"International value stocks spent years in the shadows of U.S. growth. Then came 2025. European banks, Japanese industrials, and Canadian energy companies surged as investors rotated from stretched domestic valuations. Dimensional International Value ETF (NYSEARCA:DFIV) captured that wave, delivering 46.6% returns over the past year while charging just 0.27% in fees. The question now: was this a one-time revaluation, or the start of something sustainable?"
"DFIV targets undervalued companies in developed international markets, focusing on financials, energy, and materials trading at discounts to intrinsic worth. With $14.9 billion in assets, this actively managed ETF holds Shell (NYSE:SHEL) (2.8%), Toyota Motor (NYSE:TM) (2.2%), Banco Santander (NYSE:SAN) (2.1%), and TotalEnergies (NYSE:TTE) (1.7%). Heavy exposure to European banks like HSBC (NYSE:HSBC), Société Générale (OTC:SCGLY), and Deutsche Bank (NYSE:DB) positioned the fund perfectly for 2025's financial sector recovery."
"Unlike passive international funds tracking market-cap-weighted indexes, DFIV uses quantitative screens to tilt toward value factors while maintaining broad diversification across hundreds of holdings. Portfolio turnover stayed at just 16%. The Performance Speaks for Itself DFIV crushed the market in 2025, outperforming iShares MSCI EAFE ETF (NYSEARCA:EFA) by 14.3 percentage points and beating Vanguard Value ETF (NYSEARCA:VTV) by more than 30 percentage points."
International value stocks outperformed U.S. growth in 2025, driven by gains in European banks, Japanese industrials, and Canadian energy. Dimensional International Value ETF (DFIV) returned 46.6% over the past year while charging 0.27% in fees and managing $14.9 billion in assets. The ETF targets undervalued developed-market companies with a value tilt across hundreds of holdings, low turnover (16%), and significant positions in Shell, Toyota Motor, Banco Santander, and TotalEnergies. Heavy exposure to European banks helped performance during the financial sector recovery. DFIV outperformed comparable ETFs and recovered quickly after the April 2025 tariff-driven selloff. The durability of the rally remains uncertain.
Read at 24/7 Wall St.
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