What Is an International ETF?

Any exchange-traded fund (ETF) that invests solely in foreign-based assets is known as an international ETF. The focus may be global, regional, or country-specific, and the portfolio could include stocks or fixed-income assets.
International exchange-traded funds (ETFs) are generally passively invested around an underlying benchmark index, although the index might differ significantly from one fund manager to the next. By investing in hundreds of firms, certain funds, particularly those with a large worldwide reach or those that invest in mature economies, can provide excellent diversification.
ETFs that invest in a single foreign country may be riskier than international ETFs that invest in a variety of nations. If a single nation has a significant recession or other financial difficulties, an ETF that solely invests in securities from that country may underperform. Due to robust worldwide growth, international ETFs are becoming increasingly popular among US investors. Financial markets have been increasingly accessible to foreign investment as a result of advancements in globalization and financial regulation. Because of the greater expenses of investing abroad, foreign ETFs’ expense ratios are often higher than the averages.

An International exchange traded fund (ETF) is any ETF that invests specifically in foreign-based securities. The focus may be global, regional, or on a specific country and may hold equities or fixed-income securities.

  • International ETF is an exchange traded fund that specializes in foreign securities.
  • An international ETF may track global markets or track a country-specific benchmark index.
  • ETFs that invest in less developed country stocks or bonds are known as emerging markets or frontier markets ETFs.