MIVL gives you access to MFS's international value stock-picking outside the US, targeting companies trading below their worth in developed markets. It's an active ETF that lets you tap into a storied value manager's international expertise without the mutual fund minimums or tax drag.
How It Works
The fund hunts for mispriced companies across Europe, Japan, and other developed markets using classic value metrics like low P/E, P/B, and high free cash flow yields. MFS portfolio managers actively trade positions based on fundamental research, company visits, and relative value assessments. Unlike index-based international value ETFs that mechanically screen for cheap stocks, this fund can concentrate in its best ideas and dodge value traps.
Key Features
- Active management from MFS, one of the oldest value shops (founded 1924) with deep international research
- Tax-efficient ETF wrapper for active international value strategy typically only available in mutual funds
- Can tactically shift between countries and sectors based on where managers find the best values
Risks
- Currency swings can add or subtract 10-15% annually to returns when the dollar strengthens or weakens
- Value strategies can underperform growth for years — international value lagged by 30%+ from 2017-2020
- Active management risk — the managers might simply be wrong about what's cheap versus what's cheap for good reason
Who Should Own This
Best for investors who believe in active stock-picking and want international diversification but are frustrated by years of US outperformance. Works as a 10-20% sleeve for those overweight US growth stocks who want geographic balance and a value tilt. Patient investors who can stomach periods of underperformance while waiting for value cycles to turn.