Schwab International Equity ETF (SCHF): Complete Beginner's Guide
Last updated: March 2026 • Schwab • International Developed Markets
Expense Ratio
0.06%
AUM
$35.0B
Dividend Yield
2.80%
Inception
2009
Beginner Score
9.5/10
What is Schwab International Equity ETF?
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.
SCHF is managed by Schwab and has been available since 2009. With $35.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.06%, which means for every $10,000 you invest, you pay approximately $6 per year in management fees.
SCHF at a Glance — Key Metrics
| Expense Ratio | 0.06% |
| Total Holdings | 1,550 |
| P/E Ratio | 16.2 |
| Beta | 0.82 |
| Dividend Yield | 2.80% |
| AUM | $35.0B |
| Inception Year | 2009 |
| Issuer | Schwab |
Top 10 Holdings in SCHF
SCHF holds 1,550 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Nestlé S.A. | NESN.SW | 2.00% |
| 2 | ASML Holding NV | ASML | 1.90% |
| 3 | Novo Nordisk A/S | NVO | 1.80% |
| 4 | Samsung Electronics | 005930.KS | 1.60% |
| 5 | Roche Holding AG | ROG.SW | 1.50% |
| 6 | AstraZeneca PLC | AZN | 1.40% |
| 7 | Shell PLC | SHEL | 1.30% |
| 8 | Toyota Motor Corp. | TM | 1.20% |
| 9 | LVMH Moët Hennessy | MC.PA | 1.10% |
| 10 | Novartis AG | NVS | 1.00% |
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SCHF Performance History
Here's how SCHF has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
2.00%
1 Year
13.50%
3 Year
5.50%
5 Year
6.80%
10 Year
5.50%
Beginner Suitability Score: 9.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
SCHF scores 9.5/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 1,550 holdings, and has been available since 2009, giving it a proven track record.
How to Buy SCHF — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "SCHF" — Use the search bar in your brokerage platform to find Schwab International Equity ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into SCHF
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With SCHF's expense ratio of 0.06%, a $10,000 investment would lose approximately $515 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
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Pros and Cons of SCHF
Pros
- ✓Extremely low 0.06% expense ratio for broad international developed market exposure
- ✓Over 1,500 holdings across 20+ countries provide exceptional global diversification
- ✓Higher dividend yield than U.S. large-cap funds adds to total return
- ✓Reduces portfolio concentration risk from being too heavily invested in the U.S.
Cons
- ✗Currency fluctuations can significantly impact returns for U.S.-based investors
- ✗International developed markets have lagged U.S. stocks for over a decade
- ✗Less exposure to high-growth technology companies compared to U.S. equity ETFs
SCHF vs Similar ETFs
See how SCHF stacks up against similar funds:
Frequently Asked Questions
Is SCHF a good ETF for beginners?▾
SCHF has a Beginner Suitability Score of 9.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of SCHF?▾
SCHF has an expense ratio of 0.06%. This means for every $10,000 you invest, you pay approximately $6 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in SCHF?▾
You can invest in SCHF with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does SCHF pay dividends?▾
Yes, SCHF pays dividends with a current yield of approximately 2.80%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in SCHF?▾
The top holdings in SCHF include Nestlé S.A. (2.00%), ASML Holding NV (1.90%), Novo Nordisk A/S (1.80%), and more. The fund holds 1,550 total positions, providing broad diversification across many companies.