Which Is the Better International ETF, Vanguard's VEA Targeting Developed Markets or Schwab's Emerging Market-Focused SCHE?
Vanguard's lower 0.03% expense ratio and $316 billion in assets make it the larger, cheaper option, while Schwab's emerging markets focus offers higher growth potential with concentrated tech exposure.
Overview
The primary difference between the Vanguard FTSE Developed Markets ETF (NYSEMKT:VEA) and Schwab Emerging Markets Equity ETF (NYSEMKT:SCHE) lies in their geographic focus, separating established global economies from rapid-growth emerging markets.
Investors often use these two funds to build the international portion of a balanced portfolio. While both offer broad exposure outside the United States, they target different economic tiers. The Vanguard fund tracks developed markets, whereas the Schwab fund targets nations still in various stages of industrialization.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.