Is the iShares International Equity Factor ETF (INTF) Currently a Top ETF Choice?

Overview of iShares International Equity Factor ETF (INTF)

Debuting on April 28, 2015, the iShares International Equity Factor ETF (INTF) is a smart beta ETF that provides investors with broad access to the Foreign Large Blend segment of the market.

Understanding Smart Beta ETFs

Traditional market cap weighted indexes were designed to mirror the overall market or specific market segments, and have long been the foundation of the ETF industry.

These indexes are popular among investors who believe in market efficiency, as they offer a straightforward, cost-effective, and transparent way to track market performance.

However, some investors aim to outperform the market through strategic stock selection. For these individuals, smart beta funds—which follow alternative, non-market cap weighted strategies—may be appealing.

Smart beta indexes select stocks based on certain fundamental criteria or a blend of factors, with the goal of enhancing risk-adjusted returns.

The smart beta universe includes a variety of approaches, from simple equal-weighting to more advanced strategies based on fundamentals, volatility, or momentum. It's important to note, though, that not every strategy has consistently delivered superior returns.

About the Fund and Its Benchmark

Managed by Blackrock, INTF has accumulated over $3.02 billion in assets, making it one of the larger funds in its category. The ETF aims to replicate the performance of the MSCI World ex USA Diversified Multi-Factor Index, before fees and expenses.

The STOXX International Equity Factor Index, which the fund references, includes large and mid-cap stocks from developed markets outside the United States, focusing on those with strong exposure to targeted style factors within certain constraints.

Fees and Expenses

When evaluating ETFs, it's crucial to consider the expense ratio. Lower fees can lead to better long-term outcomes if all other factors are equal.

INTF stands out with an annual expense ratio of just 0.16%, positioning it among the most affordable options in its category.

The fund also offers a 12-month trailing dividend yield of 2.88%.

Sector Allocation and Major Holdings

Despite the benefits of diversification, such as reduced single-stock risk, it's wise to review an ETF's holdings before investing. Most ETFs, including INTF, provide daily transparency regarding their portfolio.

Among its largest positions, Novartis AG (NOVN) represents roughly 2.29% of assets, with ASML Holding NV (ASML) and Roche Holding Par AG (ROG) following closely behind.

The top ten holdings collectively make up about 12.07% of the fund's total assets.

Performance and Risk Profile

Year-to-date, INTF has declined by approximately 0.66%, but has gained around 21.63% over the past year (as of March 23, 2026). During the last 52 weeks, its share price has ranged from $27.60 to $41.76.

With a beta of 0.76 and a three-year standard deviation of 14.34%, INTF is considered a moderate risk option. Its portfolio of about 491 holdings helps to spread out company-specific risks.

Other ETF Choices

For those seeking to outperform the Foreign Large Blend ETF category, INTF is a solid contender. Still, there are alternative ETFs worth considering.

For example, the Vanguard Total International Stock Index Fund ETF Shares (VXUS) tracks the FTSE Global All Cap ex US Index, while the Vanguard FTSE Developed Markets Index Fund ETF Shares (VEA) follows the FTSE Developed All Cap ex US Index. VXUS manages $129.52 billion in assets with a 0.05% expense ratio, and VEA holds $195.52 billion with a 0.03% expense ratio.

Investors who prioritize lower fees and reduced risk may prefer traditional market cap weighted ETFs that aim to mirror the Foreign Large Blend ETF's returns.

Conclusion