Why This Top-5 International Equity ETF Deserves Your Time

Core Insights - 2025 has been a strong year for foreign equities, prompting market watchers to shift from underweight to neutral or overweight positions [1] - The Avantis International Small Cap Value ETF (AVDV) has achieved a 45% return YTD, ranking third among global, ex-U.S. ETFs with over $100 million in AUM [2] - AVDV has added over $5 billion in the last 12 months, increasing its AUM to $14.5 billion [2] Investment Strategy - AVDV employs a strategy that combines indexing strengths with active flexibility, focusing on small-cap value firms outside the U.S. [3] - The fund utilizes fundamental criteria such as cash flow, revenue, shares outstanding, and price-to-book value to evaluate potential investments [4] Performance Highlights - Notable investments include Perseus Mining Ltd. and Regis Resources Ltd., which have returned 122% and 220% YTD, respectively, benefiting from a strong mining sector [5] - AVDV is expected to maintain its appeal in 2026 due to domestic uncertainty in the U.S., growing gold demand, and a declining U.S. dollar [6]