A leader in mutual funds and credited for launching the Exchange Traded Fund (ETF) platform, John Bogle’s Vanguard Group has grown from its mid-70s retail market focused launch to become the second largest US asset manager after BlackRock. Its market analysis team is well regarded, and its opinions carry weight. This is why its 2026 market outlook was somewhat surprising. In spite of the US economy firing on all cylinders, Vanguard predicts US equity growth at 4-5% over the next ten years – but anticipates that non-US equities can go to 7% in the same decade. Investors seeking to hedge their bets and add some international exposure to their portfolios at minimal cost may want to consider an international ETF. Here are three different twists on that theme to consider:
-
- Vanguard Total International Stock Index Fund ETF Shares (NASDAQ: VXUS)
- Vanguard International High Dividend Yield Index Fund ETF Shares (NASDAQ: VYMI)
- iShares Core MSCI EAFE ETF (BATS: IEFA)
Vanguard Total International Stock Index Fund ETF Shares
VXUS is an international ETF that is regionally and industrially agnostic, and includes emerging market stocks and others.
Using the FTSE Global All Cap ex-USA Index as its benchmark, VXUS is an international equities ETF that boasts an 8,560 stock name portfolio. Drawing from Europe, PacRIm and Emerging Markets from around the globe, VXUS returned approximately 32-39% in 2025, although it has retraced somewhat in March. It is one of the top retail investment choices for a broad international coverage ETF and has a Morningstar gold medalist rating.
|
Net Assets |
$636.67 billion |
Avg. Daily Volume |
9.96 million shares |
|
Yield |
2.86% |
YTD Return |
2.32% |
|
52 Wk. Range |
$54.98-$84.28 |
1-Year return |
39.91% |
|
Beta |
0.99 |
3-Year return |
19.87% |
|
Expense Ratio |
0.05% |
5-Year Return |
9.85% |
|
P/E Ratio |
16.88 |
10-Year Return |
10.61% |
Top 10 Largest Holdings:
- Taiwan Semiconductor (3.43%)
- Samsung Electronics (1.59%)
- ASML Holding NV (1.29%)
- TenCent Holdings (0.92%)
- SK hynix Inc (0.91%)
- Roche Holding AG (0.76%)
- AliBaba Group (0.73%)
- Novartis AG (0.73%)
- HSBC Holdings plc (0.73%)
- AstraZeneca plc (0.71%)
Vanguard International High Dividend Yield Index Fund ETF Shares
VYMI has a focus on high-yielding international dividend stocks.
VYMI focuses on high dividend international stocks, and includes such well-known names as Novartis AG, Shell plc, HSBC Holdings plc, and Toyota. At the time of this writing, it is yielding 3.28%, has $20.1 billion in net assets, averages 1.6 million shares in daily volume, a low 0.07% expense ratio, a surprisingly low 14 P/E ratio, holds between 1,530 and 1,623 stocks, and has a reasonable 0.9 Beta risk.
Geographically, VYMI’s holdings hail from: Japan (about 14%), UK (nearly 11%), Canada (about 8%), Switzerland (close to 7%), and Australia (also about 7%). Sectorwise, it has a heavy, 40% weighting towards financials, with industrials at 9%, energy at 8.3%, basic materials at 7.51%, consumer cyclical at 7.09% and consumer defensive at 7.08%. It has a Morningstar silver medalist rating.
|
Net Assets |
$20.1 billion |
Avg. Daily Volume |
1.58 million shares |
|
Yield |
3.28% |
YTD Return |
5.53% |
|
52 Wk. Range |
$65.08-$101.71 |
1-Year return |
45.49% |
|
Beta |
0.90 |
3-Year return |
23.12% |
|
Expense Ratio |
0.07% |
5-Year Return |
14.92% |
|
P/E Ratio |
14.05 |
10-Year Return |
11.77% |
Top 10 Largest Holdings:
- Roche Holding AG (1.78%)
- Novartis AG (1.72%)
- HSBC Holdings plc (1.7%)
- Nestle SA (1.48%)
- Toyota Motor (1.37%)
- Shell plc (1.29%)
- Royal Bank of Canada (1.26%)
- Commonwealth Bank of Australia (1.11%)
- Mistsubiushi UFJ Financial Group (1.09%)
- BHP Group (1.06%)
iShares Core MSCI EAFE ETF
Nearly 25% of IEFA is invested in Japanese companies.
IEFA uses the MSCI EAFE IMI Index as its benchmark. It includes any non-North American large, mid, and small-cap public companies from developed foreign nations. Launched October 18, 2012, it has 2,624 different stocks with heaviest representation in financials (22.61%), industrials (20.5%), and healthcare (10.25%). Geographically, its holdings come from Japan (23%), UK (15%), France (10%), Switzerland (9-10%), Germany (9-10%), Australia (6%), and others (10-15%). IEFA has a Morningstar silver medalist rating.
|
Net Assets |
$182.59 billion |
Avg. Daily Volume |
17.7 million shares |
|
Yield |
3.23% |
YTD Return |
1.20% |
|
52 Wk. Range |
$66.95-$98.83 |
1-Year return |
35.03% |
|
Beta |
1.02 |
3-Year return |
18.86% |
|
Expense Ratio |
0.07% |
5-Year Return |
10.49% |
|
P/E Ratio |
17.94 |
10-Year Return |
10.36% |
Top 10 holdings:
- ASML Holding NV (2.15%)
- Roche Holding AG (1.27%)
- AstraZeneca plc (1.23%)
- Novartis AG (1.22%)
- HSBC Holdings plc (1.22%)
- Nestle SA (1.07%)
- Shell plc (0.89%)
- Toyota Motor Corp (0.88%)
- Siemens Aktiengesellschaft (0,84%)
- Mistsubiushi UFJ Financial Group (0.81%)
Looking at International ETFs For the Rest of 2026
Vanguard is not the only firm bullish on international markets this year. Bank of America declared 2026 a “New World Order” for international stocks. Inflows to international ETFs soared to over $220 billion in 2025 and zoomed to $250 billion by mid-February 2026.
Investors have several options from which to choose to obtain international equities exposure to add to a portfolio. A 10-20% move into one, or all three of these ETFs would deliver this at a minimal cost. From a strategy perspective, one can sum them up as follows:
- VXUS – Has the broadest range and scope of international stocks for a truly global representation, especially with resource-rich emerging market nations getting a much stronger profile of late due to escalated precious metals and energy demands.
- VYMI – An attractive ETF for those seeking international exposure upside with a solid dividend yield component.
- IEFA – Ideal ETF for an investor seeking developed nation international companies with a solid dividend yield and lower volatility with mitigated emerging market risk.
Top Gaining Stocks
Top Losing Stocks