9 International ETFs for Investors Looking Beyond U.S. Stocks

When you want to diversify your portfolio, in order to not have too many eggs in one basket, there are multiple ways to go about it. You can diversify by industry, spreading your hard-earned dollars across, say, energy companies, food companies, pharmaceutical companies, technology companies, and so on. You might also diversify by size, holding some large-cap stocks and small-cap stocks and mid-sized stocks. Another way to diversify is by country.
In any economic environment, it’s reasonable to park some of your money outside the United States. And right now, it might make even more sense, given our role in global tariff disruptions and geopolitical unrest. If other countries start doing less business with us, American companies might suffer — while foreign companies take up the slack.
Image source: Getty Images.
International ETFs to consider
Thus, consider adding one or more internationally focused exchange-traded funds (ETFs) to your long-term portfolio. An ETF is a fund that trades like a stock, and it can make international investing quite easy, as you won’t have to study and select stocks, instead leaving it to the pros to do. There are lots of solid candidates, such as the ones below:
|
ETF |
Recent Dividend Yield |
5-Year Avg. Annual Return |
10-Year Avg. Annual Return |
15-Year Avg. Annual Return |
|---|---|---|---|---|
|
Vanguard Total World Stock ETF (VT 0.02%) |
1.74% |
9.50% |
11.52% |
9.47% |
|
Vanguard Total International Stock ETF (VXUS 0.20%) |
2.86% |
7.62% |
8.80% |
5.98% |
|
iShares Core MSCI EAFE ETF (IEFA 0.49%) |
3.23% |
8.14% |
8.74% |
N/A |
|
Schwab International Dividend Equity ETF (SCHY +0.15%) |
3.53% |
N/A |
N/A |
N/A |
|
Vanguard International Dividend Appreciation Index Fund ETF (VIGI 0.66%) |
2.04% |
4.58% |
7.64% |
N/A |
|
Vanguard International High Dividend Yield Index Fund ETF (VYMI +0.04%) |
3.28% |
12.59% |
10.14% |
N/A |
|
Vanguard FTSE All-World ex-US Small-Cap ETF (VSS 0.18%) |
3.03% |
5.73% |
7.63% |
5.40% |
|
iShares Core MSCI Emerging Markets ETF (IEMG 0.34%) |
2.41% |
4.62% |
8.22% |
N/A |
|
State Street SPDR Portfolio Emerging Markets ETF (SPEM 0.41%) |
2.56% |
4.46% |
8.22% |
4.02% |
|
Vanguard S&P 500 ETF (VOO +0.21%) |
1.12% |
11.99% |
14.11% |
13.25% |
Data source: Morningstar.com, as of March 31, 2026.
Note that I added a low-fee S&P 500 index fund at the bottom, for comparison with the U.S. stock market. It’s not quite a fair comparison, as it’s between a fund focused on America’s biggest companies and funds focused on companies of different sizes from different regions. Still, it does show how these funds differ from a classic S&P 500 index fund — that you may already have in your portfolio.
Which international ETFs are for you?
So — as you peruse that big table, which funds should you consider? Well, much depends on what you’re looking for — and also your risk tolerance. Here are some thoughts:
- All of the ETFs offer more dividend income than the S&P 500 does, to varying degrees. The Vanguard International High Dividend Yield Index Fund ETF might be particularly attractive, offering both a meaningful dividend yield and also a strong growth track record.
- The other two dividend-focused ETFs are worth considering, too. Both are international versions of highly regarded U.S.-focused dividend ETFs. (The Schwab one launched in 2021, so it doesn’t have much of a track record yet.)
- If you want to go big and broad, the Vanguard Total World Stock ETF will plunk you in just about all the stocks in the world. Note, though, that this includes U.S. stocks. Indeed, nine of the top 10 holdings (out of nearly 10,000) recently were U.S. stocks — such as Nvidia and Apple. So this is not going to offer the most diversification.
- The Vanguard Total International Stock ETF is similar, but excludes U.S. stocks, so its top holdings (out of a recent 8,650) are Taiwan Semiconductor Manufacturing and Samsung.
- The iShares Core MSCI EAFE ETF is focused on 21 developed markets, recently holding 2,600-plus stocks of various sizes. It excludes still-developing markets.
- If you want exposure to emerging markets, two of the ETFs above can help you. Both sport low fees, too, like most of these funds. The Vanguard FTSE All-World ex-US Small-Cap ETF includes small stocks from both the developed and developing markets. Small stocks can be more volatile than bigger ones, but they can sometimes grow faster, too.
If you’re still not sure which fund(s) to choose, perhaps take a closer look at and consider the iShares Core MSCI EAFE ETF and the Vanguard International High Dividend Yield Index Fund ETF. They’ll respectively plunk you in gobs of international stocks and/or in companies with meaningful dividends.
Selena Maranjian has positions in Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple, Nvidia, Taiwan Semiconductor Manufacturing, Vanguard FTSE All-World ex-US Small-Cap ETF, Vanguard S&P 500 ETF, and Vanguard Total International Stock ETF and is short shares of Apple. The Motley Fool has a disclosure policy.




