International equities have been a major driver of portfolio performance so far in 2025, riding both long and short term tailwinds. From a broadly positive monetary environment for ex-U.S. equities to specific events like tariff changes, myriad events have helped those stocks outperform and led investors to move from underweight to neutral positions. One international equities ETF, the Avantis International Equity ETF (AVDE ), has continued to display momentum into the latter half of the year, crossing $10 billion.
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Specifically, AVDE has added just over $560 million in net inflows between September 18th and October 18th, per ETF Database data. That has helped the fund cross the $10 billion AUM mark. The strategy has reached that point with more than $3 billion in net inflows YTD, as well.
It has done so amid that broader push into ex-U.S. equities. Entering 2025, foreign central banks were much further ahead in their cutting cycles than the U.S. Federal Reserve, boosting those markets. Tariffs on Liberation Day saw a further injection of positivity for those firms. Perhaps most important has been the weakening of the U.S. dollar, which this year has made those foreign equities even more attractive.
AVDE has returned 31% YTD according to ETF Database data. That has outperformed the fund’s ETF Database Category average in that time. The international equities ETF has also outperformed that average over one, three, and five year periods, as well.
It has done so while charging a 23 basis point (bps) fee. The fund takes an active investing approach to its targeted segments. Its managers actively invest in ex-U.S. firms with an emphasis on smaller, high profitability or value opportunities. Specifically, its managers apply fundamental criteria to identify investments. The ETF’s managers look to metrics like shares outstanding, cash flow, revenue, expenses, and price to book to select holdings.
Together, that has helped the international equities ETF make a mark so far this year. Looking ahead to the end of 2025 and start of 2026, it could display continued momentum. The U.S. dollar may stay weak or weaken further, while tariff uncertainty continues. For those looking to international equities, AVDE may intrigue.
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