More Than a Blip: This International ETF Is Finishing 2025 Strong

The Avantis International Small Cap Value ETF (AVDV) has significantly outperformed its peers, returning 36.9% year-to-date and 13.4% over the last three months, bucking the trend of declining performance seen in many international equity funds. This active ETF, charging 36 basis points, employs a strategy of investing in non-U.S. small-cap value opportunities by screening for fundamentally strong firms, even amid market upheaval. With its price above both 50- and 200-day simple moving averages, AVDV presents a notable option for investors seeking international exposure and potential continued momentum as the year concludes.

Analysis

The Avantis International Small Cap Value ETF (AVDV) is demonstrating significant and sustained outperformance in a period where many of its international equity peers have lost momentum. While other international funds saw a temporary lift from tariff-related market events earlier in the year, AVDV has posted a 36.9% year-to-date return, substantially exceeding its ETF Database Category and FactSet Segment averages. This strength is not fleeting, as evidenced by a 13.4% return over the last three months alone. The fund's performance is attributed to its active management strategy, which carries a 36 basis point fee and focuses on non-U.S. small-cap value stocks selected through a rigorous screening process. This methodology evaluates fundamental criteria such as cash flow, revenue, and shares outstanding to identify firms positioned for resilience amidst market volatility. Reinforcing this fundamental strength, the ETF's technical posture is bullish, with its price currently trading above both its 50-day and 200-day simple moving averages, a classic signal of strong underlying momentum.

Key Decisions for Investors

• Investors seeking to diversify with international equities should evaluate AVDV as a potential core holding in the small-cap value space, given its demonstrated outperformance and a strategy designed for resilience.
• Consider the fund's technical signals, specifically its position above the 50-day and 200-day moving averages, which suggests a strong momentum trend that may present a tactical entry point for investors.
• Assess if the active management approach, which uses fundamental screens to select non-U.S. small-caps and comes with a 36 basis point expense ratio, aligns with your investment thesis and tolerance for actively managed risk.