Choosing between the Schwab International Equity ETF (NYSEMKT:SCHF) and the iShares Core MSCI Emerging Markets ETF (NYSEMKT:IEMG) often comes down to an investor's preference for established markets versus growth-oriented developing nations. While both provide exposure to companies outside the United States, they diverge significantly in their sector concentrations, fee structures, and historical volatility profiles. Developed economies often provide established corporate governance and stability, whereas emerging markets may offer higher growth potential alongside increased volatility.
This comparison looks at the data to see how these two international funds differ. Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months.
Dividend yield is the trailing-12-month distribution yield. For investors prioritizing low overhead, the Schwab fund is considerably more affordable with an expense ratio of 0.03%, compared to 0.09% for the iShares fund. Additionally, the Schwab fund offers a higher trailing-12-month payout, providing a 3% yield versus 2.2% for its emerging markets counterpart.
Growth of $1,000 over 5 years (total return) Schwab International Equity ETF allocates its portfolio across developed international markets, emphasizing financial services at 26%, industrials at 18%, and technology at 15%. Its largest positions include Samsung Electronics (KOSE:A005930) at 2.86%, ASML Holding (NASDAQ:ASML) at 2.35%, and SK Hynix (KOSE:A000660) at 2.04%. The fund holds 1,490 stocks and has $69.4 billion in assets under management (AUM).
Schwab International Equity ETF has paid $0.84 per share over the trailing 12 months, which on its recent ~$28.49 share price works out to a 3% yield. The iShares Core MSCI Emerging Markets ETF focuses on developing economies, which results in a significant 39% concentration in technology. Its largest positions include Taiwan Semiconductor Manufacturing (TWSE:2330) at 13.38%, Samsung Electronics at 6.12%, and SK Hynix at 4.25%.
The fund is much more diversified by count with 2,862 holdings and has $158.6 billion in AUM. It was launched in 2012. iShares Core MSCI Emerging Markets ETF has paid $1.80 per share over the trailing 12 months, which on its recent ~$81.29 share price works out to a 2.2% yield. For more guidance on ETF investing, check out the full guide at this link.
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