3 Types of International ETFs To Consider Buying, According To Fidelity

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3 Types of International ETFs To Consider Buying, According To Fidelity
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2025 has been a good year so far for U.S. stocks. The S&P 500 is up 10.55% year-to-date (through Aug. 28). But international stock indices have done even better. According to Fidelity Investments, the MSCI World ex USA Index, which is an index of large and mid-cap companies outside of the United States, is up approximately 19% year as of July.

This kind of performance has investors wondering if now is the time to add international stocks to their portfolio. There are several types of international ETFs that are worth considering.

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Income-Generating International ETFs

Dividend stocks are almost always a good option to have in your portfolio, and there are several international ETFs that have high yields, even as fixed-income investments are also on a tear. Fidelity looked for international equity ETFs that have a 30-day SEC yield of 4.2% or above.

Here are some income-generating ETFs Fidelity recommends you look at, and their performance so far this year (through Aug. 28, 2025):

iShares International Select Dividend ETF (IDV): Up 34.11% year-to-date Fidelity International High Dividend ETF (FIDI): Up 24.95% year-to-date Franklin International Low Volatility High Index Dividend Index (LVHI): Up 14.52% year-to-date Wisdom Tree Emerging Markets High Dividend Fund (DEM): Up 14.43% year-to-date

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Value International ETFs

Value stocks had a moment at the beginning of the year, and while growth stocks may be catching up, a rising tide lifts all boats.

Fidelity looked for international ETFs that focus on value stocks, specifically that that have a price-to-trailing earnings ratio of 14.79 or below, a price-to-sales ratio of 1.18 or below and a price-to-book ratio of 1.72 or below.

Here are some of the ETFs that met these criteria, and their year-to-date performance:

iShares MSCI EAFE (EFV): Up 28.31% year-to-date Schwab Fundamental International Equity ETF (FNDF): Up 27.41% year-to-date Fidelity International Value Factor ETF (FIVA): Up 27.26% year-to-date Vanguard International (VYMI): Up 24.26% year-to-date

Growth International ETFs

Fidelity expects growth ETFs to outperform this year if their recent upward trend continues. Looking for international equity ETFs with a cash-flow growth rate of 21.5% or more, and sales growth rate of 11.9% or more, they came up with several options.

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Some of those ETFs and their performance so far this year are shown below:

Fidelity Fundamental Emerging Markets ETF (FFEM): Up 19.08% year-to-date iShares MSCI Emerging Markets Ex China ETF (EMXC): Up 15.76% year-to-date Capital Group International Focus Equity ETF (CGXU): Up 14.84% year-to-date iShares MCSI Emerging Markets Min Vol Factor ETF (EEMV): Up 9.04% year-to-date

Given the year-to-date results of some of these international ETFs, investors may wonder if they still have room to grow, and that’s a valid concern. Another concern is the on-again, off-again tariff situation with the United States, which is likely to cause continued volatility. Considering these two factors, it may make sense to add international ETFs to your portfolio slowly, moving a small percentage of your assets at a time, over the course of the rest of the year.

Whether you choose an income-generating, value or growth international ETF, any of these could be a solid addition to your portfolio if their performance so far this year continues.

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This article originally appeared on GOBankingRates.com: 3 Types of International ETFs To Consider Buying, According To Fidelity

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