This is an actively managed international value ETF that selects and holds companies with attractive valuations in global markets outside the US. Rather than replicating an index, the management team picks the stocks directly.

It suits investors who want to diversify a US-heavy portfolio with international value stocks and who prefer the stock selection of active management.

It is an ETF run with an active (actively managed) approach by Brown Advisory.

The management team selects companies in developed and emerging markets outside the US that it judges to be undervalued relative to earnings, and builds a relatively concentrated portfolio. It maintains diversification by country and sector, but adjusts weightings according to its conviction in each stock rather than being bound by index weights.

• Focus on value stocks outside the US
• Active stock selection without index replication

Assets under management (AUM) stand at $186.5M, and the expense ratio is an annual 0.60%.

Unlike passive international ETFs that simply track an index, performance here depends on the management team's selections, so it is wise to review the fees and the holdings together.

The overall trend in international value stocks has moved with the strength of the dollar, overseas economic conditions, and expectations of a valuation recovery. As an active product, the results of stock selection are also reflected in performance. A medium- to long-term perspective is needed rather than a focus on short-term direction.

Efforts to reduce US concentration and demand for overseas diversification are supporting interest in the international value category. Active international ETFs are a relatively new category, and fund inflows remain modest.

Its strength is that it actively holds undervalued stocks outside the US to pursue diversification benefits. However, because it is actively managed, fees and variation in management results can work against it.

Comparable funds in the same international value category shown in the table include EFV, AVDV, and IVLU. These are lower-cost passive products that track an index, which sets them apart from the actively managed BAIV. For broad exposure to overseas developed markets, you can also consider low-cost core ETFs such as VEA, or VXUS to cover the entire market outside the US including emerging markets.

Here are the points to review before investing in BAIV. As an active international value product, it is wise to check the fee level, management results, regional diversification, and currency exposure in advance to judge whether it fits your investment profile.

Because of the nature of active management, the fund may underperform its benchmark depending on stock selection results, and fluctuations in overseas currencies and the dollar exchange rate affect the returns of Korean-won investors. Short-term losses can grow during periods of international market volatility.

This is an active international ETF worth considering for investors who want to diversify a US-heavy portfolio with overseas value stocks. If you want low-cost passive exposure, products such as EFV and VEA may fit, while an active product such as BAIV can be an alternative if you expect excess returns from stock selection.