It is a core ETF that tracks developed market stocks outside the US on a market-cap-weighted basis. It covers not only large caps but also mid caps and small caps, capturing the performance of non-US developed economies as a whole in a single holding.

It suits long-term core investors who want to diversify a US-heavy portfolio into developed markets outside the US.

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

The fund holds large-cap, mid-cap and small-cap stocks in developed markets outside the US at index weights, tracking the performance of those markets as a whole. It is broadly diversified across non-US developed economies such as Europe and Japan, and rebalancing is reflected automatically and periodically according to the index methodology.

• Covers developed markets outside the US in a single holding
• A core-style structure with a low expense level

Assets under management (AUM) stand at $33.8B, and the total expense ratio (Expense Ratio) is 0.04% per year.

Its fees are on the low side compared with other broad developed market ETFs in the same category, and unlike products centered on large caps, it also covers small and mid-sized companies.

The fund follows the general direction of developed stock markets outside the US, with short-term swings driven by exchange rates and the economic cycles of major countries such as those in Europe and Japan. It tends to follow a return path different from that of the US market.

Demand for global diversification to reduce US concentration keeps core-asset-type money flowing in and out. The strength of the dollar and shifts in investor sentiment toward non-US markets are the main variables behind fund flows.

Its strengths are a low expense ratio and broad diversification across developed markets outside the US, while currency movements and relative performance versus the US are the variables to watch.

VEA, IEFA and EFA, shown in the table, are direct comparisons that invest in developed markets outside the US, and they differ in tracking index, expense ratio and liquidity. If you want the same developed market exposure at a lower cost, VEA is the leading substitute, while VXUS widens exposure to the entire non-US market, including emerging markets. To add standalone emerging market exposure, you could look at a product such as IEMG, and to focus more on non-US small caps, you could also consider SCZ.

Here are the points to review before investing in IDEV. It works well as a core holding for developed markets outside the US, but it is wise to check the expense level, currency exposure, regional economies such as Europe and Japan, and relative performance versus the US before investing.

Exchange rate movements and the economic cycles of major countries such as those in Europe and Japan are the main drivers of short-term volatility. During periods of US market strength, performance may lag, so even a core asset can show gaps in short-term gains and losses.

It is a core asset suited to long-term investors who want to diversify a US-heavy portfolio into developed markets outside the US. If you value cost and diversification, this ETF fits, and if you want broader exposure that includes emerging markets, a product such as VXUS could be an alternative.