Behold, gentle investors, a spectacle most curious! Two purveyors of financial comfort—the Schwab International Equity ETF and the SPDR Portfolio Developed World ex-US ETF—present themselves as champions of diversification, promising a share in the bounty of distant lands. Yet, upon closer inspection, do we not find a rather predictable parade of similarities, dressed in the finery of minute distinctions?
These funds, you see, are constructed upon the very same principle: to gather a multitude of foreign shares and present them as a shield against the vagaries of fortune. Both demand a pittance in annual fees—a mere 0.03%, or three farthings for every ten pounds invested—a generosity that might tempt even the most discerning soul. SCHF, however, boasts a dividend yield slightly more generous—a trifle, to be sure, but enough to suggest a modest superiority, as if one merchant were offering a slightly plumper goose at market.
Let us examine the numbers, presented with all the precision of a court accountant:
| Metric | SCHF | SPDW |
|---|---|---|
| Issuer | Schwab | SPDR |
| Expense ratio | 0.03% | 0.03% |
| 1-yr return (as of 2026-01-09) | 35.1% | 35.3% |
| Dividend yield | 3.3% | 3.2% |
| Beta | 0.86 | 0.88 |
| AUM | $57.7 billion | $35.1 billion |
Note: Beta, a measure of volatility, is presented for those who delight in such arcane calculations. The 1-yr return, alas, is but a fleeting glimpse of past performance, a siren song luring investors toward the shoals of future disappointment.
Observe, if you will, the composition of these portfolios. Both are filled with a multitude of shares—SCHF with 1,499, SPDW with a grander 2,390—a veritable cornucopia of foreign enterprise. Financial services and industrials dominate, with a sprinkling of technology—a predictable arrangement, as if the world’s economies were all cut from the same cloth.
SPDW favors Roche, Novartis, and Toyota; SCHF, Asml, Samsung, and Roche. The differences are, shall we say, negligible. It is akin to choosing between three equally fine carriages—one might be painted a slightly different shade, but they will all convey you to the same destination.
The larger portfolio of SPDW—$35.1 billion against SCHF’s $57.7 billion—is a matter of mere scale, a difference that will scarcely be felt by the average investor. To suggest otherwise would be to claim that a larger haystack is somehow more resistant to the winds of fortune.
And what of risk? Both funds have experienced a drawdown of approximately 30%—a sobering reminder that even the most diversified portfolios are not immune to the whims of the market. To believe otherwise is to succumb to the delusion that one can escape the inevitable ebb and flow of fortune.
In conclusion, gentle investors, a case can be made for either of these ETFs. Both offer a reasonable cost of entry and a degree of diversification. Yet, let us not mistake similarity for superiority. These funds are but two variations on a theme, two paths leading to the same uncertain destination.
Glossary (for those unfamiliar with the jargon):
ETF (Exchange-traded fund): A vessel for gathering shares, traded upon the exchanges like any other commodity.
Expense ratio: The annual toll demanded by the fund managers for their services.
Dividend yield: The meager reward offered to shareholders for their patience.
Beta: A measure of volatility, useful for those who enjoy quantifying uncertainty.
Developed markets: Lands deemed stable and prosperous, though even these are subject to the vagaries of fortune.
AUM (Assets under management): The total value of the shares held by the fund, a measure of its size but not necessarily its wisdom.
Max drawdown: The greatest loss suffered by the fund, a sobering reminder of the risks involved.
Total return: The sum of price changes and dividends, a measure of past performance but no guarantee of future success.
Core holding: A foundation upon which to build a portfolio, though even the strongest foundations can crumble.
Country-specific risk: The perils inherent in investing in foreign lands, where laws and customs may differ from our own.
Currency hedging: An attempt to shield investors from the fluctuations of exchange rates, a futile exercise in the face of inevitable change.
ESG overlays: A fashionable attempt to align investments with ethical principles, a distraction from the fundamental realities of the market.
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2026-01-25 02:22