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The best foreign ETFs: a mega-review of ETFs.

Best Foreign ETFs: Mega-Review of ETFs.

Invest hello friends! Investments in foreign ETFs have become increasingly popular lately. And an investor who first decided to invest in exchange-traded funds is faced with a difficult question: which ETF should he choose, because there are a huge number of them on the market? I recommend starting by buying the largest and most reliable stock ETFs from trusted providers – and as you gain experience, move on to broader portfolio diversification by including bond ETFs and other instruments in it..


The information below is not an investment recommendation and is for informational purposes only. Follow Your Investment Strategy When Selecting Specific ETFs To Buy.

ETF stock prices are quoted at the time of writing and may differ at the time of reading.

All of the ETFs below are listed on the New York Stock Exchange and are available for purchase through foreign brokers such as Interactive Brokers or Saxo Bank. It is not always possible to buy them through Russian brokers.

Foreign ETFs on stocks.

The most popular types of ETFs are stock ETFs. And this is not surprising. It is stocks that are the fastest growing securities, there are a great variety of them – from growing to undervalued, and they can be collected in the most bizarre combinations. Therefore, ETFs on stock indices are the most popular both among providers of exchange-traded funds and among investors themselves..

The most popular are the numerous ETFs on S&P 500 is the main index of the American economy. All fairly large providers consider it their duty to create an ETF for this index. To attract customers, they compete with each other, reducing commissions and increasing the quality of copying the index..

Most stock ETFs pay dividends. True, the payment is made only once a year and is literally 1-2% per annum. Therefore, when investing in ETFs, it is better to rely not on dividends, but on an increase in market value..

Next, I will consider the largest AUM ETFs for stock indices traded in foreign markets..

Full name – SPDR S&P 500 ETF Trust, AUM – $ 317.7 billion.

This is perhaps the most famous and oldest ETF on the market in general. Its provider is State Street Global Advisors. ETF invests in S&P 500. Unlike direct analogs IVV and VOO, SPY is a mutual fund, not an exchange-traded fund. This explains its higher commission – 0.09% per year.

The average return over the past 5 years is 12.4%. SPY also pays small dividends – last year’s dividend yield was 1.78%. SPY share price – $ 333.

Full name – iShares Core S&P 500 ETF, AUM – $ 217.6 billion.

Another replica S&The P 500, this time from Blackrock (also called iShares). It differs from SPY in a lower commission – only 0.04% per annum. Due to this, the average annual yield is slightly higher than the analogue – 12.48%. The dividend yield is the same 1.78%. IVV share price is $ 335.

Full name – Vanguard Total Stock Market ETF, AUM – $ 145.7 billion.

This Vanguard fund invests in the US broad market index, which includes the largest-cap stocks on the New York Stock Exchange. Under the hood – Microsoft, Apple, Amazon, Facebook, Berkshire Hathaway, JP Morgan, Google, Visa and many other companies. Can be used as an alternative to S index attachments&P 500.

Management fee – 0.03%, dividend yield – 1.71%. The average annual return over 5 years is 11.95%. Share price recently hit $ 169.98 per share.

Full name – Vanguard Total Stock Market ETF, AUM – $ 142.45 billion.

Own version of the fund for the S index&P 500 from Vanguard. Commission – 0.03%. The average profitability over 5 years is 12.48%, the dividend yield is 1.78%. The VOO promotion costs $ 306.89.

Full name – Invesco QQQ Trust, AUM – $ 93 billion.

No less famous ETF than SPY. QQQ offers investments in the Nasdaq-100 Index, which includes 102 high-tech stocks in the United States. The largest positions are occupied by shares of Apple, Amazon, Microsoft, Alphabet, Facebook, Intel, Cisco, Comcast, PepsiCo. These stocks account for 53% of the index volume.

QQQ management fee – 0.2%. The average annual return over 5 years is 18.55%. Dividend yield – 0.95%. Management fees are relatively high for foreign ETFs – as much as 0.2% per annum.

In Russia there is a BPIF AKNX, which serves as a cover for QQQ.

Full name – Vanguard FTSE Developed Markets ETF, AUM – $ 80.8B.

The fund monitors the FTSE Developed All Cap ex US Index, which includes the stocks of companies in developed countries with the exception of the United States, i.e. Great Britain, Germany, Italy, France, Japan, Canada and a number of others. In total there are over 1000 issuers under the hood. ETFs are a great complement to funds targeting US economies.

Management fee is negligible – 0.05%. For 5 years, the fund showed an average annual return of 5.72%. Dividend yield – 3.03%.

The VEA stock is only $ 44.

Full name – iShares Core MSCI EAFE ETF, AUM – $ 76 billion.

The fund copies the MSCI EAFE IMI index, which includes shares of developed countries in Europe, Asia and Australia with Oceania. There are no companies from the USA and Canada in the index. Alternative to VEA.

The average annual return of the IEFA for 5 years was 5.85%, the dividend yield was 3.08%.

Management fee – 0.07%. Buying one share of the fund will cost the investor $ 65.

Full name – Vanguard FTSE Emerging Markets ETF, AUM – $ 65.69 billion.

One of the best ETFs offering emerging market investments. The fund follows the FTSE Emerging Markets All Cap China A Inclusion Index, which includes shares of the largest companies from emerging markets, excluding North Korea. A significant part of the index is occupied by blue chips from China – hence the special indication in the name, as well as from Taiwan, India, Brazil, South Africa, Russia, Mexico, Thailand and Malaysia.

The average annual return for 5 years was 4.23%. Dividend yield for the last year – 2.64%.

The fund charges a management fee of 0.12%. Share price – $ 43.5.

Bond ETF.

You should definitely include bond ETFs in your portfolio. Bond indices are not growing as rapidly as stocks, but during the crisis they are much stable. If, during the crisis, ETFs on stocks fall in price, then ETFs on bonds (and gold, of course), on the contrary, will rise. Therefore, you will be able to sell bond ETFs for a higher price, and with the proceeds you can buy fallen ETFs on stocks. Such is the simple strategy..

There are as many good bond ETFs as stocks and it is difficult to choose them. I will name the largest ETFs of this type by AUM – we can say that these are the best foreign bond ETFs.

Full name – iShares Core U.S. Aggregate Bond ETF. AUM – $ 72.72 billion.

The ETF tracks the Bloomberg Barclays U.S. Aggregate Index. Aggregate Bond Index, which can be considered a “mold” from the entire debt market in America. It includes corporate and municipal bonds, mortgage-backed securities, and treasuries. Various types of treasury bonds account for 40% of the index, mortgage-backed securities – 26.77%. The rest – government, municipal loans and bonds of companies with a rating of at least A.

The average return on ETFs over 5 years is 3.07% per annum. Service fee – 0.05%. Share price – $ 114.

The full name is Vanguard Total Bond Market ETF. AUM – $ 51.52 billion.

BND along with SCHZ and BNDS is an alternative to AGG ETF from iShares. All of these funds track pretty much the same index. BND is distinguished by a large share of treasury and municipal securities in the portfolio, as well as the lowest commission – 0.04%. In addition, its basket does not include bonds with a duration of less than 1 year..

The average annual return is 3.11%. BND share is worth $ 84.94.

The full name is iShares iBoxx USD Investment Grade Corporate Bond ETF. AUM – $ 35.74 billion.

The LQD tracks the Markit iBoxx USD market index, an investment grade US corporate bond of at least BBB. LQD only selects bonds with a maturity of at least three years, which gives it a longer weighted average maturity and increased interest rate risk. To put it simply, the profitability of such an ETF is higher than that of alternatives, but there are more risks during times of volatility in the markets..

LQD has more than 1000 bonds under the hood of the financial, industrial and biomedical sectors of the economy.

For management, the fund takes a commission of 0.15% per annum. Profitability – 4.92% per annum for the last 5 years. The promotion costs $ 130.

The full name is Vanguard Intermediate-Term Corporate Bond ETF. AUM – $ 28.15 billion.

VCIT tracks the market index of investment grade corporate bonds with maturities of 5-10 years. Such bonds give a fairly high yield, but at the same time they are quite resistant to changes in interest rates. As a result, the ETF boasts one of the highest returns in its segment..

Nevertheless, there is a bias in the structure of assets towards the industrial and financial sector, which, in the event of a crisis in these industries, may affect the share price..

VCIT charges one of the lowest management fees – 0.05% per year. The average return on ETFs is 4.6%. The fund share is worth $ 92.66.

The full name is Vanguard Total International Bond ETF. AUM – $ 25.9 billion.

BNDX tracks an index of bonds that are not denominated in dollars. Most of the fund’s investments are in sovereign bonds rated AA or higher. In fact, ETF provides a hedge against currency fluctuations for US investors..

The index includes corporate and government bonds of Germany, Italy, France, Japan and other developed countries, as well as some treasuries and US municipal bonds issued for some purpose not in dollars.

In general, this is an option if you want to insure against a fall in the dollar – in this case, ETF becomes more expensive due to currency revaluation.

BNDX management fee – 0.09%. The average annual return is 3.82%. The stock costs $ 57.37.

The full name is Vanguard Short-Term Corporate Bond ETF. AUM – $ 24.8 billion.

VCSH tracks a market-weighted index of fixed rate corporate bonds with maturities ranging from 1 to 5 years. Moreover, most bonds have maturities of less than 3 years. That is, the fund includes fairly short bonds that are not very responsive to changes in interest rates. The VCSH ETF can be viewed as an alternative to the cache – you can get out and get out of it with minimal risk of losing money. Profitability is likely to rise – the chart of the rise in the stock price is ascending.

The fund charges only 0.05% for management. The average annual return is 2.81%. The share will cost the investor $ 81.45.

The full name is iShares Short Treasury Bond ETF. AUM – $ 21.31 billion.

The fund invests in ultra-short treasuries with maturities of 12 months or less. These are the most liquid and least risky assets in the world..

Management fee is 0.15%. The profitability is small – only 1.06%. The promotion costs $ 110.

Commodity ETF.

Of all the variety of commodity ETFs, I will single out the largest and most liquid ones:

GLD – SPDR Gold Trust. The fund monitors the spot price of gold on the London Stock Exchange. In fact, it is the largest private equity ETF for physical gold. Commission – 0.4% per year, yield – 4.44%, price – $ 147.

IAU – iShares Gold Trust. Another ETF for investing in physical gold. Tracks spot prices for precious metals around the world. It differs from GLD in a lower commission – 0.25%. Fund return – 4.6%, share price – $ 15.

SLV – iShares Silver Trust. Silver investment fund. Gold is not all that glitters ­čÖé The fund monitors the spot price of silver on the London Stock Exchange. Commission – 0.5% per year, yield – 0.74%, price – $ 16.6.

PDBC – Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF. This fund invests in commodity futures around the world. True, you need to invest in it carefully – price jumps are significant. Average profitability over 5 years -3.73% (negative profitability), commission – 0.58%.

USO – United States Oil Fund LP. This is an opportunity to make money from oil. USO holds NYMEX futures contracts for WTI crude oil for a month. Investing in a fund should be done with caution, expecting a decline in oil prices and selling at a peak. ETF takes 0.84% ÔÇőÔÇőcommission for management.

The largest ETFs for country indices.

If you decide to diversify by country in your ETF portfolio, then it is better to invest in the largest indices of a particular country. In fact, there are not many of them..

You can invest in American ETFs by buying the largest US exchange-traded funds, namely:

SPY / IVY / VOO; VTI; QQQ; IJH – shares of mid-cap companies; IJP – shares of small capitalization companies; IWF – US Growth Stocks.

If we talk about ETFs in Europe, then the best options are also investing in the largest exchange-traded funds that track wide markets:

Ticker Fund name Provider Management fee Yield (5-year average) Dividend yield (last year) VGK Vanguard FTSE Europe ETF Vanguard 0.09% 5.11% 3.29% EZU iShares MSCI Eurozone ETF iShares 0.49% 5 , 22% 3.04% IEUR iShares Core MSCI Europe ETF iShares 0.09% 5.36% 3.27% BBEU JPMorgan BetaBuilders Europe ETF JPMorgan 0.09% 3.24% 3.4% HEDJ WisdomTree Europe Hedged Equity Fund WisdomTree 0.58% 7.11% 2.98% FEZ SPDR Euro STOXX 50 ETF State Street Global Advisors 0.29% 4.67% 3.18% FDD First Trust Stoxx European Select Dividend Index Fund First Trust 0.57% 5.31% 5.29%

Well, separately for European countries:

Ticker Fund name Country Management fee Yield (5-year average) Dividend yield (last year) EWU iShares MSCI United Kingdom ETF UK 0.5% 1.76% 4.5% EWG iShares MSCI Germany ETF Germany 0.49% 3.08% 2.91% EWL iShares MSCI Switzerland ETF Switzerland 0.5% 7.63% 2.74% RSX VanEck Vectors Russia ETF Russia 0.65% 13.4% 6.59% EWP iShares MSCI Spain ETF Spain 0.5% 0.87% 3.56% EWQ iShares MSCI France ETF France 0.5% 7.59% 3% EWI iShares MSCI Italy ETF Italy 0.49% 5.07% 3.85% EIRL iShares MSCI Ireland Ireland ETF 0.49% 6.72% 1.87%

The best ETFs for the indices of other countries:

Ticker Fund name Country Management fee Yield (5-year average) Dividend yield (last year) EWJ iShares MSCI Japan ETF Japan 0.49% 6.93% 2.37% INDA iShares MSCI India ETF India 0.69% 3 % 1.21% MCHI iShares MSCI China ETF China 0.59% 6.35% 1.89% EWY iShares MSCI South Korea ETF South Korea 0.59% 3.95% 2.2% VPL Vanguard FTSE Pacific ETF Oceania 0 09% 6.43% 2.69% EWT iShares MSCI Taiwan ETF Taiwan 0.59% 7.72% 3.99% EWZ iShares MSCI Brazil ETF Brazil 0.59% 7.83% 2.03% EWW iShares MSCI Mexico ETF Mexico 0.49% -2.34% 3.2% KSA iShares MSCI Saudi Arabia ETF Saudi Arabia 0.74% 2.3% 3.51%

Thus, the investor always has the opportunity to build a well-diversified portfolio of foreign ETFs. It can include funds that track country indices, stock indices of the world’s largest economies, developing countries, bond indices (short, long, government, corporate, aggregated). The main thing is to balance everything well and not to skew towards one asset or one country. THU and rebalance it in time. When you will not be afraid of any crisis! Good luck and money be with you!

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