ETFs provide easy access to diversified international portfolios.
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International stocks were up about 25% in the first 11 months of 2025, while U.S. stocks only gained about 13%. It’s a reversal of a years-long trend of U.S. dominance in the equity markets. A declining U.S. dollar is contributing, as investors globally move to reduce their concentration in U.S. assets.
International stocks have more than momentum on their side. Valuations are generally lower than U.S. stocks, even in technology and AI. International companies like ASML Holding (ASML) and Samsung Electronics (005930) stand to benefit from AI adoption—but they’re starting with more attractive price points compared to U.S. stocks like Palantir (PLTR) or Intel (INTC).
Even better, you can easily add international diversification to your portfolio with a low-cost ETF. Here’s a closer look at five popular options that can reduce your reliance on U.S. equities in 2026 and beyond.
5 Popular International ETFs
According to VettaFi’s ETF database, these are the five largest international ETFs in terms of total assets:
- Vanguard FTSE Developed Markets ETF (VEA)
- iShares Core MSCI EAFE ETF (IEFA)
- iShares MSCI EAFE ETF (EFA)
- Schwab International Equity ETF (SCHF)
- SPDR Portfolio Developed World ex-US ETF (SPDW)
These funds all focus on developed markets outside the U.S. Japan and the U.K. are well represented in terms of geography, while sector exposures favor financials, industrials, technology and health care. Additionally, the top 10 holdings across all five funds are similar. The main differences are in the smaller holdings, which is why their 10-year performance metrics vary by less than one-half a percentage point.
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Let’s review each fund in more detail. Metrics are sourced from the fund websites.
Vanguard FTSE Developed Markets ETF (VEA)
Vanguard VEA tracks the FTSE Developed All Cap ex US Index, which includes large-, mid- and small-cap companies based in developed markets of Canada, Europe and the Pacific. Japan comprises 21.3% of the portfolio.
Here are the key metrics:
- Price: $62.04
- Expense ratio: 0.03%
- YTD return: 31.0%
- 10-year average annual return: 8.2%
- P/E ratio: 17.1
- Net assets: $183.6 billion
Why Invest In VEA
Vanguard VEA has an ultra-low expense ratio of 0.03% and provides diversified international exposure via more than 3,800 stocks. Semiconductor company ASML is the top holding but comprises just 1.5% of the total portfolio. Other notable stocks include enterprise software maker SAP, pharmaceutical company AstraZeneca (AZN) and HSBC (HSBC), an established banking and financial services provider.
iShares Core MSCI EAFE ETF (IEFA)
iShares Core MSCI EAFE ETF invests in large, mid-sized and small companies in developed markets outside of the U.S. and Canada. IEFA owns about 2,600 stocks, with 24.3% of them based in Japan and 14.3% domiciled in the U.K.
Here are the key metrics:
- Price: $89.16
- Expense ratio: 0.07%
- YTD return: 26.6%
- 10-year average annual return: 7.9%
- P/E ratio: 18.3
- Net assets: $160.8 billion
Why Invest In IEFA
The iShares IEFA fund has an efficient expense ratio of 0.07%. With fewer holdings than VEA, this fund has slightly higher—but still low—concentrations of its top holdings. Seven companies comprise more than 1% of the portfolio, including ASML, AstraZeneca, and Swiss pharma Roche Holdings (ROG).
iShares MSCI EAFE ETF (EFA)
iShares MSCI EAFE ETF invests in large and mid-sized companies in developed markets outside of the U.S. and Canada. The exclusion of small caps creates a tidier portfolio than IEFA. Even so, 700 stocks provide sufficient diversification outside the U.S. Here again, Japan and the U.K. have the highest geographic representation. Financials, industrials and health care are the most prominent sectors.
Here are the key metrics:
- Price: $95.61
- Expense ratio: 0.32%
- YTD return: 26.3%
- 10-year average annual return: 7.7%
- P/E ratio: 18.6
- Net assets: $69.4 billion
Why Invest In EFA
EFA has the highest expense ratio of the funds on this list and slightly lags on performance. Still, this fund may suit your needs if you don’t need or want additional small-cap exposure. The top 10 holdings are the same as IEFA, but with higher percentages.
Schwab International Equity ETF (SCHF)
The Schwab International Equity ETF tracks the FTSE Developed ex US index, which focuses on large and midsized companies in 24 non-U.S. countries, including Canada. Japan, Korea and Australia have the highest concentrations.
Here are the key metrics:
- Price: $24.22
- Expense ratio: 0.03%
- YTD return: 30.6%
- 10-year average annual return: 8.2%
- P/E ratio: 17.3
- Net assets: $54 billion
Why Invest in SCHF
SCHF’s low expense ratio of 0.03% contributes to the fund’s strong performance. Like EFA, the portfolio does not include small caps—which is appropriate if that’s what your allocation targets demand. The portfolio is larger than EFA’s, with Canadian exposure and about 1,500 stocks in total.
SPDR Portfolio Developed World ex-US ETF (SPDW)
The SPDR Portfolio Developed World ex-US ETF tracks the S&P Developed Ex-U.S. BMI Index. The index includes about 5,200 stocks ranging from $430 billion to $11.8 million in market capitalization. The fund holds a smaller representative sample of 2,410 stocks.
Here are the key metrics:
- Price: $44.21
- Expense ratio: 0.03%
- YTD return: 30.6%
- 10-year average annual return: 8.2%
- P/E ratio: 16.2
- Net assets: $32.9 billion
Why Invest In SPDW
SPDR’s SPDW provides efficient exposure to a broad range of international stocks. Compared to the other funds on this list, SPDW is tied for the lowest expense ratio and the highest 10-year average annual return. The fund also has the second-highest 2025 returns and the lowest P/E ratio of the group.
Bottom Line
International stock funds can compete with domestic funds on expense ratios and returns. Adding one to your portfolio can reduce geographic concentrations and provide access to other growth engines outside the few large companies that dominate the U.S. stock market.