2025 has been a strong year for foreign equities. Even before the year began, many market watchers were looking to move from an underweight to neutral or even overweight position.
AVDV focuses on active small-cap value investing in developed markets, emphasizing book-to-price ratios and profitability. Its consistent overweight in Japan has driven recent outperformance versus peers and US indices. The portfolio is diversified across 1,600 stocks, with low concentration risk and conservative turnover for an active fund.
Avantis International Small Cap Value ETF targets small-cap value stocks in developed markets outside the U.S., offering diversification beyond expensive U.S. indices. AVDV maintains a competitive net expense ratio of 0.36% and a low turnover rate of 8%, appealing to cost-conscious investors. The ETF trades at a P/E of around 17x, more attractive than many alternatives in today's market, though not historically cheap.
Small cap stocks have had a complicated 2025. In certain segments, they have performed well, but writ large, they've struggled.
If 2025 has had one big story in equities ETF trends, it may be the strong performance of international equities and foreign firms. Many investors entered 2025 underweight to ex-U.S. stocks, but tariff concerns and attractive valuations have seen foreign equities ETFs pick up significant interest and perform for their investors.
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It's one thing to count the rampant growth of active ETFs. It's another to take stock of just how well active ETFs have done.
Foreign equities have done well in 2025, and it makes sense why — many U.S. investors have looked to zig when U.S. stocks have zagged. That helped foreign equities ETFs spike in the late spring and early summer period.
On this episode of the ETF of the Week podcast, VettaFi's Head of Research Todd Rosenbluth discussed the Avantis International Small Cap Value ETF (AVDV) with Chuck Jaffe of Money Life. The pair discussed several topics related to the fund to give investors a deeper understanding of the ETF overall.
VettaFi's Head of Research Todd Rosenbluth discussed the Avantis International Small Cap Value ETF (AVDV) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and analysis, visit VettaFi | ETF Trends.
In yet another indication of investors' desire for foreign diversification, international small-cap value ETF AVDV has surpassed $10 billion in AUM. The Avantis International Small Cap Value ETF (AVDV) reached that new threshold, thanks to almost $1 billion in flows over the last month.
It's true that it's been a challenging year for U.S. small-cap ETFs. Using the iShares Russell 2000 ETF (IWM) as a benchmark for the category, we immediately see that 2025 has been marked by red ink.