Best international etfs

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9 Best International ETFs to Buy in 2021

Most investors feel more comfortable investing in domestic companies. After all, everything you’ve read has told you to invest in what you know, and unless you study international markets, you’re more comfortable investing in stocks representing companies that sell products or services you use. 

As you build your wealth and research new opportunities, you’ll likely come across information about international stocks that will pique your interest. These stocks trade on stock markets around the world, and aren’t often household names in the United States. 

Due to volatility in global markets, choosing the best opportunities on an individual-stock basis requires extensive research. However, you can gain exposure to the international market with much less research by investing in exchange-traded funds, or ETFs. Moreover, international funds provide a high level of diversification, protecting your overall portfolio from significant declines should one or two of the stocks in the fund fall on hard times. 

Best International ETFs to Buy

Exchange-traded funds are some of the most popular investment vehicles on Wall Street today. So naturally, there are tons of international funds to choose from. 

Where do you start?

Some of the best international ETFs on the market today include:

1. Vanguard FTSE Developed Markets ETF (VEA)

It’s difficult to talk about the top ETFs in any category without mentioning Vanguard. Founded in 1975, the fund management firm has decades of experience delivering compelling gains along with industry-low costs, making it one of the clear leaders in the fund-management arena. 

The fund was designed to provide exposure to international stocks in developed regions ranging in market capitalizations from small cap to large cap. 

More than half of the fund’s assets are invested in Europe, with the next largest holdings being in the Pacific region of the world. Under 9% of the fund’s assets are invested in North America, with the vast majority of those investments being in Canada.

Key Stats

As with most Vanguard funds, the ETF comes with an industry-low expense ratio while providing an impressive historic performance. Here are the key stats:

  • Asset Allocation. The fund’s portfolio is made up of international stocks with a range of market caps. The top five holdings in the portfolio include Nestle (NESN), Samsung Electronics (005930.KS), ASML Holding (ASML), Roche Holdings (ROG), and Toyota Motor (TM).  
  • Expense Ratio. The annual cost associated with the fund is just 0.05%. Considering the average cost of ETFs sits at 0.44% according to Experian, this fund lets you hold onto far more of your gains than most other options. 
  • Historic Performance. The returns on the fund have been impressive to say the least. Over the past year, investors have enjoyed returns of 36.44%. According to Yahoo! Finance, the average return for the category throughout the past year has been just 8.19%. Over the past three- and five-year periods, returns have come in at 9.27% and 10.90%, respectively. 
  • Dividend Yield. The dividend yield on the fund is 2.43%, making it a great investment for those looking to generate income through their stock market portfolio or giving you the opportunity to reinvest your dividends and expand your earnings potential. 
  • Morningstar Return Rating. The Morningstar rating on the ETF is 4 out of 5 stars, making it one of the highest-rated international funds on the market today.
  • MSCI ESG Rating. Morgan Stanley Capital International (MSCI) rates funds according to their resilience to environmental, social, and governance (ESG) risks. The MSCI ESG score on this fund is 7.57 out of 10, according to ETF.com, which gives the fund an ESG rating of AA, making it a strong potential option for impact investors. 

Pro tip: Have you considered hiring a financial advisor but don’t want to pay the high fees? Enter Vanguard Personal Advisor Services. When you sign up, you’ll work closely with an advisor to create a custom investment plan that can help you meet your financial goals. Read our Vanguard Personal Advisor Services review.


2. Vanguard Total International Stock ETF (VXUS)

The Vanguard Total International Stock ETF is another fund that’s well worth your attention. The fund was designed to provide diversified exposure to both emerging and developed markets around the world. 

When you invest in the fund, you’ll gain exposure to developed economies like Canada, the United Kingdom, and Europe, as well as exposure to emerging economies like China and Brazil.

The fund uses the FTSE Global All Cap ex-US Index as its benchmark, which tracks more than 5000 companies in global markets across all market capitalizations while excluding investments in U.S. companies. 

Key Stats

As investors have come to expect from Vanguard funds, the VXUS comes with industry-low expenses, but you won’t be giving up returns in exchange for the discount. 

  • Asset Allocation. The fund’s investment portfolio includes a heavily diversified mix of international stocks with market caps ranging from small to large. The top five holdings in the portfolio include Taiwan Semiconductor Manufacturing (TSM), Tencent Holdings (TCEHY), Alibaba Group Holding (BABA), Nestle (NESN), and Samsung Electronics (005930.KS). 
  • Expense Ratio. The ETF comes with an expense ratio of 0.08% per year, well below the industry average. 
  • Historic Performance. Over the past year, investors in the fund have enjoyed returns of 37.19%, more than triple the category average. Over the past three and five years, returns have come in at 9.64% and 11.15%, respectively, both of which are significantly above average for international funds. 
  • Dividend Yield. The dividend yield on the fund is 2.40%, making it another popular option among income investors and those interested in reinvesting their dividends to expand their earnings potential. 
  • Morningstar Return Rating. The fund’s Morningstar rating is 3 out of 5 stars. 
  • MSCIESG Rating. The ESG score on the fund is 6.78 out of 10, giving the fund an A rating, meaning the fund is slightly above average when it comes to impact made through its investments. 

3. iShares Core MSCI Total International Stock ETF (IXUS)

iShares is another fund management firm that’s hard to ignore when making a list of the best funds in any category, including international equity ETFs. Founded in 2000, iShares has quickly grown to become one of the most respected fund managers on Wall Street. 

The iShares Core MSCI Total International Stock ETF was designed to provide diversified exposure to the total stock market while excluding investments in U.S. stocks. Like others on this list, the fund’s portfolio includes a mix of small-, medium-, and large-cap companies. 

Key Stats

iShares is another fund manager known for providing funds with incredibly low expenses and compelling performance, and this fund doesn’t disappoint. The key stats are as follows: 

  • Asset Allocation. The fund provides diversified exposure to the global market, including both emerging and developed regions outside of the United States. The top five holdings in the fund include Taiwan Semiconductor Manufacturing (TSM), Tencent Holdings (TCEHY), Alibaba Group Holding (BABA), Nestle (NESN), and Samsung Electronics (005930.KS). 
  • Expense Ratio. The annual price you’ll pay when you invest in this fund is 0.09%, which is far below the industry average. 
  • Historic Performance. The performance of the fund has been impressive. Over the past year, the ETF produced returns in the amount of 37.45%. Throughout the past three and five years, returns have come in at 9.60% and 11.21%, respectively.
  • Dividend Yield. With a dividend yield around 2.11%, the fund isn’t the highest payer on this list, but the income offered is attractive. 
  • Morningstar Return Rating. With a rating of 4 out of 5 stars, the fund ranks among the top in the space. 
  • MSCIESG Rating. The ETF has an ESG score of 6.73 out of 10, giving it an A rating. This means the fund is a potential option for those looking to make an impact with their investing dollars.  

4. Vanguard FTSE Emerging Markets ETF (VWO)

All funds on this list so far focus on either investments in developed markets or investments in a mix of developed and emerging markets. However, if you’re looking for diversified exposure focused purely on emerging economies around the world, the Vanguard FTSE Emerging Markets ETF may just be the way to go. 

As with any emerging market investment, the VWO ETF comes with high potential for growth, but also a higher level of risk. Designed to track the FTSE Emerging Markets All Cap China A Inclusion Index, assets in the fund are invested in emerging economies like China, Brazil, Taiwan, and South Africa.

Moreover, the fund’s portfolio includes a diversified list of stocks ranging in market capitalization from small cap to large cap. 

Key Stats

With an incredibly low cost of investment and a history of generating strong returns, the VWO ETF has captured the attention of investors. Here are the key stats:

  • Asset Allocation. The fund is focused on investments stocks with ranging market capitalizations in emerging markets. The five largest holdings in the ETF include Tencent Holdings (TCEHY), Alibaba Group Holding (BABA), Taiwan Semiconductor Manufacturing (TSM), Meituan (MPNGF), and Reliance Industries Ltd (RELIANCE).
  • Expense Ratio. The annual cost associated with investing in the fund is 0.10%, well below the industry average. 
  • Historic Performance. As you would hope to see with an ETF focused on emerging markets growth, the returns generating through the fund have been impressive. Over the past year, investors in the fund have experienced returns of 40.22%, with gains for the past three and five years clocking in at 11.75% and 11.93%, respectively. 
  • Dividend Yield. With a dividend yield of 2.05%, this fund provides respectable income to look forward to. 
  • Morningstar Return Rating. The ETF has a rating of 3 out of 5 stars. 
  • MSCIESG Rating. The ESG score on the fund is 4.65 out of 10, meaning that it’s ESG rating is BBB. With this rating, the fund slightly underperforms its peers in terms of social and environmental impact. As such, impact investors may want to look elsewhere. 

5. Invesco China Technology ETF (CQQQ)

Invesco is another well-respected fund manager on Wall Street. While the company’s funds tend to have higher expense ratios, it’s also known for producing funds that perform well in comparison to the overall market. 

The Invesco China Technology ETF is no different. 

This fund is designed to closely track the FTSE China Incl A 25% Technology Capped Index, an index made up of mid- and large-cap technology companies in China. In fact, at least 80% of the assets held in the portfolio are invested in the stocks that make up the index. 

Key Stats

As mentioned above, the costs associated with the fund leave a bit to be desired, but the returns generated are hard to ignore. Here are the key stats. 

  • Asset Allocation. The vast majority of the fund’s portfolio is held in Chinese technology stocks. The top five holdings in the portfolio include Tencent Holdings (TCEHY), Meituan (MPNGF), Baidu (BIDU), Sunny Optical Technology (SOTGY), and Bilibili (BILI). 
  • Expense Ratio. Investors in the fund will pay 0.70%. That’s a fair bit above the average for the industry, which could prove to be quite costly as it cuts into compound gains over the long run. Nonetheless, with compelling returns providing a balance, the fund is still worthy of being on a list of the top international ETFs. 
  • Historic Performance. This is where the fund shines. Over the past year, investors have earned a whopping 33.28%, with three- and five-year returns sitting at 15.18% and 21.14%, respectively. 
  • Dividend Yield. With a dividend yield of just 0.54%, this fund isn’t one that’s known for generating significant income. 
  • Morningstar Return Rating. This fund has a rating of 4 out of 5 stars. 
  • MSCIESG Rating. The ESG score for the fund is just 3.59 out of 10, giving it a BB rating. This means the fund’s investments don’t make much of a positive social or environmental impact, which may be a turn off to some investors. 

6. Schwab Emerging Markets Equity ETF (SCHE)

Schwab has been around for decades and has been providing meaningful returns for investors just as long. So, when you invest in the Schwab Emerging Markets Equity ETF, you know your money is in more-than-capable hands. 

The fund was designed to track the returns of the FTSE Emerging Index — derived from the FTSE Global Equity Index Series, which represents more than 99% of the world’s investable market capitalization. The FTSE Emerging Index is one of the most comprehensive emerging market benchmarks in the world, making this fund one of the most highly diversified on this list. 

The fund invests in stocks from countries like China, Brazil, and Taiwan. As with any emerging economy funds, the growth potential is incredible but the risks are increased. 

Key Stats

Schwab is another fund manager on this list known for providing lower-than-average costs with above-average returns. Here are the key stats:

  • Asset Allocation. The majority of this fund’s portfolio is invested in emerging market mid-cap and large-cap stocks. The five largest holdings in the fund’s portfolio include Taiwan Semiconductor Manufacturing (TSM), Tencent Holdings (TCEHY), Alibaba Group Holding (BABA), Meituan (MPNGF), and Vale SA (VALE). 
  • Expense Ratio. Investors pay 0.11% annually in expenses, which is well below the industry average. So, you’ll keep more of your gains. 
  • Historic Performance. While expenses are low with this fund, its returns are nothing to shake a stick at. In the past year, investors in the fund have enjoyed gains of more than 38%, with three- and five-year returns coming in at 11.50% and 12.04%, respectively. 
  • Dividend Yield. With a dividend yield of 2.32%, the SCHE ETF is known for offering considerable dividend payments. As such, it’s a great option for income investors looking for diversified exposure to emerging markets. 
  • Morningstar Return Rating. The rating on the fund is 3 out of 5 stars, pointing to returns that are slightly above average. 
  • MSCIESG Rating. The ESG score for the ETF is 4.68 out of 10, giving it a BBB rating. This means that in terms of environmental and social impact, the fund ranks slightly below average. 

7. Global X FTSE Nordic Region ETF (GXF)

Founded in 2008, Global X is by far the youngest fund manager on this list. However, the company has made a splash on Wall Street, providing outstanding returns to investors in their offerings. 

The same can be expected from the Global X FTSE Nordic Region ETF. 

The fund was created to provide investors with highly diversified exposure to the Nordic region, including investments in Finland, Sweden, Norway, and Denmark. The fund tracks the FTSE Nordic 30, a fund made up of the 30 largest and most liquid stocks in those four countries. As a result, it’s not as diversified as others on this list, which will expose your portfolio to risk should economic and market conditions in the Nordic region decline. 

Key Stats

The GXF ETF has been an impeccable performer, especially over the past year, making it an attractive opportunity for investors looking to achieve market-leading growth. Here are the key stats:

  • Asset Allocation. The fund’s holdings consist of the largest and most liquid stocks trading in the Nordic region. The top five holdings in the fund include Novo Nordisk (NVO), DSV Panalpina (DSV), Investor AB B (INVE B), Nordea Bank (NRDBY), and Vestas Wind Systems (VWS).
  • Expense Ratio. Investors pay 0.51% per year to own shares in the fund. That’s a tick over the industry average, but the slight increase in cost is reasonable considering the performance of the fund. 
  • Historic Performance. This is where the GXF fund shines. Over the past year, returns have clocked in at 44.73%, with three- and five-year returns coming in at 15.30% and 11.76%, respectively. 
  • Dividend Yield. Historically, dividend yields for the fund have been in the low-2% to mid-3% range. However, the yield fell significantly to just 1.51% recently. So, although it has historically been a strong play for dividend investors, recent income hasn’t been quite as attractive.  
  • Morningstar Return Rating. This fund is not rated by Morningstar. 
  • MSCIESG Rating. With an ESG score of 7.85 out of 10, and an ESG rating of AA, the fund is known for making a meaningful social and environmental impact through its investments, making it a strong option for investors looking to do the same. 

8. Invesco International Dividend Achievers ETF (PID)

As its name suggests, the Invesco International Dividend Achievers ETF is a fund designed for investors with a focus on income from international stocks. Tracking the Nasdaq International Dividend Achievers Index, the fund invests in a highly diversified list of common stock from issuers around the world. The index is made up of non-U.S companies with at least five consecutive years of increasing annual regular dividend payments.

The fund invests in a mix of non-U.S. stock that have qualified as international dividend achievers as well as American and global depository receipts. 

Importantly, the assets held in the portfolio have generally increased dividend payments consistently over the past five years, making the fund a strong option for investors looking to generate income through their portfolios. 

Key Stats

As a dividend-focused fund, price appreciation is slightly lower than would be expected in other international ETFs. However, the reduced price growth is made up for in strong dividends. Here are the key stats:

  • Asset Allocation. The fund is aimed at investing in international stocks that are known for producing consistently increasing dividends. The portfolio is built up of stocks from around the world, most of which trade with large market capitalizations, and many of which operate in the energy and utilities sectors. The top five holdings in the fund include Enbridge Inc (ENB), BCE Inc (BCE), Pembina Pipeline Corp (PBA), Cia Paranaense De Energia Copel (ELP), and TC Energy (TRP).
  • Expense Ratio. Investors will pay 0.56% on an annual basis, which is slightly above the industry average. 
  • Historic Performance. Over the past year, investors have enjoyed returns of 49.73%, with three- and five-year returns of 8.49% and 8.75%, respectively. It’s also worth mentioning that because of the fund’s aim at producing dividends, volatility is quite a bit lower than with other international ETFs, ultimately making it a strong play for investors looking for a lower-risk opportunity to profit from international markets. 
  • Dividend Yield. The dividend yield on the fund is 2.75%, making it a strong option for investors looking to generate income through their investment portfolio. 
  • Morningstar Return Rating. The Morningstar rating on the ETF is 3 out of 5 stars, suggesting returns are slightly above what you would expect to see when investing in a dividend-heavy fund like this. 
  • MSCIESG Rating. The ESG score on the fund is 6.99 out of 10, giving it an A rating. As a result, the fund makes a compelling option for impact investors. 

9. Cambria Foreign Shareholder Yield ETF (FYLD)

Founded in the year 2000, Cambria is a relatively young fund manager that has made a splash on Wall Street, generating outsize profits for those who invest in their funds. 

The Cambria Foreign Shareholder Yield ETF is designed to provide exposure to foreign stocks in developed economies with market caps greater than $200 million. Moreover, when adding companies to the portfolio, Cambria looks for stocks that have the best combined rank of dividend payments and share buybacks, which displays strong financial strength. 

The fund’s investment portfolio consists of more than 100 stocks, offering up strong diversification and protecting investors from volatility risk. 

Key Stats

While expenses associated with the fund are higher than average, returns have been well above average, and dividend payments have been impressive. Here are the key stats:

  • Asset Allocation. The fund’s goal is to provide diversified access to global stocks with market caps of $200 million or above that offer either impressive dividends, share buybacks, or a mix of both. The top five holdings in the portfolio include ARC Resources Ltd (AETUF), Tourmaline Oil Corp (TRMLF), Rio Tinto (RTNTF), Labrador Iron Ore Royalty (LIFZF), and Shanghai Fushan Resources Group (HK 0639). 
  • Expense Ratio. The fund comes with an annual cost of 0.59%, somewhat above the industry average. Although the expenses are higher, some of the best returns and impressive dividends make the fund hard to ignore. 
  • Historic Performance. The fund’s performance has been worthy of attention. In the past year, investors earned 51.76% on their investments, with three- and five-year returns coming in at 8.46% and 11.51%, respectively. 
  • Dividend Yield. Offering a dividend yield of 4.34%, the ETF is an impressive option for income investors. 
  • Morningstar Return Rating. With a return rating of 4 out of 5 stars, the fund is known for above-average performance. 
  • MSCIESG Rating. The ESG score on the fund is 7.3 out of 10, giving it an A rating and making it an attractive option for investors looking to make a social and environmental impact with their investments. 

Final Word

Exchange-traded funds are a great way to gain exposure to any group of stocks or other assets you might be interested in. So, if you’re looking to jump into the world of international investing, international ETFs offer a simplified approach. 

Although there’s much less research involved when investing in ETFs than there is when investing in individual stocks, remember that not all investment-grade funds are created equal. Before diving in, pay close attention to historic performance, expenses associated with the fund, dividend yield, and the assets the fund invests in. Also, if you’re interested in making a social and environmental impact with your investments, look to ESG scores to see how the fund’s assets are making a difference. 

Sours: https://www.moneycrashers.com/best-international-etfs/

10 Tantalizing International ETFs to Buy

U.S. stocks have put in a solid outperformance against their global counterparts recently, due in part to rising worries over the Delta variant of COVID-19 and regulatory concerns out of China. But there are still plenty of opportunities overseas. And by focusing on international ETFs versus specific stocks, investors are able to spread out their risk across a basket of assets.

Because there is indeed elevated risk internationally at the moment.

One such risk? China. Tightening government regulation across several industries has rattled Chinese equities, which boast the third-largest equity market value by country at 5.4%. Meanwhile, the U.S. Securities and Exchange Commission (SEC) is imposing new disclosure rules on Chinese companies seeking to go public on stock exchanges here at home. 

Specifically, SEC Chair Gary Gensler has asked his staff to require more information from offshore issuers associated with China-based operating companies before they will get approval to list their shares in the U.S. "I believe such disclosures are crucial to informed investment decision-making and are at the heart of the SEC's mandate to protect investors in U.S. capital markets," Gensler stated in a July 30 press release.

For those wanting to broaden their investments beyond the U.S., but who might be wary of taking on near-term risks associated with the Chinese mainland, there are plenty of options. 

Here are 10 international ETFs that have little to no exposure to China. These seven equity funds and three bond ETFs will allow investors to expand beyond the U.S. border, and gain increased access to developed and emerging markets.

Data is as of Aug. 23. Dividend yields represent the trailing 12-month yield, which is a standard measure for equity funds.

1 of 10

Vanguard FTSE Developed Markets ETF

foreign stock exchange
  • Assets under management: $103.4 billion
  • Expenses: 0.05%, or $5 annually on every $10,000 invested
  • Dividend yield: 2.5%

The Vanguard FTSE Developed Markets ETF (VEA, $51.97) is the largest U.S.-listed international fund by total assets, with the iShares Core MSCI EAFE ETF (IEFA) running a very close second.

VEA tracks the FTSE Developed All Cap ex US Index, a collection of companies of all sizes from Canada, Europe and the Pacific region. The ETF currently has 4,048 stocks, with 53.9% from Europe, 36.3% from the Pacific, and the remainder from North America and elsewhere.

The median market cap in this Vanguard fund is $36.5 billion, nearly $4 billion higher than the SPDR S&P 500 ETF Trust (SPY) median at $31.4 billion. So, even though it's an all-cap ETF, you're still getting many large companies to lower your overall risk. Large and mega-caps account for roughly 76% of the portfolio, mid-caps another 19.2%, and small caps make up the rest. 

Not only is VEA diversified across more than 24 countries – Japan (20.6%), U.K. (13.0%) and Canada (9.1%) are the three largest country weightings – it's also diversified across a large number of stocks. Its top 10 holdings account for just 10.3% of the international ETF's $103 billion in total net assets.

Over the past 10 years, VEA has had an annualized total return of 6.7%.

Learn more about VEA at the Vanguard provider site.

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iShares MSCI EAFE Small-Cap ETF

small business concept
  • Assets under management: $13.2 billion
  • Expenses: 0.40%
  • Dividend yield: 1.6%

Investors often avoid small-cap stocks when investing outside the U.S because they're unfamiliar with many of the companies held by international funds.

The iShares MSCI EAFE Small-Cap ETF (SCZ, $75.97) gives you a small slice in 2,396 smaller, growing businesses in Europe, Australia, New Zealand and the Far East. In existence since December 2007, it tracks the performance of the MSCI EAFE Small Cap Index. Through July 31, it generated a one-year total return of 38.8%.

The top 10 holdings account for just 2.9% of the ETF's overall holdings, so the exposure to any single stock is minimal. The top three sectors by weight are industrials (23.2%), consumer discretionary (13.3%) and real estate (11.6%). Technology is the fourth largest at 10.4%.

In terms of country exposure, Japan is the largest at 27.1%, followed by the U.K. (17.8%) and Australia at 8.6%.

The average market cap of its holdings is $3.3 billion. The bulk of the portfolio is invested in mid-caps, which account for about 53% of the net assets, while small and micro-caps account for the rest.

Learn more about SCZ at the iShares provider site.

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iShares International Select Dividend ETF

building blocks with arrows pointing up
  • Assets under management: $4.4 billion
  • Expenses: 0.49%
  • Dividend yield: 4.4%

In the current era of low interest rates, dividend stocks have become very popular with investors looking to replace lost opportunities to generate income through bonds and other fixed-income investments.

The issue of low-interest rates isn't limited to the U.S. It's seen globally, which is why the iShares International Select Dividend ETF (IDV, $32.25) is an excellent way for investors to capture income on a worldwide basis.

The international ETF tracks the performance of the Dow Jones EPAC Select Dividend Index. It comprises high dividend-paying companies in Europe, the Pacific, Asia and Canada. To be included in the index, a company must have paid dividends for three consecutive years.

The ETF's top weights include a 22.2% allocation to U.K. companies, as well as 10.2% weight in Canada. But investors who are particularly concerned about Chinese exposure should note that IDV has a 10.3% allocation to Hong Kong-domiciled firms. While Hong Kong traditionally has acted mostly independently from China, recent moves by Beijing interfering with its autonomy and cracking down on various freedoms heighten investing risks there.

From a sector standpoint, financials (30.5%) is the largest holding, followed by utilities (19.6%) and materials (13.0%). As would be expected from a dividend ETF, technology accounts for less than 1% of its net assets.

IDV's top 10 holdings account for nearly 30% of the fund's assets. The ETF is very focused, with just 100 stocks held in the portfolio. U.K.-based miner Rio Tinto (RIO) is the most significant position at 6.8%.

The international ETF has a one-year total return of 32.8% through July 31.

Learn more about IDV at the iShares provider site. 

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iShares MSCI Canada ETF

Canadian flag
  • Assets under management: $4.1 billion
  • Expenses: 0.51%
  • Dividend yield: 1.7%

The iShares MSCI Canada ETF (EWC, $37.22) tracks the performance of the MSCI Canada Custom Capped Index. The index caps the weight of any single stock in the index at 25%. Rebalanced quarterly, the stocks surpassing a weighting of 4.5% can't exceed an aggregate of 22.5%.

The index is intended to represent a broad-based performance of Canadian stocks. EWC currently has 91 holdings with an average market cap of $42.8 billion, which is $4.1 billion less than the index's average market cap.

The top 10 holdings account for 47% of the ETF's total net assets. Financial services is the largest sector-weighting at 37.4%, followed by technology (13.3%) and energy (12.5%). Large and mega-caps account for 88.2% of the international fund's portfolio. Mid-cap stocks account for the rest.

Investors are likely familiar with several of EWC's top holdings investors. They include Shopify (SHOP) in the top spot with an 8.6% weighting, followed by Royal Bank of Canada (RBC) in the second spot at 7.7%.

EWC has a one-year total return of 39.2% through the end of July, and is up 20.7% year-to-date.

Learn more about EWC at the iShares provider site.

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iShares MSCI Emerging Markets ex China ETF

stock chart overtop financial district
  • Assets under management: $1.2 billion
  • Expenses: 0.25%
  • Dividend yield: 1.40%

The iShares MSCI Emerging Markets ex China ETF (EMXC, $60.38) tracks the performance of the MSCI Emerging Markets ex China Index. This free float-adjusted market cap-weighted index captures the performance of large-cap and mid-cap stocks in 25 of the 26 emerging markets, excluding China.

EMXC's average market cap is $35.9 billion, $10.4 billion less than its benchmark. The average stock has a price-to-earnings (P/E) ratio of 12.8 and a price-to-sales ratio of 1.6.

Technology is the largest sector-weighting at 28.9%, followed by financials (20.6%) and basic materials (11.9%). The top 10 holdings account for 25.3% of the international ETF's total net assets.

Taiwan-based chipmaker Taiwan Semiconductor Manufacturing (TSM, 9.6%) and South Korea tech name Samsung Electronics (5.8%) are EMXC's two largest holdings. The ETF has an annual turnover of 18%, turning the entire portfolio every five or six years.

Taiwan, South Korea and India have the largest country weightings at 21.7%, 19.8% and 17.4%, respectively.

Similar to many other international ETFs on this list, the fund has performed well over the past year, returning 34% through July 31.

Learn more about EMXC at the iShares provider site.

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iShares Latin America 40 ETF

aerial view of Rio de Janeiro
  • Assets under management: $1.5 billion
  • Expenses: 0.48%
  • Dividend yield: 2.2%

The iShares Latin America 40 ETF (ILF, $28.45) is precisely the international ETF you want to own if you want to capture a large segment of a region quickly and efficiently. ILF gives investors access to 40 of Latin America's largest companies in a single fund.

ILF tracks the performance of the S&P Latin America 40, a collection of 40 stocks from five Latin American countries: Brazil (57.7%), Mexico (24.6%), Chile (6.7%), Peru (2.6%) and Colombia (2.2%). The portfolio also has a small U.S. weighting at 5.4%. 

The fund's biggest risk is that it follows the sector representation of the index. It does not cap the sector weightings at 25% or some other arbitrary figure. The portfolio turnover is 20% annually and 100% over five years.

The three top sectors of ILF are financials (26.8%), materials (26.6%) and consumer staples (13.3%). Technology accounts for just 5.6%.

As for the companies themselves, familiar names in the top 10 include Walmart's (WMT) Mexican and Central American division Walmart De Mexico, Brazilian miner Vale (VALE) and energy stock Petróleo Brasileiro (PBR). The top 10 holdings account for 55.5% of its $1.5 billion in net assets.

The average market cap for the ETF is $31.7 billion, about $9 billion higher than the index itself. Large and mega-caps account for about 92% of the portfolio.

ILF has an annual total return of 29.7% through the end of July. However, year-to-date, the international ETF is down roughly 3%.  

Learn more about ILF at the iShares provider site. 

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VanEck Vectors Africa Index ETF

Sandton Towers in South Africa
  • Assets under management: $65.5 million
  • Expenses: 0.79%
  • Dividend yield: 3.7%

If you want exposure to the least-explored continent by U.S. ETF investors, the VanEck Vectors Africa Index ETF (AFK, $21.22) would be it. AFK is the only pure-play fund available that covers Africa exclusively. Other options among international ETFs include the iShares MSCI South Africa ETF (EZA) or those focusing on the Middle East and Africa.

AFK tracks the performance of the MVIS GDP Africa Index, a collection of companies either incorporated in Africa or those with 50% or more of their revenues and/or assets in Africa.

At present, AFK has 73 holdings, with 69.1% invested in companies with market caps of $5 billion or more. The remainder of the assets is invested in mid-cap stocks with market caps of $1 billion to $5 billion. AFK's weighted average market cap is $16.4 billion. 

The fund's top 10 holdings account for 48.8% of its assets. If you're not okay with funds that turn their stocks more frequently, you might not like its 37% turnover rate. That's the equivalent of buying and selling an entire portfolio every 2.7 years. It also explains the relatively high expense ratio of 0.79%.

The fund's top three countries by weight are South Africa (32.2%), Nigeria (13.70%) and Morocco (11.8%). The top three sectors are financials (31.4%), materials (27.9%) and communication services (17.5%).

Through July 31, AFK's total one-year return was 28.9%. 

Learn more about AFK at the VanEck provider site.

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iShares International Treasury Bond ETF

government bonds written on blackboard
  • Assets under management: $1.3 billion 
  • Expenses: 0.35%
  • SEC yield: -0.02%*

The iShares International Treasury Bond ETF (IGOV, $52.84) tracks the performance of the FTSE World Government Bond Index – Developed Markets Capped Select Index.

Although the index's name is a mouthful, it just means that it invests in non-U.S. government bonds issued by developed countries such as Japan (15.9% weighting), France (8.1%) and Italy (7.6%). Thus, like most international ETFs, it has no exposure to the U.S.

The fund owns 751 Treasury bonds with a weighted average coupon of 1.8%, a weighted average maturity of 10.79 years and an effective duration of 9.24 years.

More than 92% of the Treasury bonds held in the portfolio have an A, AA or AAA credit quality. That's considerably higher than its peers in the World Bond category at 58%. Additionally, more than 15% of the bonds have average maturities of 20 or more years. 

The top 10 holdings account for roughly 7% of the fund's $1.3 billion in net assets. IGOV's turnover rate is 41% or once every 2.4 years.

In terms of performance, over the past decade, IGOV has generated positive total returns in six of 10 years for a 0.78% annualized total return.

IGOV is meant for preserving capital rather than growing it.

*SEC yields reflect the interest earned after deducting fund expenses for the most recent 30-day period and are a standard measure for bond and preferred-stock funds.

Learn more about IGOV at the iShares provider site. 

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First Trust Emerging Markets Local Currency Bond ETF

global business concept
  • Assets under management: $278.4 million
  • Expenses: 0.85%
  • SEC yield: 5.2%

The only actively managed fund on this list of international ETFs is the First Trust Emerging Markets Local Currency Bond ETF (FEMB, $33.62). FEMB seeks to invest in local currency bonds issued by emerging markets governments and related entities, including central banks, development agencies or sovereign entities.

According to First Trust Global Portfolios Limited, the ETF's sub-advisor, emerging markets are any country other than a defined list of 25 developed markets, including the U.S. and Canada.

The portfolio managers can invest in bonds of any credit quality, including junk bonds. Its goal is to invest no more than 20% of the fund's net assets in any single country, although that's not a set weighting.

FEMB was launched in November 2014 at $50 per share. Its annualized total return over the past five years, through July 31, is 1.2%. 

The ETF's top three countries by weighting are Brazil (14.1%), South Africa (12.0%) and Indonesia (9.5%). The weighted average maturity is 6.95 years, while the weighted average coupon is 6.2%.

FEMB holds a total of 53 local currency bonds. The top 10 holdings account for 38.9% of the total net assets.

Learn more about FEMB at the First Trust provider site.

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Invesco International Corporate Bond ETF

blocks spelling out the word bonds
  • Assets under management: $116.4 million
  • Expenses: 0.50%
  • Dividend yield: 0.4%

The Invesco International Corporate Bond ETF (PICB, $29.15) tracks the performance of the S&P International Corporate Bond Index. The index is composed of investment-grade corporate bonds denominated in the currency of any of the G-10 countries, including the U.S. dollar, Canadian dollar, British pound and euro.

The international ETF currently has 583 holdings, with the top 10 accounting for just 5.8% of the portfolio. The top three sectors by weight are financials (45.6%), utilities (10.3%) and communication services (8.9%).

In terms of country allocation, 21.7% of the ETF is invested in the corporate bonds of companies based in the U.K. The second-highest weighting is France at 18.5% and Canada at 16.1%.

Approximately 49% of the bonds are rated BBB, 41% are A-rated, AA accounts for 4% and AAA 1%. The percentage of bonds not rated is 5%.

The fund has a weighted average coupon of 2.58%, a weighted average maturity of 8.75 years and an effective duration of 7.07 years.

Since its inception in June 2010, it has had a 3.87% annualized total return through the end of July, 27 basis points (a basis point is one one-hundredth of a percentage point) higher than the Bloomberg Barclays Pan-European Aggregate Index. 

Learn more about PICB at the Invesco provider site. 

Sours: https://www.kiplinger.com/investing/etfs/603351/tantalizing-international-etfs-to-buy
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3 ETFs to Invest Globally in Q4 2021

Globally-focused exchange-traded funds (ETFs) provide a straightforward way to geographically diversify a portfolio. The global economy suffered a sharp contraction last year due to the impact of the COVID-19 pandemic. The International Monetary Fund (IMF) estimated in April that world output declined 3.3% in 2020. Global growth is expected to bounce back this year, though individual economies will recover at widely varying rates due, in part, to COVID-19 mutations and access to vaccines. The IMF forecasts that the global economy will expand by 6% in 2021 and 4.9% in 2022. Investors looking for exposure to the global recovery should consider ETFs that invest in companies from a broad range of different countries.

Key Takeaways

  • The global economy is expected to rebound in this year and in 2022 after last year's pandemic-induced contraction.
  • Three ETFs for investing globally are VWO, SPDW, and VXUS.
  • The top holdings of these ETFs are Taiwan Semiconductor Manufacturing Co. Ltd., ASML Holding NV, and U.S.-listed shares of Alibaba Group Holding Ltd., respectively.

Three ETFs that provide geographic diversification for globally-minded investors are outlined below. These funds are relatively inexpensive and well-suited to long-term, buy-and-hold investing, but each ETF has a different approach. SPDW invests in developed nations, VWO focuses on emerging markets, and VXUS holds both kinds of stocks, although it leans toward developed markets with bigger companies. Over the past year, the global ex-U.S. benchmark MSCI All Country World Index has underperformed the U.S. market. The index has provided total returns of 25.4% over the past 12 months, slightly surpassing the S&P 500's 25.4%, as of Aug. 31, 2021. The best-performing of the three ETFs listed below is the SPDR Portfolio Developed World ex-US ETF (SPDW), based on performance over the past year. All numbers below are as of Sept. 1, 2021.

Vanguard FTSE Emerging Markets ETF (VWO)

  • Performance over 1-Year: 19.9%
  • Expense Ratio: 0.10%
  • Annual Dividend Yield: 2.06%
  • 3-Month Average Daily Volume: 9,313,267
  • Assets Under Management: $80.9 billion
  • Inception Date: March 4, 2005
  • Issuer: Vanguard

VWO is a large-cap fund tracking the FTSE Emerging Markets All Cap China A Inclusion Index. The index is market capitalization-weighted and comprises companies in emerging markets. VWO is among the largest and most liquid ETFs in the world and is the cheapest broad-based emerging markets fund, investing in nations such as China, Taiwan, Brazil, and South Africa. Together with SPDW below, it provides broad exposure to global securities while minimizing costs. The top holdings of the fund include Taiwan Semiconductor Manufacturing Co., Ltd. (2330:TAI), a Taiwan-based semiconductor manufacturing and design company; Tencent Holdings Ltd. (700:HKG), a China-based internet services and technology holding company; Alibaba Group Holding Ltd. (9988:HKG), a provider of e-commerce, internet infrastructure, online financial, and internet content services.

SPDR Portfolio Developed World ex-US ETF (SPDW)

  • Performance over 1-Year: 29.5%
  • Expense Ratio: 0.04%
  • Annual Dividend Yield: 2.21%
  • 3-Month Average Daily Volume: 1,670,553
  • Assets Under Management: $11.9 billion
  • Inception Date: April 20, 2007
  • Issuer: State Street

SPDW is a large-cap fund that tracks the S&P Developed Ex-U.S. BMI Index, which focuses almost exclusively on developed countries outside of the U.S. The index is market capitalization-weighted. Financials, industrials, and information technology stocks make up nearly half of the ETF portfolio combined. SPDW is among the cheapest global investing ETFs available; a similarly-priced fund is the BNY Mellon International Equity ETF (BKIE), although the latter is much newer and smaller so it may suffer from inferior liquidity. The top holdings of the fund include ASML Holding NV (ASML:AMS), a Netherlands-based semiconductor company; Nestlé S.A. (NESN:SWX), a Swiss food and drink conglomerate; and sponsored GDRs of Samsung Electronics Co., Ltd. (SMSN:LON); a South Korea-based multinational electronics company.

Vanguard Total International Stock ETF (VXUS)

  • Performance over 1-Year: 26.9%
  • Expense Ratio: 0.08%
  • Annual Dividend Yield: 2.43%
  • 3-Month Average Daily Volume: 2,569,235
  • Assets Under Management: $50.6 billion
  • Inception Date: Jan. 26, 2011
  • Issuer: Vanguard

VXUS targets the FTSE Global All Cap ex-US Index, which is comprised of stocks issued by companies located outside the United States. The fund is the cheapest broad fund providing exposure to both emerging and developed markets. However, due to cap-weighting, the fund includes a small share of emerging market and small-cap stocks. VXUS can be an effective and cheap core holding for investors looking for broad-based international coverage through a single ETF. The top holdings of VXUS include U.S.-listed shares of Alibaba Group Holding Ltd. (BABA); Tencent Holdings; and Taiwan Semiconductor Manufacturing.

The comments, opinions and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described on our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.

Sours: https://www.investopedia.com/articles/etfs-mutual-funds/071516/top-3-etfs-tracking-msci-world-index-urth-vt.asp
20 International Dividend ETF's -- Which One Performs the Best?

iSHARES INTERNATIONAL ETFs

Precision exposures can help investors express views on region and country-specific markets. iShares has the industry's largest country ETF suite in the U.S., with 61 funds and $59B in AUM offering the potential for investors to target growth while also seeking portfolio diversification whatever their views are.1

U.S. and international stocks have gone through cycles of relative outperformance

Chart: U.S. and international returns comparison

Source: Thomson Reuters, as of 10/27/2020. U.S. stocks represented by the S&P 500 Thomson Reuters; Int’l Developed stocks represented by MSCI EAFE + Canada Index (gross); Emerging Market stocks represented by MSCI Emerging Markets Index (gross). Index performance is for illustrative purposes only. Index performance does not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

Combining U.S. and international investments can result in a better-diversified portfolio whose holdings don’t move in lockstep – so when some go up, others go down, and vice versa. The result: a potential reduction in the volatility (risk) of your total portfolio in the long-run.

Access to growth

International economies—both developed and emerging—may offer faster rates of economic growth than the United States. The process of developing the physical, commercial and financial infrastructure of an emerging economy can help generate wealth and launch dynamic companies with significant growth potential. This may result in opportunities for enhanced long-term returns versus U.S. equity investments.

How to invest internationally

There are a number of considerations to take into account when thinking about adding international investments to your portfolio. Do you want to invest in a specific country or in a broader set? Do you want to invest in developed or emerging markets? However you want to invest internationally, iShares has many ETFs to consider.

Sours: https://www.ishares.com/us/strategies/international-etfs

Etfs best international

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Trying to choose winning stocks in the market can be one of the most stressful parts of investing. What if you could start investing without having to pick the right stock?

That’s what exchange-traded funds (ETFs) are all about. When you invest in ETFs, you get access to a wide array of the stock market all at once, providing you with an instant safety net as your investments are all spread out. It gives you a chance to take advantage of the overall performance of the market.

If you’re looking to start investing — or if you’re already experienced and you want an expert-recommended path to growing your wealth over time — here’s what you need to know about the best ETFs of 2021.

What Are ETFs?

Exchange-traded funds, or ETFs, represent a basket of investments. Many of the most popular ETFs focus on stocks and bonds, but there are also ETFs that include commodities and foreign currencies.

“Think of ETFs as a bag of Skittles,” says Jully-Alma Taveras, a bilingual financial expert and founder of Investing Latina. One package of Skittles is filled with a number of different flavors, and it’s easy to trade different packages. 

Pro Tip

Some of the best ETFs are those that offer exposure to a large swath of the market, providing instant diversity with one investment.

“ETFs are useful because you can get a mix of stocks without having to do too much research or individual stock analysis,” Taveras says. “Adding them to your portfolio allows you to acquire more shares of the companies within that ETF. They also can help protect your portfolio, because ETFs can be created to be broadly diverse.”

Diversifying your portfolio is a healthy part of financial wellness since it spreads out your investments among numerous companies, instead of just one. 

You can hold ETFs in taxable brokerage accounts, through brokerages such as Fidelity or Charles Schwab, as well as in tax-advantaged retirement accounts like a Roth IRA or 401(k). 

How Do ETFs work?

An ETF is a basket of investments that trades on the stock market, just as you would trade any other stock. 

ETFs aren’t mutual funds. Though they’re very similar, mutual fund transactions have to be settled at the end of each day, and so shares of mutual funds can only be bought and sold once a day. ETFs, on the other hand, can be traded throughout the day and are treated like stocks on the exchange.

Best ETFs for 2021

The best ETFs, according to investing experts, are index funds. Index funds are low-cost and give you exposure to an entire market. 

“Start with index ETFs because they come with low expenses and provide instant diversity,” says Alissa Krasner Maizes, a financial planner and founder of the financial education website Amplify My Wealth. Some of the ETFs she suggests might be a good fit for a wide variety of people include:

  • Vanguard Total Stock Market ETF (VTI)
  • Vanguard Total International Stock ETF (VXUS)
  • Vanguard Total Bond Market ETF (BND)
  • Vanguard Total International Bond ETF (BNDX)

Taveras also likes ETFs that take advantage of the S&P 500, which tracks the largest companies in the United States, including:

  • Vanguard 500 Index ETF (VOO)
  • SPDR S&P 500 ETF Trust (SPY)

It’s also possible to look for ETFs that follow a specific sector, if you’re interested in areas like technology and healthcare, according to Taveras. She suggests considering such sector index ETFs as:

  • Vanguard Information Technology Index Fund ETF (VGT)
  • First Trust Dow Jones Internet Index ETF (FDN)
  • Health Care Select SPDR Fund (XLV)
  • Vanguard Health Care Index Fund (VHT)

In general, ETFs that follow specific sectors will carry higher fees and are subject to more volatility than ETFs that track entire markets. 

Top Equity ETFs

As of 2020, there were more than 2,000 ETFs available in the United States, and more than 7,000 available worldwide. Determining the top equity ETFs can be difficult, but Maizes recommends comparing the performances and fees of index ETFs to their actively managed counterparts. Experts suggest passively managed funds to keep expenses low and avoid higher taxes.

“Investors should always consider that actively managed funds usually have more significant taxable implications at the end of the year,” she says. “Also, those sectors are likely already represented in a diversified investment portfolio.”

How to Invest in ETFs

Investing in ETFs can be done on  your own. both Taveras and Maizes suggest looking for a brokerage account with low fees. Fidelity, eTrade, Charles Schwab and others offer access to free trades on ETFs. Many robo-advisors like Betterment, Acorns and Wealthfront don’t allow you to choose your own investments, but they construct your portfolio using ETFs.

Maizes recommends comparing different ETFs and their fees. All ETFs have expense ratios, which are administrative fees charged by the fund. Index ETFs generally have smaller expense ratios than actively-managed ETFs. Keep an eye out for low expense ratios, somewhere near 0.2%-0.5%. If you see an expense ratio in the 1% range, try to pick another fund that’s lower. A high expense ratio will eat into your profits.

ETF FAQs

Are ETFs risky?

As with any investment, some ETFs are riskier than others. In general, index ETFs and all-market are considered less volatile because they offer exposure to a wide swath of the market. As with any investment, though, there is the risk of loss, especially if you sell when prices are low. When you invest in ETFs or any other types of investments, long-term holding is the name of the game. Try to keep your money in as long as you can so that compound interest can work its magic and you can ride out ups and downs in the market.

How much money do you need to invest in an ETF?

In many cases, it’s possible to purchase shares of an ETF with a few dollars. Some brokers offer fractional shares of ETFs, allowing you to purchase a portion of an ETF share and take advantage of potential growth even if you don’t have enough money to buy a full share.

How do you trade ETFs?

You can place a market order for an ETF through your brokerage account, just as you would when buying any other stock. Look for the ticker symbol of the ETF you’re interested in and place your order.

Sours: https://time.com/nextadvisor/investing/best-etfs-to-buy/
20 International Dividend ETF's -- Which One Performs the Best?

International Equity ETF List

This is a list of all International Equity ETFs traded in the USA which are currently tagged by ETF Database. Please note that the list may not contain newly issued ETFs. If you’re looking for a more simplified way to browse and compare ETFs, you may want to visit our ETF Database Categories, which categorize every ETF in a single “best fit” category.

* Assets in thousands of U.S. Dollars.

This page includes historical return information for all International Equity ETFs listed on U.S. exchanges that are currently tracked by ETF Database.

The table below includes fund flow data for all U.S. listed International Equity ETFs. Total fund flow is the capital inflow into an ETF minus the capital outflow from the ETF for a particular time period.

Fund Flows in millions of U.S. Dollars.

The following table includes expense data and other descriptive information for all International Equity ETFs listed on U.S. exchanges that are currently tracked by ETF Database. In addition to expense ratio and issuer information, this table displays platforms that offer commission-free trading for certain ETFs.

Clicking on any of the links in the table below will provide additional descriptive and quantitative information on International Equity ETFs.

The following table includes ESG Scores and other descriptive information for all International Equity ETFs listed on U.S. exchanges that are currently tracked by ETF Database. Easily browse and evaluate ETFs by visiting our Responsible Investing themes section and find ETFs that map to various environmental, social and governance themes.

This page includes historical dividend information for all International Equity listed on U.S. exchanges that are currently tracked by ETF Database. Note that certain ETFs may not make dividend payments, and as such some of the information below may not be meaningful.

The table below includes basic holdings data for all U.S. listed International Equity ETFs that are currently tagged by ETF Database. The table below includes the number of holdings for each ETF and the percentage of assets that the top ten assets make up, if applicable. For more detailed holdings information for any ETF, click on the link in the right column.

The following table includes certain tax information for all International Equity ETFs listed on U.S. exchanges that are currently tracked by ETF Database, including applicable short-term and long-term capital gains rates and the tax form on which gains or losses in each ETF will be reported.

This page contains certain technical information for all International Equity ETFs that are listed on U.S. exchanges and tracked by ETF Database. Note that the table below only includes limited technical indicators; click on the “View” link in the far right column for each ETF to see an expanded display of the product’s technicals.

This page provides links to various analyses for all International Equity ETFs that are listed on U.S. exchanges and tracked by ETF Database. The links in the table below will guide you to various analytical resources for the relevant ETF, including an X-ray of holdings, official fund fact sheet, or objective analyst report.

This page provides ETF Database Ratings for all International Equity ETFs that are listed on U.S. exchanges and tracked by ETF Database. The ETF Database Ratings are transparent, quant-based evaluations of ETFs relative to other products in the same ETF Database Category. As such, it should be noted that this page may include ETFs from multiple ETF Database Categories.

Sours: https://etfdb.com/themes/international-equity-etfs/

You will also be interested:

The panel retained six of the eight international or global ETF All-stars from 2020: two from iShares (XAW and XEF), three from Vanguard (VXC, VEE and VIU) and BMO’s low-volatility pick ZLI. Two other new picks introduced in the 2020 edition didn’t make the cut this time: iShares Edge MSCI Min Vol Global Index ETF (XMW, 0.48%), and CI First Asset MSCI World Low Risk Weighted ETF (ticker: RWW/B; unhedged). Read more about low-volatility ETFs in our All-Star package overview.  

If he could own just one international equity ETF, panelist Mark Seed would choose XAW. “I personally own this fund since I like the ex-Canada exposure; …Canadians are too heavy historically in energy and financials. Even with foreign withholding taxes, you’re looking at total costs of around 0.50% for global growth from 8,000 stocks. XAW is very tax-efficient in a non-registered account and I anticipate I might buy some there over time since my TFSA and RRSP are maxed out of investing contribution room.” Partner Yves Rebetez agrees that “all world-ex Canada = ultimate diversification indeed.” While not an All-Star, those who like international small caps selected with a value screen may be interested in Ben Felix’s new Desert Island pick this year: Avantis International Small Cap Value ETF, which trades on the NYSE Arca exchange under the ticker symbol AVDV.

Canada is well-positioned for the post-COVID reopening given its strong cyclical players and banks; but with respect to emerging markets, investors should remember the Canadian market and emerging markets are highly correlated. Both can be highly volatile, and Rebetez says there are two ways to deal with that: low-volatility Emerging Markets ETFs like XMM or ZLE, and emerging markets dividend ETFs like FDE or RXD. 

ETF NameTickerManagement FeeMER# of HoldingsDescription
iShares Core MSCI All Country World ex Canada Index ETFXAW0.200.228,887Global all-cap fund that's lower-cost and tax-efficient; holds 6 iShares funds representing everywhere but Canada
Vanguard FTSE Global All Cap ex Canada Index ETFVXC0.200.2610,720Prefer one-stop international funds to picking stand-alone emerging and international ETFs
iShares Core MSCI EAFE IMI Index ETFXEF0.20.222,651Broad coverage of Europe, Japan and Australia
Vanguard FTSE Emerging Markets All Cap Index ETFVEE0.230.245,048Emerging markets index that includes China A shares but excludes South Korea
Vanguard FTSE Developed All Cap ex North America Index ETFVIU0.200.223,739More diversified than XEF, similarly tax-efficient (includes South Korea)
BMO Low Volatility International Equity ETFZLI0.400.44100Invests in international large-caps with lower volatility than the market
Watch: MoneySense – BMO ETFs – Sandra Martin – Buying and Selling ETFs

 

MoneySense Investing Editor at Large Jonathan Chevreau is also founder of the Financial Independence Hub, author of Findependence Day and co-author of Victory Lap Retirement. He can be reached at [email protected]

Sours: https://www.moneysense.ca/save/investing/best-international-etfs/


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