Stocks to buy

ETFs are one of the best ways to invest in the stock market. Instead of trying to find the best stocks out there that may or may need to improve over time, ETFs offer a much less stressful option allowing investors to have money in many different companies simultaneously.

International ETFs are an essential addition to a strong portfolio. U.S. investors may have hesitancy when it comes to investing internationally due to the fact that they need to become more familiar with global markets. But, these ETFs offer exposure to different international markets without the risk of just investing in individual companies.

There may be times were the U.S. market is experiencing uncertainty. Still, by investing in international ETFs, you can help mitigate the potential losses by having a much more diversified portfolio. Below I will be looking at three different international ETFs with the best returns this past year that hold large-cap equities. I’m excluding the ones in emerging markets due to their volatility.

iShares MSCI Chile ETF (ECH)

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iShares MSCI Chile ETF (BATS:ECH) tracks the MSCI Chile IMI 25.50 index, which is comprised of small, mid, and large-cap companies within the Chilean market. The fund was created on Nov. 12, 2007 and offers investors access to a wide range of Chilean companies.

Over the past year, iShares MSCI Chile ETF has returned 24%. The fund has an expense ratio of 0.58%, and a 5.87% dividend yield paid out semi-annually. It also has $690 million in assets under management.

iShares MSCI Chile ETF primarily offers financials, industrials, and utilities exposure. The top three holdings for the fund include:

  • Sociedad Química y Minera de Chile S.A. (NYSE:SQM), an industrial chemical and specialty plant nutrient producer;
  • Banco De Chile (NYSE:BCH) provides financial and banking services;
  • and Enel Américas S.A. (ENELAM.SN), an electricity provider for multiple South American countries.

iShares MSCI Intl Value Factor ETF (IVLU)

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iShares MSCI Intl Value Factor ETF (NYSEARCA:IVLU) tracks the MSCI World ex USA Enhanced Value Index, which includes mid and large-cap companies within 22 developed markets with an emphasis on value qualities. The fund was created on June 16, 2015 and offers exposure to many different international markets.

Over the past year, iShares MSCI Intl Value Factor ETF has returned 21%. The fund carries an expense ratio of 0.30% and has a dividend yield of 3.52% paid out semi-annually. It also has $1.7 billion in assets under management.

iShares MSCI Intl Value Factor ETF’s three main sectors of investments are financials, industrials, and consumer discretionary, with one-third of the companies located in Japan. The fund’s top three holdings are:

  • Toyota Motors (NYSE:TM), a vehicle manufacturer located in Japan;
  • British American Tobacco P.L.C. (NYSE:BTI) which produces nicotine and tobacco products in the U.K.;
  • and Novartis A.G. (NYSE:NVS), a drug manufacturer located in Switzerland.

ALPS International Sector Dividend Dogs ETF (IDOG)

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ALPS International Sector Dividend Dogs ETF (NYSEARCA:IDOG) tracks the S-Network International Sector Dividend Dogs Index, which is composed of large-cap equities with high dividend yields. The fund was created on June 17, 2013 and offers investors exposure to international companies with attractive dividend payouts.

ALPS International Sector Dividend Dogs ETF, within the last year, has returned a total of 17%. It has an expense ratio of 0.50% and a dividend yield of 4.95%. It also has $218 million in assets under management.

ALPS International Sector Dividend Dogs ETF’s primary investments sector are comprised of consumer discretionary, energy, and financials. The fund’s top three holdings consist of:

  • Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY), a logistics and shipping business located in Japan;
  • Stellantis N.V. (NYSE:STLA) is a vehicle maker with brands such as Fiat, Chrysler, Dodge, and Jeep;
  • and H&M Hennes & Mauritz A.B. (OTCMKTS:HNNMY), a general retailer in Sweden.

As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with
topics such as the stock market and financial news.

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