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Investing in international exchange-traded funds (ETFs) can help diversify a portfolio and reduce risk. In 2024, several ETFs stand out for their potential to provide exposure to global markets. This article highlights some of the best international ETFs to consider for diversification.
Top International ETFs for 2024
International ETFs offer access to markets outside your home country. They can include developed markets, emerging economies, or specific sectors. Choosing the right ETFs depends on your investment goals and risk tolerance.
Popular Developed Market ETFs
Developed market ETFs focus on countries with stable economies and established financial systems. Some popular options include:
- Vanguard FTSE Developed Markets ETF (VEA): Provides exposure to Europe, Pacific, Canada, and Israel.
- iShares MSCI EAFE ETF (EFA): Tracks large- and mid-cap stocks in developed markets outside North America.
- SPDR Portfolio Developed World ex-US ETF (SPDW): Offers broad exposure to developed markets globally.
Emerging Market ETFs
Emerging markets can offer higher growth potential but come with increased volatility. Notable ETFs include:
- Vanguard FTSE Emerging Markets ETF (VWO): Covers large- and mid-cap stocks across emerging economies.
- iShares MSCI Emerging Markets ETF (EEM): Provides exposure to a broad range of emerging market equities.
- Schwab Emerging Markets Equity ETF (SCHE): Offers diversified exposure with low expense ratios.
Sector-Specific International ETFs
Investing in specific sectors within international markets can target growth areas. Examples include:
- iShares Global Healthcare ETF (IXJ): Focuses on healthcare companies worldwide.
- Vanguard Information Technology ETF (VGT): Provides exposure to global tech firms.
- SPDR S&P International Financial Sector ETF (IPF): Targets financial companies outside the US.