Zachary Evens: It’s been a whirlwind of a year already. International stocks have cut through the noise though, posting some of their best returns in a long time.
But it’s difficult to know which international markets and stocks might do best in the future, so diversifying across dozens of countries and thousands of stocks is prudent. That allows investors to reap the rewards if foreign stocks continue to rise, while also preventing especially bad outcomes if a few countries falter.
Here are three extremely well-diversified international stock ETFs you should be comfortable owning long past 2025.
3 Top International ETFs for 2025 and Beyond
- Vanguard Total International Stock ETF VXUS
- iShares Core MSCI EAFA ETF IEFA
- Vanguard International High Dividend Yield ETF VYMI
First up is Gold-rated Vanguard Total International Stock ETF, which trades under the ticker VXUS. It earns a coveted High Process Pillar rating for its outstanding diversification and simple construction. It’s also cheap, charging just 5 basis points annually.
This Vanguard index ETF spans more than 8,000 stocks, market-cap weighted. The largest foreign stocks like Taiwan Semiconductor and Tencent receive more assets than most, but rarely does one company collect more than 2% of the portfolio, ensuring that one firm’s misfortune doesn’t derail the whole fund.
Vanguard Total International Stock ETF is somewhat unique in that it holds a 20% stake in emerging-market stocks. Their inclusion here adds a layer of diversification some ETFs don’t have. Should emerging-market stocks do well, this ETF will benefit.
Next up is Silver-rated iShares Core MSCI EAFA ETF, which trades under the ticker IEFA. While it doesn’t have the same extreme breadth as VXUS, it still does well, holding over 2,500 stocks. In charging just 7 basis points, it’s a cheap way to access foreign stocks.
This iShares index ETF collects stocks of all sizes from 21 overseas developed markets. It omits emerging-market stocks, so it doesn’t hold Taiwan Semiconductor or Tencent, but its largest holdings are still large multinationals like SAP and Nestle.
Those stocks don’t claim more than 1.5% of the portfolio each, so the fund isn’t overexposed to any one company. And with sector weights that typically follow the category norm, it’s not overexposed to any one sector.
Last but not least is Vanguard International High Dividend Yield ETF, which is a good fit for income-oriented investors. It trades under the ticker VYMI and costs 17 basis points. Effectively balancing yield and risk earns it a Morningstar Medalist Rating of Silver.
Its dividend focus can increase risk because high yields can mask declining fundamentals, but market-cap weighting the portfolio sidesteps this risk. Placing greater emphasis on the largest dividend payers gives the fund a quality tack, a lien that has paid off historically, helping it beat and be less volatile than its category benchmark in recent years.
Diversification helps too. It holds more than 1,500 foreign stocks with less than 15% of assets typically held in its top 10 holdings.
Watch 3 Great Small-Cap ETFs for 2025 for more from Zachary Evens.