As investors seek diversification beyond U.S. stocks, active emerging markets ETFs may offer an edge over broad international equity funds for the rest of 2025. These markets currently trade at lower valuations than developed international equities, creating potential for stronger gains under favorable conditions. 

Active managers can exploit this by using fundamental research to identify the most promising companies. Emerging markets also feature younger firms well-positioned to benefit from global growth trends, particularly in technology and e-commerce. 

The Avantis Emerging Markets Value ETF (AVES), for instance, charges 36 bps and targets profitable, value-oriented companies, helping it outperform category averages with a recent 13.5% three-month return. 

Finsum: Active emerging markets ETFs present a compelling option for globally minded investors.