Diversification is usually a winning investment strategy, and that's proven especially true in 2025 when international stocks largely outperformed U.S. equities. While the S&amp;P 500 is up about 15% this year, stocks in Spain have surged 40%, and South Korea is up 65%.



Despite the tariff woes with the U.S., its largest trading partner, Canada’s stock market has doubled the S&amp;P 500’s stock performance this year.



And all signs point to this trend continuing, and even strengthening, in 2026.



Now, getting exposure to foreign stocks can be difficult and expensive. That’s why investors generally prefer to have ETFs and index funds do the work.



So today, we'll look at five regions that have tailwinds entering 2026, and the funds you can use to gain exposure in your portfolio. 



Here are the five international ETFs to buy for 2026.



<h2>Franklin FTSE South Korea ETF</h2>



The best-performing major global stock market doesn't reside in the United States, Europe, or China. Nope, the 2025 winner for the biggest total market advance belongs to South Korea, with the KOSPI Composite Index up more than 65% year-to-date (YTD). What's driven the South Korean market outperformance? The country has been mostly spared by the Trump administration's onerous tariff policies, and domestic policies aimed at restoring growth have successfully boosted the South Korean economy. Plus, the country's tech-heavy indices have been buoyed by the AI gold rush.



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The Franklin FTSE South Korea ETF (NYSE:FLKR) offers exposure to the country's equities with ample liquidity and a very low expense rate. The ETF's holdings are heavily weighted toward South Korea's two powerhouse tech stocks, Samsung Electronics and SK Hynix, which together account for 19% and 17% of the fund's assets, respectively. The ETF holds 155 equities in total, with notable holdings including Hyundai, Kia, and KB Financial Group. While the fund isn't as large or liquid as the iShares MSCI South Korea ETF, it does have similar holdings at a fraction of the cost (0.09% expense ratio), which is why it’s our top choice.



<h2>iShares MSCI Spain ETF</h2>



European markets have also had a strong 2025, thanks to increased spending commitments from various EU governments and the decline of the USD compared to the Euro. Leading this European surge is the IBEX 35, the primary stock index of large-cap Spanish companies. Stocks in Spain are up more than 40% YTD, thanks to a banking-sector boom and stronger economic growth than its EU counterparts, especially in the tourism industry. Spain's GDP grew by 3% in 2025, nearly tripling the bloc’s overall GDP. 



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Spain's outperformance is driven by its banking sector stalwarts, such as Santander and BBVA, both of which are significant holdings in the iShares MSCI Spain ETF (NYSE:EWP). EWP has a 0.50% expense ratio, which is high but not outrageous for a single-country ETF outside the United States. The fund has $1.6 billion in assets under management (AUM), and more than 40% of the holdings are in the country's robust finance sector. The chart shows a rally gaining strength, with strong support along the 50-day simple moving average (SMA) and a bullish breakout on the Moving Average Convergence Divergence (MACD) oscillator.



<h2>Franklin FTSE Latin America ETF</h2>



Jeremy Grantham can finally rejoice because emerging markets are outperforming domestic equities, especially in Latin America. Latin American markets haven't been boosted by AI or banking, though; this rally is related to the USD decline and near-shoring activity that’s bringing manufacturing away from Asia and into North and South America. One of the best ways to gain exposure to Latin American markets is through the Franklin FTSE Latin America ETF (NYSE:FLLA), which has $45 million in AUM but just a 0.19% expense ratio. Emerging market stock funds are often expensive to own since spreads are high in these markets, but FLLA provides broad exposure with good bang for your buck, albeit with limited liquidity.



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The fund holds 133 stocks, including giants such as Vale S.A. and Petróleo Brasileiro S.A. Over 55% of the fund's allocation goes to Brazilian stocks, with 30% to Mexican equities and 9% to Chilean markets. The finance sector is the largest industry in the fund, followed by minerals, utilities, and energy. Emerging markets tend to be volatile, which is why the daily chart shows more choppiness than other ETFs on our list. However, the uptrend appears firm with support at the 50-day SMA and an RSI comfortably below the Overbought threshold.



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<h2>Vanguard FTSE Europe ETF</h2>



Economies in the EU might be a mixed bag, but the stock markets are telling a different story. Europe has been a hot place to invest thanks to friendlier policies and a declining dollar, and the Vanguard FTSE Europe ETF (NYSE:VGK) is a great way to add affordable and liquid European exposure to your portfolio. VGK celebrated its 20th birthday with one of the best years ever, gaining nearly 35% YTD despite the war in Ukraine and hostility from the US government. The 0.06% expense ratio is one of the lowest you'll find in an international fund, and the ETF offers some of Europe's highest-flying stocks like LVMH, Rheinmetall, SAP, ASML, and Novo Nordisk. The fund holds more than 1,200 stocks, with the highest allocation being just 2.85% to ASML.



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European equities faked out investors in November by dipping under the 50-day SMA, but indices quickly rallied to new 2025 highs following the brief dip. A bullish MACD crossover rekindled the rally in VGK shares, which now has more than $28 billion in AUM and strong upward momentum entering 2026.



<h2>iShares MSCI Canada Index Fund ETF</h2>



Oh Canada, your market gains are grand. Despite near-constant ire from the Trump administration, the Canadian stock market has been on fire in 2025, with major indices up by more than 30%. The trade war was a primary concern for Canadian investors as 2025 began, but now that tariffs have been mitigated mainly among North American companies (save for the auto industry), Canadian stocks have soared. The iShares MSCI Canada Index Fund (NYSE:EWC) is up nearly 35% in 2025, and its focus on megacap banks has paid dividends (literally).



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EWC has just 84 stocks in its portfolio, and the top 10 account for more than 43% of its assets. Huge bank stocks like Royal Bank of Canada, TD Bank, and Bank of Montreal are some of the most prominent holdings, but there's diversification across industries with stocks like Shopify, Barrick Mining, and Enbridge Inc. The fund has a 0.50% expense ratio, like its Spanish cousin ETF, and has more than $3.7 billion in AUM.

FLKR

International stocks outperformed U.S. equities in 2025, with Spain and South Korea leading. The trend is expected to continue in 2026. Top ETFs for exposure include Franklin FTSE South Korea ETF (FLKR) and iShares MSCI Spain ETF (EWP). FLKR focuses on South Korean tech stocks, while EWP targets Spain's banking sector. Franklin FTSE Latin America ETF (FLLA) offers exposure to emerging markets, particularly Brazil and Mexico. These ETFs provide diversification and potential growth opportunities for investors.

5 International ETFs to Buy for 2026