How do I invest in international ETFs?

Just like with any stock or ETF, you can buy and sell international ETFs through your brokerage using the bid and ask prices during market hours.

How does an international ETF work?

International ETFs work like other ETFs by holding a basket of stocks -- in this case, from foreign markets -- and using the creation and redemption process to keep the ETF's price close to the value of its holdings.

Do international ETFs pay dividends?

Some do, but not all. It depends on the ETF's strategy and whether the underlying companies regularly distribute dividends.

Is an international ETF considered a foreign asset?

No. Even though the underlying stocks may be from outside the United States, the ETF itself is U.S.-domiciled and not classified as a foreign asset.

Are international ETFs more expensive than domestic ETFs?

On average, international ETFs tend to carry slightly higher expense ratios than domestic ones. That’s because they involve additional costs such as currency conversion, cross-border custody, and compliance with multiple market regulations. However, the difference isn’t huge. Many low-cost options now exist, with fees as low as 0.05%, making it easy to diversify globally without paying a premium.

Can international ETFs help hedge against U.S. market downturns?

It depends on the type of downturn. In a broad global market crash, international ETFs won’t protect you much -- stocks around the world often fall together during periods of panic. But over longer cycles, they can help smooth out returns. There have been decades where U.S. markets underperformed while international markets picked up the slack.

Are emerging market ETFs riskier than developed market ETFs?

Yes. Historically, emerging market ETFs have been more volatile. Reasons include political instability, weaker regulatory environments, currency risk, higher exposure to state-owned enterprises, and greater sensitivity to global capital flows and geopolitical events.

How do currency fluctuations affect international ETFs?

Currency movements directly affect returns. When the U.S. dollar rises, foreign holdings become a headwind for U.S.-based investors because overseas returns translate back into fewer dollars. When the U.S. dollar falls, foreign currencies become a tailwind for U.S.-based investors, as overseas returns translate into more U.S. dollars. Some ETFs hedge currency exposure, which can reduce volatility but adds cost and may limit upside.

Best International ETFs to Buy in 2026

By Tony Dong – Updated Apr 10, 2026 at 12:26 AM EST | Fact-checked by Frank Bass

Key Points

International ETFs offer simple global investment exposure with lower costs compared to individual stocks.
Past data shows periods where international stocks outperform U.S. markets, justifying diversified portfolios.
Choosing international ETFs should consider costs, liquidity, and how they fit within broader investment goals.

International exchange-traded funds (ETFs) are listed investment vehicles that hold stocks from countries outside the U.S. They offer a simple way to gain global exposure without buying individual foreign stocks or American Depository Receipts (ADRs), which can be complex and costly.

While U.S. stocks have outperformed over the past decade, that hasn't always been the case. During the "lost decade" from 1999 to 2009, international stocks solidly outperformed U.S. equities. Savvy investors often maintain some international exposure to hedge against periods when domestic markets fall behind.

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Top International ETFs Comparison (as of April 2026)

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NASDAQ: VXUS

Vanguard Total International Stock ETF

Today's Change

(-1.92%) $-1.60

Current Price

$81.88

Key Data Points

Day's Range

$81.78 - $83.26

52wk Range

$62.38 - $84.48

Volume

3.3K

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The Vanguard Total International Stock ETF (VXUS -1.92%) is the “buy-it-all” option for international exposure. It tracks the FTSE Global All Cap ex-US Index, covering more than 8,600 stocks across small-, mid-, and large-cap companies from both developed and emerging markets.

This ETF has underperformed U.S. stocks over the past decade, but past performance doesn’t predict the future. With a low 0.05% expense ratio, it has few structural headwinds for long-term investors looking for global diversification.

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2. Vanguard FTSE All-World ex-US Small-Cap ETF

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NYSEMKT: VSS

Vanguard FTSE All-World ex-US Small-Cap ETF

Today's Change

(-1.91%) $-3.04

Current Price

$156.24

Key Data Points

Day's Range

$156.13 - $159.02

52wk Range

$117.19 - $161.71

Volume

185K

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NYSEMKT: IEFA

iShares Trust - iShares Core Msci Eafe ETF

Today's Change

(-2.17%) $-2.11

Current Price

$94.93

Key Data Points

Day's Range

$94.78 - $96.46

52wk Range

$76.57 - $98.83

Volume

115

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You can break international markets down not just by country but also by classification -- developed or emerging. Developed markets typically have more mature economies, stable political systems, and well-regulated financial markets.

The iShares Core MSCI EAFE ETF (IEFA -2.17%) covers this segment by tracking the MSCI EAFE IMI Index, which holds more than 2,600 stocks from developed markets across Europe, Australasia, and the Far East. That includes countries like Japan, the United Kingdom, France, Germany, and Australia. This ETF charges a low expense ratio of 0.07%.

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4. SPDR Portfolio Emerging Markets ETF

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NYSEMKT: SPEM

SPDR Index Shares Funds - State Street SPDR Portfolio Emerging Markets ETF

Today's Change

(-1.23%) $-0.63

Current Price

$50.47

Key Data Points

Day's Range

$50.39 - $51.12

52wk Range

$38.70 - $51.75

Volume

178

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The counterpart to developed markets are emerging markets -- countries with growing but less mature economies, often marked by faster GDP growth, less stable political systems, and less developed financial infrastructure.

For exposure to this group, you can complement a fund like the iShares Core MSCI EAFE ETF with the SPDR Portfolio Emerging Markets ETF (SPEM -1.23%), which tracks more than 3,000 holdings through the S&P® Emerging BMI index. This includes major emerging economies such as China, India, Brazil, South Africa, and Mexico.

Emerging markets have been laggards over the past decade. But that backward-looking performance shouldn't stop you from considering a forward-looking allocation -- just a small position in emerging markets can offer strong diversification benefits. It also keeps costs low with an expense ratio of 0.07%.

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5. Schwab International Dividend Equity ETF

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NYSEMKT: SCHY

Schwab Strategic Trust - Schwab International Dividend Equity ETF

Today's Change

(-1.46%) $-0.48

Current Price

$32.35

Key Data Points

Day's Range

$32.33 - $32.78

52wk Range

$25.80 - $34.04

Volume

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One thing income investors will appreciate about international equities is their tendency to offer higher dividend yields compared to U.S. stocks. The Schwab International Dividend Equity ETF (SCHY -1.46%) is worth a look. It tracks the Dow Jones International Dividend 100 index, which screens for companies with at least 10 consecutive years of dividend payments.

Then, the Schwab International Dividend Equity ETF applies a composite score based on free cash flow to total debt, return on equity, dividend yield, and five-year dividend growth rate. The result is a portfolio with a strong 30-day SEC yield of 3.91%. Its 0.08% expense ratio is highly competitive in the international dividend equity space.

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International ETFs FAQ

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Tony Dong has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard FTSE All-World ex-US Small-Cap ETF and Vanguard Total International Stock ETF. The Motley Fool has a disclosure policy.

Best International ETFs to Buy in 2026

Key Points

Key Data Points

2. Vanguard FTSE All-World ex-US Small-Cap ETF

Key Data Points

Key Data Points

4. SPDR Portfolio Emerging Markets ETF

Key Data Points

5. Schwab International Dividend Equity ETF

Key Data Points

Related investing topics

Best Stocks to Buy in April 2026

What Is Forex Trading?

Trading on the Over-the-Counter (OTC) Market

Best International Stocks to Buy in 2026: Are They Right for Your Portfolio?

International ETFs FAQ

How do I invest in international ETFs?

How do I invest in international ETFs?

How does an international ETF work?

How does an international ETF work?

Do international ETFs pay dividends?

Do international ETFs pay dividends?

Is an international ETF considered a foreign asset?

Is an international ETF considered a foreign asset?

Are international ETFs more expensive than domestic ETFs?

Are international ETFs more expensive than domestic ETFs?

Can international ETFs help hedge against U.S. market downturns?

Can international ETFs help hedge against U.S. market downturns?

Are emerging market ETFs riskier than developed market ETFs?

Are emerging market ETFs riskier than developed market ETFs?

How do currency fluctuations affect international ETFs?

How do currency fluctuations affect international ETFs?

Read Next

Stocks Mentioned

Premium Investing Services

International ETFs FAQ

How do I invest in international ETFs?

How do I invest in international ETFs?

How does an international ETF work?

How does an international ETF work?

Do international ETFs pay dividends?

Do international ETFs pay dividends?

Is an international ETF considered a foreign asset?

Is an international ETF considered a foreign asset?

Are international ETFs more expensive than domestic ETFs?

Are international ETFs more expensive than domestic ETFs?

Can international ETFs help hedge against U.S. market downturns?

Can international ETFs help hedge against U.S. market downturns?

Are emerging market ETFs riskier than developed market ETFs?

Are emerging market ETFs riskier than developed market ETFs?

How do currency fluctuations affect international ETFs?

How do currency fluctuations affect international ETFs?

Best Stocks to Buy in April 2026

What Is Forex Trading?

Trading on the Over-the-Counter (OTC) Market

Best International Stocks to Buy in 2026: Are They Right for Your Portfolio?

Key Data Points

Top international ETFs to consider

1. Vanguard Total International Stock ETF

2. Vanguard FTSE All-World ex-US Small-Cap ETF

3. iShares Core MSCI EAFE ETF

4. SPDR Portfolio Emerging Markets ETF

5. Schwab International Dividend Equity ETF

Should you invest in international ETFs?

How to choose the best international ETF

Related investing topics

FAQ

Key Data Points

Key Data Points

Key Data Points

Key Data Points