ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
    • Crypto ETF Hub
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. The Responsible Investing Channel
  2. Consider CVIE as Case for International Stocks Perks Up
The Responsible Investing Channel
Share

Consider CVIE as Case for International Stocks Perks Up

Tom LydonJun 09, 2023
2023-06-09

Investors are often told that diversification is key, and that includes embracing international stocks. However, over the trailing past three-, five-, and 10-year periods, that asset class has lagged domestic equities.

Those laggard performances have left many market participants pondering: “Are international stocks really worth the trouble?” The answer could be “yes,” because the tide appears to be turning in favor of ex-U.S. equities. Should that trend prove durable, exchange traded funds such as the Calvert International Responsible Index ETF (CVIE ) might be worth considering.

A potential tailwind for CVIE that would broadly boost the diversification case for international stocks is a weakening U.S. dollar. Much of that scenario depends on when the Federal Reserve stops boosting interest rates. If it happens, a weaker greenback could serve to reduce correlations between domestic and developed international stocks, including some CVIE components.

“If the greenback goes into another longer-term slump or if the U.S. sinks into recession but other major non-U.S. markets manage to avoid one, it is conceivable that correlations between U.S. and international markets could again drift lower,” noted Morningstar’s Christine Benz.

CVIE Could Benefit From Value Rebound

One of the primary factors that has worked against developed international stocks over the past decade is the fact that the asset class leans heavily into value. Conversely, mega-cap growth stocks have stoked upside for domestic stocks over the past decade-plus.

On the other hand, pairing CVIE with a domestic growth ETF could position investors to not only enhance portfolio diversification, but also to potentially benefit from a value rebound.

“But in a period in which value-type sectors lead the way, non-U.S. stocks could outperform and help diversify U.S. exposure. Indeed, non-U.S. markets’ slightly higher weighting in energy and lower weighting in technology stocks contributed to smaller losses in 2022 than the U.S. market experienced,” added Benz.

CVIE is also geographically diverse — a trait that could serve to enhance the ETF’s ability to reduce correlations because single-country funds don’t always accomplish that objective.

Additionally, while it’s not a dedicated dividend ETF, CVIE has payout growth prospects by way of significant allocations to some of the more compelling ex-U.S. dividend markets. Those include Japan, the U.K., Switzerland, Australia, and Taiwan, among others. That quintet combines for about 45% of CVIE’s geographic exposure and resides among the top payout growth destinations outside the U.S.

For more news, information, and analysis, visit the Responsible Investing Channel.


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X