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. 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.
  3. Managing Wealth

    Is Your Investing Style Hot, Or Not?

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

    Too Many Mutual Funds?

    Is there a magic number you should be aiming for? Find out here.
  5. Trading

    How To Pick Your Investment Style

    Find out what an investing style is and how to figure out which one suits you.
  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. 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.
  8. Markets

    How To Trade Foreign Stocks

    We weigh the major ways to trade foreign stocks for investors.
  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. ETFs & Mutual Funds

    The Top 5 International Equity Mutual Funds for 2016

    Learn about the five mutual funds that specialize in investing in international equities and that have different investment objectives.
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. Put Option

    An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security ...
  2. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  3. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  4. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  5. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  6. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
Trading Center