This is a passive ETF that tracks an index of developed and emerging market companies outside the US that have steadily reduced their number of shares outstanding. It diversifies across non-US companies that are active in share buybacks.

It suits investors who want to diversify into international stocks through the shareholder-return theme of share repurchases.

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

The fund tracks an index of developed and emerging market companies outside the US that have reduced their shares outstanding by at least a set percentage over a recent period. Share buybacks are a shareholder-return tool that raises per-share value, and by diversifying across non-US companies that have carried them out actively, the fund gains exposure to the shareholder-return theme.

• Selection centered on companies that repurchase shares
• Exposure to the shareholder-return theme in international stocks

Assets under management (AUM) stand at $550.3M, and the expense ratio is 0.55% per year.

Compared with broad international equity ETFs such as FNDF and GSIE, the share-buyback selection criterion is the main point of comparison.

International stocks move with global risk appetite, the strength or weakness of the dollar, and the economic conditions in each country. Companies that repurchase shares tend to hold up relatively well when management's commitment to shareholder returns is in focus. Because of the large non-US weighting, exchange rate movements also affect performance.

Fund flows into international stocks diverge depending on global risk appetite and currency trends, and when interest in the shareholder-return theme rises, money sometimes shifts toward related products. It is also worth watching how performance varies with each country's economy and currency factors.

The shareholder-return theme and international diversification are strengths, while currency exposure, the limits of the selection criterion, and regional economic risk are considerations.

A direct substitute that applies the same shareholder-return theme to US stocks is PKW, and for broader exposure to developed-market stocks outside the US, products such as EFA are also worth comparing. For those who want to look at international high-dividend shareholder returns as well, a product such as IDV can be considered. The three products shown in the table, FNDF, GSIE, and IGF, differ in selection criteria and exposure, covering international fundamental and factor stocks and global infrastructure. This ETF's differentiator is its international shareholder-return theme, narrowed to companies that repurchase shares.

Here are the points to review before investing in IPKW. The shareholder-return theme is attractive, but currency, the limits of the selection criterion, and regional economic risk should be confirmed in advance. It is also a good idea to compare it with broad international equity products and US buyback products.

Exchange rate movements and economic slowdowns in individual countries are the main short-term variables, and a history of share buybacks does not guarantee future performance. Because of the large non-US weighting, currency and regional risks can act together.

It is a suitable candidate for investors who want to diversify into international stocks through the share-buyback shareholder-return theme. If you want US stocks with the same theme, compare a product such as PKW, and if you want the international shareholder-return theme, compare this product alongside it before choosing.