ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Core Strategies Channel
  2. 2 Active Options for International ETF Exposure
Core Strategies Channel
Share

2 Active Options for International ETF Exposure

Ben HernandezAug 24, 2022
2022-08-24

With several countries in various stages of their respective economic cycles, getting international exposure offers investors an option to expand beyond the realm of U.S. equities. Furthermore, implementing an active management strategy eases the burden when looking at the seemingly endless opportunities overseas.

In addition to capturing countries at various economic cycles, thereby exposing the investor to potential growth and value opportunities versus isolated exposure to the U.S., some market analysts prefer international equities for other reasons. Take dividends, for example, whereby international equities target value by providing investors with income versus raising a company’s value by decreasing the number of shares available to the market.

In short, there’s an affinity for international equities to pay shareholders as opposed to buybacks.

“Outside the U.S., there’s more of a culture of returning capital to shareholders through dividends rather than buybacks,” said Julian McManus, a portfolio manager at Janus Henderson Investors, in a Barron’s article.

2 Active Options, 1 Low Expense Ratio

Active ETF opportunities shouldn’t be passed off as too expensive when considering options, especially in the case of international exposure. A pair of funds to consider, both coming with a low expense ratio of just 23 basis points, are the Avantis International Equity ETF (AVDE B) and Avantis Responsible International Equity ETF (AVSD ).

Both funds come with international exposure but tilt them differently depending on the investor’s goals for their portfolio. For a broad spectrum of international exposure, AVDE can serve that purpose.

The fund invests in a broad set of companies of all market capitalizations across non-U.S. developed countries and is designed to increase expected returns by overweighting securities trading at lower valuations with higher profitability ratios. Given this strategy, the obvious tilt is towards value, but holdings are not relegated to just large-cap companies, giving investors more market cap diversification.

AVSD provides a different level of exposure, particularly for investors who are targeting environmental, social and governance (ESG) opportunities outside of the U.S. AVSD serves that purpose.

AVSD achieves this exposure by screening out companies that raise concerns based on the fund manager’s evaluation of multiple ESG metrics and pursues the benefits associated with indexing, but with the ability to add value by making investment decisions using information based on proprietary evaluations. Like AVSD, the fund invests in a broad range of market caps, irrespective of size so diversification is achieved to capture value and growth factors.

For more news, information, and strategy, visit the Core Strategies Channel.


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X