
International exchange-traded funds (ETFs) can be a smart addition to any well-balanced portfolio. While U.S. stocks have outperformed over the past decade, that hasn’t always been the case. Savvy investors often keep some exposure to international ETFs to hedge against periods when domestic markets fall behind.
That’s exactly what happened in early 2025 when renewed tariff threats under a potential Trump administration caused U.S. stocks to stumble. In contrast, international markets -- especially in Europe -- held up better. You can also look back to the so-called “lost decade” from 1999 to 2009 when international stocks solidly outperformed U.S. equities.
You don’t need to buy individual foreign stocks, American Depositary Receipts (ADRs), or Global Depositary Receipts (GDRs), which can come with complexity and higher costs. International equity ETFs handle the heavy lifting for you and usually come with lower fees than the mutual funds many investors used in the past.
Here’s a look at some of the top international equity ETF picks available today.
The best international ETFs in 2025
What’s best will depend on your risk tolerance, time horizon, and investment goals -- but virtually all investors are well served by broad diversification, low fees, and tax efficiency. International ETFs come in all shapes and sizes.
You can get as specific as individual countries or even sectors within those countries with international ETFs, but most investors do well by spreading their bets across a few different regions. The following international ETFs offer solid exposure, strong liquidity, and reasonable costs, making them smart building blocks for global diversification.
1. Vanguard Total International Stock ETF
The Vanguard Total International Stock ETF (VXUS +0.08%) 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. As the name suggests, it captures the other 40% of global equities that U.S.-focused indexes like the S&P 500 leave out.
This ETF has underperformed U.S. stocks over the past decade, with a 10-year annualized return of 5.22%, 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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Should I invest in international ETFs?
Diversifying internationally isn’t just about chasing higher returns -- it’s about minimizing regret. The goal is to have some international exposure so that when U.S. markets take a hit, you’re not forced to sell low and buy high. Having a portion of your portfolio invested globally means you won’t feel left out if and when international markets outperform.
Given how cheap international ETFs are today and how easy it is to invest in them, it costs very little to add them to your mix. Plus, about 40% of the global stock market is outside the U.S., so if your goal is to be passive and hands-off, holding international ETFs around that level of exposure can be a smart, balanced approach.