Core Insights - Investors are increasingly interested in foreign equities, with foreign equities ETFs showing strong performance in 2025 and expectations for continued success in 2026 [1] Performance of Specific Funds - The Avantis International Small Cap Value ETF (AVDV) has excelled in the foreign small- and midcap equities category, outperforming all but one ETF in the last year while charging less than half the fees of the top fund [2] - AVDV achieved a return of 62.3% over the past year, significantly surpassing the category average return of 43.8% [3] Competitive Advantage - AVDV's focus on small-cap value investments distinguishes it from other funds, as evidenced by its performance compared to the iShares MSCI EAFE ETF (EFA), which returned only 33.1% in the same period [4] - The fund's strategy emphasizes a systematic active approach, allowing managers to select firms based on fundamental criteria such as shares outstanding, revenue, cash flow, and price-to-book value, rather than merely tracking an index [5] Future Outlook - AVDV's targeted investment strategy is expected to continue yielding positive results in 2026, particularly in the context of geopolitical and global financial market uncertainties [6]