A smart beta exchange traded fund, the iShares International Equity Factor ETF (INTF) debuted on 04/28/2015, and offers broad exposure to the Foreign Large Blend ETF category of the market.

What Are Smart Beta ETFs?

Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.

Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.

On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.

This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.

This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.

Fund Sponsor & Index

Managed by Blackrock, INTF has amassed assets over $3.56 billion, making it one of the larger ETFs in the Foreign Large Blend ETF. This particular fund, before fees and expenses, seeks to match the performance of the MSCI World ex USA Diversified Multi-Factor Index.

The STOXX International Equity Factor Index composes of global developed market large and mid-capitalization stocks, excluding the US, that have favourable exposure to target style factors subject to constraints.

Cost & Other Expenses

Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.

Operating expenses on an annual basis are 0.16% for this ETF, which makes it one of the least expensive products in the space.

It's 12-month trailing dividend yield comes in at 3.02%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

When you look at individual holdings, Asml Holding Nv (ASML) accounts for about 2.26% of the fund's total assets, followed by Novartis Ag (NOVN) and Abb Ltd (ABBN).

INTF's top 10 holdings account for about 12.44% of its total assets under management.

Performance and Risk

The ETF return is roughly 11.02% so far this year and is up about 23.93% in the last one year (as of 07/30/2026). In the past 52-week period, it has traded between $33.75 and $41.80

INTF has a beta of 0.74 and standard deviation of 14.82% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 508 holdings, it effectively diversifies company-specific risk .

Alternatives

iShares International Equity Factor ETF is a reasonable option for investors seeking to outperform the Foreign Large Blend ETF segment of the market. However, there are other ETFs in the space which investors could consider.

Vanguard Total International Stock Index Fund ETF Shares (VXUS) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets Index Fund ETF Shares (VEA) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock Index Fund ETF Shares has $151.45 billion in assets, Vanguard FTSE Developed Markets Index Fund ETF Shares has $224.24 billion. VXUS has an expense ratio of 0.05% and VEA changes 0.03%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large Blend ETF

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit

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iShares International Equity Factor ETF (INTF): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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