recognition of BlackRock, which provides it with a competitive advantage in attracting assets. Its focus on quality factor investing, combined with a sector-neutral approach, helps to mitigate sector concentration risk. The ETF's large AUM translates into tighter bid-ask spreads and enhanced liquidity. These factors makes it a convenient and cost-effective option for investors. BlackRock's expertise also contributes to the ETF's appeal.

Volatility

IQLT's volatility will depend on the volatility of the underlying international equity market.

Market Risk

IQLT is subject to market risk, including fluctuations in international equity prices, currency risk, and geopolitical risks affecting the countries included in the index.

Ideal Investor Profile

The ideal investor is one seeking exposure to international developed market equities with a focus on companies exhibiting high quality characteristics and looking for diversification.

Market Risk

IQLT is suitable for long-term investors seeking a strategic allocation to international equities and exposure to the quality factor.

The iShares MSCI International Quality Factor ETF (IQLT) offers exposure to international developed market equities with a focus on high-quality companies. It aims to track the MSCI World ex USA Sector Neutral Quality Index. BlackRock's management expertise and the ETF's high liquidity make it an appealing choice for long-term investors. However, investors should consider the risks associated with international equities and factor-based investing. IQLT provides a convenient way to diversify a portfolio and potentially enhance returns through quality factor exposure.

Data Sources:

• iShares website
• MSCI Index Methodology
• BlackRock Fund Fact Sheet

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Market conditions and ETF performance can change over time.