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6 Best International ETFs Every Investor Must Know in 2026

Six ETFs that make it easy to diversify your portfolio beyond U.S. borders.

Globe hologram with money signs and a candlestick chart, representing the best international ETFs for investing outside the US

Key Takeaways

VEA and IEFA offer low-cost access to developed markets.
VXUS adds emerging market exposure for maximum diversification.
IDMO uses momentum strategies to boost returns.
LVHI delivers the highest dividend yield at 4.79%.
AVDV has exceptional recent performance with small-cap value focus.

Whether you’re just getting started with ETFs or looking to go beyond U.S. stocks, international ETFs let you invest in up to thousands of companies across dozens of countries all within one purchase. In fact, all of the international ETFs we are covering gained over 30% in the past year while the S&P 500 returned around 17%.

International investing helps build portfolios that can weather different economic conditions. When U.S. markets struggle, developed markets and emerging markets may often follow different paths, reducing overall volatility.

We’re covering six top international ETFs. By the end you’ll know which ones are right for your portfolio and why some crushed it over the past decade.

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Top International ETFs: Quick Comparison

Data as of 1/25/2026

Vanguard FTSE Developed Markets ETF (VEA)

iShares Core MSCI EAFE ETF (IEFA)

Vanguard Total International Stock ETF (VXUS)

Invesco S&P International Developed Momentum ETF (IDMO)

Franklin International Low Volatility High Dividend Index ETF (LVHI)

Avantis International Small Cap Value ETF (AVDV)

Underlying Index

FTSE Developed All Cap ex US Index

MSCI EAFE IMI Index

FTSE Global All Cap ex US Index

S&P World Ex-U.S. Momentum Index

Franklin International Low Volatility High Dividend Hedged Index

MSCI World ex-U.S. Small Cap Index

Inception Date

7/20/2007

10/18/2012

1/26/2011

2/24/2012

7/27/2016

9/24/2019

Net Assets

$202B

$169B

$127B

$3B

$4B

$17B

Expense Ratio

0.03%

0.07%

0.05%

0.25%

0.40%

0.36%

Holdings

3,853

2,591

8,646

182

186

1,588

Top Ten Holdings %

10.10%

11.36%

10.41%

27.13%

22.16%

8.25%

Largest Country (%)

Japan (20.60%)

Japan (24.30%)

Japan (15%)

Canada (18.91%)

Canada (16%)

Japan (32%)

Dividend Yield (TTM)

3.05%

3.40%

3.02%

3.59%

4.79%

2.76%

Qualified Dividends (%)

66.29% (2025)

84.13% (2024)

58.50% (2025)

28.8% (2025)

44.03% (2024)

68.17% (2024)

Dividend Frequency

Quarterly

Semiannual

Quarterly

Quarterly

Quarterly

Semiannual

Past Year (as of 12/31/25)

35.17%

32.08%

32.35%

42.14%

27.10%

49.60%

Past 3 Year Avg.

18.04%

17.19%

17.26%

24.46%

20.02%

23.70%

Past 5 Year Avg.

9.21%

8.79%

8.07%

14.14%

16.22%

14.21%

Past 10 Years Avg.

8.75%

8.29%

8.54%

12.01%

X (2016)

X (2019)

The Core International Holdings

These first three ETFs are your foundation for international exposure. They’re designed for long-term investors who want broad diversification at rock-bottom costs. When you buy ETF shares, you own a diversified basket of international companies.

1. Vanguard FTSE Developed Markets ETF (VEA)

Vanguard’s ETF with the ticker symbol of VEA tracks the FTSE Developed All Cap ex U.S. Index, covering large, mid, and small-cap companies across Canada, Europe, and the Pacific region.1 Created in July 2007, it has grown to $202 billion in assets, making it the sixth largest ETF in the market.

The fund holds 3,853 companies. The top 10 make up just 10% of the fund, with companies like Samsung and Nestle leading.

Technology represents 11.61% of holdings, and Japan is the largest country at 21%.

VEA has paid a 3.05% dividend yield over the trailing twelve months (TTM), with 66% qualifying for long-term capital gains as of 2025 for those that meet the 60 day holding rule.

The 0.03% expense ratio means you pay $3 annually per $10,000 invested. Over the past year, VEA grew 35%, outpacing the S&P 500’s 17.82%. Longer-term returns show three-year average of 18.04%, five-year average of 9.21%, and 10-year average of 8.75% annually.

Historically, over the long term, the U.S. economy has proven to be a superior investment, which is why legendary investors like Warren Buffett recommend it as the majority of nearly any investment portfolio.

2. iShares Core MSCI EAFE ETF (IEFA)

IEFA tracks the MSCI EAFE IMI Index, covering developed market equities.2 The key difference? IEFA excludes both the U.S. and Canada, plus China. This matters when building portfolios across different fund families.

BlackRock launched IEFA in October 2012 with $169 billion in assets, making it the eighth largest ETF. With 2,591 holdings, the top 10 companies make up 11%, and technology sits at 9%. Japan dominates at 24% of the portfolio.

The 3.40% dividend yield pays semiannually, with 84% qualifying for preferential tax treatment in 2024.

At 0.07%, IEFA costs slightly more than VEA. Past year performance was 32%, three-year average hit 17.19%, five-year reached 8.79%, and 10-year averaged 8.29%.

If you’re mixing funds from different providers and want to avoid Canada overlap, choosing IEFA over VEA would be the right move.

» Want to see more ETFs all in one place? View our free index fund cheatsheet

3. Vanguard Total International Stock ETF (VXUS)

VXUS has the broadest international exposure, tracking the FTSE Global All Cap ex US Index with developed and emerging  markets.3 That reach brings holdings to 8,646 companies.

Launched in January 2011, the top 10 still only make up 10% despite the huge number of holdings. Technology makes up 15%, and Japan is at 15% country exposure. The 3.02% dividend yield (58.5% qualifying in 2025) is quarterly.

The 0.05% expense ratio is in between VEA and IEFA. Performance is the same as IEFA at 32.35% for the past year, 17.26% three-year average, 8.07% five-year average and 8.54% over 10 years.

Use VXUS for maximum international diversification in one fund. The emerging markets exposure adds growth but increases volatility. 

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Higher Growth Potential ETFs

The next three international ETFs take different approaches to boost returns. They use strategies like momentum investing, low volatility screens and small-cap value tilts. These funds cost more but have delivered stronger historical performance. Investors can measure the effectiveness of these strategies using metrics like volatility, tracking error, and risk-adjusted returns. These ETFs may also involve more frequent trades and may be subject to certain limits on sector or country exposure as part of their strategy.

4. Invesco S&P International Developed Momentum ETF (IDMO)

IDMO tracks the S&P World ex U.S. Momentum Index, selecting stocks based on trailing 12-month price momentum adjusted for volatility.4 Launched in February 2012, it has a full 10-year track record.

With $3 billion in assets and 182 companies, the top 10 make up 27% of the fund. That concentration means more risk but stronger outperformance potential. Companies like Rolls-Royce and Shopify appear in top holdings.

Technology represents just 4%, and Canada leads at 19%. The 3.59% dividend yield pays quarterly (28.8% qualifying in 2025). Remember, most international ETFs are not very tax-efficient investments, so understanding time and place like using them in tax-advantaged accounts is crucial to understand. 

The 0.25% expense ratio is higher than core funds, but performance justifies the cost.

Over the past year, IDMO grew 42.14%, highest on this list. Three-year average hit 24.46%, five-year reached 14.14%, and 10-year averaged 12.01% annually. That 10-year performance beat VEA by over 3 percentage points annually. A $10,000 investment 10 years ago would be worth roughly $31,000 in IDMO versus $23,000 in VEA.

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5. Franklin International Low Volatility High Dividend Index ETF (LVHI)

LVHI tracks the Franklin International Low Volatility High Dividend Hedged Index, selecting 50 to 150 securities based on high yields and low earnings volatility.5 The fund uses currency hedging to reduce exchange rate risk.

Launched in July 2016, LVHI manages $4 billion with 186 holdings. The top 10 make up 22%. Technology exposure is zero, replaced by stable, dividend-paying sectors. Canada leads at 16%, and the dividend yield hits 4.79%, highest on this list (44% qualified in 2024).

The 0.40% expense ratio is highest among all six funds, reflecting active factor screening and currency hedging. Past year performance was 27%, but longer periods shine. Three-year average reached 20%, and five-year averaged 16.22% annually.

LVHI is for income-focused investors. Zero tech exposure hedges against US portfolios overweight technology.

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6. Avantis International Small Cap Value ETF (AVDV)

AVDV focuses on small-cap value stocks from developed markets excluding the US.6 Launched in September 2019, it’s the newest fund but has attracted $15.3 billion in assets.

It holds 1,588 companies, with top 10 making up just 8.25%. Technology sits at 5%, and Japan represents an outsized 32%. The 2.76% dividend yield is lower but respectable. The 0.36% expense ratio reflects higher small-cap trading costs.

Here’s what makes AVDV exceptional. Over five years, the fund averaged 14.21% annually. Three-year average was 23.70%, and one-year return hit 49.60%.

AVDV earned a four-star Morningstar rating and outperformed its category by 9% over five years.7 But remember, five years is a short track record. The fund hasn’t been tested through a full market cycle.

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Which International ETF Should You Choose?

VEA — Best Core International Holding
VEA provides broad developed-market exposure at an ultra-low cost of 0.03%. It has a long track record and offers strong diversification, making it an ideal core international holding.

VXUS — Best for Full Global Exposure
VXUS includes both developed and emerging markets, offering a one-fund solution for total international exposure. Its broad coverage adds diversification without the need for additional ETFs.

IEFA — Best for Ex-Canada & China Exposure
IEFA focuses on developed markets while excluding the U.S., Canada, and China. This makes it useful for investors looking to avoid regional overlap, and it fits well into multi-fund portfolio strategies.

IDMO — Best for Growth & Momentum
IDMO pursues a momentum-focused international strategy. It has demonstrated strong historical outperformance, though it may lag during market reversals.

LVHI — Best for International Income
LVHI targets high dividend yield (around 4.8%) while using a low-volatility screen to help limit downside risk. It has no tech exposure, providing diversification for U.S.-heavy portfolios.

AVDV — Best for Small-Cap Value Exposure
AVDV focuses on international small-cap value stocks. It is factor-driven with higher volatility, and although it has a shorter track record, it has shown strong recent returns.

Things to Consider

When choosing international ETFs, think about how your money is allocated across regions and sectors, and the risks and rewards involved. International funds are best in tax-advantaged accounts like the Roth IRA to reduce the impact from taxes.

LVHI’s 0.40% costs 13 times more than VEA’s 0.03%, so the strategy must deliver enough extra return to offset fees. IDMO has the longest track record at 10 years. AVDV and LVHI have shorter histories.

When looking at fund performance, consider tracking error—a measure of how closely an ETF’s returns follow its benchmark index. Lower tracking error means the fund more closely mirrors its intended exposure.

All in all, don’t chase recent performance. Build your international allocation on long-term strategy, not short-term results.

Ready to start? Compare best brokerage accounts for commission-free ETF trading. Most brokerages and ETF providers offer a range of services, including research tools, trading platforms, and educational resources to help you make informed decisions. When you place a trade, you receive ETF shares in your brokerage account, typically at a price close to the fund’s net asset value, though prices can fluctuate during market hours.

Don’t forget to check out our free cheatsheet covering these international ETFs plus many more across different asset classes.

At Investlane, we prioritize accuracy and trust. Our content is built on authoritative sources such as government data, industry reports, original research, and expert analysis. We also reference reputable studies and publications to ensure thoroughness. All information is carefully fact-checked for accuracy and relevance. To learn more about our commitment to unbiased and transparent content, please see our editorial policy.

  1. Vanguard. Vanguard FTSE Developed Markets ETF (VEA). Last accessed on January 29, 2026.
  2. BlackRock. iShares Core MSCI EAFE ETF (IEFA). Last accessed on January 29, 2026.
  3. Vanguard. Vanguard Total International Stock ETF (VXUS). Last accessed on January 29, 2026.
  4. Invesco. Invesco S&P International Developed Momentum ETF (IDMO). Last accessed on January 29, 2026.
  5. Franklin Templeton. Franklin International Low Volatility High Dividend Index ETF (LVHI). Last accessed on January 29, 2026.
  6. Avantis Investors. Avantis International Small Cap Value ETF (AVDV). Last accessed on January 29, 2026.
  7. Morningstar. Vanguard FTSE Developed Markets Index Fund Analysis. Last accessed on January 29, 2026.

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