Schwab International Equity ETF (SCHF)
Expense Ratio: 0.09%
The first pick in our portfolio of the best ETFs with low expense ratios is obvious. We simply must include the Schwab International Equity ETF (SCHF) because it’s the only international-focused fund that has an expense ratio of 0.10% or less.
SCHF has an expense ratio of just 0.09%, along with annual turnover of only 9%. It tracks the performance of the FTSE Developed ex U.S. Index, meaning it invests in both midcap and large-cap stocks from over 20 developed countries excluding the U.S.
The fund focuses mostly on Europe and Asia, with the regions weighted at 57% and 29% respectively and with Japan and the U.K. coming in as the most heavily weighted countries. Another thing to note: There is no representation from either Latin America or Africa, as those markets are considered emerging rather than developed. The top holding is Nestle (NSRGF), a company I’m quite familiar with, at just 1.5% of the portfolio.
Besides the international exposure, this is one of the best ETFs because it boasts a solid SEC yield of 2.49%.