International ETFs: 2 Global Funds That Surged an Average of 30%

For an investor, the U.S. is one of the best places to be. You have easy access to some of the best companies in the world trading on the New York Stock Exchange (NYSE) and the Nasdaq and an enormous list of exchange-traded funds (ETFs), bonds, options, commodities, and more to choose from. But there are almost 54,000 publicly traded companies around the world. And you're really missing out on some incredible returns if you're not taking advantage of what the rest of planet Earth has to offer.

Now, buying international stocks can be a serious headache. There are several companies, mostly from larger economies like China, Germany, or Japan, that trade on the American market as American depositary receipts (ADRs) or global depository receipts (GDRs).

But for companies that don't offer those, you're stuck establishing a brokerage account in another country, managing time differences, dealing with language barriers, and, of course, you're going to be dealing with a whole different tax code. So, what's an investor to do?

The answer is ETFs.

Image source: Getty Images.

Each one tracks a basket of stocks like a mutual fund, and buying a share gets you access to the entire list of its holdings. Some ETFs track the top stocks in other countries, which would be a serious pain to gain exposure to otherwise. Following are two of the best performers during the past year that you should take a look at.

Give your portfolio a little Seoul

South Korea is one of the great economic success stories of the past century. After decades of Japanese occupation and a war that tore the once-united Korea in two and left the Korean Peninsula in ruins, South Korea arose as one of the world's most dynamic economies.

With a population of just 51.6 million, the country ranks as the world's 14th-largest economy. Korean cuisine, music, and film have all gained international recognition in the past few decades, and the country boasts globally known brands such as:

• Samsung (OTC: SSNL.F), the second-largest chip manufacturer in the world and a leading electronics brand
• Hyundai Motor, the third-largest auto manufacturer by volume, behind only Toyota Motor (NYSE: TM) and Volkswagen (OTC: VWAGY)
• And LG Display (NYSE: LPL), another major electronics brand

And the iShares MSCI South Korea ETF (NYSEMKT: EWY) is one of the best-performing country ETFs on the market in the long term. It holds all three of the companies I just mentioned and 87 more of South Korea's best companies. And during the past three years, the ETF has averaged a 23% return, more than double the S&P 500's average. The one-year return for 2025 was 98%, and this year, so far, the ETF is up 11%. Give this one a look if you want some diversification into Asian markets for your portfolio.

Poland isn't lost; it's leading the way

From one of the 20th century's great economic success stories to one that's shaping up to be the 21st century's -- Poland, since gaining its freedom from the Soviet Union, has been one of the most consistent and fastest-growing economies in Europe and the world.

Since 1992, the first full year of Polish independence, the country's economy has had only one year of negative gross domestic product (GDP) growth. That was in 2020, and it fell by only 2%, while global GDP fell almost 3%. The next year, Poland's GDP grew nearly 7%, while Germany's grew only 3.9%.

What's more, while its businesses are relatively young, Polish brands have already begun gaining international recognition.

CD Projekt Red has become a household name in the video game industry worldwide after the success of its The Witcher series and Cyberpunk 2077. Allegro is a major European e-commerce company that alone is responsible for 1% of Poland's GDP. And Orlen is a serious contender in European energy markets and Poland's largest company by market cap, at $31.8 billion.

Modern Warsaw is a dynamic and innovative place, and your best bet to gain access to it is the iShares MSCI Poland ETF (NYSEMKT: EPOL), which holds all the companies I mentioned and 37 more of Poland's most notable businesses.

So far this year, it's up just shy of 3%, and in 2025, it returned 76%, which was less than the South Korea ETF. However, during the past three years, this ETF's average return was 37%, almost quadruple the S&P 500's average.

The Polish national anthem begins with the line "Poland is not yet lost," a reference to the tumult the country experienced during the past two centuries. Well, modern Poland certainly isn't lost -- it's leading the rest of Europe.

So, if you're in the market for some international portfolio diversification, the two I've mentioned here have an average return of 23% and 37%, respectively, during the past three years. Average the two out, and that's 30%.

And based on how they performed in 2025, I don't think they'll have a problem maintaining that growth.

James Hires has positions in Toyota Motor. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy.