These ETFs Provide Easy Exposure to Growing International Markets

Globe and Mail

29-05-2025

Investors have ample reason to be concerned about the future of U.S. investment vehicles—mid-May's news of Moody's downgrade of the nation's credit rating and the resultant market shake-up and the lingering threat of dramatic tariff increases chief among them. Unsurprisingly, then, many investors may be likely to increase their exposure to international markets to avoid this turbulence.
For investors most accustomed to targeting U.S. securities, picking international stocks can be difficult. Fortunately, many exchange-traded funds (ETFs) make it possible to gain easy access to markets worldwide. The funds below target baskets of stocks from areas already experiencing growth or with strong potential to do so in the future.
Poland's Burgeoning Industry May Help to Fuel ETF Gains
[content-module:CompanyOverview|NYSEARCA:EPOL]
Fresh off encouraging signs in April's industry and labor markets, Poland appears poised to break away from stagnation elsewhere in Central Europe. Its industrial production improved in April, increasing by 1.2% year-over-year (YOY) while analysts predicted a modest decline. The iShares MSCI Poland ETF (NYSEARCA: EPOL) is an ETF that may be able to capitalize on this potential.
EPOL is a rare fund focused exclusively on Polish equities. Keep in mind, though, that the fund is skewed toward financial names, with about 46% of the portfolio dedicated to this sector. The ETF is also concentrated, with just 33 holdings and the largest position representing more than 15% of invested assets.
Still, the strategy has paid off nicely in 2025, as the fund has returned more than 44% year-to-date (YTD). With an expense ratio of 0.60%, EPOL is priced in line with many other international funds; investors should expect to spend a bit more on these specialized ETFs compared with many U.S.-focused alternatives.
Narrow Focus on Austrian Stocks, With an Emphasis on Banks
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The iShares MSCI Austria Capped ETF (NYSEARCA: EWO) capitalizes on companies listed in Austria's national stock exchange. Based on the MSCI Austria IMI 25/50 Index, the exposure to individual names is theoretically capped. Given EWO's narrow portfolio of only around 20 positions, a small number of stocks still represent a large portion of assets invested. Like EPOL, nearly half of EWO's portfolio is dedicated to financials.
Fortunately, the most prominent positions in EWO's basket, the major banks Erste Group and BAWAG, together accounting for more than a third of the portfolio, have thrived this year, helping to catapult EWO's returns skyward. However, for investors seeking a more diversified approach, a broader European ETF may be the better option.
EWO has achieved YTD returns of nearly 36% and has an expense ratio of 0.50%.
Greek Economic Recovery Can Continue to Drive Big Returns
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Greece's economy has made an impressive recovery following a crisis in the late 2000s. Investors anticipating this trend to continue might consider the Global X MSCI Greece ETF (NYSEARCA: GREK). GREK is currently the only ETF available in the United States that exclusively focuses on Greek stocks.
Still, like the funds above, it is narrowly focused on a basket of just 31 names, with the three most extensive holdings collectively representing close to 40% of assets.
Similar to the funds above, financial names are better represented in GREK's portfolio than stocks from other sectors. A full 51% of the portfolio is dedicated to banks and related stocks. Again, though, this has paid off with impressive returns of almost 40% so far this year. GREK's expense ratio of 0.57% is also reasonable, particularly given that this fund is alone in its targeting of Greek stocks.
Small-Cap Focus on the Brazilian Equities Market
[content-module:CompanyOverview|NASDAQ:EWZS]
The iShares MSCI Brazil Small-Cap ETF (NASDAQ: EWZS) has a somewhat different focus from the funds above in that it targets the small-cap segment of the Brazilian equities space.
This may be a play for investors looking for exposure to Brazilian stocks in the consumer discretionary and financials sectors, as together these two groups account for more than a third of the portfolio.
EWZS is also more diversified than the funds above, with over 70 positions and the largest holdings occupying under 6% of the portfolio.
Together, this basket of stocks has achieved YTD returns of almost 34% for an expense ratio of 0.60%.
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