This is an active ETF that invests broadly in developed market stocks outside the US, reflects sustainability criteria such as environmental and social factors, and tilts its weights toward long-term return drivers such as undervaluation and high profitability. It maintains broad international diversification.

By adding a value and profitability factor tilt to a responsible investing approach, it suits long-term investors who want exposure to non-US international stocks.

It is an actively managed ETF run by Avantis.

The fund holds a broad range of non-US developed market stocks, adjusts position weights based on sustainability criteria such as environmental and social factors, and tilts toward long-term expected return drivers such as undervaluation and high profitability. Using a systematic active approach, it reflects both a responsible investing perspective and a factor tilt while providing exposure to international stocks.

• Security adjustments that reflect sustainability criteria
• Value and profitability factor tilt

Assets under management (AUM) stand at $375.5M, and the total Expense Ratio is 0.23% per year.

Compared with broad international equity ETFs such as FNDF and GSIE, the main point of comparison is its combination of responsible investing and a factor tilt.

International stocks move differently depending on global risk appetite, the strength of the dollar, economic conditions in each country, and style rotation. A value and profitability tilt tends to show relative strength when value stocks are in favor and relative weakness when growth stocks dominate. Because broad diversification is maintained, the performance gap versus the market average is relatively small.

Fund flows into responsible investing and factor products vary with market risk appetite, style rotation, and demand for sustainability. When interest in these themes rises, money sometimes shifts toward related product groups. It is also worth noting that performance varies with economic conditions and currency variables in each country.

Its strengths are the combination of responsible investing and a factor tilt, along with international diversification. Relative weakness when growth stocks dominate, currency exposure, and fees are points to consider.

For broader developed market exposure outside the US, direct substitutes include EFA and VEA. For a wider reflection of sustainability, ESG international ETFs such as ESGD are also worth comparing. For an international factor strategy from the same manager without sustainability criteria, products such as AVDE can also be considered. The three products shown in the table, FNDF, GSIE, and IGF, differ in selection criteria and exposure, covering international fundamental and factor equities and global infrastructure. This ETF stands apart by combining responsible investing criteria with a value and profitability factor tilt.

Here are the points to review before investing in AVSD. The combination of responsible investing and factors is appealing, but relative weakness when growth stocks dominate, currency exposure, and fees should be checked in advance. It is also wise to compare it with broad international and ESG products.

Relative weakness when growth stocks dominate and exchange rate movements are the main variables for long-term performance, and an active factor strategy can diverge from the market average depending on the period. With a large international weighting, currency and regional risks may also come into play.

It is a suitable candidate for long-term investors who want to add a value and profitability factor tilt to a responsible investing approach and invest in non-US international stocks. If broad diversification and low cost are the priority, consider products such as EFA and VEA. If you want responsible investing combined with factors, it is advisable to compare this fund alongside them before choosing.