It is a passive ETF managed by Schwab that tracks the FTSE Developed ex-US Index. It holds large- and mid-cap stocks from developed markets outside the US, diversified automatically on a market-cap-weighted basis.

It suits asset allocators who want to add global diversification to a portfolio concentrated in the US market, as well as long-term investors who want global exposure consolidated within the Schwab lineup.

It is an ETF run with a passive (index-tracking) approach, managed by Schwab.

It uses a passive strategy designed to provide broadly diversified exposure to large- and mid-cap stocks in developed markets outside the US. Europe, Japan, Canada and Australia carry heavy weights, and South Korea is classified as a developed market and therefore included, which sets it apart from MSCI-based ETFs.

• Tracks the FTSE Developed ex-US Index
• Includes South Korea as a developed market
• An ultra-low-cost global ETF in the Schwab lineup

Assets under management (AUM) stand at $67.0B, and the expense ratio is 0.03% per year.

Among the funds shown in the table, VEA is a direct substitute tracking the same FTSE developed markets index. IEFA and EFA track the MSCI EAFE and are variants that exclude South Korea. VXUS offers broad exposure that also includes emerging markets, and VT is a variant with worldwide exposure that includes the US.

It has shown relatively lower volatility than the US market, though short-term volatility has widened somewhat during periods of multi-currency exchange rate swings and across European and Japanese economic cycles.

It belongs to the group of mega global ETFs that attract both global diversification demand and money from investors who consolidate within the Schwab lineup. Inflows can become especially pronounced when concerns about US market valuations come to the fore.

Its main strengths are an ultra-low expense ratio and broad diversification across developed markets outside the US. The lack of emerging market exposure and multi-currency exchange rate risk are drawbacks to consider in advance.

Among the funds shown in the table, VEA is a direct substitute tracking the same FTSE developed markets index, with a similar expense ratio. IEFA and EFA track the MSCI EAFE and are variants that exclude South Korea. VXUS and VEU are variants with broad exposure that also includes emerging markets, and VT is a globally diversified ETF that includes the US. If you want to add emerging market weight separately, you can also consider variants such as VWO and IEMG.

Here are the points to review before investing in SCHF. Broad diversification across developed markets outside the US is its strength, but it is advisable to double-check the effects of multi-currency exchange rates, the absence of emerging markets and regional concentration before buying, and to review your holding size and diversification strategy at the same time.

Multi-currency exchange rate swings, European and Japanese economic fluctuations and the absence of emerging markets are the main drivers of short-term volatility and diversification limits. It is worth considering combinations with complementary ETFs.

It is regarded as a standard choice for a broadly diversified core holding in developed markets outside the US. For the same FTSE index, VEA is the fit. For an MSCI EAFE benchmark, IEFA and EFA fit. For broad exposure that also includes emerging markets, VXUS and VEU fit, and for worldwide diversification, VT is the suitable variant.