With various economies around the globe operating at varying economic cycles, getting international exposure is an ideal option given the current market environment. American Century has a pair of exchange traded funds (ETFs) that can offer just that.
While upside gain is always a top-of-mind investor goal, another is diversification, which international equities can offer in spades. Furthermore, ETFs can offer easy ingress into the vast world of international equities. This provides broad exposure that investors can tailor with various fund strategies.
“Investing in international stock exchange-traded funds (ETFs) has become increasingly popular among investors seeking diversification in their portfolio,” The Street noted. “International stock ETFs provide exposure to foreign markets and allow investors to tap into new opportunities that may not be available in domestic markets.”
Options are always a good thing when it comes to building a portfolio. For international equities exposure, American Century has a pair of flavors worth considering. One has broad exposure, and another adds an environmental, social, and governance (ESG) component.
2 Active International Equities Options From American Century
Another consideration is active management, which offers dynamic exposure to international equities. That said, two funds to consider that both offer a low expense ratio of just 23 basis points are the Avantis International Equity ETF (AVDE ) and the Vvantis Responsible International Equity ETF (AVSD ).
AVDE invests in a broad set of companies of all market capitalizations across non-U.S. developed countries. It 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. However, 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, as mentioned, targeting ESG opportunities outside of the U.S. 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.
For more news, information, and analysis, visit the Core Strategies Channel.