Top International Bond ETFs to Watch in 2025
The year 2025 has underscored the value of diversification across asset classes, and fixed-income has been no exception, as international bond ETFs have provided valuable tools for income generation, currency diversification and risk management.
Here are five of the best international bond ETFs for the remainder of 2025 across a range of categories, including diversified core holdings, high yield, short-term, corporate and active management to enhance fixed-income strategies beyond U.S. borders.
Primary selection criteria included diversification, fees, assets under management, yield and year-to-date performance as of July 31, 2025.
BNDX: The Low-Cost, Diversified Choice
The Vanguard Total International Bond Index ETF (BNDX) is a low-cost, broadly diversified ETF that offers exposure to investment-grade government and corporate bonds outside the U.S., hedged against currency fluctuations to reduce volatility. In 2025, BNDX has been an attractive choice for investors seeking core fixed-income positions beyond U.S. borders.
- AUM: $68.2 billion
- Expense ratio: 0.07%
- Yield: 3%
- YTD performance: 1.9%
HYXU: Higher Risk for Higher Yields, Return Potential
The iShares International High Yield Bond ETF (HYXU) targets non-investment-grade corporate debt from developed markets outside the U.S., offering higher yield potential in exchange for increased credit risk. As global economic uncertainty persists, HYXU has attracted yield-seeking investors willing to take on more risk for higher income and greater return potential.
- AUM: $58.9 million
- Expense ratio: 0.4%
- Yield: 4.4%
- YTD performance: 14.4%
IBND: The Corporate Bond Alternative
The SPDR Bloomberg International Corporate Bond ETF (IBND) focuses on investment-grade corporate bonds from developed international markets, providing a mix of quality and moderate yield. With interest rates declining globally, IBND has benefited from price appreciation while offering diversification across top-rated foreign issuers.
- AUM: $409.7 million
- Expense ratio: 0.5%
- Yield: 2.6%
- YTD performance: 12.5%
ISHG: Shorter Duration for Less Interest Rate Risk
The iShares 1-3 Year International Treasury Bond ETF (ISHG) provides short duration exposure to foreign government bonds, minimizing interest rate risk while offering stability during volatile market periods. It has gained attention in 2025 as a defensive tool for investors prioritizing capital preservation amid currency fluctuations and rate uncertainty.
- AUM: $597.8 million
- Expense ratio: 0.35%
- Yield: 1.9%
- YTD performance: 9.5%
PYLD: The Go-Anywhere International Bond ETF
The PIMCO Multisector Bond Active ETF (PYLD) is an actively managed global bond ETF that tactically shifts among sectors, credit qualities and geographies to pursue total return and income. In 2025, PIMCO’s expertise has helped the fund navigate shifting central bank policies, benefiting from flexible positioning across international markets.
- AUM: $6.6 billion
- Expense ratio: 0.55%
- Yield: 5.2%
- YTD performance: 4.9%
