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A Global Soft Landing? Look to Active International Investing

BY | ETF Database
10/18/2024 | 44 VIEWS
U.S. investors have largely focused on the potential of a rate-cut driven, domestic soft landing – and for good reason. The S&P 500 has risen more than 23.6% YTD, driving big gains for many investors. That said, a growing contingent may be looking abroad, where a less-discussed soft landing may also be in the cards. Such a turn of events could see investors turn to international equities to ease co centration risk, with active international investing providing one route therein.See more: Look to Active Bond ETF TOTR For 2025 as Fund Passes Key Milestone International Monetary Fund (IMF) Director Kristalina Georgieva shared that she sees the global economy on track for a soft landing amid falling rates. At the same time, she noted, trade-related disputes and barriers threaten to distort a positive narrative. “The big global inflation wave is in retreat,” Georgieva said, according to the Wall Street Journal. “And this has been done without tipping the global economy into recession and large-scale job losses—something which many feared we would see again.”Active International Investing and a Global Soft LandingThat may see U.S. investors return to international equities amid heavy overweights towards large cap tech. While those megacap names, many pushing forward in AI., have contributed to big gains for investors, they also call for some diversification. Should global equities see a soft landing, an active international investing strategy could diversify with some additional, exciting upside. Active international investing can provide one potent tool therein. Where passive international funds simply track their indexes, only changing when investment committees meet, active international equities funds can adapt much more quickly, whether to macroeconomic or geopolitical risks. The T. Rowe Price International Equity ETF TOUS presents an appealing option therein. The active international investing strategy charges just 50 basis points (bps) for its approach. It invests in a portfolio of about 150 stocks with quality business models, good earnings potential, and solid valuation metrics. Its managers lean on T. Rowe Price research to take a fundamental, bottom-up approach. For those investors looking to diversify abroad for a global soft landing, it could present an appealing option in the months ahead. For more news, information, and analysis, visit our Active ETF Channel.

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