Best International Developed Market ETFs in 2026

How We Chose These ETFs

Selecting the right ETFs for international developed markets investors requires a careful evaluation of multiple factors. We analyzed dozens of funds across the industry and narrowed our recommendations based on the following criteria. Each factor was weighted according to its importance for investors in this specific category, ensuring that our picks are truly optimized for your goals.

1. Exposure to established — Exposure to established economies with strong regulatory frameworks
2. Currency diversification away — Currency diversification away from the U.S. dollar
3. Access to global — Access to global companies not available on U.S. exchanges
4. Historically competitive valuations — Historically competitive valuations compared to U.S. markets

We also factored in our proprietary Beginner Suitability Score, which evaluates each fund on a 1-to-10 scale considering expense ratios, volatility (beta), diversification (holdings count), dividend history, and track record length. Funds that score consistently high across these dimensions earned a spot on our list.

1. Vanguard FTSE Developed Markets ETF (VEA) — Best Overall

Vanguard • International Developed

VEA provides broad exposure to stocks in developed countries outside the United States, including companies in Europe, Japan, Australia, and Canada. With over 4,000 holdings, it is one of the most diversified international ETFs available. Beginners choose VEA to add international developed market exposure to their portfolios at an incredibly low cost of just 0.05%.

Vanguard FTSE Developed Markets ETF earns its spot as our best overall pick because it delivers on the metrics that matter most for international developed markets investors. With an expense ratio of just 0.05%, you keep more of your returns working for you over time. The fund manages $120.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, VEA has delivered a total return of 6.50%, providing steady growth for investors who stayed the course through market volatility. The fund holds 4,050 individual securities, giving you exceptional diversification across a wide swath of the market. Its beta of 0.82 indicates that the fund is closely aligned with overall market movements, which is expected for a broadly diversified fund.

VEA currently pays a dividend yield of 3.10%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2007, VEA has weathered multiple market cycles including the 2008 financial crisis and the 2020 pandemic, proving its resilience. Our Beginner Suitability Score rates it 9.5/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

2. iShares Core MSCI EAFE ETF (IEFA) — Best for International Exposure

BlackRock • International Developed

IEFA tracks the MSCI EAFE index, covering developed market stocks in Europe, Australasia, and the Far East while excluding the U.S. and Canada. It is BlackRock's answer to Vanguard's VEA and offers similar broad international developed market exposure. Beginners who use an iShares-focused brokerage often choose IEFA as their primary international stock fund due to its low cost and massive asset base.

iShares Core MSCI EAFE ETF earns its spot as our best for international exposure pick because it delivers on the metrics that matter most for international developed markets investors. With an expense ratio of just 0.07%, you keep more of your returns working for you over time. The fund manages $110.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, IEFA has delivered a total return of 6.20%, providing steady growth for investors who stayed the course through market volatility. The fund holds 2,850 individual securities, giving you exceptional diversification across a wide swath of the market. Its beta of 0.83 indicates that the fund is closely aligned with overall market movements, which is expected for a broadly diversified fund.

IEFA currently pays a dividend yield of 2.80%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2012, IEFA has demonstrated its ability to perform across different market environments over a meaningful period. Our Beginner Suitability Score rates it 9.5/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

3. iShares MSCI EAFE ETF (EFA) — Best for International Exposure

BlackRock • Intl Developed

EFA tracks the MSCI EAFE Index, covering large and mid-cap stocks in developed markets across Europe, Australasia, and the Far East, excluding the U.S. and Canada. It is one of the oldest and most widely held international ETFs, serving as a benchmark for international developed market performance. The fund provides exposure to global blue-chip companies like Nestle, Toyota, and ASML.

iShares MSCI EAFE ETF earns its spot as our best for international exposure pick because it delivers on the metrics that matter most for international developed markets investors. With an expense ratio of just 0.32%, you keep more of your returns working for you over time. The fund manages $55.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, EFA has delivered a total return of 6.00%, providing steady growth for investors who stayed the course through market volatility. The fund holds 780 individual securities, giving you exceptional diversification across a wide swath of the market. Its beta of 0.82 indicates that the fund is closely aligned with overall market movements, which is expected for a broadly diversified fund.

EFA currently pays a dividend yield of 3.00%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2001, EFA has weathered multiple market cycles including the 2008 financial crisis and the 2020 pandemic, proving its resilience. Our Beginner Suitability Score rates it 9.5/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

4. SPDR Portfolio Developed World ex-US ETF (SPDW) — Best for International Exposure

State Street Global Advisors • International Developed

SPDW provides broad exposure to developed market stocks outside the United States at an ultra-low cost. It covers companies in Europe, Japan, Australia, and other developed economies. For beginners building a globally diversified portfolio, SPDW is one of the cheapest ways to add international developed market exposure.

SPDR Portfolio Developed World ex-US ETF earns its spot as our best for international exposure pick because it delivers on the metrics that matter most for international developed markets investors. With an expense ratio of just 0.03%, you keep more of your returns working for you over time. The fund manages $18.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, SPDW has delivered a total return of 7.00%, providing steady growth for investors who stayed the course through market volatility. The fund holds 2,500 individual securities, giving you exceptional diversification across a wide swath of the market. Its beta of 0.85 indicates that the fund is closely aligned with overall market movements, which is expected for a broadly diversified fund.

SPDW currently pays a dividend yield of 2.80%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2007, SPDW has weathered multiple market cycles including the 2008 financial crisis and the 2020 pandemic, proving its resilience. Our Beginner Suitability Score rates it 9.5/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

5. Schwab International Equity ETF (SCHF) — Best for International Exposure

Schwab • International Developed Markets

SCHF invests in large and mid-cap stocks from developed markets outside the U.S., including Europe, Japan, Australia, and Canada. It tracks the FTSE Developed ex US Index and holds over 1,500 companies across more than 20 countries. For beginners, SCHF is one of the cheapest ways to add international stock diversification and reduce dependence on the U.S. market.

Schwab International Equity ETF earns its spot as our best for international exposure pick because it delivers on the metrics that matter most for international developed markets investors. With an expense ratio of just 0.06%, you keep more of your returns working for you over time. The fund manages $35.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, SCHF has delivered a total return of 6.80%, providing steady growth for investors who stayed the course through market volatility. The fund holds 1,550 individual securities, giving you exceptional diversification across a wide swath of the market. Its beta of 0.82 indicates that the fund is closely aligned with overall market movements, which is expected for a broadly diversified fund.

SCHF currently pays a dividend yield of 2.80%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2009, SCHF has weathered multiple market cycles including the 2008 financial crisis and the 2020 pandemic, proving its resilience. Our Beginner Suitability Score rates it 9.5/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

Comparison Table

Here is a side-by-side comparison of all 5 ETFs in our international developed markets category. This table highlights the key metrics you should evaluate when choosing between these funds. Pay close attention to expense ratios and beginner scores, as these are the most impactful factors for long-term investment success.

*Beginner Score is calculated based on expense ratio, beta, holdings count, dividend yield, and fund inception year. Past performance does not guarantee future results.

Common Mistakes International Developed Markets Investors Make

Even with a solid selection of ETFs, investors in the international developed markets category can undermine their results by falling into avoidable traps. Understanding these common pitfalls will help you stay on track and avoid costly errors that could set back your financial progress by years or even decades.

• 1

  Avoiding international stocks entirely: Avoiding international stocks entirely due to U.S. outperformance bias

• 2

  Not understanding currency risk: Not understanding currency risk and its impact on returns

• 3

  Concentrating in a single: Concentrating in a single country instead of broad developed market exposure

• 4

  Timing international allocations based: Timing international allocations based on short-term economic headlines

The best defense against these mistakes is a simple, written investment plan that you commit to following regardless of market conditions. Define your target allocation, set up automatic contributions, and schedule a review only once or twice per year. This removes emotion from the process and keeps you focused on long-term wealth building rather than short-term noise.

Frequently Asked Questions