International Equity Style Box

DEFINITION of 'International Equity Style Box'

A visual representation of the principal investment characteristics of foreign stocks and foreign stock funds. The international equity style box is a valuable tool for investors to use to determine the risk-return structures of their international stocks/portfolios and/or how these investments fit into their investing criteria.

Also known as an "international stock style box".

BREAKING DOWN 'International Equity Style Box'

An international equity (stock) style box is comprised of nine squares, or categories, with the investment features of stocks/stock mutual funds presented along its vertical and horizontal axes.

Whereas Morningstar uses percentages of its stock database to determine large-cap, mid-cap, and small-cap stocks (company size), internationally, dollar market-capitalizations of less than US$1 billion, US$1 billion to US$5 billion and more than US$5 billion are used to classify companies as small, medium and large, respectively.

RELATED TERMS
  1. Equity Style Box

    A visual representation of the principle investment characteristics ...
  2. Style Box

    Created by Morningstar, a style box is designed to visually represent ...
  3. Fixed-Income Style Box

    Created by Morningstar, a fixed-income style box is designed ...
  4. Style

    The investment approach or objective that a fund manager uses ...
  5. Investing Style

    In the context of stock mutual fund investing, refers to using ...
  6. Style Drift

    The divergence of a mutual fund from its stated investment style ...
Related Articles
  1. ETFs & Mutual Funds

    Understanding The Mutual Fund Style Box

    Evaluate your investments with this simple tool.
  2. Markets

    Cautionary Signs For International Investors

    "Going global" is a fashionable investing style, but investors should know the risks.
  3. ETFs & Mutual Funds

    Which Mutual Fund Style Index Is For You?

    The Russell Investments and MSCI Barra style classification systems can help you pick the right mutual fund - if you know how they work.
  4. Managing Wealth

    Is Your Investing Style Hot, Or Not?

    Don't let your portfolio construction fall out of fashion.
  5. Retirement

    Too Many Mutual Funds?

    Is there a magic number you should be aiming for? Find out here.
  6. ETFs & Mutual Funds

    4 Ways to Get International Exposure in Your Portfolio

    International investing provides diversification, which is needed these days. When it comes to investing in foreign stocks, there are lots of options.
  7. ETFs & Mutual Funds

    Build A Model Portfolio With Style Investing

    This sophisticated approach will add flair to your returns.
  8. Trading

    Mutual Fund Style Drift Not Always A Bad Thing

    Style drift has a bad reputation, but it can be a sign that your fund is thriving.
  9. Managing Wealth

    Broadening Your Portfolio's Borders

    Find out what type of international fund might suit your needs in gaining exposure to foreign markets.
  10. Markets

    How To Trade Foreign Stocks

    We weigh the major ways to trade foreign stocks for investors.
RELATED FAQS
  1. All of the following statements are true with respect to the various ways that equity ...

    The correct answer is: b) Global investing is the proper definition for investing in stocks from all over the world. International ... Read Answer >>
  2. What is the difference between a global fund and an international fund?

    In the English language, "global" and "international" tend to be used interchangeably - hence the confusion in the investing ... Read Answer >>
  3. Are mid-cap stocks more profitable than large-cap stocks?

    Learn if investing in a mid-cap stock may yield better performance than doing so in a large-cap stock. Learn the traits mid-cap ... Read Answer >>
  4. What are the advantages of foreign portfolio investment?

    Learn the advantages that businesses can derive from foreign portfolio investment in an increasingly globalized business ... Read Answer >>
  5. What are some examples of a Foreign Institutional Investor (FII)?

    Discover some examples of foreign institutional investors, and learn information about the nature of foreign institutional ... Read Answer >>
  6. What are some of the limitations of only looking at the rate of return for an investment?

    Learn why only reviewing the rate of return for an investment poses a risk to the investor and what additional factors should ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center