Foreign investing presents significant benefits, but simple, passive strategies may not be cut out for it. A U.S. equities-focused passive strategy invests in some of the most closely scrutinized firms on Earth. International investing offers much less information about firms in markets operating in other languages, or with other rules or norms. Active international equities ETFs provide a strong alternative thanks to their seasoned managers and flexibility.
See more: New Active Emerging Markets ETF Arrives From Avantis
That could help at a time when the U.S. economy, while robust, presents a complicated set of opportunities and risks. A soft landing appears more likely than ever, yet rate cuts remain elusive. If cuts are priced in, their failure to appeal could see the economy stagnate. What’s more, a potential cycle out of the big megacap tech names, or the AI craze losing steam, could harm investor portfolios.
Foreign investing via active international equities ETFs could help. Avantis Investors, for example, offers a suite of active international equities ETFs focused on areas from emerging markets to small-cap value.
The Avantis Emerging Markets Value ETF (AVES ) could intrigue with its performance. The fund has returned 17.9% over one year. That has helped it outperform its ETF Database Category and FactSet Segment averages. Charging 36 basis points (bps), the active strategy will hit its three-year ETF milestone this September. AVES looks for emerging market firms mispriced by markets based on fundamentals like cash flows, revenue, and more.
Another option that stands out, the Avantis International Large Cap Value ETF (AVIV ), provides a different view. While retaining the benefits of active investing, this fund looks for large-cap firms that meet a value standard. That includes firms in emerging markets and so-called developed markets. Charging 25 bps, AVIV also hits its three-year milestone in September. The ETF has returned 17.3% over one year.
Those are just two active international equities ETFs from Avantis Investors. For advisors and clients, the strategies may intrigue as an option for adding equities diversification.
For more news, information, and analysis, visit the Core Strategies Channel.
