Avantis International Equity ETF

AVDE

Market cap $10.9B

Stretched U.S. valuations and AI bubble fears have investors looking abroad and are driving interest in international equity and emerging market ETFs.

As bubble fears rise and volatility spikes, investors can turn to ETFs like RSP, GLD and IEMG to diversify and cut concentration risk.

International equities have been a major driver of portfolio performance so far in 2025, riding both long and short term tailwinds. From a broadly positive monetary environment for ex-U.S. equities to specific events like tariff changes, myriad events have helped those stocks outperform and led investors to move from underweight to neutral positions.

Wall Street warns of an AI equity bubble as mega-cap tech surges, prompting investors to diversify into ETFs for balanced growth.

Investors can eye global equity funds as AI bubble fears, U.S. market risks and Fed easing fuel demand for international diversification.

International equities have outperformed YTD but continue trading at discounted prices and valuations. Yields are generally quite good, if not outstanding. Lots of international equity ETFs out there. I'll be giving a quick rundown of four such ETFs in this article.

Global equity funds saw $10.65B inflows as Fed rate cut bets, a weak dollar and diversification needs drive investors abroad.

AVDE offers a rules-based, actively managed approach with a value and small-cap tilt, aiming for alpha over standard developed market ETFs like IEFA and VEA. Despite a large number of holdings diluting high-conviction bets, AVDE consistently delivers marginal alpha without taking on greater drawdown risk. Yield and sector allocations are broadly similar to peers, but AVDE's methodology allows for minor outperformance in certain market regimes.

Amid AI bubble worries and tech sell-offs, investors turn to value, consumer staples, gold and international ETFs for diversification.

In a year when international equities funds have blossomed, finding the standout options is an important task. One fund in particular has spiked in the last month, outpacing all other global equities category ETFs for flows, per ETF Database.