A Cost-Effective International ETF With Focus on Japan, U.K.

Investors seeking to diversify their investment portfolios should consider broad international exchange traded funds, and a number of offerings also come with extremely cheap fees.

The Schwab International Equity ETF (NYSEArca: SCHF) is the cheapest international-equity ETF on the market. SCHF covers the FTSE Developed ex-US index, which is comprised of over 1,200 large- and mid-cap stocks taken from developed Europe, Canada, Asia and Australia, with a currently heavy country-focus on Japan and the United Kingdom.

Being mindful of fees has helped wealthier investors save on costs in investing over the long-term. Through cheap index-based ETF options, any long-term investor can also save on fees, paying expense ratios that are comparable to institutional fund share classes.

“Schwab International Equity’s 0.07% expense ratio makes it one of the cheapest ETFs in the foreign large-blend Morningstar Category. Its broad, market-cap-weighted exposure to large- and mid-cap stocks effectively diversifies company-specific risk and promotes low turnover,” according to Morningstar, which has a silver rating on SCHF.