This is an actively managed ETF that selects large- and mid-cap stocks with high resource efficiency from developed markets outside the US. It uses the MSCI World ex USA Index as its reference benchmark, but overweights companies with stronger carbon, water, and waste metrics than their sector peers.

It suits investors who want to diversify across developed markets outside the US while also factoring in resource efficiency and environmental metrics.

The ETF is run with an active management approach by Harbor Capital.

Using Osmosis's proprietary resource efficiency model, the fund evaluates developed-market companies outside the US relative to their sector peers. It overweights companies that rank relatively well on carbon emissions, water usage, and waste, excludes tobacco-related investments, and also applies social and governance criteria.

• Active exposure to developed markets outside the US
• Selection based on a quantitative resource efficiency model

Assets under management (AUM) stand at $151.3M, and the expense ratio is 0.55% per year.

The fee is somewhat higher than that of broad passive international ETFs, but the active selection based on resource efficiency is what sets the fund apart.

Performance depends on the trend in developed equity markets outside the US and on currency movements, and because of its resource efficiency screening, it may diverge from its benchmark index to some extent. Short-term returns are influenced by the global economy and sector rotation.

Fund flows are shaped by the environmental and resource efficiency theme and by demand for diversification away from the US. Active international ETFs tend to see relatively large swings in inflows and outflows depending on management performance and investor interest in the theme.

Its strength is active international diversification based on resource efficiency, while its weaknesses are the fee burden and the uncertain performance of an active strategy.

In the table, FNDF and GSIE are comparable broad ETFs with lower fees that offer exposure to developed-market stocks outside the US, while GUNR and GNR are ETFs focused on global natural resources and commodities companies. EFFE, a sister product from the same manager that targets emerging markets, is also worth considering.

Here are the points to review before investing in EFFI. Because it is an active ETF investing in developed markets outside the US, it is wise to check in advance the management fee, strategy performance, regional exposure, and currency impact.

The main risk factors are the performance uncertainty of the active selection strategy and fluctuations in non-US markets and exchange rates. Because its fee is higher than that of broad passive ETFs, the long-term cost burden should also be taken into account.

It is a suitable choice for investors who want to diversify across developed markets outside the US with a resource efficiency lens. If low cost and simple exposure are the priority, broad passive ETFs such as FNDF and GSIE are worth considering, and for expanding into emerging markets as well, EFFE can be reviewed alongside it.