3 Best International ETFs in Canada (June 2026)
The best international ETFs in Canada include XAW.TO (~0.22% MER), VXC.TO (~0.06%), and VIU.TO (~0.06%). These ETFs provide diversified exposure to global markets outside Canada, helping investors reduce home bias, access international sectors, and improve long-term portfolio diversification.
International ETFs are designed to help Canadian investors diversify beyond the domestic market and gain exposure to global economies. ETFs like XAW.TO, VXC.TO, and VIU.TO provide access to U.S., developed, and emerging markets, helping reduce reliance on the TSX.
The key advantage of international ETFs is diversification across countries, sectors, and currencies. These ETFs include exposure to industries underrepresented in Canada, such as technology and healthcare. However, investors must consider currency risk and foreign withholding taxes.
In this guide, we break down the best international ETFs in Canada, comparing global coverage, fees, and risk so you can choose the right ETF for your TFSA, RRSP, or diversified portfolio.
At a Glance: Quick Comparison
Side-by-side snapshot of fees, yield, and returns. Data updates daily.
| ETF | MER | AUM | Yield | YTD | 1Y |
|---|---|---|---|---|---|
Top XAW.TO iShares Core MSCI All Country World ex Canada Index ETF | — | $4.3B | 1.18% | +15.10% | +29.09% |
VXC.TO Vanguard FTSE Global All Cap ex Canada Index ETF | — | $3.4B | 1.23% | +14.70% | +28.90% |
VIU.TO Vanguard FTSE Developed All Cap ex North Amer Idx ETF | — | $10.8B | 2.18% | +19.23% | +32.97% |
What Is an ETF?
An international ETF in Canada is an exchange-traded fund that invests in equities outside of Canada, providing exposure to global markets such as the U.S., Europe, Asia, and emerging economies. These ETFs help investors reduce home bias and diversify across different economic regions.
For example, XAW.TO (~0.22% MER) provides broad global exposure excluding Canada, including U.S. and international equities. VXC.TO (~0.06% MER) tracks a global all-cap index outside Canada at a very low cost, while VIU.TO (~0.06% MER) focuses on developed markets excluding North America. XEQT.TO includes international exposure as part of a broader all-equity portfolio.
International ETFs are commonly used in TFSAs and RRSPs for diversification. Investors should consider geographic exposure, currency risk, and tax implications when selecting an ETF.
The 3 Best ETFs: Ranked & Reviewed
Detailed breakdown of each pick with live data.
iShares Core MSCI All Country World ex Canada Index ETF
$59.31
+15.10% YTD
NA
Returns
YTD
+15.10%
1Y
+29.09%
3Y
+21.28%
5Y
+13.62%
Vanguard FTSE Global All Cap ex Canada Index ETF
$85.26
+14.70% YTD
Returns
YTD
+14.70%
1Y
+28.90%
3Y
+21.33%
5Y
+13.33%
Vanguard FTSE Developed All Cap ex North Amer Idx ETF
$51.83
+19.23% YTD
NA
Returns
YTD
+19.23%
1Y
+32.97%
3Y
+20.62%
5Y
+12.04%
Pros & Cons
Pros
- Diversifies beyond Canada and reduces home bias
- Access to global sectors like technology, healthcare, and industrials
- Exposure to multiple currencies and economic cycles
- Low-cost options available (VXC.TO ~0.06% MER)
Cons
- Currency fluctuations can increase volatility
- Foreign withholding taxes may reduce returns in some accounts
- Global market risks and geopolitical factors can impact performance
- Some ETFs exclude Canada, requiring additional domestic allocation
Compare These ETFs Head-to-Head
Drill into a side-by-side breakdown of performance, AUM, and yield.
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Frequently Asked Questions
What is the best international ETF in Canada?
XAW.TO is one of the most popular international ETFs in Canada due to its broad global exposure excluding Canada. VXC.TO offers a lower-cost alternative, while VIU.TO focuses specifically on developed markets outside North America.
Should Canadians buy hedged or unhedged international ETFs?
Unhedged ETFs add currency exposure, which can diversify returns over the long term. Hedged ETFs reduce currency volatility but may increase costs. Most long-term investors prefer unhedged ETFs for global diversification.
Do international ETFs have withholding tax?
Yes, international ETFs can be subject to foreign withholding taxes depending on the countries invested in and the account type. In RRSPs, some U.S.-listed ETFs may reduce withholding tax, while Canadian-listed ETFs may still have some tax drag.