U.S. investors should have already been prepared for geopolitical shifts in 2025 after the election of Donald Trump to a second term as president. But January has quickly illustrated just how challenging the global policy environment has become.
At home, President Joe Biden placed a ban on offshore oil and gas drilling during his final weeks in office. North of the border, Canada’s prime minister resigned. And across the Pacific, China has already deployed preemptive tariffs in the expectation President-elect Trump will roll out his own measures in the coming weeks.
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It’s early days, and very difficult to predict which regions will win and which ones will lose amid the global shakeups. As a result, investors may want to diversify into international growth ETFs to ensure they are not limited to just the ups and downs of Wall Street and the U.S. economy.
The following international growth ETFs are all established and affordable, with billions in assets under management, or AUM, and expenses of less than 0.40% annually.
Here are nine of the best international growth ETFs to buy in 2025:
| ETF | Assets under management | Expense ratio |
| Vanguard Total International Stock ETF (ticker: VXUS) | $76.9 billion | 0.08% |
| Xtrackers MSCI EAFE Hedged Equity ETF (DBEF) | $6.9 billion | 0.35% |
| iShares MSCI EAFE Growth ETF (EFG) | $15.4 billion | 0.36% |
| Vanguard FTSE Emerging Markets ETF (VWO) | $81 billion | 0.08% |
| iShares MSCI Emerging Markets ex China ETF (EMXC) | $15.5 billion | 0.25% |
| Schwab Fundamental Emerging Markets Equity ETF (FNDE) | $6.2 billion | 0.39% |
| iShares ESG Aware MSCI EAFE ETF (ESGD) | $8.1 billion | 0.21% |
| Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) | $8.8 billion | 0.08% |
| Dimensional International High Profitability ETF (DIHP) | $3 billion | 0.29% |
Vanguard Total International Stock ETF (VXUS)
AUM: $76.9 billion Expense ratio: 0.08%
The Vanguard Total International Stock ETF is the natural choice for investors looking for a simple, cost-effective ETF to tap in to international growth. Its portfolio contains more than 8,500 stocks headquartered in foreign markets around the world, with an “ex-U.S.” approach that excludes all U.S.-based corporations. Many component stocks are well-established despite their overseas origins, including Asian tech firm Taiwan Semiconductor Manufacturing Co. Ltd. (TSM), Danish diabetes specialist Novo Nordisk (NVO) and Japanese automaker Toyota Motor Corp. (TM). Top regions of focus include Japan at 16%, the United Kingdom at 10% and Canada at 8% of assets.
Xtrackers MSCI EAFE Hedged Equity ETF (DBEF)
AUM: $6.9 billion Expense ratio: 0.35%
For those unfamiliar with international ETFs, the acronym EAFE stands for “Europe, Australasia and the Far East.” In other words, almost everything that’s outside the Americas and Africa. That’s proved out by the current top allocations of about 23% of assets in Japan, 13% in the UK and 11% in France. It’s also worth noting that the emerging market of China is excluded from this fund, even though it may spring to mind when investors think of the Far East. What’s more important than the geography, however, is a currency-hedged approach where this fund also holds derivatives meant to hedge against fluctuations in the U.S. dollar even as investors stay focused on overseas markets. While there’s a shorter list of components, many of the 700-plus holdings are the same as the prior fund: established large-cap multinationals that happen to be headquartered overseas.
iShares MSCI EAFE Growth ETF (EFG)
AUM: $15.4 billion Expense ratio: 0.36%
Sticking with that EAFE geography, this iShares fund is also focused on Europe, Australasia and the Far East and excludes U.S. corporations. However, this international growth ETF also layers on a screening methodology to focus on stocks in developed markets that are growing sales and profits when compared with their peers. There’s a focused portfolio of about 360 stocks led by health care stock Novo Nordisk, Netherlands-based tech leader ASML Holding NV (ASML) and German business services giant SAP SE (SAP), among others. EFG has one of the most focused portfolios of stocks of any fund mentioned here, but has a definite growth flavor to it. As with the other EAFE fund, China is excluded. The top regions include Japan at roughly 22% of assets, and the UK and France, each of which account for about 12% of fund assets.
Vanguard FTSE Emerging Markets ETF (VWO)
AUM: $81 billion Expense ratio: 0.08%
The prior funds are very much focused on developed markets like Western Europe, Australia and Japan. However, another international fund worth considering is VWO. This emerging-markets ETF is more focused on economies in Asia and Latin America that may be more volatile in the short term but have significant upside over the long run. The fund boasts 5,900 or so stocks in its portfolio, with allocations leaning towards China (29%), India (24%) and Taiwan (21%). While the stocks are a bit more risky, many are also large and established, such as China tech giants Tencent Holdings Ltd. (OTC: TCHEY) and Alibaba Group Holding Ltd. (BABA). Emerging markets as a whole have a lot more headroom than developed markets, and often boast bigger gross domestic product growth than the U.S. So for investors looking to tap into international growth ETFs, emerging market funds like VWO are worth a look.
iShares MSCI Emerging Markets ex China ETF (EMXC)
AUM: $15.5 billion Expense ratio: 0.25%
Of course, some investors may be a bit uncomfortable with the bias towards China in the prior fund — either because of the recent saber-rattling about a trade war, or because of ethical or political objections. In that case, EMXC is the largest emerging-markets ETF out there that excludes this troublesome region but gives exposure to the rest. Top allocations at present include 28% in Taiwan, 26% in India and 13% in South Korea. There are about 700 total stocks to spread your investments around emerging markets, but keep in mind that even without China in the portfolio there is still elevated risk in this investment. Still, if you’re looking for international growth ETFs, then this is a fund worth considering.
Schwab Fundamental Emerging Markets Equity ETF (FNDE)
AUM: $6.2 billion Expense ratio: 0.39%
Yet another way to filter emerging markets, this Schwab fund takes a fundamental approach by prioritizing companies based on their size, sales metrics and other factors. The fund is more focused, with around 420 total holdings including state-run megabank China Construction Bank Corp. (OTC: CICHY) and Brazilian energy leader Petroleo Brasileiro SA Petrobras (PBR). It’s worth repeating that there is elevated risk to this approach with a shorter list of holdings and a focus on emerging markets. However, following fundamentals is a great way for investors to look for international growth in this ETF.
iShares ESG Aware MSCI EAFE ETF (ESGD)
AUM: $8.1 billion Expense ratio: 0.21%
An alternative to the prior funds, this “alphabet soup” fund is easy to explain after you break down the acronyms in its name. ESG is a popular shorthand for environmental, social and governance characteristics in companies — a set of standards tied to social responsibility. MSCI is a popular index provider, and as mentioned previously, EAFE stands for Europe, Australasia and the Far East. Therefore, this is a socially responsible international index fund. Easy, right? No stocks on this list are located domestically, with Japan leading the pack at 23% of assets followed by the UK at 15% and France at 11%. These aren’t unknown companies in the portfolio either, as top holdings include Danish health care leader Novo Nordisk and German software and services giant SAP. Given the fact that other jurisdictions, including Europe and Japan, are investing heavily in green energy and other ESG-related businesses, this fund is a great international ETF to consider for growth in this area.
Vanguard FTSE All-World ex-US Small-Cap ETF (VSS)
AUM: $8.8 billion Expense ratio: 0.08%
Another way to pursue the best international growth ETFs is to look into smaller corporations that have more runway ahead of them than established multinationals with their best days of growth in the past. That’s what VSS offers, with a median market capitalization of $2 billion across the roughly 4,800 small-cap stocks in its portfolio. Admittedly, there’s more volatility in these small international names in the near-term, but there’s also significant growth potential in the long run. Canada and Japan lead the portfolio by geography, with 16% and 13% of assets respectively, making it well-diversified across regions when compared with other international growth ETFs, where one nation can represent 20% or more of the entire portfolio. The stocks aren’t particularly recognizable, but part of the appeal is finding a broad ETF that gives you exposure to picks you may not be able to uncover on your own.
Dimensional International High Profitability ETF (DIHP)
AUM: $3 billion Expense ratio: 0.29%
Smaller ETF provider Dimensional may not have the same name recognition as iShares or Vanguard, but it is a respected asset manager that focuses on research-backed methodologies designed to maximize returns while minimizing costs and risk. DIHP represents that approach in international markets, with a roughly 470-stock portfolio that is selected based on profitability and sales characteristics. Top holdings include Swiss pharmaceutical firm Roche Holding AG (OTC: RHHBY), consumer products giant Nestle SA (OTC: NSRGY) and French energy giant Total Energy Services Inc. (OTC: TOTZF). Japan is the leader among regions with almost 24% of assets in this nation, followed by the UK at 13% and Canada at 10%.
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9 International Growth ETFs to Diversify Your Portfolio originally appeared on usnews.com
Update 01/08/25: This story was previously published at an earlier date and has been updated with new information.
