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3 Reasons to Watch Quality International ETF QINT Now

Markets are facing a lot right now, from geopolitical risks to inflationary and monetary pressures. A huge bet on AI, meanwhile, looms over the global economy, with countless portfolios massively exposed. For advisors and investors navigating this landscape, what options are out there? Diversifying into international equities via a quality international ETF like the American Century Quality Diversified International ETF (QINT B+) offers an intriguing option.Key Takeaways: QINT has outperformed the ETF Database Foreign Large Cap Equities category average over long periods. The strategy’s emphasis on quality helps it to find the best opportunities outside the U.S., rather than just tracking an index. The fund also balances growth and value, which may be key as uncertainty lingers on a global scale. QINT charges a 34 basis point fee to track the American Century Quality Diversified International Equity Index. The fund launched in 2018, investing in large- and midcap stocks outside the U.S. that display attractive fundamentals, strong growth, and healthy financials. The quality international ETF looks to balance growth and value styles as needed. That approach has seen the QINT outperform its ETF Database Foreign Large Cap Equities category average over the last three years. According to ETF Database data, the fund returned 21.2% over that time period, beating its category average of 17.3%. So why consider QINT now, then?Diversification Abroad Amid Concentration RiskIt’s no secret that AI hyperscalers constitute a huge amount of portfolio and market cap right now. The top 10 names in the S&P 500, including many of those huge tech names, make up almost 40% of the index’s market cap. By expanding into international stocks, investors can diversify their overall portfolio. QINT, for example, has healthy allocations to Japan, Canada, and Western European markets. That kind of non-U.S. exposure offers diversification away from U.S. equities, thus adding durability to portfolios.A Multifactor ApproachUsing its systematic approach, QINT’s managers can screen out its non-U.S. candidate firms that fail to meet standards across key pillars. Those pillars include; valuation, growth, and of course, quality. Using metrics like balance sheet health and cash flow, the fund does more than just pick the largest names by market cap, for example. That can be especially important in lower information ex-U.S. investing regions.Flexible ValueWith its flexibility to shift between value and growth, the fund can help to balance portfolios that may be too growth heavy. In a difficult global monetary environment, with corporations competing for credit, value-friendly investments could certainly be a shrewd consideration. See more: Think Rates Will Rise? These Income ETFs Are Ready Together, QINT’s durability and diversification makes it a strong candidate to consider. With long-term outperformance, too, the quality international ETF can potentially improve investors’ ex-U.S. allocations in a meaningful way. For more news, information, and analysis, visit the Core Strategies Content Hub. VettaFi LLC (“VettaFi”) is the index provider for QINT for which it receives index licensing fees. However, QINT is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of QINT.

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