Avantis International Small Cap Value ETF

AVDV

Market cap $18.6B

The stock market is shifting away from a few dozen tech and mega-cap winners into stocks that have been under-the-radar and left behind.

2026 has seen international equities perform at a healthy clip, building on a strong year in 2025. Ex-U.S. equities continue to offer some of the year's strongest opportunities, diversifying from U.S. uncertainty while also offering exposure to cheaper equities abroad.

Small-cap stocks and ETFs don't get as much spotlight as the S&P 500 and Nasdaq Composite.

For years, value investing has felt akin to waiting for a train that keeps getting delayed. The market has rewarded unbridled growth at any price going back to the mid-2010s.

This is an example of an ETF that deserves more attention. It offers exposure to international small-cap stocks.

Investors are clamoring for foreign equities investments. Foreign equities ETFs performed very well in 2025, and many market outlooks see potential for strong repeat performance in 2026.

Avantis International Small Cap Value ETF is rated a Buy, positioned to outperform in 2026 amid rising gold prices and a weakening U.S. dollar. AVDV benefits from high exposure to gold miners and basic materials, delivering a 49.6% return in 2025 and a 5-year annualized return over 14%. The ETF offers diversified foreign small-cap value exposure, with sector overweights in Industrials, Materials, and Financials, and a 2.8% yield.

A new year is here and Bull vs. Bear is back! VettaFi writers Nick Wodeshick and Nick Peters-Golden discuss whether foreign equities can repeat their strong 2025 in 2026.

International equities were a very strong segment for investors last year. Foreign firms in Europe, Asia, South America and Africa helped lift portfolios for investors.

Active and passive investing strategies are pit against each other all the time despite appearing together in countless portfolios.