International assets are a crucial part of any well-diversified investment portfolio. Here we’ll look at the best international ETFs for both stocks and bonds across developed and emerging markets.

// TIMESTAMPS:

00:00 - Intro - Why International Stocks and Bonds?
02:26 - VXUS
02:47 - VEU
03:25 - IXUS
03:53 - VEA
04:11 - VWO
05:20 - BNDX
05:56 - IAGG
06:25 - IGOV
06:48 - VWOB
07:30 - Outro

// SUMMARY:

So why would we be interested in international stocks and bonds in the first place?

International stocks inarguably offer a diversification benefit by not being perfectly correlated to the U.S. market. That is, international stocks do not move in perfect lockstep with U.S. stocks.

At their global market weight, U.S. stocks comprise only about 50% of the global stock market. Top target date funds now allocate over 30% of equities positions to ex-US stocks. Moreover, considering the historical performance of emerging markets, excluding international stocks may mean missing out on great investment opportunities. Also consider that international markets contain most of the largest automotive, telecommunication, and electronics companies.

No single country consistently outperforms all the others in the world. If one did, that outperformance would also lead to a relative overvaluation and a subsequent reversal. Meb Faber found that if you look at the past 70 years, the U.S. stock market has outperformed foreign stocks by 1% per year, but all of that outperformance has come after 2009.

In short, geographic diversification in equities has huge potential upside and little downside for investors.

Now we'll go over the 9 best international ETFs, segmented by asset type:
VXUS - Vanguard Total International Stock ETF
VEU - Vanguard FTSE All-World ex-US ETF
IXUS - iShares Core MSCI Total International Stock ETF
VEA - Vanguard FTSE Developed Markets ETF
VWO - Vanguard FTSE Emerging Markets ETF
BNDX - Vanguard Total International Bond ETF
IAGG - iShares Core International Aggregate Bond ETF
IGOV - iShares International Treasury Bond ETF
VWOB - Vanguard Emerging Markets Government Bond ETF

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#etfs #indexfunds #diversification

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Disclaimer: This is not financial advice, investing advice, or tax advice. The information presented is for informational, educational, and entertainment purposes only. Investment products discussed are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. I always attempt to ensure the accuracy of information presented but that accuracy cannot be guaranteed. Do your own due diligence. All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future results. Opinions are my own and do not represent those of other parties mentioned. Read my lengthier disclaimer here: [ Ссылка ]

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