Three International ETFs for Long-Term Investors

Three diversified international stock ETFs recommended for long-term ownership: Vanguard Total International Stock ETF (VXUS), iShares Core MSCI EAFA ETF (IEFA), and Vanguard International High Dividend Yield ETF (VYMI). These ETFs offer low costs and hold thousands of stocks, ensuring minimal exposure to any one company or sector. Vanguard Total International Stock ETF is unique in holding a 20% stake in emerging-market stocks, adding an extra layer of diversification.

As the global market continues to evolve, investors are increasingly seeking diversified investment options to mitigate risks and capitalize on international opportunities. Three highly recommended international stock ETFs stand out for their broad diversification and low costs: Vanguard Total International Stock ETF (VXUS), iShares Core MSCI EAFA ETF (IEFA), and Vanguard International High Dividend Yield ETF (VYMI). These ETFs offer investors a robust and low-cost way to gain exposure to thousands of international stocks, ensuring minimal exposure to any single company or sector.

Vanguard Total International Stock ETF (VXUS)
The Vanguard Total International Stock ETF (VXUS) is a Gold-rated ETF that holds over 8,000 stocks, market-cap weighted. Its unique feature is a 20% stake in emerging-market stocks, adding an extra layer of diversification. The fund charges just 5 basis points annually and has a High Process Pillar rating for its outstanding diversification and simple construction. This ensures that no single company's misfortune can significantly impact the fund's performance [1].

iShares Core MSCI EAFA ETF (IEFA)
The iShares Core MSCI EAFA ETF (IEFA) is a Silver-rated ETF that holds over 2,500 stocks. It charges just 7 basis points and collects stocks of all sizes from 21 overseas developed markets. Unlike VXUS, it does not include emerging-market stocks, focusing instead on large multinationals like SAP and Nestlé. The fund's largest holdings are still large multinationals, but no single company claims more than 1.5% of the portfolio, ensuring diversification [1].

Vanguard International High Dividend Yield ETF (VYMI)
The Vanguard International High Dividend Yield ETF (VYMI) is a Silver-rated ETF that is particularly appealing to income-oriented investors. It charges 17 basis points and holds more than 1,500 foreign stocks, with less than 15% of assets typically held in its top 10 holdings. The fund's focus on dividend payers can increase risk, but market-cap weighting helps mitigate this risk by emphasizing the largest dividend payers. Historically, this strategy has helped the fund beat and be less volatile than its category benchmark [1].

These ETFs provide investors with a well-diversified portfolio of international stocks, ensuring minimal exposure to any single company or sector. Their low costs and broad diversification make them ideal for long-term investors seeking to capitalize on the global market's opportunities while mitigating risks.

References:
[1] https://www.morningstar.com/funds/3-top-international-etfs-2025-beyond-2