1 Reason I Am Never Selling This International ETF

• A well-rounded portfolio should see planetary stocks.

• The Schwab International Equity ETF holds mid- and large-cap companies from developed regions worldwide.

• This ETF has considerably outperformed the S&P 500 truthful acold successful 2025.

• 10 stocks we similar amended than Schwab Strategic Trust - Schwab International Equity ETF ›

One conception that has proven itself clip and again is the value of diversification. You should privation companies successful antithetic industries, of antithetic sizes, and successful antithetic geographical locations. With the U.S. being location to truthful galore world-class companies, the second tin sometimes get overlooked.

A genuinely diversified portfolio should see planetary stocks, adjacent if it's lone a tiny portion. That's wherefore the Schwab International Equity ETF (NYSEMKT: SCHF) tin beryllium a large buy-and-hold portfolio summation for those who privation vulnerability to planetary companies.

The Schwab International Equity ETF is an exchange-traded money that contains astir 1,500 mid-cap and large-cap stocks from developed planetary markets. Developed markets are those with unchangeable economies, mature fiscal markets, and (relatively) unchangeable governmental environments. This is antithetic from emerging markets, which are usually seen arsenic heading toward those aforesaid standards, but not rather determination yet (examples see China, India, and Brazil).

Below are the 10 astir represented countries successful this Schwab ETF:

1. Japan: 21.28%

2. United Kingdom: 12.26%

3. Canada: 10.76%

4. France: 8.50%

5. Germany: 7.78%

6. Switzerland: 7.56%

7. Australia: 6.16%

8. South Korea: 4.58%

9. Netherlands: 3.83%

10. Spain: 2.93%

The different astir 15% of the ETF is dispersed among different countries that are little than 1% represented.

More well-known companies successful the ETF see Samsung (1.33% of the ETF), HSBC (1.04%), Nestlé (0.99%), Toyota (0.89%), and Shopify (0.78%).

When you put successful SCHF, you shouldn't expect accordant market-beating returns (compared to the S&P 500). It's much of a hedge against the U.S. economy, protecting you erstwhile the U.S. system is successful a down play oregon erstwhile U.S. stocks go expensive.

An illustration of the second tin beryllium seen this year. With artificial quality (AI) and tech stocks surging successful valuations implicit the past mates of years, the S&P 500 has reached historically precocious levels, causing galore investors to look extracurricular the U.S. for cheaper and better-valued concern opportunities.

Through Dec. 22, the Schwab International Equity ETF has acold outperformed the S&P 500, up astir 29% compared to 16%.