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Ten years ago, investors who wanted to buy an index fund that invested outside the United States had a fairly simple decision to make, since there were only four main contenders,  but times have changed, writes Gregg Wolper of Morningstar.com.

In those less complicated times, Fidelity Spartan International Index (FSIIX) and Vanguard Developed Markets Index (VDMIX)—like quasi-index fund Vanguard Tax-Managed International (VTMGX)—all tracked the MSCI EAFE Index.

Schwab International Index (SWISX) added a twist. Instead of tracking the MSCI EAFE Index, it owned the 350 biggest companies outside the United States, which gave it a slightly different portfolio…though the differences were not dramatic. Meanwhile, Vanguard Total International Stock Index (VGTSX) added an emerging-markets component to the standard EAFE portfolio.

Although these funds were much cheaper than actively managed alternatives, they weren’t the bargains they later became. The annual expense ratio for the Schwab fund was around 0.5%, and the Fidelity Spartan option cost 0.35% per year.

The two Vanguard funds were less costly, but even that was not easy for investors to know, because as funds of funds they published an expense ratio of zero. You had to dig a little to learn the combined cost of the underlying funds.

Meanwhile, investors looking for an index fund that owned both US and foreign stocks—a global fund—were out of luck.

Things have changed on all three fronts. The number of alternatives for broad foreign index investing has exploded in the past few years. Global index funds now exist. Finally, in many cases the cost of these funds has dropped sharply.

Overall, these developments can be seen as positive. Investors can choose from many more international index funds, providing a broader diversity of approaches, and in some cases for substantially less money.

But investors must be careful, too. Narrowly focused choices can raise the risk level, and not all of the new entrants are bargains.

Vanguard Expands its Lineup
Instead of sticking exclusively with MSCI indexes when choosing its benchmarks for its broad funds—as well as regional offerings like Vanguard Pacific Stock Index (VPACX)—Vanguard branched out from 2007 to 2009.

Vanguard officials said that some advisors preferred indexes from another provider, FTSE. So, you can now select Vanguard FTSE All-World ex-US Index (VFWIX) for broad foreign exposure.

In addition, investors can target small stocks with Vanguard FTSE All-World ex-US Small Cap Index (VFSVX). The latter is the first foreign small-cap index fund of any kind from Vanguard.

In addition, for indexing fans who’d rather buy just one fund to cover both the US and foreign stocks, Vanguard created Vanguard Total World Stock Index (VTWSX). This also follows a FTSE benchmark.

Each of these funds has its own quirks and some distinctions from the previously existing alternatives from Vanguard and others. Outlining all of those factors would take too much time here, but the analyses for these funds, available to Premium subscribers, can help.

Meanwhile, starting last autumn, Vanguard created Admiral shares for most of its international index offerings, and cut the minimum for those shares to $10,000. These shares are even cheaper than the already-inexpensive Investor shares.

NEXT: Fidelity and Schwab Haven’t Been Sitting Still