3 Reasons This Active International ETF Could Outperform in 2026

Core Insights - Investors are focusing on international ETFs for potential robust returns as 2025 comes to a close, with the T. Rowe Price International Equity ETF (TOUS) highlighted for its strong performance and potential in 2026 [1][5] Group 1: International Market Trends - The new tariff regime introduced in 2025 has positively impacted ex-U.S. equities, which are expected to continue performing well due to ongoing tariffs and a desire for diversification away from U.S. stocks amid A.I. concentration risks [2] - A declining dollar may also benefit foreign firms, making international investments more attractive [2] Group 2: Active vs. Passive ETF Strategies - Active international ETFs have gained traction, providing flexibility and a focus on fundamentals, which can lead to better performance compared to passive index-tracking ETFs [3] - Active strategies allow for adaptation to changing market conditions, offering an information advantage through dedicated research teams [3] Group 3: T. Rowe Price International Equity ETF (TOUS) - TOUS employs a bottom-up investment approach, focusing on companies with strong business models and high growth potential across various market capitalizations [4] - The ETF has achieved a year-to-date return of 32.5%, positioning it among the top active international equity ETFs, with momentum expected to carry into 2026 [5]