Comparing SCHF and SPDW: Low-Cost International ETF Options

The Schwab International Equity ETF (SCHF) and the State Street SPDR Portfolio Developed World ex-US ETF (SPDW) have emerged as top-tier choices for investors seeking low-cost exposure to international developed markets. Both funds boast an identical, ultra-low expense ratio of 0.03%, making them highly efficient vehicles for long-term portfolio diversification. Despite their shared cost structure and similar 35% returns over the past year, the two funds differ in their underlying index methodologies, asset scale, and portfolio composition.

While SCHF manages a larger pool of assets at $66.2 billion compared to SPDW’s $40.8 billion, SPDW offers a more granular approach to diversification. With 2,452 individual holdings, SPDW provides a broader reach than SCHF, which holds 1,496 positions. These structural differences influence how each fund captures market movements; for instance, SCHF currently maintains a slightly higher concentration in the technology sector, whereas SPDW shows a more pronounced tilt toward industrials. Both funds, however, share top-tier holdings such as Samsung Electronics, SK Hynix, and ASML, reflecting the global influence of the semiconductor and tech sectors.

This comparison is particularly relevant as international equities regain momentum. After years of U.S. market dominance, 2025 marked a significant shift as developed non-U.S. markets surged due to a weakening dollar, European fiscal policies, and AI-driven growth in Asia. For investors who previously overlooked international exposure, these ETFs offer a cost-effective way to participate in global growth. Because international stocks continue to trade at more attractive valuation multiples compared to their U.S. counterparts, these funds remain compelling options for those looking to rebalance their portfolios and capture potential upside beyond domestic borders.