The best international ETFs are VEA, IEFA, VXUS, IEMG, VWO, SCHF, and IXUS. The right choice depends less on brand than on whether an investor wants one broad ex-U.S. fund, developed markets only, or a separate emerging-markets sleeve.
Together, these seven funds manage roughly $1 trillion. That scale brings deep trading volume and low costs, but several funds overlap heavily. This guide separates the true alternatives from the funds that can work together in a deliberate allocation.
Foreign stocks have also broadened beyond a simple Europe trade. Developed-market funds have gained from financials, industrials, and technology, while emerging-market returns carry a much larger semiconductor and Taiwan exposure.
How We Picked These ETFs
Funds had to be currently U.S.-listed, broadly diversified, low-cost for their mandate, and large enough to support reliable trading. We favored index funds with transparent benchmarks and meaningful assets. The list includes broad ex-U.S. funds, developed-market funds, and emerging-market building blocks. We excluded leveraged, inverse, currency-hedged, single-country, and narrow sector ETFs. We also excluded expensive legacy funds when a lower-cost broad substitute offered similar exposure.
The Best International ETFs
Vanguard FTSE Developed Markets ETF (NYSE Arca: VEA)
Why it made the list: VEA is the strongest low-cost core choice for developed markets outside the U.S. It held 3,868 stocks and charged a 0.03% expense ratio as of June 30, 2026. Japan represented 21.0% of the portfolio, while Europe accounted for 48.7%, giving investors broad exposure to exporters, banks, industrial firms, and health care leaders.
The bull case: Developed-market earnings can benefit if global factory demand and capital spending stay firm. The fund also has meaningful exposure to semiconductor supply-chain leaders such as Samsung Electronics, SK hynix, and ASML.
The risk: VEA excludes emerging markets, so it misses a large share of Taiwan, India, China, and Latin America. Its returns can also be reduced when foreign currencies weaken against the dollar.
Key number: $230.9 billion in assets
iShares Core MSCI EAFE ETF (Cboe BZX: IEFA)
Why it made the list: IEFA is a broad developed-market alternative built on the MSCI EAFE Investable Market Index. It held 2,617 stocks, charged 0.07%, and had $184.4 billion in assets as of July 20, 2026. Its 3.36% trailing yield was also higher than many U.S. large-cap equity funds.
The bull case: IEFA offers a simple way to add developed-market small and mid-sized companies alongside global leaders. Its financials, industrials, and health care exposure can provide a different earnings mix than a U.S. growth-heavy portfolio.
The risk: IEFA overlaps substantially with VEA, so holding both usually adds complexity more than diversification. It also excludes emerging markets and Canada.
Key number: 2,617 holdings
Vanguard Total International Stock ETF (NASDAQ: VXUS)
Why it made the list: VXUS is the cleanest one-fund answer for investors seeking broad stock exposure outside the U.S. It combines developed and emerging markets in one portfolio and charges 0.05%. Net assets stood at $156.5 billion at June 30, 2026, and its NAV return was 13.21% year to date through July 15.
The bull case: VXUS removes the need to decide how much emerging-market exposure to own. It gives a portfolio access to Japan, Europe, Canada, Taiwan, India, China, and smaller foreign markets through one trade.
The risk: The convenience comes with less control. Investors cannot separately raise or reduce emerging-market exposure without selling the whole international allocation.
Key number: 0.05% expense ratio
iShares Core MSCI Emerging Markets ETF (NYSE Arca: IEMG)
Why it made the list: IEMG is a broad emerging-markets fund that reaches large, mid-sized, and small companies. It held 2,822 stocks, charged 0.09%, and had $153.6 billion in assets as of July 21, 2026. Information technology made up 39.19% of the portfolio, making the fund sensitive to the Asian chip cycle.
The bull case: A sustained data-center buildout can support semiconductor demand across Taiwan and South Korea. Stronger domestic growth in India and other emerging economies would broaden the return base beyond technology.
The risk: IEMG is more volatile than developed-market funds and is exposed to currency swings, government intervention, and geopolitical shocks. Its technology weight means it is not a balanced bet on all emerging-market industries.
Key number: 39.19% in technology
Vanguard FTSE Emerging Markets ETF (NYSE Arca: VWO)
Why it made the list: VWO is a lower-cost emerging-markets building block with 6,332 stocks and a 0.06% expense ratio. It had $122.3 billion in assets at June 30, 2026. Taiwan, China, and India made up 34.3%, 25.6%, and 16.5% of the fund’s stock allocation, respectively.
The bull case: VWO gives investors broad access to emerging-market growth at a low cost. Taiwan Semiconductor Manufacturing accounted for 16.3% of assets, so continued demand for advanced chips could be a major tailwind.
The risk: That same semiconductor exposure creates concentration risk. A slowdown in chip demand or a disruption involving Taiwan would likely affect VWO far more than a diversified developed-market fund.
Key number: 6,332 stocks
Schwab International Equity ETF (NYSE Arca: SCHF)
Why it made the list: SCHF is a low-cost developed-market alternative for investors who do not need emerging markets in the same fund. It held 1,494 stocks, charged 0.03%, and had $65.6 billion in assets as of July 17, 2026. Financials were 24.41% of assets, followed by industrials at 18.31%.
The bull case: SCHF can benefit if overseas banks, manufacturers, and exporters keep improving earnings. Its fee matches VEA’s, which makes cost a nonissue when comparing the two.
The risk: SCHF owns fewer companies than VEA and has a larger financials weight. It also excludes emerging markets, so it should not be mistaken for a complete ex-U.S. portfolio.
Key number: 0.03% expense ratio
iShares Core MSCI Total International Stock ETF (NASDAQ: IXUS)
Why it made the list: IXUS is another one-fund ex-U.S. option, with 4,330 holdings across developed and emerging markets. It charged 0.07% and had $58.2 billion in assets as of July 21, 2026. Japan was its largest country weight at 15.04%, followed by Taiwan at 8.61% and the United Kingdom at 8.50%.
The bull case: IXUS offers broad foreign exposure without forcing investors to combine separate developed and emerging-market funds. Its country mix spreads risk across mature economies and faster-growing markets.
The risk: IXUS and VXUS serve nearly the same portfolio role, so most investors need one or the other. Its slightly higher fee gives VXUS an edge for investors focused strictly on cost.
Key number: 4,330 holdings
International Sector Overview
International ETFs are being shaped by two different forces. Developed-market funds have large positions in financials, industrials, health care, and global consumer firms. VEA, for example, has 23.2% in financials and 17.4% in industrials. That gives it a different earnings mix from a U.S. market led by a smaller number of large technology companies.
Emerging-market funds are more tied to Asian technology and the AI infrastructure cycle. Technology is 39.19% of IEMG, while VWO has 34.3% of its stock allocation in Taiwan. That has helped performance, but it also means broad emerging-market exposure is less balanced than many investors assume. Currency moves remain a major swing factor for every unhedged international fund. A weaker dollar can lift U.S.-dollar returns, while a stronger dollar can offset local-market gains.
What to Watch
- The European Central Bank’s July 23 policy decision and any change in its view on growth, inflation, or rate cuts.
- The Federal Reserve meeting on July 28 and 29, which could move the dollar and affect U.S.-dollar returns on foreign holdings.
- The Bank of Japan meeting on July 30 and 31, with particular importance for Japanese equities, the yen, and developed-market funds with large Japan weights.
The Bottom Line
This list is for investors building a durable foreign-stock allocation rather than chasing one country’s recent return. Start by choosing between a single broad fund, such as VXUS or IXUS, and a two-fund approach that combines developed and emerging markets. Then compare overlap, country exposure, and fees before adding another ticker.
Frequently Asked Questions
What is the best one-fund international ETF?
VXUS is the strongest one-fund choice for broad ex-U.S. stock exposure because it combines developed and emerging markets at a 0.05% expense ratio. IXUS fills a similar role with 4,330 holdings and a 0.07% expense ratio.
Is VEA a good international ETF?
VEA is a strong low-cost fund for developed markets outside the U.S. It charges 0.03% and holds 3,868 stocks, but it does not include emerging markets such as India, Taiwan, China, or Brazil.
What is the difference between IEMG and VWO?
Both are broad emerging-markets ETFs. IEMG tracks an MSCI index and held 2,822 stocks, while VWO tracks an FTSE index and held 6,332 stocks. VWO has the lower expense ratio at 0.06% versus 0.09% for IEMG, but both have meaningful exposure to Asian technology.
Should investors own both VXUS and VEA?
Usually not as core holdings. VXUS already includes developed markets, so adding VEA increases developed-market exposure while reducing the relative share of emerging markets. That can be useful only if the investor wants that deliberate tilt.
Why can international ETF returns differ from foreign stock-market returns?
U.S. investors receive returns in dollars. A foreign market can rise in local currency while a weaker local currency reduces the gain after conversion to dollars. The reverse can also happen when foreign currencies strengthen.
