In October, SCHF’s annual fee was lowered as part of a broader batch of ETF fee cuts by Schwab.
Schwab currently offers the cheapest U.S.-listed ETFs on the market, including the Schwab U.S. Large-Cap ETF (NYSEArca: SCHX) and Schwab U.S. Broad Market ETF (NYSEArca: SCHB), which both come with a 0.03% expense ratio.
Charles Schwab has also been growing its ETF business through commission-free ETF trades on its ETF OneSource platform, which provides free trades on over 200 ETFs from 16 fund providers, including Schwab’s own suite of ETFs.
SCHF “is well diversified in terms of country exposure, with stocks from 24 foreign developed markets (the inclusion of South Korea and Canada in the portfolio creates some notable differences in country exposure compared with funds that do not track a FTSE index as well as the category average). We believe the fund’s sizable cost advantage should give it an edge over the long term: This advantage helped it outperform the category average by 10 basis points annualized from its inception in November 2009 through September 2016,” adds Morningstar.
Home to $7.7 billion in assets under management, SCHF allocates over 38% of its combined weight to Japan and the U.K. France, Germany and Canada combine for over 24% of the ETF’s geographic lineup.
Financial services and industrial stocks combine for 36% of the fund’s weight with consumer discretionary and staples names combining for almost 23%.