When it comes to the battered U.S. economy, troubling news seems to just keep coming in. Looking to international funds isn’t a shocking response.
On Wednesday, the Commerce Department reported that the U.S. GDP dropped -0.3% in the first quarter of the year. These numbers are especially damning, considering that GDP had grown 2.4% in the fourth quarter of 2024. Even worse, this report marks the first time that the U.S. GDP has shrunk since 2022.
It’s impossible to say for certain how the next quarter will fare for the United States, but it would be fair to anticipate some degree of volatility. Economic policy has continued to shift in recent weeks, while tariff threats continue to leave tremors in the market.
As such, it shouldn’t come as a surprise that some advisors are looking to branch their portfolios out from U.S. equities. A more diversified portfolio could be less adversely affected by negative headlines for U.S. markets.
Strong Flows Highlight Use Case for AVIV
While there are many different strategies for limiting U.S. exposure, international equities are gaining traction. For instance, take a closer look at the Avantis International Large Cap Value ETF (AVIV ).
According to data from FactSet, AVIV has seen well over $67 million in fund flows in the month of April alone. With the fund sitting at more than $680 million in assets under management, it’s clear that investors are looking to this fund as a relief from current macro conditions.
AVIV looks to offer capital appreciation by investing in a selection of large-cap equities from outside the United States. The fund operates with a value tilt, tapping into stocks with great fundamentals and long-term potential.
This strategy makes AVIV an interesting choice for both the near-term and long-term. In the short-term, the fund operates as a potential save haven from U.S. equities. Meanwhile, the fund taps into long-term growth opportunities through a disciplined value strategy.
With international equities gaining momentum, AVIV has seen strong growth this year. As of March 31st, 2025, the fund’s NAV has grown over 9% over the last three months.
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