International equities have performed very well this year amid growing U.S. investor interest in diversification. Amid that growing attention to foreign equities, however, many investors may be looking for the right option. Active ETFs present a strong suite of routes into foreign equities for their fundamental research emphasis and flexibility. Active ex-U.S. ETF TIER, for example, recently launched and could be worth an early look.
See more: T. Rowe Price Adds Pair of Foreign Exposure ETFs to Lineup
The T. Rowe Price International Equity Research ETF (TIER) charges a fee of only 38 basis points for its approach. The fund actively invests in large-cap non-U.S. stocks across both developed and emerging markets. Its managers apply a research-based approach to deliver an active portfolio designed to deliver similar economic and risk characteristics as the MSCI All Country World Index.
What kind of stocks, then, does that lead the fund to? The following trio of stocks provide a view into the type of firm one might expect to find in TIER.
Three Active ex-U.S. ETF Stocks in TIER
For example, the fund currently invests in the China Construction Bank Corp (CICHF), per YCharts data. One of China’s big four banks, CICHF engages in corporate and retail banking services. The firm’s stock has grown 18% YTD, according to YCharts data.
Next, the Vinci SA (VCISF) stands out as an option. VCISF is one of the world’s largest transportation infrastructure names. The company operates thousands of kilometers of highway and numerous airports. The firm’s stock has returned 44.3% YTD, according to YCharts, with a 14.67% return on equity.
Finally, TIER also invests in massive Italian bank UniCredit SpA (UNCFF). With operations in Italy and throughout central Europe, the company largely relies on retail banking for its revenues. That approach has helped it return a staggering 86% YTD for its investors, per YCharts data.
Together, the trio of firms present strong examples of why investors might look to a fund like TIER. With fewer taxable events and ETF efficiency, an active ex-U.S. ETF can offer a powerful tool for foreign diversification and upside.
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