Thornburg International Equity ETF

TXUE

Market cap $299M

Further confirming that more investors are seeking opportunities outside of U.S. borders, Morningstar data showed that international equity ETFs saw $22 billion in net flows during the month of October. As of October 31, international equity ETFs now comprise 14% of the total ETF marketplace.

Every month, TMX VettaFi publishes hundreds of articles across our ETF-focused websites. Reviewing the pieces that capture our readers' attention provides a clear picture of prevailing advisor and investor sentiment.

The U.S. Federal Reserve instituted a second rate cut of the year, which could only add more fuel to the international assets flame that's been burning bright for much of 2025. Further rate cuts will only apply additional downforce to the U.S. dollar, creating additional tailwinds for international equities.

Decades of global market dominance by U.S. equities have caused investors to wonder if today's market valuations may not support the underlying fundamentals. If that's the case, a more lucid picture of future returns could be found in international equities investing.

Geopolitical tensions, easing monetary policy, and tariffs are just a few of the market forces that are breeding uncertainty in today's environment. These may keep investors situated in cash when they could be turning it into profitable opportunities.

A declining dollar continues to strengthen the investment case for international equities. However, before investors dive into international equities exposure, it's imperative to examine the options presented to them — namely passive versus active fund options.

Though Liberation Day is in the rearview mirror for the capital markets, it still continues to occupy center stage when it comes to market concerns from a forward-looking perspective.

The explosion of new active ETFs in the marketplace comes at a time when the investing environment has become more uncertain as 2025 comes to a close. Recent rate cuts, for example, could force investors to recalibrate their portfolios.

Advisors and investors flooded into global ex-U.S. equities in July as U.S. tariff volatility and policy uncertainty persisted. For those investors looking to augment their overseas exposures, the Thornburg International Equity ETF (TXUE) offers a trifecta approach to active investing.

Core U.S. equity and U.S. fixed income ETFs were up 2%-3% year-to-date through mid-June. Such modest performance has led many advisors to look for diversification benefits through other investments.