This is an international equity ETF in which an active management team hand-selects non-US large-cap companies with high profitability and financial stability. It uses a stock-selection strategy rather than tracking an index.

It suits investors who want a concentrated, diversified position in high-quality overseas stocks and are willing to rely on the management team's stock-picking skill.

It is an actively managed ETF run by Touchstone.

Among non-US large-cap stocks, the management team hand-picks companies that generate steady free cash flow and high returns on capital, trade at reasonable valuations, and have shareholder-friendly management. Unlike index-tracking funds, it builds a portfolio concentrated in a small number of holdings.

• Active stock selection rather than index tracking
• A concentrated portfolio built on quality and valuation criteria

Assets under management (AUM) stand at $115.9M, and the total expense ratio is 0.37% per year.

Compared with passive ETFs in the same international equity category, it holds fewer stocks and has a different fee structure, so investors should understand the difference in investment philosophy before buying.

Because the portfolio is centered on high-quality overseas stocks, it tends to move with global equity markets and currency fluctuations, and active management means its performance may diverge from the benchmark index.

The fund is still in its growth phase since launch. Fund flows are shaped by demand for international diversification and investor interest in active management, and the pace of inflows may change as market conditions shift.

Its strength is the pursuit of excess returns through the management team's stock-picking ability, while its weaknesses are the higher costs of active management and a short track record.

Comparable products in the same category include low-cost passive international equity ETFs such as FNDF and GSIE, which track indexes, hold far more stocks and tend to charge lower fees. IGF, GUNR and GNR, which specialize in infrastructure and natural resources themes, are alternatives that narrow international equity exposure to specific sectors. Large passive developed-market ETFs such as EFA and VEA can also be considered as direct substitutes.

Here are the points to review before investing in TLCI. Given the nature of active management, investors should check the cost structure, stock concentration and short track record in advance, and also consider the currency risk that comes with overseas assets.

Stock concentration from active management and a short track record are the main risk factors. During global equity market corrections, volatility may increase because of the portfolio's concentrated nature.

It is a suitable choice for investors who want actively selected exposure to high-quality overseas stocks. If cost and liquidity are the priority, passive alternatives such as FNDF and GSIE are also worth comparing.