Unlocking Global Growth: 3 International ETFs to Watch in 2026 and Beyond
International stocks made a powerful comeback in 2025, with global indexes soaring by over 20%. Some countries even experienced remarkable gains of more than 50%. But the question remains: Is the international investing landscape still ripe with opportunity? Zachary Evens believes so, highlighting the continued focus on growth and rising government spending worldwide as key drivers for future success.
However, navigating the international ETF market requires careful selection. High fees, concentration in specific sectors, and limited global exposure can hinder performance. Evens recommends investors prioritize ETFs that offer broad diversification, low costs, and a track record of long-term success. Here's a closer look at three top international ETFs that align with these criteria:
Schwab International Dividend Equity ETF (SCHY): This ETF focuses on income generation, targeting companies that consistently pay dividends. With an annual expense ratio of just 8 basis points, SCHY invests in the Dow Jones International Dividend 100 Index, comprising high-quality stocks from over 20 countries. Its sector weights are capped at 15%, and individual holdings at 4%, ensuring diversification. SCHY's yield focus places it in the foreign large value category, making it a strong performer when international value stocks thrive. It boasts a solid 3% yield, appealing to income-seeking investors.
Vanguard International Dividend Appreciation ETF (VIGI): VIGI takes a slightly different approach, targeting companies that have consistently increased their dividends for at least seven consecutive years. This profitability focus is reflected in its slightly higher annual expense ratio of 10 basis points. VIGI tracks an index of dividend-payers from over 20 international markets, weighted by market capitalization. This ETF's efficient strategy for capturing high-quality dividend-payers has led to solid long-term performance, earning it a coveted High Process Pillar rating.
Vanguard Total World Stock ETF (VT): While VT holds a small percentage of US stocks, it stands out as one of the most diversified ETFs available. With an annual expense ratio of just 6 basis points, VT invests in nearly 10,000 stocks across more than two dozen countries. It tracks the FTSE Global All Cap Index, which includes stocks of all sizes in emerging and developed markets, weighted by market capitalization. This ETF provides a comprehensive snapshot of the global stock market, making it an excellent choice for investors seeking broad diversification at a low cost.
By embracing these international ETFs, investors can capitalize on the growth potential of diverse global markets while mitigating risks. Evens emphasizes the importance of long-term investment horizons, allowing these ETFs to weather market fluctuations. As countries continue to prioritize growth and government spending, the stage is set for continued success in the international investing arena.
