Further supporting the shift toward international markets, many investors have pointed to the improving macroeconomic conditions and rising corporate earnings in foreign markets.
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The Schwab International Equity ETF tries to reflect the performance of the FTSE Developed ex US Index, which is comprised of large and mid-cap stocks of developed countries outside the U.S.
“Its portfolio reflects the composition of the foreign developed equity market, effectively diversifies company-specific risk, and promotes low turnover,” Morningstar analyst Matthew Diamond said in a research note.
The fund includes exposure to over 1,100 stocks from foreign developed markets, including South Korea and Canada, and leans toward large multinational companies with a large global footprint. Nevertheless, the ETF’s portfolio is heavy on Japan and U.K. exposure, which account for a little over one-third of holdings.
For more information on international markets, visit our global ETFs category.