International ETFs offer diverse exposure to developed and emerging markets

Investors seeking diversification outside the United States have several options through international exchange-traded funds (ETFs), each targeting different geographic regions and risk profiles.

The State Street SPDR Portfolio Developed World ex-US ETF (SPDW) focuses on established economies such as Japan, the United Kingdom, and Canada. It features a low expense ratio of 0.03% and a trailing dividend yield of 3.1%. Its holdings are concentrated in financial services, industrials, and technology, with major positions in companies like Samsung Electronics and ASML Holding.

In contrast, the iShares Core MSCI Emerging Markets ETF (IEMG) provides exposure to higher-growth developing nations. While it has a higher expense ratio of 0.09% and a lower dividend yield of 2.4%, it offers different growth potential.

Additionally, the Schwab Fundamental International Equity ETF (FNDF) offers exposure to international large-cap stocks. It currently trades at a price-to-earnings ratio of 14.07, which is significantly lower than the S&P 500. While FNDF benefits from European earnings growth, its performance remains sensitive to energy sector trends, central bank decisions, and the strength of the U.S. dollar.