Buying international stock ETFs can be a good move if you want to diversify your portfolio away from the U.S. market.
International companies are benefiting from the artificial intelligence (AI) boom, and other countries’ economies sometimes grow faster than America’s
But what’s the best international ETF for your goals? Different global ETFs offer different mixes of stock holdings and can have widely different results. The iShares Core MSCI Total International Stock ETF (NASDAQ: IXUS) is a broad stock market index ETF that offers more than 4,000 stocks from more than 20 countries at a low expense ratio of 0.07%.
This diversified low-cost index fund makes it easy to invest in the rest of the world beyond America. The Vanguard International High Dividend Yield ETF (NASDAQ: VYMI) offers a narrower selection of holdings, with nearly 1,600 stocks, but the same low expense ratio of 0.07 %. This fund focuses on stocks that are expected to deliver higher-than-average dividends.