Investing in Ex-U.S. Stocks? A Quality View Can Help

Core Viewpoint - Investors are increasingly interested in global ex-U.S. stocks, driven by a strong performance in foreign equities and a weakened U.S. dollar, prompting a potential upgrade from underweight positions in international equities [1] Group 1: Investment Opportunities - The ETF ecosystem offers various options for gaining exposure to ex-U.S. stocks, but not all ETFs are equally effective [1] - The American Century Quality Diversified International ETF (QINT) is highlighted as a quality-focused option, charging a fee of 39 basis points to track the American Century Quality Diversified International Equity Index [2] - QINT emphasizes large- and midcap stocks with strong financials, growth prospects, and attractive fundamentals [2] Group 2: Performance Metrics - QINT has achieved a year-to-date return of 33.7%, outperforming its category average, and has returned 29.6% over the last year, also exceeding its average [3] - The quality approach of QINT has led to a distinct portfolio compared to other international ETFs, including significant holdings in large financial firms like Banco Bilbao Vizcaya Argentaria SA (BBVA) and luxury brand Hermes International (HESAY) [4] Group 3: Strategic Focus - QINT's focus on quality metrics is expected to continue differentiating it from other ETFs, providing diversification and performance without heavily relying on trends like the AI revolution [4]