SCHF vs VEA: Head-to-Head Comparison

Side-by-Side Comparison

Key Differences Between SCHF and VEA

SCHF (Schwab International Equity ETF) is a international developed markets fund managed by Schwab. SCHF invests in large and mid-cap stocks from developed markets outside the U.S., including Europe, Japan, Australia, and Canada. It tracks the FTSE Developed ex US Index and holds over 1,500 companies across more than 20 countries. For beginners, SCHF is one of the cheapest ways to add international stock diversification and reduce dependence on the U.S. market.

VEA (Vanguard FTSE Developed Markets ETF) is a international developed fund managed by Vanguard. VEA provides broad exposure to stocks in developed countries outside the United States, including companies in Europe, Japan, Australia, and Canada. With over 4,000 holdings, it is one of the most diversified international ETFs available. Beginners choose VEA to add international developed market exposure to their portfolios at an incredibly low cost of just 0.05%.

The most notable differences are in fees (0.06% vs 0.05%), number of holdings (1,550 vs 4,050), and 5-year returns (6.80% vs 6.50%).

Holdings Overlap Analysis

SCHF and VEA share 43% of their top holdings. There is moderate overlap, so owning both provides some additional diversification but with diminishing returns.

Cost Comparison Over Time

If you invest $10,000 and hold for 20 years (assuming 8% annual returns):

Over 20 years, the fee difference amounts to $85 on a $10,000 investment. The cost difference is negligible — choose based on other factors.

Which One Should a Beginner Choose?

Choose SCHF if: You want investors building a globally diversified portfolio beyond u.s. borders, schwab customers who want the cheapest developed-market international equity fund, those looking to reduce home-country bias and add geographic diversification. It's managed by Schwab with an expense ratio of 0.06%.

Choose VEA if: You want investors who want developed market international exposure without emerging markets, cost-conscious investors seeking the cheapest way to diversify outside the u.s., portfolio builders who want to pair vea with a separate emerging markets fund like vwo. It's managed by Vanguard with an expense ratio of 0.05%.

Can You Own Both SCHF and VEA?

Absolutely! With only 43% overlap, SCHF and VEA complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.

Frequently Asked Questions