The HWIV ETF is an actively managed international value product that selects non-US listed companies whose value looks low relative to their long-term earnings. Rather than mechanically tracking a particular index, it evaluates investments based on each company's normalized earnings and the durability of its business.

It suits investors who want to reduce their concentration in the US market, diversify into overseas value stocks over the long term, and place more weight on the potential for a recovery in corporate value than on short-term price swings.

This is an ETF run with an active management approach by Hotchkis & Wiley.

The product looks broadly across companies outside the US and searches for businesses that the market has priced low because of short-term setbacks or cyclical factors. It invests in companies with potential for a value recovery after reviewing the sustainability of their earnings, their financial condition and whether management makes shareholder-friendly decisions.

• Selective management centered on corporate value instead of index tracking
• An international value approach that spans countries and sectors

Assets under management (AUM) stand at $1.6M, and the expense ratio is 0.70% per year.

Actively managed international value products can take advantage of differences in economic conditions and sector cycles across countries, but the influence of the manager's judgment and stock selection also grows. When comparing them with index-based products, therefore, it is worth examining not only the simple fee level but also the selection criteria and the consistency of the portfolio construction.

The performance of international value stocks can shift direction depending on each country's economic trends, currency movements and conditions in the commodity and financial sectors. It may lag in periods when the market is led by growth stocks, but when earnings expectations for undervalued companies recover, a value selection strategy may have room to differentiate its results.

Demand for overseas equity investment reflects US market valuations, the direction of exchange rates, and regional interest rate and policy environments. This product offers an international value approach that is not concentrated in any single country, but its fund flows can be sensitive to shifts in global risk appetite and to liquidity conditions in each market.

Its approach of selecting undervalued non-US companies is a strength, but investors should be mindful of volatility stemming from country factors, exchange rates and changes in appetite for value stocks.

The top holdings list provided includes the SHEH ETF, the TTE ETF, the SHEL ETF and the NGG ETF. The TTE ETF appears more than once in the list, so when checking actual holdings it is advisable to verify both whether there are duplicates and which disclosure date the data is based on. Information on comparable exchange-traded funds in a similar category is limited, so when choosing an alternative directly, you should compare product documents with a focus on the scope of international value exposure, whether the fund is actively managed, and its distribution policy.

When considering the HWIV ETF, you should first decide what role overseas value stock exposure will play in your overall asset allocation. Because this product reflects value judgments on individual companies rather than replicating an index, you need to understand its management approach and international market risks, then confirm whether it fits your long-term holding purpose.

International value investing is affected not only by the earnings of the underlying companies but also by exchange rates, country-level interest rates and policies, and regional economic differences. An active selection strategy can deliver results that differ from the index, and investors should also consider the possibility of relative underperformance during periods when the market favors certain growth sectors.

The HWIV ETF can be a candidate for investors who want to select undervalued non-US companies from a long-term perspective. However, it is better to first confirm its lack of distribution history and the volatility of overseas markets, and to use it only when active value stock exposure is needed within an international asset allocation.