SCHF vs. IEFA: Which ETF Delivers Lower Fees and a Higher Dividend Yield?

4 days ago 9

Jake Lerch, The Motley Fool

Sat, December 20, 2025 astatine 1:02 PM CST 5 min read

Schwab International Equity ETF offers a importantly higher dividend output than iShares Core MSCI EAFE ETF
iShares Core MSCI EAFE ETF holds much stocks and has a little beta, suggesting little volatility
Both funds stock akin apical holdings and assemblage weights, but SCHF is notably cheaper to ain connected an ongoing basis
These 10 stocks could mint the adjacent question of millionaires ›

The main differences betwixt Schwab International Equity ETF (SCHF)(NYSEMKT:SCHF) and iShares Core MSCI EAFE ETF (IEFA) (NYSEMKT:IEFA) prevarication successful yield, volatility, and fig of holdings, with SCHF offering a higher dividend payout but IEFA covering a wider portion of developed planetary markets.

Both ETFs purpose to supply vulnerability to developed markets extracurricular the U.S, but Schwab International Equity ETF (SCHF) tracks the FTSE Developed ex US Index with a absorption connected wide diversification and debased costs, portion iShares Core MSCI EAFE ETF (IEFA) targets the MSCI EAFE universe, including a larger fig of companies crossed much countries. This examination highlights their differences successful cost, risk, yield, and portfolio construction.

Metric

SCHF

IEFA

Issuer	Schwab	IShares
Expense ratio	0.03%	0.07%
1-yr instrumentality (as of Dec. 12, 2025)	21.2%	22.0%
Dividend yield	3.5%	2.9%
Beta	0.86	0.85
AUM	$54.8 billion	$161.9 billion

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months arsenic of Dec. 12, 2025.

SCHF is much affordable to ain with a 0.03% disbursal ratio compared to IEFA’s 0.07%. SCHF besides pays retired a overmuch higher dividend yield, which could entreaty to income-focused investors, portion IEFA’s output is considerably lower.

Metric

SCHF

IEFA

Max drawdown (5 y)	-29.17%	-30.41%
Growth of $1,000 implicit 5 years	$1,341	$1,330

IEFA holds 2,600 stocks and has a 13.1-year history. The money tilts toward fiscal services (22%), industrials (20%), and healthcare (10%), with apical positions successful Asml Holding, Astrazeneca, and Roche Holding. This wide sum whitethorn entreaty to investors seeking diversification crossed a larger handbasket of planetary equities.

In contrast, Schwab International Equity ETF focuses connected fiscal services (24%), industrials (19%), and exertion (11%), with a somewhat much concentrated portfolio of 1,501 companies. Its largest holdings see Asml Holding, Samsung Electronics, and Roche Holding. Both funds debar large quirks, tracking broad, non-hedged developed markets indexes.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.