International Equities: A Guide to 4 Strong ETFs

International equities are currently trading at cheap prices with above-average dividend yields and strong momentum. Four strong international equity ETFs include the SPDR EURO STOXX, which offers exposure to European equities.

BlackRock has announced a significant milestone in its product innovation strategy by converting the BlackRock International Dividend Fund into an active ETF, creating the BlackRock International Dividend ETF (NYSE:BIDD). This move marks the first active mutual fund conversion to an active ETF for the firm, catering to the growing preference among U.S. investors for the ETF structure BlackRock Expands Investor Access to International Equities with New Active ETF^[1].

The new ETF, managed by an all-female portfolio management team led by Olivia Treharne and Molly Greenen, aims to deliver strong returns by investing at least 80% of its net assets in dividend-paying international companies. This strategy aligns with the current market conditions, where international equities, particularly dividend-paying large caps, offer an alternative source of alpha over the long term 4 Strong International Equity ETFs^[2].

The BlackRock International Dividend ETF (BIDD) extends iShares’ active ETF offering with the convenience, liquidity, and potential tax-efficiency of the ETF wrapper. According to Olivia Treharne, Portfolio Manager & Co-Head of BlackRock’s Global Equity Team, “By investing exclusively in high-quality international businesses and concentrating on valuation, we have delivered resilient, recurring returns over time. The new active ETF helps empower a broader range of investors with easy access to pursue opportunities in the international markets” BlackRock Expands Investor Access to International Equities with New Active ETF^[1].

This conversion is a testament to BlackRock’s commitment to product innovation and simplifying access to diverse and quality investment solutions. Rachel Aguirre, Head of U.S. iShares Product at BlackRock, noted, “Our product development strategy begins with our clients. As fee-based advisors increasingly gravitate towards active ETFs for their tax and cost efficiency, liquidity, and transparency, this conversion is a testament to the strength of our product platform to deliver access to our active investment strategies in a range of formats” BlackRock Expands Investor Access to International Equities with New Active ETF^[1].

International equities currently trade at cheap prices with above-average dividend yields and strong momentum. Four strong international equity ETFs include the SPDR EURO STOXX 50 ETF (FEZ), which offers exposure to European equities. Other notable ETFs include the Vanguard International High Dividend Yield Index Fund ETF Shares (VYMI), the Avantis International Equity ETF (AVDE), and the iShares Latin America 40 ETF (ILF) 4 Strong International Equity ETFs^[2].

The SPDR EURO STOXX 50 ETF (FEZ) focuses on European equities and has the highest quality holdings. It is the safer, less risky choice among its peers, focusing on high-quality, large-cap European equities. The Vanguard International High Dividend Yield Index Fund ETF Shares (VYMI) has a diversified portfolio of high-yield international equities and a 4.0% yield. The Avantis International Equity ETF (AVDE) is the most well-rounded, balanced choice, while the iShares Latin America 40 ETF (ILF) offers the highest yield but with less diversification and greater risk 4 Strong International Equity ETFs^[2].

In conclusion, the introduction of the BlackRock International Dividend ETF (BIDD) signifies a significant shift in BlackRock’s investment strategy, providing investors with an accessible and efficient way to tap into the potential of international equities. As investors continue to seek out opportunities in the international markets, the new ETF offers a compelling option for those looking to diversify their portfolios.