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:
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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.
