Schwab International Equity ETF (SCHF) offers a higher dividend yield than iShares Core MSCI EAFE ETF (IEFA). SCHF is cheaper to own with a lower expense ratio. Both ETFs focus on developed international markets but differ in yield, volatility, and number of holdings. SCHF may appeal to income-focused investors.

SCHF tracks the FTSE Developed ex US Index with broad diversification and low costs, while IEFA targets the MSCI EAFE universe with a larger number of companies. SCHF has a 0.03% expense ratio and a 3.5% dividend yield, compared to IEFA’s 0.07% expense ratio and 2.9% yield. Both ETFs avoid major quirks and track broad, non-hedged indexes.

IEFA holds 2,600 stocks with a tilt towards financial services, industrials, and healthcare. Top holdings include Asml Holding, Astrazeneca, and Roche Holding. In contrast, SCHF focuses on financial services, industrials, and technology with a slightly more concentrated portfolio of 1,501 companies, including Asml Holding, Samsung Electronics, and Roche Holding. Both funds offer diversification across international equities.

For investors seeking international exposure, SCHF and IEFA are viable options. Both funds have similar performance metrics, but SCHF has a lower expense ratio of 0.03% and a higher dividend yield of 3.5%. Cost-conscious or income-focused investors may prefer SCHF over IEFA. Consider these factors when choosing an ETF for your investment portfolio.

Read more at Yahoo Finance: Which ETF Delivers Lower Fees and a Higher Dividend Yield?