If there is a story to be told in ETFs for 2025, it may be the strong performance of international equities. When tariffs spooked markets in the spring, many international equities funds leapt forward. Those ETFs have done well YTD, but for many, performance has since dropped off pretty significantly. One international ETF has bucked that trend, however, still going strong to close 2025 with a buy signal in its tech chart.
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That fund, the Avantis International Small Cap Value ETF (AVDV ), has returned 36.9% YTD, outperforming its ETF Database Category and FactSet Segment averages. On top of that, however, the fund has also performed well in the last month and three-month periods. The international ETF has outperformed its averages in both time frames, returning 13.4% in the last three months.
Not only has AVDV provided that performance, but it has also done so while signaling some strong momentum. According to YCharts data, AVDV’s price has risen above both its 50- and 200-day simple moving averages. That may indicate now could be a good opportunity to invest for further momentum.
How, then, has the fund performed so well and stood out relative to others in the international equities space? The strategy charges a 36 basis point fee for its approach. It actively invests in non-U.S. small-cap value opportunities. Rather than just investing abroad, it’s looking for firms poised to do well even amid upheaval.
Adding that screen to small-caps can be particularly helpful as smaller firms can sometimes prove to be flashes in the pan. Value screens help find those that meet certain standards. For AVDV’s managers, that includes fundamental criteria like shares outstanding, cash flow, revenue, expenses, and more.
Together, the international ETF could provide a notable option indeed as the year draws to a close. While other international equities strategies have lost steam or may have just benefited from an initial tariff scare, AVDV can last as an option to watch.
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