Is Invesco S&P International Developed Quality ETF (IDHQ) a Strong ETF Right Now?

The Invesco S&P International Developed Quality ETF (IDHQ) made its debut on 06/13/2007, and is a smart beta exchange traded fund that provides broad exposure to the Foreign Large Growth ETF category of the market.What Are Smart Beta ETFs?The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.Fund Sponsor & IndexManaged by Invesco, IDHQ has amassed assets over $527.44 million, making it one of the larger ETFs in the Foreign Large Growth ETF. This particular fund, before fees and expenses, seeks to match the performance of the S&P Quality Developed ex US LargeMidCap Index.The S&P Quality Developed ex US LargeMidCap Index tracks the performance of stocks in the S&P Developed Ex-US LargeMidCap Index that have the highest quality score, which is calculated based on three fundamental measures, return on equity, accruals ratio and financial leverage ratio.Cost & Other ExpensesInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.Annual operating expenses for this ETF are 0.29%, making it the least expensive product in the space.The fund has a 12-month trailing dividend yield of 2.36%.Sector Exposure and Top HoldingsETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.Taking into account individual holdings, Asml Holding Nv (ASML) accounts for about 5.02% of the fund's total assets, followed by Novartis Ag (NOVN) and Nestle Sa (NESN).The top 10 holdings account for about 31.24% of total assets under management.Performance and RiskThe ETF return is roughly 22.9% so far this year and is up about 16.83% in the last one year (as of 11/05/2025). In the past 52-week period, it has traded between $27.24 and $34.99The ETF has a beta of 0.91 and standard deviation of 14.95% for the trailing three-year period, making it a low risk choice in the space. With about 206 holdings, it effectively diversifies company-specific risk .AlternativesInvesco S&P International Developed Quality ETF is a reasonable option for investors seeking to outperform the Foreign Large Growth ETF segment of the market. However, there are other ETFs in the space which investors could consider.First Trust International Developed Capital Strength ETF (FICS) tracks INTERNATIONAL DEVLPD CAPITAL STRENGTH ID and the Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ) tracks Dorsey Wright Developed Markets Technical Leaders Index. First Trust International Developed Capital Strength ETF has $216.3 million in assets, Invesco Dorsey Wright Developed Markets Momentum ETF has $476.29 million. FICS has an expense ratio of 0.70% and PIZ changes 0.80%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large Growth ETFBottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco S&P International Developed Quality ETF (IDHQ): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks