3 Undervalued International Value ETFs

Zachary Evens: Markets keep chugging ahead despite everything going on in the world, contributing to swollen valuations just about everywhere you look.

A handful of areas remain undervalued despite broader growth, though. International stocks have lagged for a long time but clawed back lost ground in 2025. Even still, the portfolios of some international value ETFs are still undervalued more than halfway through 2025. If stock prices converge with their fair value estimates, it could offer compelling upside for investors. Moreover, a renewed emphasis for some of the more steady but economically significant global companies could spur further growth, too.

These three undervalued international value ETFs are poised to benefit.

3 Undervalued International Value ETFs

1. Schwab Fundamental International Equity ETF FNDF
2. iShares MSCI EAFE Value ETF EFV
3. Dimensional International Value ETF DFIV

First up is Schwab Fundamental International Equity ETF, which trades under the ticker FNDF. It charges just 25 basis points a year and returned 21% over the first seven months of the year. That’s a great run, but not enough to pull its price back up to the portfolio’s fair value estimate.

This is a unique ETF. It will be nudged by market trends, but its contrarian index means that it still generally marches to the beat of its own drum. It tracks a research affiliate’s fundamental index, which includes developed-market stocks outside the United States. Instead of weighting its holdings by market capitalization, this index weights stocks by several fundamental metrics, including sales and cash flow. At each rebalance, it increases exposure to the stocks that have become cheaper relative to those metrics and trims those that have become more expensive. The result is an allocation firmly on the value side of the Morningstar Style Box but still diversified across most of the international developed market.

As international stocks rallied this year, the fund benefited from stakes in several high-performing global conglomerates like Samsung SSNLF and Shell SHEL. Consistent exposure to steady companies coupled with broad diversification should extend its track record of solid risk-adjusted returns and earns the ETF a Silver Morningstar Medalist Rating.

Next up is iShares MSCI EAFE Value ETF, ticker EFV. It charges 33 basis points annually and also earns a Silver Morningstar Medalist Rating.

It effectively courts the value factor and should do well when value stocks do well. The ETF market-cap weights the cheaper half of the broad-based MSCI EAFA index. Market-cap weighting is an efficient way to build the portfolio since it harnesses the market’s collective wisdom of the relative value of each stock. This keeps turnover low and ensures the ETF accurately portrays the international value market.

Like peers, it leans into financial stocks, but that lean is more pronounced here. Multinational banks are some of the biggest global stocks, so they claim more weight here than elsewhere. This means large banks like HSBC HSBC and Allianz ALIZY can steer fund performance. Luckily, they did well to start the year and helped the fund earn its 23% return in 2025 through July.

The last ETF performed the best of the three through the first seven months of 2025. Dimensional International Value ETF, ticker DFIV, returned nearly 24% in 2025 through July, placing it near the top of the foreign large-value category. It earns a Silver Medalist Rating and charges 27 basis points annually.

The ETF follows a strategy familiar to Dimensional investors. It maintains a highly diversified portfolio but leans into smaller stocks, profitable stocks, and those trading at low valuations. Profitability and low valuations have historically been associated with market-beating returns, so that should give the fund a long-term edge.

Despite its strong run to start this year, the ETF still trades below its fair value estimate. This may give it more room to run even as valuations in other markets get frothy.

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