The First Charles Schwab ETF to Break $10 Billion is a Cheap International Play

It has almost been eight years since its launch, but the Schwab International Equity ETF (NYSEArca:SCHF) has finally broken into the $10 billion in assets club.

The Schwab international Equity ETF, which launched in November 2009, has now accumulated $10.4 billion in assets under management. It is also the cheapest international ETF on the block with a 0.06% expense ratio.

“Of late, Schwab has seen particular investor interest in its international fund offerings as the U.S. market rally shows signs of fatigue and investors move to increase their international exposure,” Omar Aguilar, Chief Investment Officer for Equities at Charles Schwab Investment Management, said in a note.

International stocks are beginning to outpace U.S. equities after years of underperforming our domestic markets. Year-to-date, SCHF increased 14.1% while the S&P 500 gained 8.8%.

Many are also looking to foreign markets where valuations are much more attractive relative to U.S. equities. For example, SCHF shows a 15.0 price-to-earnings and a 1.6 price-to-book. In contrast, the S&P 500 is trading at a 19.9 P/E and a 2.8 P/B.