SPDW vs SCHF: Head-to-Head Comparison

Side-by-Side Comparison

Key Differences Between SPDW and SCHF

SPDW (SPDR Portfolio Developed World ex-US ETF) is a international developed fund managed by State Street Global Advisors. SPDW provides broad exposure to developed market stocks outside the United States at an ultra-low cost. It covers companies in Europe, Japan, Australia, and other developed economies. For beginners building a globally diversified portfolio, SPDW is one of the cheapest ways to add international developed market exposure.

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.

The most notable differences are in fees (0.03% vs 0.06%), number of holdings (2,500 vs 1,550), and 5-year returns (7.00% vs 6.80%).

Holdings Overlap Analysis

SPDW and SCHF share 67% 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 $257 on a $10,000 investment. SPDW saves you more in fees over time.

Which One Should a Beginner Choose?

Choose SPDW if: You want beginners building a globally diversified two- or three-fund portfolio, cost-conscious investors seeking the cheapest international equity exposure, long-term investors who want exposure to developed markets outside the u.s.. It's managed by State Street Global Advisors with an expense ratio of 0.03%.

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%.

Can You Own Both SPDW and SCHF?

With 67% holdings overlap, owning both means you're essentially doubling down on the same stocks. For beginners, we recommend picking one to keep things simple. If you want more diversification, consider pairing your choice with an international ETF like VXUS or a bond ETF like BND instead.

Frequently Asked Questions