From The Motley Fool · Dana George · · 1m
Schwab vs iShares ETF Comparison
Schwab's low-cost developed market ETF outperforms iShares' higher-fee emerging markets fund.
In brief
Schwab's low-cost developed market ETF outperforms iShares' higher-fee emerging markets fund. Schwab International Equity ETF offers lower fees and higher dividends than iShares Emerging Markets ETF for most investors. Originally reported by The Motley Fool.
Schwab ETF Overview
Schwab International Equity ETF offers low-cost exposure to developed non-U.S. economies with a 0.03% expense ratio.
iShares ETF Overview
iShares MSCI Emerging Markets ETF targets developing nations with a 0.72% expense ratio and 1.8% dividend yield.
Performance Comparison
Schwab's 1-year return of 19.0% beats iShares' 21.1% over the past year, but Schwab has a lower drawdown of 28.8% versus 33.8%.
Key Differences
Schwab focuses on financial services, technology, and industrials with a 3.1% dividend yield, while iShares targets IT, financials, and consumer discretionary with 1.8% yield.
Which ETF to Choose
Schwab is better for most investors seeking low-cost developed market exposure, while iShares suits those comfortable with higher volatility and political risk.
The one thing
Schwab International Equity ETF offers lower fees and higher dividends than iShares Emerging Markets ETF for most investors.
