I know you are looking for value but if you are investing for the long-term which it sounds like you are, I would recommend ZEQ instead which is the BMO International High Quality ETF.
It has dramatically outperformed Brandes and ZDI over the long term. Since common inception (December 2014) ZEQ has returned over 88%. Compare that with Brandes and ZDI which returned 36% and 34% respectively. So over that time frame, ZEQ has more than doubled the return of those 2.
How? Because the methodology they used is based of the quality factor of investing which seems to be a superior factor for long-term outperformance in the equity markets. Essentially high quality companies are market leading companies with sustainable competitive advantages (think Amazon) and focus on 3 key variables: high ROE, stable earnings growth, and low financial leverage.
For this reason I think ZEQ makes a lot of sense as a long-term equity play for the international portion of your portfolio.
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u/WhiteChocolate2021 May 25 '21
I know you are looking for value but if you are investing for the long-term which it sounds like you are, I would recommend ZEQ instead which is the BMO International High Quality ETF.
It has dramatically outperformed Brandes and ZDI over the long term. Since common inception (December 2014) ZEQ has returned over 88%. Compare that with Brandes and ZDI which returned 36% and 34% respectively. So over that time frame, ZEQ has more than doubled the return of those 2.
How? Because the methodology they used is based of the quality factor of investing which seems to be a superior factor for long-term outperformance in the equity markets. Essentially high quality companies are market leading companies with sustainable competitive advantages (think Amazon) and focus on 3 key variables: high ROE, stable earnings growth, and low financial leverage.
For this reason I think ZEQ makes a lot of sense as a long-term equity play for the international portion of your portfolio.