International equities have played a big role for investor portfolios this year. From the start of 2025, many market watchers may have wanted to move out of an underweight position in ex-U.S. equities, specifically. Since then, key factors in tariff changes and a declining dollar have also boosted those investment opportunities. A slew of international equities ETF funds have benefitted, with one particular ETF adding more than half a billion in AUM in just the last week.
See more: Inside the ETF Success of Avantis
That fund, the Avantis International Small Cap Value ETF (AVDV), provides an intriguing take on the international equities ETF space. The fund emphasizes both small-caps and value opportunities, leaning on Avantis Investors’ fundamental research capabilities. Charging a 36 basis point fee, AVDV actively invests in ex-U.S. small-caps that match its strategy.
Specifically, the fund actively invests across sectors outside the U.S., applying fundamental criteria to identify opportunities. Its managers asses companies for metrics like cash flow, revenue, expenses, and price-to-book value. That has helped the fund gather $550 million in net inflows over the last five days. The recent growth has helped the fund’s overall AUM reach some $13.5 billion total.
The international equities ETF has also performed well to match its strong inflows. AVDV has returned a robust 40% YTD per ETF Database data, outperforming its ETF Database Category average.
The fund may be poised to continue its positive momentum in the months ahead. Further weakening for the U.S. dollar may continue to benefit foreign firms, while AVDV’s active remit allows it to adapt to events as needed.
That active approach may be an especially useful asset for the fund’s small-cap value approach, helping the ETF identify the strongest opportunities in relatively low information environments. For those wanting to continue to add equities diversification and performance, AVDV’s strong momentum may appeal.
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