Real-world examples of international mutual funds and ETFs examples for global diversification

Big-picture examples of international mutual funds and ETFs examples

Before picking tickers, it helps to see how investors usually slice the international universe. In practice, most global portfolios combine three building blocks:

• Broad developed markets funds (Europe, Japan, Canada, Australia, etc.)
• Emerging markets funds (China, India, Brazil, Taiwan, etc.)
• International bonds (government and corporate, often investment grade)

Within each bucket you’ll find multiple examples of international mutual funds and ETFs examples that track similar indexes but differ on costs, liquidity, and tax efficiency. The trend in 2024–2025 is clear: investors are steadily migrating to low-cost index ETFs while still using a few active mutual funds for specific tilts like value, quality, or small caps.

According to data from the Investment Company Institute (ICI), U.S. investors held over $13 trillion in long-term mutual funds and ETFs with significant foreign exposure as of 2023, and international equity funds now represent a large share of total equity fund assets.

For background on global capital markets and diversification theory, the CFA Institute offers helpful primers on international investing and risk management: https://www.cfainstitute.org.

Broad developed markets: best examples of low-cost core funds

When people ask for a simple example of an international ETF that covers most non‑U.S. stocks, they’re usually talking about developed ex‑U.S. funds. These are workhorse holdings for long-term investors.

Some of the best examples of broad developed markets funds include:

Vanguard FTSE Developed Markets ETF (VEA)

VEA is a go-to example of a low-cost, market-cap weighted ETF for developed markets outside the U.S.

• Type: ETF
• Region: Developed ex‑U.S. (Europe, Pacific, Canada, Israel)
• Index: FTSE Developed All Cap ex US Index
• Holdings: Large, mid, and small caps (over 4,000 stocks)
• Use case: Core international equity position in a 60/40 or 80/20 portfolio

Investors like VEA because it offers broad coverage in a single ticker with a very low expense ratio. It’s a textbook example of how to get instant diversification across major foreign markets without picking individual countries.

iShares Core MSCI EAFE ETF (IEFA)

IEFA is another widely used example of an international ETF that tracks developed markets. It’s often paired with a U.S. total market fund.

• Type: ETF
• Region: Developed ex‑U.S. (Europe, Australasia, Far East)
• Index: MSCI EAFE IMI (Investable Market Index)
• Holdings: Large, mid, and small caps
• Use case: Core holding for investors who prefer MSCI’s methodology and deep liquidity

A subtle difference: IEFA excludes Canada, while VEA includes it. That nuance matters if you’re trying to match a specific global index or if you already hold Canadian exposure elsewhere.

Fidelity International Index Fund (FSPSX)

For investors who still prefer mutual funds, FSPSX is a strong example of an international mutual fund that mirrors broad developed markets.

• Type: Index mutual fund
• Region: Developed ex‑U.S.
• Index: MSCI EAFE
• Use case: Core international mutual fund for 401(k)/403(b) plans and brokerage accounts that favor funds over ETFs

FSPSX shows how the same exposure can be delivered through a mutual fund wrapper, often used in retirement plans where ETFs may not be available.

Emerging markets: examples include broad and factor-tilted funds

Emerging markets are where things get spicier: higher growth, higher volatility, and more dispersion between countries. Investors usually want a broad fund as a base, then may add targeted exposure.

Here are some widely cited examples of international mutual funds and ETFs examples for emerging markets:

Vanguard FTSE Emerging Markets ETF (VWO)

VWO is one of the largest emerging markets ETFs in the world.

• Type: ETF
• Region: Emerging markets (China, Taiwan, India, Brazil, South Africa, etc.)
• Index: FTSE Emerging Markets All Cap China A Inclusion Index
• Holdings: Large, mid, and small caps
• Use case: Core emerging markets allocation for long-term growth

VWO is a clean example of a low-cost, broad-based emerging markets fund used by both retail and institutional investors.

iShares Core MSCI Emerging Markets ETF (IEMG)

IEMG is a direct competitor to VWO and another strong example of an international ETF focused on emerging markets.

• Type: ETF
• Region: Emerging markets
• Index: MSCI Emerging Markets IMI
• Holdings: Large, mid, and small caps
• Use case: Core EM position, often used in model portfolios

If you want a real example of how advisors build global portfolios, many pair VEA + IEMG or IEFA + IEMG to approximate the non‑U.S. portion of a global equity index.

T. Rowe Price Emerging Markets Stock Fund (PRMSX)

For active management, PRMSX is a long-running example of an international mutual fund targeting emerging markets with stock selection.

• Type: Actively managed mutual fund
• Region: Emerging markets
• Approach: Bottom-up fundamental research, country and sector tilts
• Use case: Investors seeking potential outperformance versus passive EM indexes (with higher fees and tracking error)

PRMSX illustrates how active managers may overweight countries like India or underweight state-owned enterprises in China compared with index funds.

Single-country and regional examples of international mutual funds and ETFs

Once investors establish a broad international core, they sometimes add more targeted funds to express views on specific regions or countries.

Some real examples of international mutual funds and ETFs examples in this category:

iShares MSCI Japan ETF (EWJ)

• Type: Single-country ETF
• Region: Japan
• Index: MSCI Japan
• Use case: Overweighting Japan within a global portfolio, or pairing with U.S. and Europe funds for regional tilts

EWJ is one of the oldest and most liquid single-country ETFs, often used by traders and longer-term investors who see value in Japan’s equity market.

iShares MSCI India ETF (INDA)

• Type: Single-country ETF
• Region: India
• Index: MSCI India
• Use case: Targeted exposure to India’s growth story within emerging markets

INDA is a good example of a fund used to tilt an emerging markets allocation toward India, which has had higher growth rates than many peers.

Vanguard FTSE Europe ETF (VGK)

• Type: Regional ETF
• Region: Europe (developed markets)
• Index: FTSE Developed Europe All Cap Index
• Use case: Investors who want to carve out Europe separately from other developed markets

These examples of international mutual funds and ETFs examples show how you can move from broad “ex‑U.S.” exposure to more focused bets when you have specific macro or valuation views.

International bond funds: examples include hedged and unhedged exposure

Equity funds get most of the attention, but international bonds matter for risk management and income. Currency risk plays a bigger role here, so you’ll see both hedged and unhedged examples of international mutual funds and ETFs examples.

Vanguard Total International Bond ETF (BNDX)

• Type: ETF
• Asset class: Investment-grade international bonds
• Index: Bloomberg Global Aggregate ex‑USD Float Adjusted RIC Capped Index (hedged)
• Currency: Hedged to the U.S. dollar
• Use case: Core international bond position that minimizes currency volatility

BNDX is a classic example of a hedged international bond ETF used inside target-date funds and model portfolios.

iShares International Treasury Bond ETF (IGOV)

• Type: ETF
• Asset class: Developed-market government bonds ex‑U.S.
• Currency: Unhedged
• Use case: Investors who want both bond exposure and potential currency diversification

Fidelity International Bond Index Fund (FBIIX)

• Type: Index mutual fund
• Asset class: Global investment-grade bonds ex‑U.S.
• Use case: Retirement plans and investors who prefer mutual funds over ETFs for automatic investing

These examples highlight the key decision with international bonds: do you want to hedge currency risk (smoother ride, more bond-like behavior) or leave it unhedged (more diversification, more FX volatility)? The Federal Reserve’s education resources on exchange rates and currency risk are a useful reference: https://www.federalreserve.gov/education.htm.

How investors actually combine these examples in portfolios

Seeing isolated tickers is helpful, but the real value comes from understanding how investors mix these examples of international mutual funds and ETFs examples into a full portfolio.

A common approach for a long-term U.S. investor might look like this (conceptually, not as a recommendation):

• U.S. total market equity ETF or mutual fund
• VEA or IEFA for developed markets
• VWO or IEMG for emerging markets
• BNDX or a similar international bond fund for fixed income diversification

Some investors keep it even simpler by using a single global fund (e.g., Vanguard Total World Stock ETF, VT), which already combines U.S. and international stocks. Others prefer the flexibility of splitting U.S., developed ex‑U.S., and emerging markets so they can rebalance or tilt more precisely.

Key levers investors focus on when comparing examples of international mutual funds and ETFs examples:

• Expense ratio: Lower costs tend to win over long horizons.
• Index provider: MSCI vs. FTSE vs. S&P can lead to small but meaningful differences in country weights.
• Market-cap coverage: Large/mid only vs. all-cap (including small caps).
• Currency exposure: Hedged vs. unhedged, especially in bond funds.
• Structure: ETF vs. mutual fund, depending on tax situation and trading style.

For a deeper dive into asset allocation theory and long-term returns across countries, the National Bureau of Economic Research (NBER) offers extensive research papers: https://www.nber.org.

2024–2025 trends shaping new examples of international funds

A few developments are shaping the next wave of international mutual funds and ETFs examples:

1. Factor and quality tilts outside the U.S.
More ETFs now apply value, quality, and low-volatility screens to non‑U.S. stocks. For example, funds tracking MSCI World ex‑USA Quality or FTSE Developed ex‑US Value indexes are gaining traction among investors who believe factor premiums persist globally.

2. ESG and climate-aware strategies.
ESG-focused international funds continue to grow. While definitions vary, examples include ETFs that exclude fossil fuels, screen for governance metrics, or tilt toward companies with lower carbon intensity.

3. China and geopolitical risk.
Some investors are using funds that exclude China from emerging markets indexes, then adding China back in separately (or not at all). This has led to new examples of international mutual funds and ETFs examples focused on “EM ex‑China” or “Asia ex‑China” strategies.

4. Tax-aware structures.
In taxable accounts, investors increasingly prefer ETFs over mutual funds due to potential tax efficiency. Many broad international mutual funds now have ETF share classes to address this demand.

As always, the SEC’s investor education site is worth reading before you commit real money: https://www.investor.gov.

FAQs about real examples of international mutual funds and ETFs

What are some real examples of international mutual funds and ETFs I can study?

Real-world examples of international mutual funds and ETFs examples include:

• Vanguard FTSE Developed Markets ETF (VEA)
• iShares Core MSCI EAFE ETF (IEFA)
• Fidelity International Index Fund (FSPSX)
• Vanguard FTSE Emerging Markets ETF (VWO)
• iShares Core MSCI Emerging Markets ETF (IEMG)
• T. Rowe Price Emerging Markets Stock Fund (PRMSX)
• Vanguard Total International Bond ETF (BNDX)
• iShares MSCI Japan ETF (EWJ)

You don’t need to own these to learn from them; just reading their prospectuses and fact sheets is a good education.

How do I choose between similar examples of international ETFs, like VEA vs. IEFA?

Focus on a few practical factors:

• Expense ratio and trading spreads
• Index coverage (does it include Canada? small caps?)
• Your existing holdings (avoid doubling up on the same exposure)
• Liquidity and bid/ask spreads if you trade frequently

If two funds are low-cost and track similar indexes, it often comes down to your platform’s availability and any commission or transaction-fee differences.

Can I get enough diversification with just one example of an international fund?

Yes, many investors use a single broad fund like VEA, IEFA, or a total international fund as their only non‑U.S. equity holding. Others prefer to split developed and emerging markets for more control. The decision is more about simplicity versus customization than right versus wrong.

Are international bond funds worth adding, or should I stick to U.S. bonds?

International bonds can reduce portfolio risk by adding exposure to different yield curves and economic cycles. Hedged funds like BNDX behave more like traditional bonds, while unhedged funds add currency risk. Whether you include them depends on your risk tolerance, time horizon, and how much complexity you’re willing to manage.

Where can I research more examples of international mutual funds and ETFs?

Start with:

• The SEC’s investor education site: https://www.investor.gov
• The Federal Reserve’s materials on exchange rates and global markets: https://www.federalreserve.gov/education.htm
• Educational content and fund screeners from large providers (Vanguard, Fidelity, BlackRock/iShares)

Use these tools to compare expense ratios, holdings, and performance history before you commit to any specific examples of international mutual funds and ETFs examples.