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. Mutual Funds & ETFs

    Understanding The Mutual Fund Style Box

    Evaluate your investments with this simple tool.
  2. Mutual Funds & ETFs

    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. Bonds & Fixed Income

    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 Strategies

    How To Pick Your Investment Style

    Find out what an investing style is and how to figure out which one suits you.
  6. Stock Analysis

    Box Revenue Gains Not Enough For Investors

    Despite fitting more revenue in its coffers, shares of Box (NYSE: BOX) stock are down over 6% since reporting second quarter earnings last week. Most of the news was good. For example, Box raised ...
  7. Investing

    Active Funds: Getting What You Are Paying For?

    Fund investing could have hidden costs that can potentially make a big impact on your final return, particularly over the long-term.
  8. Mutual Funds & ETFs

    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.
  9. Investing

    How To Trade Foreign Stocks

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

    Digging Deeper Into Mutual Fund Names

    Go beyond the name and find out if that fund fits into your portfolio.
RELATED FAQS
  1. 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 >>
  2. 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 >>
  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 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 >>
  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 effect has globalization had on international investments?

    Learn how globalization impacts international investment and transforms economies around the world. Understand the implications ... Read Answer >>
Hot Definitions
  1. Physical Capital

    Physical capital is one of the three main factors of production in economic theory. It consists of manmade goods that assist ...
  2. Reverse Mortgage

    A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage ...
  3. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  4. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  5. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  6. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
Trading Center