This is a passive ETF that invests in developed-market stocks outside the US that have shown low historical volatility. By weighting toward international developed-market stocks with smaller price swings, it aims to reduce drawdowns during volatile market periods.

It suits conservative investors who want exposure to international developed markets with lower volatility and who are willing to accept currency risk.

It is a passive (index-tracking) ETF managed by Invesco.

The ETF tracks an index that selects developed-market stocks outside the US with low historical volatility and weights them according to that volatility. Unlike market-cap weighting, it concentrates on low-volatility stocks, providing exposure to international developed markets while aiming to reduce drawdowns during volatile periods.

• Selection of low-volatility international developed-market stocks
• Volatility-based weight allocation

Assets under management (AUM) stand at $333.7M, and the total expense ratio (Expense Ratio) is 0.25% per year.

Compared with simple market-cap-weighted international developed-market ETFs, the main points of comparison are its low-volatility screening and volatility weighting.

International developed-market stocks are driven by global risk appetite, exchange rates and the economies of individual countries. Low-volatility strategies tend to hold up relatively well when markets are turbulent and to lag somewhat in strong rallies. Because of the international exposure, currency movements also come into play.

Fund flows into low-volatility international equities vary with market risk appetite, exchange-rate trends and demand for volatility management, and money sometimes moves into this group of products when interest in managing volatility rises. It is also worth noting that performance can differ depending on each country's economy and currency movements.

Its strength is low-volatility exposure to international developed markets, while relative weakness in rallies, currency risk and tracking differences are points to consider.

For exposure to international developed markets without low-volatility screening, direct substitutes include EFA and VEA, and for investing in international developed markets at a lower fee, products such as IEFA are also worth comparing. The three products shown in the table, EFAV, ACWV and QLVD, follow international developed-market, global and international quality low-volatility strategies respectively, and differ in region and selection method. This ETF's distinguishing criterion is its narrower exposure to low-volatility developed-market stocks outside the US.

Here are the points to review before investing in IDLV. Low-volatility exposure to international developed markets is attractive, but relative weakness in rallies, currency risk and tracking differences need to be checked in advance. It is also a good idea to compare it with plain international developed-market products.

Relative weakness in strong rallies, currency swings and tracking differences from low-volatility screening are the main variables for long-term performance, and a low-volatility strategy may diverge from the market average depending on the period. Losses can occur during broad weakness in international equities.

It is a suitable candidate for conservative investors who want international developed-market exposure with lower volatility. For international exposure without low-volatility screening, consider products such as EFA and VEA, and if you want low-volatility exposure to international developed markets, it is advisable to compare this product alongside them before choosing.