iShares Value and Growth ETFs

Studies show that the same value premium — the tendency for value stocks to outperform growth stocks — that seemingly exists with U.S. ETFs can be found around the world. Therefore, you might consider a mild tilt toward value in your international stock portfolio, just as for your domestic portfolio.

You can accomplish this tilt easily by using the iShares MSCI EAFE Value Index (EFV) along with the iShares MSCI EAFE Growth Index (EFG).

Using these two funds together — allotting perhaps 55 to 60 percent to the value fund and 40 to 45 percent to growth — will give you full exposure to large cap, developed nation stocks. You still want to allocate some of your portfolio to emerging markets and to small cap international stocks.

Or, if you’ve already decided to split your international stocks up by regions — Europe, Pacific, emerging market — then adding a bit of EFV can give you the value lean you seek.

iShares MSCI EAFE Value Index (EFV)

Indexed to: MSCI EAFE Value Index, which is made up of approximately 520 large value companies of developed world nations, with about 40 percent of the fund’s net assets in either Japan or the United Kingdom, the second and third largest equity markets on the planet

Expense ratio: 0.40 percent

Top five country holdings: Japan, United Kingdom, Switzerland, Germany, France

It’s the only fund of its kind, and it’s great that it exists. It’s a bit costly when compared to the Vanguard funds but still considerably less than most of the other international iShares options.

iShares MSCI EAFE Growth Index (EFG)

Indexed to: MSCI EAFE Growth Index, which is made up of approximately 570 large growth companies of the developed world nations, with about 44 percent of the fund’s money invested in the United Kingdom and Japan, the second and third largest stock markets

Expense ratio: 0.40 percent

Top five country holdings: United Kingdom, Japan, Switzerland, Australia, Germany

Like EFV, this international growth fund is the only one of its kind. It’s great that it exists and that iShares has kept the expense ratio lower than what it charges for most of its other international funds.

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