International ETF Spikes 96% by Ignoring Market Prices | PXF

"For investors seeking international developed market exposure without traditional market-cap weighting, Invesco RAFI Developed Markets ex-U.S. ETF ( NYSEARCA:PXF) offers a fundamentally different approach. PXF uses Research Affiliates' methodology to weight companies by sales, cash flow, dividends, and book value rather than share price. The result is a portfolio tilting toward value characteristics while maintaining broad diversification across developed markets outside the United States."

"PXF's portfolio reflects its fundamental weighting strategy through concentrated positions in established multinationals that generate substantial cash flows and dividends-the exact metrics RAFI methodology targets. Samsung Electronics ( OTC:SSNLF) leads at 2.8% of assets because its semiconductor business produces massive revenue streams, while energy giants Shell ( NYSE:SHEL) and TotalEnergies ( NYSE:TTE) together represent 3% of assets due to their dividend-rich business models."

"PXF's fundamental weighting approach has delivered strong long-term results by identifying undervalued companies before markets recognize their worth. The fund nearly doubled capital over five years with a 96% return as the strategy of selecting companies by business fundamentals rather than market sentiment paid off. This value-oriented approach has accelerated recently as international stocks rebounded from years of underperformance, with the fund gaining 48% over the past year and pushing shares to around $71-significantly outpacing both U.S. markets and traditional market-cap weighted international alternatives."

PXF applies Research Affiliates' RAFI methodology to weight companies by sales, cash flow, dividends, and book value rather than share price. The fund tilts toward value characteristics while maintaining broad diversification across developed markets outside the United States. Top positions include Samsung Electronics (2.8%), Shell and TotalEnergies (combined ~3%), and major banks and Toyota Motor, selected for strong fundamental metrics. The strategy has produced strong long-term results, including a 96% return over five years and a 48% gain over the past year, and has pushed shares to around $71. The fund also generates meaningful quarterly income for shareholders.

Read at 24/7 Wall St.