There are plenty of reasons to own international stocks in a portfolio. Some investors want foreign stocks in their portfolios to round out their exposure to the global stock market and widen their investment opportunity set.

Christine Benz, Morningstar’s director of personal finance and retirement planning, discussed this recently, saying, “A key thing investors get with non-US exposure is that the US market has come to be so heavily influenced by the technology names. With non-US, you’re getting much more of a value bias in terms of the sector exposures. You’re getting much more in financials, basic materials, and industrials—sectors that were once really big in the US market, but are less so today.”

Before adding an

to your portfolio, double-check that you don’t already have plenty of exposure to international stocks through your existing stock fund holdings.

If you find that your portfolio weighting in international stocks is lighter than you’d like, you can turn to our list of the best international-stock mutual funds and exchange-traded funds—those funds with at least one share class earning a

Morningstar Medalist Rating

of Gold and where the

Analyst Assigned Percentage

equals 100%—for a manageable list of ideas to investigate further.

The Best International Equity Funds and ETFs to Buy in 2026

To find the best international equity funds and ETFs to buy, we screened for the lowest-cost primary share classes earning a Morningstar Medalist Rating of Gold with 100% analyst coverage. All the funds and ETFs on the list fall into Morningstar’s international equity US Category and have at least $1 billion in assets. All data is as of June 3.

  1. American Funds EUPAC Fund RERGX
  2. American Funds International Growth and Income Fund RIGGX
  3. American Funds The New Economy Fund RNGGX
  4. American Funds New Perspective Fund RNPGX
  5. American Funds New World Fund RNWGX
  6. American Funds SMALLCAP World Fund RLLGX
  7. Artisan International Small-Mid Fund APHJX
  8. Avantis International Small Cap Value ETF AVDV
  9. Capital Group International Core Equity ETF CGIC
  10. Capital Group New Geography Equity ETF CGNG
  11. Causeway International Value Fund CIVIX
  12. Dimensional World Core Equity Portfolio DREIX
  13. Dodge & Cox Emerging Markets Stock Fund DODEX
  14. Dodge & Cox Global Stock Fund DOXWX
  15. Dodge & Cox International Stock Fund DOXFX
  16. Fidelity International Growth Fund FZAJX
  17. Fidelity International Discovery Fund FIDKX
  18. Fidelity Overseas Fund FOSKX
  19. Franklin FTSE Japan ETF FLJP
  20. GQG Partners Emerging Markets Equity Fund GQGRX
  21. GQG Partners Global Quality Equity Fund GQRRX
  22. Goldman Sachs GQG Partners International Opportunities Fund GGIPX
  23. Hartford Multifactor Developed Markets (ex-US) ETF RODM
  24. John Hancock Disciplined Value International Fund JDIVX
  25. JPMorgan Emerging Markets Equity Fund JEMWX
  26. JPMorgan Global Select Equity ETF JGLO
  27. JPMorgan International Equity Fund JNEMX
  28. JPMorgan International Focus Fund IUENX
  29. JPMorgan International Research Enhanced Equity ETF JIRE
  30. JPMorgan International Value ETF JIVE
  31. MFS International Equity Fund MIEIX
  32. MFS International Growth Fund MGRDX
  33. MFS International New Discovery Fund MIDLX
  34. Neuberger International Equity Fund NIQEX
  35. Schwab International Dividend Equity ETF SCHY
  36. Schwab International Equity ETF SCHF
  37. Schwab International Index Fund SWISX
  38. Schwab International Small-Cap Equity ETF SCHC
  39. State Street SPDR Portfolio Developed World ex-US ETF SPDW
  40. T. Rowe Price Global Growth Stock Fund RGGIX
  41. T. Rowe Price Global Stock Fund TRGLX
  42. T. Rowe Price International Stock Fund PRIUX
  43. Vanguard ESG International Stock ETF VSGX
  44. Vanguard Global ESG Select Stock Fund VESGX
  45. Vanguard Global Equity Fund VHGEX
  46. Vanguard Global Minimum Volatility Fund VMNVX
  47. Vanguard International Growth Fund VWILX
  48. iShares Core MSCI EAFE ETF IEFA
  49. iShares Core MSCI Europe ETF IEUR
  50. iShares Core MSCI Total International Stock ETF IXUS
  51. iShares ESG Aware MSCI EAFE ETF ESGD
  52. iShares MSCI EAFE Growth ETF EFG
  53. iShares MSCI EAFE International Index Fund BTMGX
  54. iShares MSCI EAFE Minimum Volatility Factor ETF EFAV
  55. iShares MSCI EAFE Value ETF EFV
  56. iShares MSCI Emerging Markets Minimum Volatility Factor ETF EEMV
  57. iShares MSCI Global Minimum Volatility Factor ETF ACWV
  58. iShares MSCI World ETF URTH

Because the screen was created with the lowest-cost share class for each fund, some may be listed with share classes that are not accessible to individual investors outside of retirement plans, or they may be aimed at institutional investors and require large minimum investments. The individual investor versions of those funds may carry higher fees, reducing returns to shareholders. Medalist Ratings may differ among the share classes of a fund.

Morningstar expects the highly rated international equity funds on this list to outperform their peers over a full market cycle. Even though all the funds on our list fall into the same category, they may practice different strategies and therefore behave differently from each other. Investors need to do some homework to understand exactly what a particular fund invests in before buying.

What Are International Equity Funds?

International equity funds include portfolios that exclusively contain non-US stocks as well as those that include domestic and foreign equities. This group contains the following Morningstar categories:

  • China Region
  • Diversified Emerging Markets
  • Diversified Pacific/Asia
  • Europe Stock
  • Foreign Large Blend
  • Foreign Large Growth
  • Foreign Large Value
  • Foreign Small/Mid Blend
  • Foreign Small/Mid Growth
  • Foreign Small/Mid Value
  • Global Large-Stock Blend
  • Global Large-Stock Growth
  • Global Large-Stock Value
  • Global Small/Mid Stock
  • India Equity
  • Japan Stock
  • Latin America Stock
  • Miscellaneous Region
  • Pacific/Asia ex-Japan Stock

How to Find More of the Best Funds and ETFs to Buy for the Long Term

Given their Medalist Ratings, we expect the top-rated funds on our list to outperform over a full market cycle. That being said, investors may want to expand their search beyond this list, using parameters that matter to them. Here are some ways to find more ETFs and mutual funds:

This article was generated with the help of automation and reviewed by Morningstar editors.
Learn more about Morningstar’s use of automation.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *