International ETFs and Funds for Investors to Diversify: Morningstar

Some of the best opportunities in the market next year could be outside the US.

That’s the outlook among a growing chorus of forecasters on Wall Street, who say international stocks could be among the most promising investments in 2026 as the US market’s rally stretches into its fourth year.

Global equities are considered a valuable diversification option for investors. For some, that desire has grown stronger in recent months, thanks to high valuations in the tech sector and growing concerns about a potential AI bubble.

“Because international stocks make up a significant portion of the available equity market, it makes sense for most investors to have some exposure to international stocks,” Amy Arnott, a portfolio strategist at Morningstar, said in a statement.

The investment research firm said it compiled a list of top international equity funds and ETFs for investors to consider, screening for funds with the lowest-cost primary share classes that had a gold Morningstar Medalist Rating. The funds that were highlighted also had 100% analyst coverage, meaning they were unilaterally rated as a “Buy,” and had at least $100 million in assets.

Here are the funds that topped Morningstar’s list, ordered from lowest to highest expense ratio.