The best ASX ETFs to buy for international diversification in FY 2026

These funds offer exposure to many of the best stocks in the world.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

For many Australian investors, portfolio exposure tends to be heavily skewed toward local companies. This could mean banks, miners, and other big names on the ASX 200.

While these businesses can be strong long-term performers, they represent only a small slice of the global investment landscape.

With FY 2026 now underway, it could be an ideal time to look beyond our borders.

The good news? You don't need to be an expert in global markets or have an international brokerage account to gain access.

That's because there are a handful of ASX exchange-traded funds (ETFs) out there that provide easy, low-cost exposure to leading international businesses and sectors.

With that in mind, let's take a look at two of the best ASX ETFs to consider for international diversification in FY 2026. They are as follows:

A businessman holding a world globe in one hand, representing global investment.

Image source: Getty Images

iShares S&P 500 ETF (ASX: IVV)

If you're looking for broad exposure to the US market, the iShares S&P 500 ETF is hard to beat. This fund tracks the performance of the S&P 500 Index, which is home to America's 500 largest companies.

This means that investors have access to a diversified mix of sectors including technology, healthcare, consumer goods, and financials.

This includes tech giants like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA). But also global leaders like Johnson & Johnson (NYSE: JNJ), Procter & Gamble (NYSE: PG), Costco (NASDAQ: COST), Starbucks (NASDAQ: SBUX), and JPMorgan Chase (NYSE: JPM).

Given the US economy's resilience and the sheer innovation power of its corporate sector, this ASX ETF could be a foundational building block for internationally diversified portfolios.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

While the iShares S&P 500 ETF focuses on the United States, the Vanguard MSCI Index International Shares ETF broadens the net to developed markets around the world.

This ASX ETF tracks the MSCI World ex-Australia Index and provides access to more than 1,200 large and mid-cap companies across the United States, Europe, Japan, Canada, and beyond.

The Vanguard MSCI Index International Shares ETF includes well-known names like Nestle (SWX: NESN), Roche (SWX: ROG), Toyota (TYO: 7203), and LVMH (FRA: MOH). This gives investors exposure to businesses that are leaders in their respective regions and industries.

With global economic growth expected to pick up in the years ahead, the Vanguard MSCI Index International Shares ETF offers a simple, all-in-one option for those seeking true international diversification.

JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Costco Wholesale, JPMorgan Chase, Microsoft, Nvidia, Starbucks, and iShares S&P 500 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson, Nestlé, and Roche Holding AG and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, Starbucks, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

A young man wearing glasses writes down his stock picks in his living room.
ETFs

3 brilliant ASX ETFs to buy after the market selloff

Market volatility has dragged some quality ETFs lower this year.

Read more »

ETF written with a blue digital background.
ETFs

It looks like a great time to buy this top ASX ETF!

This investment could deliver great returns, I think it’s time to invest.

Read more »

A business woman sits in the lotus yoga position near her laptop, indicating a patient investment style
ETFs

This simple ASX ETF strategy matters more than ever in today's uncertain market

Fear rises. Markets fall. The smartest investors keep showing up.

Read more »

Toll road at night time.
Share Market News

Forget AI hype, these ASX ETFs back the real winners of the boom

They tap the real-world assets driving the next growth phase.

Read more »

Smiling young parents with their daughter dream of success.
ETFs

Here are 5 ASX ETFs that I would buy with $50,000

Together, these ASX ETFs offer diversification across global markets, sectors, and long-term growth themes.

Read more »

Two people comparing and analysing material.
ETFs

Is the Vanguard Australian Shares Index ETF a good long-term investment?

If picking individual shares isn’t your thing, this ETF could be the answer.

Read more »

A man points at a paper as he holds an alarm clock, indicating the ex-dividend date is approaching.
ETFs

3 of the best ASX ETFs to buy and hold for a decade

These funds could be great long term options for Aussie investors.

Read more »

woman looking at iPhone whilst working on a laptop
ETFs

Why I'm seriously thinking about buying these ASX ETFs in April

As April approaches, these are two ASX ETFs I’m watching closely for long-term investing.

Read more »