Is Invesco S&P International Developed Quality ETF (IDHQ) a Strong ETF Right Now?

Making its debut on 06/13/2007, smart beta exchange traded fund Invesco S&P International Developed Quality ETF (IDHQ) provides investors broad exposure to the Foreign Large Growth ETF category of the market.What Are Smart Beta ETFs?The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.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.Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.Fund Sponsor & IndexBecause the fund has amassed over $366.15 million, this makes it one of the largest ETFs in the Foreign Large Growth ETF. IDHQ is managed by Invesco. Before fees and expenses, IDHQ seeks to match the performance of the S&P Quality Developed ex US LargeMidCap Index.The S&P Quality Developed ex US LargeMidCap Index tracks the performance of stocks in the S&P Developed Ex-US LargeMidCap Index that have the highest quality score, which is calculated based on three fundamental measures, return on equity, accruals ratio and financial leverage ratio.Cost & Other ExpensesExpense 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 0.29% for IDHQ, making it the least expensive product in the space.It has a 12-month trailing dividend yield of 2.20%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.Looking at individual holdings, Novartis Ag (NOVN) accounts for about 5.25% of total assets, followed by Asml Holding Nv (ASML) and Nestle Sa (NESN).Its top 10 holdings account for approximately 34.55% of IDHQ's total assets under management.Performance and RiskThe ETF has added about 9.60% and was up about 5.46% so far this year and in the past one year (as of 02/26/2025), respectively. IDHQ has traded between $28.25 and $32.14 during this last 52-week period.IDHQ has a beta of 0.91 and standard deviation of 16.82% for the trailing three-year period, which makes the fund a low risk choice in the space. With about 204 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P International Developed Quality ETF is a reasonable option for investors seeking to outperform the Foreign Large Growth ETF segment of the market. However, there are other ETFs in the space which investors could consider.Capital Group International Equity ETF (CGIE) tracks ---------------------------------------- and the Capital Group International Focus Equity ETF (CGXU) tracks ----------------------------------------. Capital Group International Equity ETF has $360.88 million in assets, Capital Group International Focus Equity ETF has $3.37 billion. CGIE has an expense ratio of 0.54% and CGXU charges 0.54%.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 Growth ETF.Bottom LineTo 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 Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco S&P International Developed Quality ETF (IDHQ): ETF Research Reports ASML Holding N.V. (ASML): Free Stock Analysis Report Capital Group International Focus Equity ETF (CGXU): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks