What is an International ETF? How They Work and Benefits

By Lyle Daly – Updated Feb 4, 2025 at 11:03 AM EST

Key Points

International ETFs offer portfolio diversity by investing in stocks outside the U.S.
Emerging market ETFs offer growth potential, but they also carry more risk.
Historically, the U.S. and international markets have both had periods of outperforming the other.

International ETFs (exchange-traded funds) give investors the opportunity to broaden their portfolios. The U.S. stock market is one of many, and having exposure to international stocks is good for diversification. There's also no shortage of quality international ETFs available from top issuers.

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World map made up of different currencies. — Image source: Getty Images.

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About the Author

Lyle Daly is a contributing Motley Fool stock market analyst covering information technology and cryptocurrency. Lyle has been a contributor at the financial services company since 2018. His work has been featured on USA Today, Yahoo Finance, MSN, Fox Business, and Nasdaq. Before joining The Motley Fool, he wrote for financial brands including Intuit.

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Charles Schwab is an advertising partner of Motley Fool Money. Lyle Daly has no position in any of the stocks mentioned. The Motley Fool recommends Charles Schwab and recommends the following options: short March 2025 $80 calls on Charles Schwab. The Motley Fool has a disclosure policy.