I-VAL

International Value

i-val-2017

 

International value funds invest in a variety of developed and emerging market companies outside of the US that managers believe may be undervalued by investors.

Note that “value” is somewhat subjective and can be determined by a variety of measures, so be sure to understand how your particular fund selects companies for the index.  International value funds also sometimes employ a bit of active management to identify such companies, which may result in higher fees than more passive alternatives.

 

Index Funds

Source Data
  • 1970-1974: MSCI EAFE NR USD, R*
  • 1975-2005: MSCI EAFE Value NR USD, P
  • 2006+: iShares MSCI EAFE Value (EFV), P

(*) Good international value data is not available until 1975.  Before that, I use a developed markets index that includes both value and growth as a replacement asset.  While not perfect, the error is reasonable in moderate percentages.

 


Portfolios with International Value assets