Two International ETF Funds That Delivered 30% Average Returns: A Closer Look

Why International Exposure Matters for Your Portfolio

Investing domestically offers convenience and familiarity—the NYSE and Nasdaq provide access to world-class companies, and countless ETF options let you diversify across sectors and asset classes. However, this comfort zone causes investors to overlook a critical opportunity: approximately 54,000 publicly traded companies operate outside U.S. borders, many offering compelling growth trajectories.

The challenge? Purchasing shares directly in foreign markets typically requires opening foreign brokerage accounts, navigating language barriers, managing time zone complications, and understanding unfamiliar tax structures. For most retail investors, this complexity makes international investing impractical.

ETFs solve this problem elegantly. By tracking a curated basket of stocks from specific countries or regions, these funds provide instant diversification and simplified access to international markets. During the past three years, two nation-specific ETFs have emerged as standout performers, averaging a 30% return and demonstrating why global portfolio exposure deserves serious consideration.

South Korea’s Economic Ascent and EWY’s Impressive Track Record

South Korea’s transformation from a war-devastated nation to a global economic powerhouse ranks among history’s most remarkable success stories. With a population of 51.6 million, the country ranks 14th globally in economic output, yet its cultural and technological influence extends far beyond its size.

Korean companies have achieved worldwide prominence. Samsung operates as the second-largest semiconductor manufacturer globally and dominates the consumer electronics space. Hyundai Motor ranks third in automotive production by volume, trailing only Toyota and Volkswagen. LG Display competes as another electronics giant with substantial international market share.

The iShares MSCI South Korea ETF (EWY) captures this economic dynamism by holding Samsung, Hyundai, LG Display, and 87 additional blue-chip Korean enterprises. Over the past three years, EWY delivered an average annual return of 23%—more than twice the S&P 500’s performance during the same period. Performance accelerated dramatically in 2025, with the fund posting a 98% one-year return. Year-to-date performance shows an 11% gain, indicating sustained momentum in Korean equities.

For investors seeking Asian market exposure without direct emerging market risk, this fund offers a compelling entry point into a developed-yet-high-growth economy.

Poland: Europe’s Fastest-Growing Economy and the EPOL Opportunity

Poland’s post-Cold War economic narrative parallels South Korea’s trajectory. Since regaining independence from Soviet control in 1992, Poland has established itself as Europe’s most consistently rapid-growth economy. A single remarkable data point illustrates this resilience: in Poland’s 33 years of modern economic history, only one year produced negative GDP growth. Even that year—2020, during the global pandemic—Poland’s economy contracted by a mere 2%, compared to nearly 3% global contraction. The following year, Polish GDP expanded by approximately 7%, while Germany’s grew only 3.9%.

Polish enterprises are increasingly gaining international recognition. CD Projekt Red built a global gaming empire through franchises like The Witcher and Cyberpunk 2077. Allegro operates as Central Europe’s dominant e-commerce platform, single-handedly contributing roughly 1% of Poland’s total GDP. Orlen, Poland’s largest corporation by market capitalization at $31.8 billion, competes as a significant European energy player.

The iShares MSCI Poland ETF (EPOL) provides comprehensive exposure to Orlen, Allegro, CD Projekt Red, and 37 other leading Polish companies. During the past three years, EPOL averaged a 37% annual return—approximately four times the S&P 500’s performance. Last year brought a 76% return, slightly trailing EWY’s performance. Current 2026 year-to-date gains hover just under 3%, suggesting a slight consolidation after 2025’s extraordinary surge.

Comparing the Two: Why 30% Average Return Matters

Together, these funds tell a compelling story about international growth opportunities. The three-year performance differential between them—23% for South Korea versus 37% for Poland—demonstrates that growth potential extends beyond the traditional Asian economic centers to emerging-market-turned-developed European economies.

Averaging these returns produces a 30% three-year annual performance figure, substantially outpacing U.S. market benchmarks. Based on 2025’s performance in both funds, there’s little reason to expect this outperformance to diminish significantly in the near term.

For investors currently concentrated in domestic U.S. equities, these international funds represent a straightforward diversification mechanism. Rather than navigating foreign brokerage systems or struggling with currency exchange complexities, a single ETF share provides instant portfolio exposure to some of Europe and Asia’s most dynamic economic regions.

The Bottom Line

Global diversification needn’t be complicated. The iShares MSCI South Korea ETF and iShares MSCI Poland ETF demonstrate that compelling international returns remain accessible through conventional, U.S.-based brokerage accounts. With three-year average returns of 30% and strong 2025 performance, these funds merit consideration within a balanced international portfolio strategy.