Investors are turning to international ETFs VXUS and AVEM due to U.S. market volatility

From Yahoo Finance: 2025-05-20 18:00:00

As U.S. markets face volatility, investors are turning to international ETFs. The $90.5 billion Vanguard Total International Stock ETF (VXUS) has not seen outflows in 52 weeks, pulling in $11.7 billion. Emerging markets ETFs like Avantis Emerging Markets Equity ETF (AVEM) have also gained popularity, with $1.1 billion inflows in the past month.

Investors are bullish on international ETFs due to the tariff war and domestic industry growth. VXUS has gained 14% this year, outperforming Vanguard S&P 500 ETF (VOO). AVEM’s 10% gain also tops VOO. Investors are attracted to AVEM’s low average P/E ratio of 10.2 and top holdings like Taiwan Semiconductor and Alibaba.

VXUS’s popularity may be due to its status as a key international ETF and inclusion in Vanguard’s robo-advisor schemes. Despite outperforming VOO, U.S. investments still dominate mutual fund and ETF flows. In April, foreign and large blend category saw $2.9 billion inflows, while emerging markets ETFs and mutual funds faced $3.6 billion outflows.



Read more at Yahoo Finance: Money Flows Into International ETFs VXUS AVEM