It’s no secret that foreign equities have been a big performance driver for U.S. investors in 2025. From Europe to Asia, Africa to South America, foreign equities have helped domestic portfolios provide for investors so far this year. However, simply allocating to a broad index may result in investors missing out on some key opportunities. T. Rowe Price’s midyear outlook identified some of the trends that could open up for the right active foreign equities ETF to profit.
See more: Leading Active ETF TCAF Sends Key Buy Signal
That outlook centered on ongoing tariff impacts as a key concern for investors. Both the U.S. and China will see continued challenges from U.S. tariffs in the second half of 2025. Despite a boost from tax cuts in the U.S., inflation continues to prove stubborn, and a September rate cut is not guaranteed.
Active Foreign Equities ETFs & 2025
Many investors are already likely invested in broad global indexes. So where are the opportunities to outperform? T. Rowe Price’s Head of Global Equity Josh Nelson and Global Equity Portfolio Manager Scott Berg pointed to a few key areas. Among emerging markets, India and Argentina offer regional sources of diversification, they said. They noted that Saudi Arabia and Indonesia stocks could be such sources as well.
“While Indian stock valuations remain elevated, the market’s resilience and strong economic fundamentals should not be underestimated if buying opportunities occur,” they wrote. “The risk premium associated with Argentine stocks means they remain attractively valued, offering discounts compared with some of their regional peers.”
That doesn’t discount opportunities in Europe, either. Germany’s decision to end its longstanding debt brake could position its attractively valued companies to do well with more investment.
The T. Rowe Price International Equity Research ETF (TIER ) could provide a potent route therein. It leans on the firm’s fundamental research capabilities. The fund charges a 38 basis point fee to take that active foreign equities ETF approach. Its holdings are spread across developed and emerging markets. The fund can also invest across market capitalizations.
The strategy can find opportunities in emerging markets like India or in key developed areas like Germany. For those looking for a fundamental research-driven strategy with active flexibility, TIER may intrigue.
For more news, information, and analysis, visit our Active ETF Content Hub.
