Avantis International Small Cap Value ETF

AVDV

Market cap $12.5B

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

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.

These dividend exchange-traded funds give you high yields and upside potential. They could trounce the market over the next 10 years.

Can your retirement portfolio survive two more 2022-esque inflation waves?

If there is a story to be told in ETFs for 2025, it may be the strong performance of international equities. When tariffs spooked markets in the spring, many international equities funds leapt forward.

U.S. stocks are trading at high valuations relative to historical averages, pointing to a long period of weak performance.

AVDV offers diversified, value-focused exposure to non-U.S. developed small-cap equities with strong liquidity and a low expense ratio. The fund's active management and broad sector and geographic diversification enhance its appeal for long-term capital appreciation. Current global rate policies and recent trade agreements may create a favorable environment for international small caps, especially in Europe and Japan.

Tumult in U.S. markets this year has prompted investors to search abroad for investment opportunities. While the S&P 500 has recovered from its early-April tariff-related dip, a number of international and value exchange-traded funds (ETFs) have managed to easily outperform its year-to-date (YTD) returns of 10.2%.

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.