This Red Hot International ETF Can Perform in 2026

Core Insights - The international ETF space has shown strong performance in 2025, with a focus on the Avantis International Small Cap Value ETF (AVDV) as a notable investment option [1][2] - AVDV has achieved a year-to-date return of 47%, significantly outperforming its ETF Database Category average of 33.1% [1][2] - The fund's strategy combines active fundamental research with passive investment benefits, emphasizing flexibility and low costs [1][3] Performance Metrics - AVDV has consistently outperformed its category average over various time frames, including three- and five-year periods [2] - The fund's performance has been bolstered by its focus on small-cap value companies, which may thrive amid geopolitical and economic uncertainties [4] Investment Strategy - The management of AVDV employs fundamental criteria to identify highly profitable value firms, focusing on metrics such as shares outstanding, cash flow, revenue, expenses, and price-to-book value [3] - The appeal of international equities lies in their potential for diversification away from domestic U.S. uncertainties, making AVDV a compelling option for investors as the new year approaches [5]