QINT’s quality tilt outperforms IEFA over three years

American Century’s Quality Diversified International ETF (QINT) posted almost 80% total return over the past three years, compared with about 62% for the iShares Core MSCI EAFE ETF (IEFA). QINT holds about 360 stocks; IEFA holds roughly 2,609.

QINT tracks the American Century Quality Diversified International Equity Index. The index screens large- and mid-cap companies in developed markets for quality, growth, and valuation. It reweights style exposure monthly in 5% increments and allocates 55% to the style-quality or growth-that the index process favors based on risk-adjusted measures.

IEFA tracks the MSCI EAFE IMI Index and provides market-cap-weighted exposure across large-, mid- and small-cap companies in developed international markets. The fund’s approach places weight according to company market value rather than fundamental scores.

The two ETFs share about 32% of their holdings. QINT’s effective holdings ratio is about 0.52, indicating a more even distribution of weight across constituents. IEFA’s effective holdings ratio is about 0.11, reflecting heavier concentration in the largest positions despite a larger number of names. Both funds show similar top-10 concentration levels.

Expense ratios differ: IEFA’s expense ratio is 0.07%. QINT’s net expense ratio is 0.34% and its gross expense ratio is 0.40%. QINT’s fee reflects index licensing and the fund’s screening and reweighting mechanics.

Performance differences between the funds correspond with their distinct index constructions and factor exposures. QINT applies a systematic quality and growth filter and reweighting rules; IEFA follows a traditional market-cap weighting across developed markets.

VettaFi LLC is the index provider for QINT and receives an index licensing fee. VettaFi is not the issuer, sponsor, or seller of QINT and has no obligations related to the fund’s issuance, administration, marketing, or trading.

IEFA provides broad, low-cost developed-market equity exposure at a 0.07% expense ratio. QINT provides a multi-factor, quality-tilted alternative with fewer holdings and a higher fee structure, and it implements monthly reweighting and screening criteria as part of its index design.