The Best International ETF to Buy With $1,000 in April 2026

One of the key pillars of investing is diversification. This means investing in companies across different industries, sizes, and regions around the world.

When it comes to different regions, one of the best ways to get exposure is to invest in thousands of them at once through an international exchange-traded fund (ETF). That's why I'm a fan of the Vanguard Total International Stock ETF (NASDAQ: VXUS), which holds companies from both developed and emerging markets.

If you have $1,000 to put toward an international ETF, this is a good option to consider.

Image source: Getty Images.

The best of both worlds

Developed markets include countries like the U.K., Japan, and Australia, which have established financial markets and mature economies. Emerging markets are countries like Brazil, China, and India that are in the process of rapid industrialization and are seen as headed in that direction.

As of the end of February, 37.2% of VXUS is European companies, 27.6% is Pacific companies, 7.9% is North American companies, 0.8% is Middle East companies, and 0.5% falls into the "other" category. Companies from emerging markets account for 26%.

Investing in companies from developed markets versus emerging markets is similar to the trade-off seen between investing in large-cap versus small-cap stocks.

Developed markets are generally more stable, but upside could be more limited once you reach a certain size. Emerging markets tend to be more volatile, but because they're in the earlier stages of expansion, there are generally more growth opportunities. There are exceptions, of course, but that's the broad trade-off.

With VXUS, you instantly get exposure to over 8,700 international stocks that cover all the bases. It's a one-stop international shop.

A hedge against the U.S. economy

VXUS hasn't had a good start to 2026, down over 2.4% year to date through March 27. However, that's a better performance than all three of the U.S. stock market's main indexes. The S&P 500 is down over 7%; the Nasdaq Composite is down around 9.8%; and the Dow Jones is down around 6.7%.

I don't expect international companies as a whole to outperform top American companies over the long term, but they can be good investments when there's a lot of uncertainty surrounding the U.S. economy or stock market. Which, many would argue, is the case now.

VXUS also has an underrated dividend that can help cushion the blow if it experiences a rough patch itself. Its current dividend yield is around 3% -- right in line with its average over the past five years.

VXUS Dividend Yield data by YCharts

That may only be a $30 annual payout for a $1,000 investment, but it could compound into much more if you're playing the long game. And with an expense ratio of only 0.05%, you're paying just $0.50 per $1,000 invested in VXUS.

Stefon Walters has positions in Vanguard Total International Stock ETF. The Motley Fool has positions in and recommends Vanguard Total International Stock ETF. The Motley Fool has a disclosure policy.