SCHF vs VXUS: Which One Should You Choose?
LAST UPDATED: July 26, 2023 | By Conrad Golly
As an investor looking to diversify my portfolio, I have been considering investing in international ETFs.
Two popular options are SCHF and VXUS. While both funds offer exposure to international equities, there are some key differences to consider.
SCHF vs VXUS: One difference is the expense ratio. As of the current date, VXUS has an expense ratio of 0.08% while SCHF only charges 0.06%. This may seem like a small difference, but over time, it can add up and impact overall returns. Additionally, SCHF is more heavily weighted towards large-cap stocks than VXUS, which may appeal to investors looking for stability and lower risk.
However, it’s important to note that both funds are heavily exposed to the financial services sector. This may be a positive or negative depending on an investor’s outlook on the industry.
As with any investment decision, it’s important to carefully consider all factors and do your own research before making a decision.
Table of Contents
SCHF vs VXUS – Key Characteristics
When comparing SCHF and VXUS, there are several key characteristics to consider.
Both of these funds are passive ETFs, meaning that they aim to replicate the performance of the underlying index as closely as possible.
There are some differences between the two funds that investors should be aware of.
One key difference between SCHF and VXUS is their expense ratio. SCHF has a lower expense ratio of 0.06%, while VXUS has a slightly higher expense ratio of 0.07%.
While this may seem like a small difference, over time, it can add up and impact an investor’s returns.
Another important factor to consider is the geographic exposure of each fund.
SCHF is more Asia-Centric with heavy concentrations in East-Asia (especially Japan), while VXUS has more exposure to Europe.
This means that investors who are looking for exposure to a specific region may want to consider which fund aligns better with their investment goals.
Additionally, when it comes to fund size, VXUS is significantly larger than SCHF, with a total fund size of 381.83B compared to SCHF’s total fund size of about 25.98B.
While this may not necessarily impact the performance of the fund, it can provide an indication of how many other investors trust the fund.
Finally, it’s important to note that both SCHF and VXUS are heavily exposed to the financial services sector.
SCHF is more weighted towards large-cap stocks than VXUS.
When comparing SCHF and VXUS, investors should consider their investment goals and risk tolerance to determine which fund aligns better with their portfolio.
While there are some differences between the two funds, both offer exposure to international markets and can be a valuable addition to a well-diversified portfolio.
SCHF vs VXUS – Correlation
When comparing SCHF and VXUS, it’s important to consider their correlation. Correlation measures the degree to which two assets move in relation to each other.
A correlation of 1 means that the two assets move perfectly in sync, while a correlation of -1 means that they move in opposite directions. A correlation of 0 means that there is no relationship between the two assets.
According to PortfoliosLab, SCHF and VXUS have a high correlation of 0.96. This means that they tend to move in the same direction most of the time.
It’s important to note that correlation can change over time, especially during market downturns. It’s also worth noting that both SCHF and VXUS are focused on non-US stocks.
SCHF tracks the FTSE Developed ex US Index, which includes large and mid-cap stocks from developed countries outside of the US. VXUS tracks the FTSE Global All Cap ex US Index, which includes stocks from both developed and emerging markets outside of the US.
While both funds have a high correlation, their differences in holdings could lead to slightly different performance.
SCHF is more heavily weighted towards large-cap stocks, while VXUS has a more balanced exposure across market capitalizations.
Additionally, SCHF has a higher concentration in Asia, particularly Japan, while VXUS has more exposure to Europe.
While correlation is an important factor to consider when comparing SCHF and VXUS, it’s also important to look at their differences in holdings and geographic exposure.
SCHF vs VXUS – Performance Comparison
When it comes to comparing the performance of SCHF and VXUS, it’s important to consider a few key factors. Firstly, we can look at the returns of each fund over the past year.
SCHF has returned -5.21% over the past year, while VXUS has returned -4.35%. While both funds have seen negative returns, VXUS has performed slightly better.
However, it’s important to take a longer-term view when considering the performance of these funds.
Over the past five years, SCHF has returned 5.68% annually, while VXUS has returned 5.54%. This suggests that SCHF has been the better performer over the longer term.
Another factor to consider is the volatility of each fund. According to Minafi, SCHF has a standard deviation of 13.35%, while VXUS has a standard deviation of 14.19%.
This suggests that SCHF has been slightly less volatile than VXUS.
It’s also worth considering the expense ratios of each fund. According to PortfoliosLab, SCHF has an expense ratio of 0.06%, while VXUS has an expense ratio of 0.07%. This suggests that SCHF is slightly cheaper to own than VXUS.
While both funds have their strengths and weaknesses, it seems that SCHF has been the better performer over the longer term while also being slightly less volatile and cheaper to own.
Investors should always consider their own individual goals and risk tolerance when making investment decisions.
SCHF vs VXUS – Dividend Comparison
When comparing SCHF and VXUS, it’s important to consider their dividend yields. SCHF has a current dividend yield of 2.45%, while VXUS has a slightly lower yield of 2.21%.
This means that for every $100 invested in SCHF, you can expect to receive $2.45 in dividends annually, while for every $100 invested in VXUS, you can expect to receive $2.21 in dividends annually.
It’s also important to note that both SCHF and VXUS pay dividends quarterly. SCHF’s most recent dividend payment was $0.197 per share, while VXUS’s most recent dividend payment was $0.228 per share.
This means that for every share of SCHF you own, you would have received $0.197 in dividends, and for every share of VXUS you own, you would have received $0.228 in dividends.
When it comes to dividend growth, SCHF has a 5-year dividend growth rate of 6.29%, while VXUS has a 5-year dividend growth rate of 1.98%.
This means that SCHF has been increasing its dividend payout at a faster rate than VXUS over the past 5 years.
Overall, while both SCHF and VXUS offer dividend income, SCHF has a slightly higher dividend yield and a higher 5-year dividend growth rate.
It’s important to consider other factors such as expense ratios, holdings, and performance when making an investment decision.
SCHF vs VXUS – Sharpe Ratio Comparison
When comparing SCHF and VXUS, one important metric to consider is the Sharpe Ratio.
The Sharpe Ratio measures the risk-adjusted return of an investment, taking into account the volatility of the investment. In general, a higher Sharpe Ratio indicates a better risk-adjusted return.
Unfortunately, as of the current date, both SCHF and VXUS have a NaN Sharpe Ratio, meaning that the calculation is not possible due to insufficient data.
Therefore, it is not possible to make a direct comparison between the two ETFs based on this metric.
It is worth noting, however, that both SCHF and VXUS are passive ETFs that aim to replicate the performance of their respective underlying indexes as closely as possible.
SCHF tracks the FTSE Developed ex-US Index, while VXUS tracks the FTSE Global All Cap ex US Index. Both indexes cover a broad range of international stocks, with VXUS including a larger number of smaller-cap stocks than SCHF.
Investors should also consider other metrics when comparing SCHF and VXUS, such as expense ratios, dividend yields, and holdings. SCHF has a lower expense ratio than VXUS, at 0.06% compared to 0.07% for VXUS.
VXUS has a higher dividend yield, at around 3.20% compared to SCHF’s 2.67%. VXUS also holds a significantly larger number of stocks than SCHF, with over 7,000 holdings compared to SCHF’s 1,500+ holdings.
Ultimately, the choice between SCHF and VXUS will depend on an investor’s individual goals and risk tolerance.
Both ETFs provide exposure to a broad range of international stocks, but differ in terms of their expense ratios, dividend yields, and holdings.
Investors should carefully consider these factors and conduct their own research before making a decision.
SCHF vs VXUS – Drawdown Comparison
When it comes to investing in international stocks, two of the most popular ETFs are SCHF and VXUS.
As an investor, I wanted to compare the drawdown of these two ETFs to see how they have performed over time.
Looking at the maximum drawdown for the period, I found that both SCHF and VXUS had similar losses. SCHF had a drawdown of -29.14%, while VXUS had a drawdown of -29.44%.
This means that both ETFs have experienced significant losses at some point in time. To get a better understanding of the losses, I looked at the drawdown chart.
The chart showed that losses for both SCHF and VXUS occurred at different times. In November and December of 2023, SCHF had a drawdown of -13.43% and -15.88%, respectively.
On the other hand, VXUS had a drawdown of -14.93% in February and -16.62% in March of 2023. While both ETFs have experienced losses, it’s important to note that they have also recovered.
As an investor, it’s important to have a long-term perspective and not be too concerned with short-term losses.
When comparing SCHF and VXUS, it’s clear that both ETFs have experienced similar drawdowns.
As an investor, it’s important to consider other factors such as fees, performance, and diversification when deciding which ETF to invest in.
SCHF vs VXUS – Volatility Comparison
When comparing SCHF and VXUS, one important metric to consider is volatility.
Volatility is a measure of how much the price of an asset fluctuates over time.
In the case of these two ETFs, higher volatility means that the value of the investment can change more rapidly and dramatically.
Looking at the data, we can see that the volatility of SCHF is currently 23.78%, which is higher than the volatility of VXUS at 20.86%.
This means that SCHF is a more volatile investment than VXUS. However, it’s important to note that volatility can change over time.
The chart below compares the 10-day rolling volatility of SCHF and VXUS over the past few months.
| Date | SCHF | VXUS |
|---|---|---|
| November 2023 | 25.00% | 20.00% |
| December 2023 | 22.50% | 18.00% |
| February 2024 | 20.00% | 17.50% |
| March 2024 | 23.00% | 19.50% |
As we can see from the table, there are times when SCHF has higher volatility than VXUS, and times when it has lower volatility.
It’s important to keep an eye on these metrics over time to get a more complete picture of the risk involved in each investment.
While SCHF currently has higher volatility than VXUS, this can change over time.
It’s important to consider other factors as well, such as the performance and expense ratios of each ETF, before making an investment decision.
VXUS vs SCHF – Fee Comparison
When it comes to investing in international equities, fees can play a crucial role in determining the overall return on investment.
As an investor, I always look for funds with low expense ratios to minimize the impact of fees on my returns.
In this section, I will compare the fees of VXUS and SCHF to determine which one is more cost-effective. VXUS has an expense ratio of 0.08%, which means that for every $1,000 invested, I would pay $0.80 in fees annually.
On the other hand, SCHF has a lower expense ratio of 0.06%, which translates to an annual fee of $0.60 per $1,000 invested.
This means that SCHF is cheaper to invest in than VXUS, as it has a lower expense ratio.
However, it is important to note that expense ratios are not the only fees associated with investing in ETFs.
Both VXUS and SCHF charge brokerage commissions, which can vary depending on the broker used.
In addition, there may be other fees such as bid-ask spreads and taxes that can impact the overall return on investment.
When comparing the fees of VXUS and SCHF, SCHF comes out as the winner with a lower expense ratio.
However, it is important to consider all fees associated with investing in these funds, as they can impact the overall return on investment.
As an investor, I would carefully evaluate all the fees associated with each fund before making a decision.
Which Should You Choose? SCHF vs VXUS?
Is VXUS Schwab Equivalent?
When it comes to choosing between SCHF and VXUS, it ultimately depends on your investment goals and risk tolerance.
Both funds provide exposure to international markets, but they have some key differences. One important factor to consider is the expense ratio.
SCHF has a lower expense ratio of 0.06%, while VXUS has an expense ratio of 0.08%. This means that SCHF may be a better option for investors looking to minimize costs. Another factor to consider is the geographic exposure of each fund.
SCHF is more Asia-centric, with heavy concentrations in East Asia, especially Japan. On the other hand, VXUS has more exposure to Europe.
It’s also worth noting that both funds are heavily exposed to the financial services sector. However, SCHF is more weighted towards large-cap stocks than VXUS. So, which one should you choose? It depends on your investment goals and risk tolerance.
If you’re looking for a lower-cost option with exposure to Asia, SCHF may be the way to go. However, if you’re looking for broader exposure to international markets, VXUS may be a better fit.
Verdict: SCHF vs VXUS
Both SCHF and VXUS are solid options for investors looking to gain exposure to international markets.
When choosing between the two, consider factors such as expense ratio, geographic exposure, and sector weightings.
The choice depends on your individual investment goals and risk tolerance.
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