Schwab International Equity ETF vs iShares Emerging Markets ETF
Key PointsSchwab International Equity ETF has a significantly lower expense ratio of 0.03% compared to 0.72% for iShares MSCI Emerging Markets ETF.
Schwab International Equity ETF (SCHF) and iShares MSCI Emerging Markets ETF (EEM) are two exchange-traded funds that offer international stock exposure. SCHF focuses on developed non-U.S. economies, while EEM targets developing markets. SCHF charges a lower expense ratio of 0.03%, whereas EEM's fee is 0.72%. SCHF yields a higher dividend of 3.1%, compared to EEM's 1.8%.
SCHF tracks 1,443 assets, with a strong emphasis on Financial Services, Technology, and Industrials. EEM holds 1,186 companies, with a heavy concentration in Information Technology. Both funds offer international diversification, but SCHF presents a more affordable option for a core international investment, while EEM may be suitable for those willing to accept higher volatility and political risk.
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