Investing in global stocks can provide diversification, but the wide variety of markets can make it difficult to navigate individual securities. Global stock exchange-traded funds can be an easy way to get diversified exposure to world markets. These ETFs invest in developed markets around the world, excluding the United States and sometimes Canada.
Here are the nine best global stock ETFs for Canadian investors:
- BMO MSCI EAFE ETF ZEA
- iShares MSCI EAFE ETF (CAD-Hedged) XIN
- BMO MSCI EAFE Hedged to CAD ETF ZDM
- iShares Core MSCI EAFE IMI ETF XEF
- iShares Core MSCI EAFE IMI ETF (CAD-Hedged) XFH
- iShares MSCI Minimum Volatility EAFE ETF XMI
- iShares ESG Aware MSCI EAFE ETF XSEA
- Vanguard FTSE Developed All Cap ex US ETF VDU
- Vanguard FTSE Developed All Cap ex North America ETF VIU
All nine track either the MSCI EAFE Index or the Vanguard FTSE Developed Markets Ex-US Index. These indexes provide exposure to the stock markets of developed countries outside the US. The major difference is that the Vanguard index invests in three additional countries beyond the EAFE index: Canada, South Korea, and Poland. This is especially important for Canadian investors seeking geographic diversity, as this index will partially overlap with their domestic holdings.
For example, the C$681 million Vanguard FTSE Dev All Cap ex US ETF VDU has roughly 11% of its assets in Canadian stocks. The Vanguard FTSE Developed All Cap ex US Index also invests in small caps, while the MSCI EAFE Index does not.
Screening for the Best Canadian International Stock ETFs
We screened for ETFs with Gold, Silver, or Bronze Medalist Ratings that are 100% assigned by Morningstar analysts, rather than indirectly or quantitatively assigned. Here’s a closer look at our picks, which are organized based on which indexes the funds track. An additional table with their recent performance is at the end of this article.
BMO MSCI EAFE ETF
- Morningstar Medalist Rating: Silver
- Morningstar Rating: ★★★★
The C$11.7 billion BMO MSCI EAFE ETF tracks the MSCI EAFE Index, which includes large- and mid-cap stocks across 21 developed markets.
“Diversification is a strength of this strategy,” writes Morningstar associate analyst Brendan McCann. “The index holds about 700 names as of September 2025, and that figure has been trending lower in recent years. The index’s 10 largest positions usually account for less than 15% of the portfolio.”
The strategy has a 10-year trailing annualized return of 8.10% and a 0.22% expense ratio.
iShares MSCI EAFE ETF (CAD-Hedged)
- Morningstar Medalist Rating: Bronze
- Morningstar Rating: ★★★★
BMO MSCI EAFE Hedged to CAD ETF
- Morningstar Medalist Rating: Silver
- Morningstar Rating: ★★★★
The C$1.6 billion iShares MSCI EAFE ETF (CAD-Hedged) and the C$1.6 billion BMO MSCI EAFE Hedged to CAD ETF follow currency-hedged versions of the same index tracked by the BMO MSCI EAFE ETF. Currency hedging uses derivatives to cancel out exchange rate fluctuations on stock returns.
“Currency fluctuations should even out over time, yielding similar results for the hedged and unhedged versions of the index,” writes Morningstar analyst Zachary Evens. “Going forward, currency differences will drive short-term returns, but those differences should eventually even out.”
The hedged BMO MSCI EAFE ETF has returned 9.6% annually over the past decade, compared with the un-hedged fund’s 9.0%.
The iShares Hedged MSCI EAFE ETF has a higher expense ratio, at 0.49%, than the BMO MSCI EAFE Hedged to CAD ETF, which has a 0.22% expense ratio.
iShares Core MSCI EAFE IMI ETF
- Morningstar Medalist Rating: Gold
- Morningstar Rating: ★★★★
The C$17 billion iShares Core MSCI EAFE IMI ETF tracks the MSCI EAFE Investable Market Index and has a 0.22% manager expense ratio.
“It targets nearly all stocks from 21 overseas developed markets, encompassing 99% of the investable market,” writes McCann. “The index usually holds around 2,600 names, with its 10 largest positions typically accounting for around 11% of the portfolio.”
The ETF has a 0.22% manager expense ratio and has returned an average of 7.9% annually over the past 10 years.
iShares Core MSCI EAFE IMI ETF (CAD-Hedged)
- Morningstar Medalist Rating: Silver
- Morningstar Rating: ★★★★
The C$2.4 billion iShares Core MSCI EAFE IMI CAD-Hedged ETF tracks a currency-hedged version of the MSCI EAFE Investable Market Index.
“Hedging isn’t free, though, and the advantages and disadvantages of currency hedging come in waves,” writes McCann. “The impact of foreign-exchange rates on total return tends to wash out over the long run.”
The ETF has averaged a 9.7% return over the past decade.
iShares MSCI Minimum Volatility EAFE ETF
- Morningstar Medalist Rating: Silver
- Morningstar Rating: ★★★
The C$182 million iShares MSCI Minimum Volatility EAFE ETF follows an index that uses a mathematical model to construct a portfolio of stocks from the MSCI EAFE Index within certain constraints. These constraints stop the fund from moving too far from the basic index. For example, it limits how much individual stock and sector weightings can differ from the broader index.
“So far, the index has delivered on its goals,” writes Morningstar senior analyst Ryan Jackson. “Its returns were about 25% less volatile than the MSCI EAFE Index over the 10 years through April 2025. That translated into solid risk-adjusted performance.”
iShares ESG Aware MSCI EAFE ETF
- Morningstar Medalist Rating: Silver
- Morningstar Rating: ★★★★
This C$314 million fund tracks the MSCI EAFE Extended ESG Focus Index, which invests in large- and mid-cap stocks from the same 21 countries as the MSCI EAFE Index, but with screens to invest more in firms with positive environmental, social, and governance characteristics.
“The index aims to keep the expected tracking error to the MSCI EAFE Index within 0.50% to minimize the impact of its ESG screens,” writes Evens. “This effectively tilts the portfolio toward ESG factors without making large bets against the MSCI EAFE Index that may not be compensated. This fund’s performance should closely mirror that index as a result.”
The index uses a mathematical model to manage this balancing act and generally holds a portfolio of a little more than 350 stocks. That is fewer stocks than the normal EAFE Index, but there is significant overlap between the two.
Vanguard FTSE Developed Markets All Cap ex US ETF
- Morningstar Medalist Rating: Gold
- Morningstar Rating: ★★★★
The C$681 million Vanguard FTSE Developed Markets All Cap ex US ETF has a 0.22% manager expense ratio and tracks the FTSE Developed ex US All Cap Index.
“It targets small-, mid-, and large-cap stocks from international developed markets, pulling in almost 4,000 names,” writes Evens.
The fund has returned an average of 8% over the past decade.
Vanguard FTSE Developed Markets All Cap ex North America ETF
- Morningstar Medalist Rating: Gold
- Morningstar Rating: ★★★
The C$8 billion Vanguard FTSE Developed Markets All Cap ex North America ETF tracks the FTSE Developed All Cap ex North America Index. This variation of the Vanguard FTSE Developed Markets All Cap Index also excludes Canadian stocks in addition to US ones, so it may be better for investors seeking purely international exposure.
The fund carries a 0.22% manager expense ratio.
