Description

This exchange-traded fund (ETF) employs a passive investment strategy, concentrating its efforts on the international value stock segment. Its holdings consist of large and mid-sized companies situated in developed economies, specifically excluding those domiciled in the U.S. and Canada. These enterprises are chosen for appearing inexpensive relative to their industry peers, a determination made using a comprehensive value metric that also accounts for company size. This primary valuation score is typically derived from a weighted average of four key financial indicators: free cash flow yield, enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA), price-to-book (P/B) ratio, and forward price-to-earnings (P/E) ratio. However, a specialized calculation applies to banking stocks, for which only the P/B and forward P/E ratios are utilized. The resulting investment portfolio generally contains between 60 and 100 different securities. Each stock's weight within the fund is directly proportional to its computed value score, and the entire portfolio undergoes rebalancing every six months.