International stock exchange traded funds were higher Monday after European markets posted record highs on growing mergers and acquisitions, along with a string of strong financial sector earnings.

European equities were off to a strong start to August with the pan-European STOXX 600 index ending at a record closing high of 464.45, Reuters reports.

Among the standouts, British aero-engineer Meggitt surged 56.7% after U.S. industrial firm Parker-Hannifin sought to buy out its U.K. rival for $8.76 billion.

Over half of STOXX 600 companies have reported second-quarter earnings so far, and 67% of those that have reported beat profit estimates, according to Refinitiv IBES data.

“Having reached all-time highs post 1Q results, the breadth of positive EPS revisions in Europe remains very strong both in absolute terms and versus peers,” European equity strategists at Morgan Stanley said in a note. “Europe now sees the best earnings revisions of all global regions.”

Market observers have been increasingly optimistic about European earnings and economic reopening, which have helped lift the benchmark STOXX 600 to end July on its sixth consecutive month of gains despite inflation concerns, rising Covid-19 cases in Asia and a regulatory crackdown in China.

Meanwhile, Asia-Pacific markets also advanced on Monday as investors looked at bargain picks after their recent rout, while data revealed Chinese manufacturing activity dipped in July.

Investors interested in international markets can consider ETF strategies for foreign exposure. For example, the Avantis International Equity ETF (AVDE) is built upon an academically-supported, market-tested framework to identify securities with expected high returns based on market prices and other company information. Relying on trading and portfolio management processes, the Avantis team analyzes whether the perceived benefits of a trade overcome its associated costs and risk. AVDE primarily invests in a diverse group of companies of all market capitalizations across non-U.S. developed market countries, sectors, and industries, emphasizing investment in companies believed to have higher expected returns.

Additionally, the American Century Quality Diversified International ETF (NYSEArca: QINT) utilizes the American Century Investments Intelligent Beta methodology, which systematizes many of the same attributes that fundamental research and security selection seek to identify in a rules-based, indexed approach. QINT is a large foreign blend fund that seeks to enhance core international exposure. Its rules-based approach analyzes each stock’s quality, growth, and value characteristics to select individual securities. It also dynamically adjusts exposures to take advantage of prevailing market conditions.

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