International Stock Opportunities for 2025
Zachary Evens: International stocks are expected to soar in 2025, with many significant global indexes seen gaining over 20% last year. In fact, some nations experienced increases of more than 50%. But, this trend doesn’t mean there aren’t better avenues out there for foreign investors. As countries push for growth and government spending rises globally to support their economies, there’s still plenty of opportunity for stock market growth.
That said, investors should approach international ETFs with caution. It’s wise to steer clear of those with high fees, excessive concentration, or limited exposure to global options. Ideally, strong ETFs diversify their investments among hundreds of stocks and bonds while keeping costs low. Holding onto any of these solid international ETFs for years could be a smart move; a single market downturn won’t throw off your entire portfolio, and those pesky fees won’t eat too much into your gains.
Three Notable International ETFs for 2026 and Beyond
- Schwab International Dividend Stock ETF (SCHY)
- Vanguard International Dividend Growth Index Fund ETF (VIGI)
- Vanguard Total World Stock Index Fund ETF (VT)
First on the list is the Schwab International Dividend Equity ETF, or SCHY. This fund, which focuses on income, has an incredibly low fee of just 8 basis points per year for its mix of companies that consistently pay dividends. It holds a Morningstar Medalist Rating of Silver and is essentially the international version of the popular Schwab U.S. Dividend Stock ETF, SCHD.
SCHY mirrors the Dow Jones International Dividend 100 Index. While it only has about 100 stocks, that’s still a decent level of diversification. Most of the companies included are blue-chip firms from over 20 countries, with no sector exceeding 15% and individual holdings capped at 4%.
This ETF’s focus on yield places it in the Overseas Large Value Morningstar category, suggesting it should perform strongly when international value stocks are thriving. Additionally, it offers a stable yield of over 3%, which is appealing for those seeking income with international exposure.
Next up is the Vanguard International Dividend Appreciation ETF, known by its ticker VIGI. This one’s also aimed at dividend payers, but rather than going after the highest yields, it targets firms that have steadily increased their dividends for at least seven consecutive years. This keeps the focus on profitability, although it does fall into the Overseas Large Growth Morningstar category with a slightly higher yearly fee of 10 basis points.
The index that VIGI tracks aggregates dividend payers from over 20 international markets, weighing their holdings based on market capitalization, with each capped at 4%. This strategy minimizes concentration risk and keeps turnover low by leveraging collective data.
The efficient method of selecting high-quality dividend companies has fueled strong long-term performance. Its esteemed High Process Pillar rating reflects this success, and it’s one of the top strategies in the international large growth arena.
The final ETF, Vanguard Total World Stock ETF (VT), might seem a bit like cheating since it includes U.S. stocks, but it’s arguably the most diversified option available. VT encompasses roughly 10,000 stocks from more than 20 countries and maintains a low management fee of just 6 basis points annually. This broad coverage and low cost have earned it a Morningstar Gold rating.
Essentially, this ETF serves as a comprehensive snapshot of global stock markets, tracking the FTSE Global All Cap Index, which includes companies of all sizes from both emerging and developed markets. The index’s market capitalization weighting means it leans toward the world’s most influential firms, currently skewed towards U.S. stocks, which make up over 60% of the portfolio. While performance will largely hinge on U.S. companies, other global markets are likely to buffer any downturns.
International diversification is a sound strategy; however, investing in just one or two global markets can overly concentrate your risks. The ETFs highlighted here can provide a sense of security as they have the potential to thrive in various international markets. Even in less favorable conditions, they’re somewhat insulated. Any investor can feel confident holding onto these three international ETFs well past 2026.
