SCHF and SPDW Both Surged 35% in the Last Year. Here's How They're Different.
Key Points
Both funds charge an identical expense ratio of 0.03% making them some of the most affordable ways to access international markets.
Schwab International Equity ETF manages a significantly larger pool of assets under management than the State Street fund.
State Street SPDR Portfolio Developed World ex-US ETF maintains a broader portfolio with 2,452 individual holdings compared to 1,496 in the Schwab fund.
- 10 stocks we like better than Schwab International Equity ETF ›
The Schwab International Equity ETF (NYSEMKT:SCHF) and the State Street SPDR Portfolio Developed World ex-US ETF (NYSEMKT:SPDW) offer identical rock-bottom costs and broad exposure to non-U.S. developed markets. This analysis compares their portfolio depth and historical performance.
Both funds serve as core building blocks for investors seeking international diversification outside the United States. While they share a similar objective, they track different indexes and vary significantly in their number of holdings, which may influence their risk profiles and tracking consistency over long periods.
Snapshot (cost & size)
| Metric | SPDW | SCHF |
|---|---|---|
| Issuer | SPDR | Schwab |
| Expense ratio | 0.03% | 0.03% |
| 1-yr return (as of June 2, 2026) | 34.0% | 34.5% |
| Dividend yield | 2.8% | 2.9% |
| Beta | 0.83 | 0.82 |
| AUM | $40.8 billion | $66.2 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.
These ETFs are among the most cost-efficient in the category, both charging a fee of 0.03%. The Schwab International Equity ETF offers a marginally higher payout, which reflects its specific index methodology and different concentration in high-yielding sectors like financial services.
Performance & risk comparison
| Metric | SPDW | SCHF |
|---|---|---|
| Max drawdown (5 yr) | (30.2%) | (29.1%) |
| Growth of $1,000 over 5 years (total return) | $1,577 | $1,610 |
The Schwab International Equity ETF (NYSEMKT:SCHF) leans into financial services at 24% and technology at 21% while holding 1,496 positions. Its largest positions include Samsung Electronics (005930.KS) at 3.34%, SK Hynix (000660.KS) at 2.82%, and ASML (NASDAQ:ASML) at 2.11%. This fund, which was launched in 2009, has a trailing-12-month dividend of $0.82 per share.
The State Street SPDR Portfolio Developed World ex-US ETF (NYSEMKT:SPDW) offers more granular exposure with 2,452 holdings. Its primary sector tilts include financial services at 23%, industrials at 19%, and technology at 14%. Top holdings include Samsung Electronics (SMSN) at 2.97%, SK Hynix (A000660) at 2.48%, and ASML (NASDAQ:ASML) at 1.87%. Launched in 2007, the State Street fund has a trailing-12-month dividend of $1.47 per share.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
For more than a decade, U.S. investors who ignored international stocks were rewarded for doing so. That changed dramatically in 2025. Developed market stocks outside the U.S. surged more than 35%, powered by a weakening dollar, European fiscal stimulus, AI-driven growth across Asia, and a broad rotation away from historically expensive U.S. valuations. Many investors who had neglected international exposure regretfully watched this rally from the sidelines.
But the opportunity may not be over. Even after that strong run, international stocks remain significantly cheaper than U.S. equities on most valuation measures. A continued dollar decline would further amplify returns for U.S.-based investors holding foreign assets.
SCHF and SPDW are two of the lowest-cost ways to access that opportunity in your portfolio, and they are close enough in construction that either serves as an excellent core international holding. SCHF is larger and slightly more established. SPDW holds more stocks for marginally broader diversification. For investors whose portfolios lean heavily domestic, adding either fund now is the more important decision than choosing between them.
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Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML. The Motley Fool has a disclosure policy.
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