Foreign Equities in 2026? Combine Active, Passive

Core Insights - Avantis Investors combines active and passive investing strategies to enhance portfolio performance, particularly through its "Systematic Active" approach in equities and fixed income ETFs [1] - The firm has surpassed $100 billion in total fund assets under management (AUM) since its inception in 2019, focusing on cost-conscious investment strategies while leveraging active management for customized asset allocations [2] Performance Highlights - The Avantis International Small Cap Value ETF (AVDV) has achieved a year-to-date return of 49.2%, significantly outperforming its category average across various time frames [4] - AVDV charges a fee of 36 basis points and aims to combine the benefits of indexing, such as transparency and diversification, with active management's value-driven decision-making [3] Investment Strategy - AVDV's strong performance is attributed to its focus on mining and metals firms, with no single sector exceeding 17% of the portfolio as of December 23rd [5] - The ETF is positioned as a strong long-term hold for investors seeking exposure to foreign equities, effectively integrating both active and passive investment strategies [5]