In a year when international equities funds have blossomed, finding the standout options is an important task. One fund in particular has spiked in the last month, outpacing all other global equities category ETFs for flows, per ETF Database.
The Avantis International Equity ETF (AVDE ) has added more than $400 million in the last four-week period, leading its category. Those flows are just a slice of the more than $2.5 billion in AUM increase it has seen YTD.
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What might be driving that interest? The top international equity ETF for its category charges a 23 basis point fee. The fund actively invests in non-U.S. firms from developed markets with a focus on smaller, value-oriented opportunities. Its managers lean on fundamental criteria and metrics in assessing those companies. For example, it looks at measures like cash flow, revenue, expenses, price-to-book value, and more.
According to ETF Database, that has helped the fund return 23.3% YTD. That outperformed both the fund’s ETF Database Category and FactSet Segment averages, as well. Those metrics came in at 13.8% and 19.1%, respectively. Looking to YCharts, the top international equity ETF has returned 52.24% over the last three years, as well.
The fund’s significant AUM growth this year owes not only to more than $1.5 billion in net inflows, but also significant price appreciation. More than $1 billion in price appreciation from its investments has helped it along the way.
So what might its outlook be for the remainder of the year? U.S. markets remain a key part of countless portfolios, but diversification will also continue to draw attention. Should tariffs, persistent inflation, or concentration risk take a bite out of U.S. equities, having investments elsewhere can help. An active approach like AVDE’s could fit the bill. As a top international equity ETF, it merits consideration when shopping around for foreign-focused ETFs.
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