iShares' URTH or Schwab's SCHF: Which International ETF Is the Better Buy?
Key Points
Schwab International Equity ETF features a significantly lower expense ratio and higher dividend yield than iShares MSCI World ETF.
iShares MSCI World ETF includes heavy exposure to U.S. technology giants while Schwab International Equity ETF focuses exclusively on developed markets outside the United States.
While iShares MSCI World ETF delivered higher total returns over the last five years, Schwab International Equity ETF outperformed on a 1-year basis as of June 12, 2026.
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Choosing between iShares MSCI World ETF (NYSEMKT:URTH) and Schwab International Equity ETF(NYSEMKT:SCHF) depends on whether an investor seeks broad global developed market exposure or specifically excludes United States stocks.
Both funds target developed economies but differ significantly in geographic scope. URTH provides one-click access to the global developed world, including massive U.S. positions. In contrast, SCHF strictly avoids U.S. equities, making it a common tool for investors who already have domestic exposure elsewhere.
Snapshot (cost & size)
| Metric | SCHF | URTH |
|---|---|---|
| Issuer | Schwab | iShares |
| Expense ratio | 0.03% | 0.24% |
| 1-yr return (as of June 12, 2026) | 30.2% | 23.1% |
| Dividend yield | 2.9% | 1.4% |
| Beta | 0.81 | 0.95 |
| AUM | $65.8 billion | $8.1 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Schwab International Equity ETF is the more affordable option with an expense ratio of 0.03%, compared to 0.24% for iShares MSCI World ETF. It also offers a higher payout, yielding 2.9% versus 1.4% for URTH.
Performance & risk comparison
| Metric | SCHF | URTH |
|---|---|---|
| Max drawdown (5 yr) | (29.1%) | (26.1%) |
| Growth of $1,000 over 5 years (total return) | $1,592 | $1,720 |
What's inside
The iShares MSCI World ETF (NYSEMKT:URTH) holds 1,312 stocks and leans heavily into technology, which accounts for 31% of the portfolio. Its largest positions include Nvidia (NASDAQ:NVDA) at 5.34%, Apple (NASDAQ:AAPL) at 4.82%, and Microsoft (NASDAQ:MSFT) at 3.11%. The fund was launched in 2012 and has a trailing-12-month dividend of $2.76 per share.
The Schwab International Equity ETF (NYSEMKT:SCHF) tracks the FTSE Developed ex US Index, holding 1,492 stocks with a 23% concentration in financial services. Its largest positions include Samsung Electronics (005930.KS) at 3.40%, SK Hynix (000660.KS) at 2.60%, and ASML (NASDAQ:ASML) at 2.49%. Launched in 2009, it has paid $0.82 per share over the trailing 12 months.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
International stocks have been one of the strongest-performing asset classes over the past year, thanks to a weaker dollar and attractive valuations outside the U.S. This has driven a rally that caught many domestically focused investors off guard. If you’re looking to bolster your portfolio with exposure to these international developed markets, you can definitely get that with both URTH and SCHF. But you’re not getting the same level of diversification at all.
Interestingly, even though URTH carries the word "world" in its name, more than half of its portfolio is invested in U.S. companies. And the top names in this fund (Nvidia, Apple, and Microsoft) are stocks that most U.S. investors already own. If you’re already well-exposed to U.S. equities, this fund may not give you the “global” diversification it implies while being significantly more expensive to own.
SCHF excludes the United States entirely, making it a much more effective diversifier for investors whose portfolios already lean domestic. Its holdings are Japanese, European, and Canadian companies that move on entirely different economic drivers than U.S. stocks. For most long-term investors seeking genuine global exposure beyond their existing U.S. holdings, SCHF is the more purposeful and cost-efficient choice.
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Sara Appino has positions in Apple and Nvidia. The Motley Fool has positions in and recommends ASML, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
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