The fund tracks the MSCI EAFE Value Index, which is made up of value-style stocks from developed markets outside the US and Canada (Europe, Australasia, and the Far East). It offers broad diversified exposure to large- and mid-cap companies with low valuation multiples and relatively high dividend payouts.

It suits long-term investors who want value-style exposure while spreading a US-concentrated portfolio across developed markets more broadly.

It is a passively managed (index-tracking) ETF run by BlackRock (iShares).

The fund holds the constituents of the MSCI EAFE Index that MSCI classifies as value-style stocks. Using value characteristics such as low price multiples and high dividend payouts as its criteria, it diversifies broadly across many developed countries, and its holdings are updated automatically in line with scheduled index changes.

• Concentrated exposure to developed-market value stocks outside the US
• Broad country diversification at a low expense level

Assets under management (AUM) stand at $30.4B, and the total expense ratio is 0.33% per year.

Compared with similar international value ETFs, it is characterized by a broad, large-cap-focused portfolio and a low expense level.

Developed-market value stocks move according to their relative strength versus growth stocks, and they are affected by exchange rates and the global interest rate environment. At certain times the value style shows relative strength, and at others it goes through weak phases.

Fund flows vary with diversification demand from investors trying to reduce US concentration risk and with shifts in preference for the value style. The strength of the dollar and expectations for developed-market economies act as major backdrops for fund flows.

Its strengths are developed-market value diversification and a low expense ratio, while its weaknesses are currency exposure and the possibility of relative underperformance by the value style.

IVLU, shown in the table, is a direct comparison because it is exposed to the same international value factor, while AVDV and DISV extend into developed-market small-cap value stocks. Beyond the table, other alternatives include EFA, a broad core product with wide exposure to developed markets outside the US, and, for investors who want value exposure that also includes emerging markets, a combination with products such as VTV, a US value ETF, can also be considered.

Here are the points to review before investing in EFV. Because it is exposed to developed-market value stocks outside the US, it is important to check currency, value-style, and regional economic factors in advance, and to consider its role within your own portfolio.

Currency fluctuations and the relative weakness of the value style are the main drivers of short-term volatility. During a slowdown in developed-market economies, losses can occur despite the benefits of regional diversification, so caution is needed.

It is a suitable choice for long-term investors who want to hold developed-market value stocks outside the US in a diversified way at a low expense ratio. If you need small-cap value exposure, you can also consider AVDV and DISV, and if you need broad core exposure, a product such as EFA.