Core Insights - The shift in focus from domestic tech investments to international investing is gaining momentum due to the high concentration of U.S. equities, where the top ten stocks account for 40% of the index [1] Group 1: International Investment Opportunities - International markets represent approximately 35% of global benchmarks, yet the average private client portfolio only allocates about 5% to these markets [3] - Over 70% of investable equities are located outside the U.S., often trading at 20-year valuation lows, presenting a significant opportunity for diversification [3] Group 2: Investment Strategies - The panel highlighted the risks associated with market-cap weighting in international indexes, suggesting that passive investment strategies may lead to exposure to stagnant "museum stocks" [4] - Active or factor-based ETFs are recommended to capture growth in emerging markets like India and Japan [4] Group 3: Managing Risks - Currency volatility is a concern for international investments, but currency-hedged ETFs can help mitigate overall portfolio risk [5] - The panel emphasized that international investing should be viewed as a form of insurance rather than merely a performance chase [5] Group 4: ETF Offerings - American Century offers several ETFs for international exposure, including the American Century Quality Diversified International ETF (QINT), Avantis International Small Cap Equity ETF (AVDS), and Avantis Emerging Markets Equity ETF (AVEM) [5] - Franklin Templeton's international ETF lineup includes the Franklin International Dividend Booster Index ETF (XIDV), Franklin International Core Dividend Tilt Index ETF (DIVI), and Franklin International Low Volatility High Dividend Index ETF (LVHI) [6]

Core Insights - International equities performed strongly last year, driven by foreign firms across various regions, but replicating this success may be challenging for investors [1] - Small-cap international equities, such as those offered by the Avantis International Small Cap Equity ETF (AVDS), present opportunities for greater upside and growth potential [1][4] Performance Comparison - AVDS significantly outperformed the S&P 500, returning 47.4% compared to the S&P 500's 21.2% over the past year [2] - AVDS also surpassed other international equities strategies, including the WisdomTree True Developed International Fund (DOL), which returned 42.5% [2] Investment Strategy - The Avantis International Small Cap Value ETF (AVDV) focuses on value-oriented small-cap firms and has attracted over $5 billion in investments while delivering a return of 58.8% [3] - Smaller firms are believed to offer greater growth potential, especially when selected through fundamental analysis, which may enhance their resilience during uncertain times [4]