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5 International ETFs Up at Least 20% in 2026 & Beating the S&P 500
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Key Takeaways
International ETFs are benefiting from strong gains across several global markets.
Asian-focused ETFs have emerged as notable winners in 2026.
These ETFs offer diversified exposure beyond U.S. stocks and the AI-heavy market.
Wall Street has been in solid shape so far this year. State Street SPDR S&P 500 ETF Trust (SPY - Free Report) has gained 12.1% while the tech-heavy Nasdaq-100 ETF Invesco QQQ Trust, Series 1 (QQQ - Free Report) has jumped about 20% in the first nine months of 2026 (as of Sept. 28, 2026).
However, international markets have fared well, too. All-world ETF including the United States iShares MSCI ACWI ETF (ACWI - Free Report) is also up about 12% while iShares MSCI ACWI ex US ETF (ACWX - Free Report) has also advanced about 12%.
Some specific corners of international markets have performed particularly well. iShares MSCI Emerging Markets ETF (EEM - Free Report) has surged about 20%. The spotlight has been on Asia and the AI trade, with tech-heavy iShares Asia 50 ETF (AIA - Free Report) surging about 40% so far this year.
Meanwhile, Japan has remained relatively steady, with iShares MSCI Japan ETF (EWJ - Free Report) returning about 19.1%. But the broader eurozone fund, iShares MSCI Eurozone ETF (EZU - Free Report) , has inched up only 5.4%, underperforming several other regions. Vanguard FTSE Europe ETF (VGK - Free Report) has delivered an even lower return of 4.5%.
What Drove Specific International ETFs
The AI theme has been one of the winning areas of the year. This could be one of the key reasons behind Europe's underperformance. European indexes typically have exposure to a broad mix of sectors, including technology, healthcare, energy, financials and consumer goods.
In contrast, the Nasdaq-100 is heavily tilted toward technology, while the S&P 500 is also increasingly concentrated in the tech sector, particularly the Magnificent Seven stocks that have been driving the current AI boom.
Cheaper Valuation
Most international markets and ETFs remain relatively inexpensive compared with their U.S. counterparts. The P/E ratio (trailing twelve months) of EZU stands at 17.89X (per Yahoo Finance), while its U.S. counterpart — Vanguard S&P 500 ETF (VOO - Free Report) — trades at a P/E of 24.75X.
Meanwhile, AIA trades at a P/E (ttm) of 14.54X and EEM trades at a P/E (ttm) of 14.30X. iShares China Large-Cap ETF (FXI - Free Report) trades at a P/E (ttm) of 9.05X.
Top-Performing International ETFs in Focus
Against this backdrop, below we highlight a few winning international ETFs of 2026.
The underlying S&P Asia 50 Index is a total float-adjusted, market-capitalization-weighted index designed to measure the performance of 50 leading companies listed in four Asian countries or regions: Hong Kong, Singapore, South Korea and Taiwan. AIA is heavily weighted toward Taiwan Semiconductor and Samsung, with the duo accounting for about 35% of the fund. AIA charges 50 bps in fees.
Pacer Nasdaq International Patent Leaders ETFPATN – Up 30%
The underlying Nasdaq International Patent Leaders Index is a rules-based, full-market-capitalization-weighted index consisting of companies from the Nasdaq Global ex-U.S. Large Mid Cap Index with the most valuable patent portfolios. The fund's top five holdings are from the IT sector and account for about 30% of the fund. PATN charges 65 bps in fees.
VictoryShares International Free Cash Flow ETFIFLO – Up 24.6%
The fund offers exposure to high-quality international companies that trade at a discount and have favorable growth prospects. It considers a company's expected free cash flow rather than relying solely on trailing figures. IFLO seeks international companies with high free cash flow yields and the highest expected growth rates. No stock accounts for more than 2.53% of the fund. It charges 56 bps in fees.
Invesco S&P International Developed Quality ETF (IDHQ - Free Report) – Up 21.9%
The underlying S&P Quality Developed ex US LargeMidCap Index tracks stocks in the S&P Developed Ex-US LargeMidCap Index with the highest quality scores. These scores are calculated using three fundamental measures: return on equity, accruals ratio and financial leverage ratio. It charges 29 bps in fees.
Touchstone Dynamic International ETFTDI – Up 20.9%
The fund targets non-U.S. companies domiciled in both developed and emerging markets. It employs an adaptive quantitative investment process, the Dynamic Alpha Stock Selection Model, to build equity portfolios that adjust to changing market conditions. The fund is also tech-heavy, with a focus on ASML, TSMC, Samsung and SK Hynix. Information technology accounts for 27% of the fund, followed by financials at 22.7%. TDI charges 65 bps in fees.
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5 International ETFs Up at Least 20% in 2026 & Beating the S&P 500
Key Takeaways
Wall Street has been in solid shape so far this year. State Street SPDR S&P 500 ETF Trust (SPY - Free Report) has gained 12.1% while the tech-heavy Nasdaq-100 ETF Invesco QQQ Trust, Series 1 (QQQ - Free Report) has jumped about 20% in the first nine months of 2026 (as of Sept. 28, 2026).
However, international markets have fared well, too. All-world ETF including the United States iShares MSCI ACWI ETF (ACWI - Free Report) is also up about 12% while iShares MSCI ACWI ex US ETF (ACWX - Free Report) has also advanced about 12%.
Some specific corners of international markets have performed particularly well. iShares MSCI Emerging Markets ETF (EEM - Free Report) has surged about 20%. The spotlight has been on Asia and the AI trade, with tech-heavy iShares Asia 50 ETF (AIA - Free Report) surging about 40% so far this year.
Meanwhile, Japan has remained relatively steady, with iShares MSCI Japan ETF (EWJ - Free Report) returning about 19.1%. But the broader eurozone fund, iShares MSCI Eurozone ETF (EZU - Free Report) , has inched up only 5.4%, underperforming several other regions. Vanguard FTSE Europe ETF (VGK - Free Report) has delivered an even lower return of 4.5%.
What Drove Specific International ETFs
The AI theme has been one of the winning areas of the year. This could be one of the key reasons behind Europe's underperformance. European indexes typically have exposure to a broad mix of sectors, including technology, healthcare, energy, financials and consumer goods.
In contrast, the Nasdaq-100 is heavily tilted toward technology, while the S&P 500 is also increasingly concentrated in the tech sector, particularly the Magnificent Seven stocks that have been driving the current AI boom.
Cheaper Valuation
Most international markets and ETFs remain relatively inexpensive compared with their U.S. counterparts. The P/E ratio (trailing twelve months) of EZU stands at 17.89X (per Yahoo Finance), while its U.S. counterpart — Vanguard S&P 500 ETF (VOO - Free Report) — trades at a P/E of 24.75X.
Meanwhile, AIA trades at a P/E (ttm) of 14.54X and EEM trades at a P/E (ttm) of 14.30X. iShares China Large-Cap ETF (FXI - Free Report) trades at a P/E (ttm) of 9.05X.
Top-Performing International ETFs in Focus
Against this backdrop, below we highlight a few winning international ETFs of 2026.
iShares Asia 50 ETF (AIA - Free Report) – Up 41%
The underlying S&P Asia 50 Index is a total float-adjusted, market-capitalization-weighted index designed to measure the performance of 50 leading companies listed in four Asian countries or regions: Hong Kong, Singapore, South Korea and Taiwan. AIA is heavily weighted toward Taiwan Semiconductor and Samsung, with the duo accounting for about 35% of the fund. AIA charges 50 bps in fees.
Pacer Nasdaq International Patent Leaders ETF PATN – Up 30%
The underlying Nasdaq International Patent Leaders Index is a rules-based, full-market-capitalization-weighted index consisting of companies from the Nasdaq Global ex-U.S. Large Mid Cap Index with the most valuable patent portfolios. The fund's top five holdings are from the IT sector and account for about 30% of the fund. PATN charges 65 bps in fees.
VictoryShares International Free Cash Flow ETF IFLO – Up 24.6%
The fund offers exposure to high-quality international companies that trade at a discount and have favorable growth prospects. It considers a company's expected free cash flow rather than relying solely on trailing figures. IFLO seeks international companies with high free cash flow yields and the highest expected growth rates. No stock accounts for more than 2.53% of the fund. It charges 56 bps in fees.
Invesco S&P International Developed Quality ETF (IDHQ - Free Report) – Up 21.9%
The underlying S&P Quality Developed ex US LargeMidCap Index tracks stocks in the S&P Developed Ex-US LargeMidCap Index with the highest quality scores. These scores are calculated using three fundamental measures: return on equity, accruals ratio and financial leverage ratio. It charges 29 bps in fees.
Touchstone Dynamic International ETF TDI – Up 20.9%
The fund targets non-U.S. companies domiciled in both developed and emerging markets. It employs an adaptive quantitative investment process, the Dynamic Alpha Stock Selection Model, to build equity portfolios that adjust to changing market conditions. The fund is also tech-heavy, with a focus on ASML, TSMC, Samsung and SK Hynix. Information technology accounts for 27% of the fund, followed by financials at 22.7%. TDI charges 65 bps in fees.