Pinning down a market narrative to start 2025 may be difficult, but some funds have already stood out as the first month of the year comes to an end. The active international ETF TOUS is one, performing well year-to-date. The strategy’s strong opening may underscore a case for foreign diversification. Not only does it provide a way to mitigate domestic risk, but it offers an upside of its own, as well, that’s worth revisiting.
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The T. Rowe Price International Equity ETF (TOUS ) has returned 6.4% YTD per YCharts data. That has beaten the fund’s ETF Database category and FactSet segment averages in that period. What’s more, looking at the fund’s tech chart, the active international ETF recently started sending a key buy signal. The ETF’s price rose about its 50 and 200-day simple moving averages this week, indicating strong momentum for the fund.
Active International ETF TOUS Starts 2025 Strong, Sends Buy Signal
Specifically, the strategy charges only 50 basis points to actively invest in non-U.S. developed markets. TOUS looks for firms that are attractively priced and perceived to have high growth potential. The strategy holds approximately 150 stocks following that approach, looking for companies with quality business models and high earnings potential. Its fundamental, bottom-up approach can empower its managers to invest without staid index constraints.
Together, the active international ETF’s potent start to the year could make it a standout for those seeking a portfolio refresh. With concentration risk from large U.S. tech firms looming, TOUS could provide a solid opportunity to diversify. Its high level of performance year-to-date, meanwhile, could make it a compelling addition to a portfolio in a satellite role. For those looking to refresh, now may be the time for TOUS.
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