As investors look to diversify their portfolios, many are looking to international markets and related ETFs to tap into relatively cheap areas of the global market and diversify an investment portfolio
“We’re seeing tremendous value, particularly because we’ve gone through 10 years of where international markets have really lagged U.S. markets, so suddenly valuations are incredibly attractive relative to U.S. markets,” Dodd Kittsley, National Director, Davis Advisors, said at the Morningstar Investment Conference.
Investors may look to a time-tested active approach to potentially enhance returns. For example, the actively managed Davis Select International ETF (DINT ) and Davis Select Worldwide ETF (DWLD ) are backed by Davis Advisors’ focuses on long-term opportunities and incorporate the money manager’s judgement experience, high conviction, low turnover, accountability and alignment. The Davis team screens for fundamental characteristics, including cash flows assets and liabilities, and other criteria.
The management team looks to durability, adaptability and resiliency of a company for strong competitive advantages, superior business models, attractive financials and superior free cash flows. They also select those with proven, capable management with a track record of good decisions, intelligent capital allocators and alignment of interests. Additionally, the team focuses on discount to true value by calculating owner earnings to arrive at the true value of a company.
“We’re really invested in the entrepreneurial type of companies – those that are kind of based on the massively growing global middle-class that is expected to be five billion people in 2030,” Kittsley added.
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