SCHF vs. EFV: What’s The Difference?

The Schwab International Equity ETF (SCHF) and the iShares MSCI EAFE Value ETF (EFV) are both among the Top 100 ETFs. SCHF is a Schwab ETFs Foreign Large Blend fund and EFV is a iShares Foreign Large Value fund. So, what’s the difference between SCHF and EFV? And which fund is better?

The expense ratio of SCHF is 0.33 percentage points lower than EFV’s (0.06% vs. 0.39%). SCHF also has a lower exposure to the financial services sector and a lower standard deviation. Overall, SCHF has provided higher returns than EFV over the past 10 years.

In this article, we’ll compare SCHF vs. EFV. We’ll look at annual returns and fund composition, as well as at their portfolio growth and industry exposure. Moreover, I’ll also discuss SCHF’s and EFV’s risk metrics, holdings, and performance and examine how these affect their overall returns.

Summary

SCHF EFV
Name Schwab International Equity ETF iShares MSCI EAFE Value ETF
Category Foreign Large Blend Foreign Large Value
Issuer Schwab ETFs iShares
AUM 26.99B 14.37B
Avg. Return 6.43% 3.99%
Div. Yield 2.16% 2.94%
Expense Ratio 0.06% 0.39%

The Schwab International Equity ETF (SCHF) is a Foreign Large Blend fund that is issued by Schwab ETFs. It currently has 26.99B total assets under management and has yielded an average annual return of 6.43% over the past 10 years. The fund has a dividend yield of 2.16% with an expense ratio of 0.06%.

The iShares MSCI EAFE Value ETF (EFV) is a Foreign Large Value fund that is issued by iShares. It currently has 14.37B total assets under management and has yielded an average annual return of 3.99% over the past 10 years. The fund has a dividend yield of 2.94% with an expense ratio of 0.39%.

SCHF’s dividend yield is 0.78% lower than that of EFV (2.16% vs. 2.94%). Also, SCHF yielded on average 2.43% more per year over the past decade (6.43% vs. 3.99%). The expense ratio of SCHF is 0.33 percentage points lower than EFV’s (0.06% vs. 0.39%).

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Fund Composition

Industry Exposure

SCHF vs. EFV - Industry Exposure

SCHF EFV
Technology 11.55% 2.98%
Industrials 14.86% 11.6%
Energy 4.23% 6.6%
Communication Services 5.65% 6.46%
Utilities 3.09% 6.14%
Healthcare 11.05% 9.19%
Consumer Defensive 9.41% 6.82%
Real Estate 3.17% 5.06%
Financial Services 17.85% 26.55%
Consumer Cyclical 10.87% 9.0%
Basic Materials 8.26% 9.59%

The Schwab International Equity ETF (SCHF) has the most exposure to the Financial Services sector at 17.85%. This is followed by Industrials and Technology at 14.86% and 11.55% respectively. Real Estate (3.17%), Energy (4.23%), and Communication Services (5.65%) only make up 13.05% of the fund’s total assets.

SCHF’s mid-section with moderate exposure is comprised of Basic Materials, Consumer Defensive, Consumer Cyclical, Healthcare, and Technology stocks at 8.26%, 9.41%, 10.87%, 11.05%, and 11.55%.

The iShares MSCI EAFE Value ETF (EFV) has the most exposure to the Financial Services sector at 26.55%. This is followed by Industrials and Basic Materials at 11.6% and 9.59% respectively. Real Estate (5.06%), Utilities (6.14%), and Communication Services (6.46%) only make up 17.66% of the fund’s total assets.

EFV’s mid-section with moderate exposure is comprised of Energy, Consumer Defensive, Consumer Cyclical, Healthcare, and Basic Materials stocks at 6.6%, 6.82%, 9.0%, 9.19%, and 9.59%.

SCHF is 8.70% less exposed to the Financial Services sector than EFV (17.85% vs 26.55%). SCHF’s exposure to Industrials and Technology stocks is 3.26% higher and 8.57% higher respectively (14.86% vs. 11.6% and 11.55% vs. 2.98%). In total, Real Estate, Energy, and Communication Services also make up 5.07% less of the fund’s holdings compared to EFV (13.05% vs. 18.12%).

Holdings

SCHF - Holdings

SCHF Holdings Weight
Nestle SA 1.66%
Samsung Electronics Co Ltd 1.6%
ASML Holding NV 1.29%
Roche Holding AG 1.24%
Toyota Motor Corp 1.02%
LVMH Moet Hennessy Louis Vuitton SE 0.93%
Novartis AG 0.92%
Shopify Inc A 0.78%
AstraZeneca PLC 0.75%
SAP SE 0.74%

SCHF’s Top Holdings are Nestle SA, Samsung Electronics Co Ltd, ASML Holding NV, Roche Holding AG, and Toyota Motor Corp at 1.66%, 1.6%, 1.29%, 1.24%, and 1.02%.

LVMH Moet Hennessy Louis Vuitton SE (0.93%), Novartis AG (0.92%), and Shopify Inc A (0.78%) have a slightly smaller but still significant weight. AstraZeneca PLC and SAP SE are also represented in the SCHF’s holdings at 0.75% and 0.74%.

EFV - Holdings

EFV Holdings Weight
Novartis AG 2.41%
Toyota Motor Corp 2.21%
Commonwealth Bank of Australia 1.59%
Siemens AG 1.45%
Sanofi SA 1.42%
HSBC Holdings PLC 1.4%
TotalEnergies SE 1.35%
Allianz SE 1.23%
GlaxoSmithKline PLC 1.18%
Rio Tinto PLC 1.1%

EFV’s Top Holdings are Novartis AG, Toyota Motor Corp, Commonwealth Bank of Australia, Siemens AG, and Sanofi SA at 2.41%, 2.21%, 1.59%, 1.45%, and 1.42%.

HSBC Holdings PLC (1.4%), TotalEnergies SE (1.35%), and Allianz SE (1.23%) have a slightly smaller but still significant weight. GlaxoSmithKline PLC and Rio Tinto PLC are also represented in the EFV’s holdings at 1.18% and 1.1%.

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Risk Analysis

SCHF EFV
Mean Return 0.58 0.42
R-squared 98.16 92.15
Std. Deviation 15.08 16.53
Alpha 0.53 -1.77
Beta 0.99 1.05
Sharpe Ratio 0.42 0.26
Treynor Ratio 5.39 2.92

The Schwab International Equity ETF (SCHF) has a Alpha of 0.53 with a Standard Deviation of 15.08 and a Mean Return of 0.58. Its Beta is 0.99 while SCHF’s R-squared is 98.16. Furthermore, the fund has a Sharpe Ratio of 0.42 and a Treynor Ratio of 5.39.

The iShares MSCI EAFE Value ETF (EFV) has a Sharpe Ratio of 0.26 with a Standard Deviation of 16.53 and a R-squared of 92.15. Its Beta is 1.05 while EFV’s Mean Return is 0.42. Furthermore, the fund has a Alpha of -1.77 and a Treynor Ratio of 2.92.

SCHF’s Mean Return is 0.16 points higher than that of EFV and its R-squared is 6.01 points higher. With a Standard Deviation of 15.08, SCHF is slightly less volatile than EFV. The Alpha and Beta of SCHF are 2.30 points higher and 0.06 points lower than EFV’s Alpha and Beta.

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Performance

Annual Returns

SCHF vs. EFV - Annual Returns

Year SCHF EFV
2020 9.86% -2.78%
2019 22.15% 15.97%
2018 -14.39% -14.88%
2017 25.83% 21.22%
2016 2.88% 4.87%
2015 -2.44% -5.89%
2014 -4.44% -5.65%
2013 20.03% 22.61%
2012 17.12% 17.52%
2011 -12.32% -12.24%
2010 8.6% 3.18%

SCHF had its best year in 2017 with an annual return of 25.83%. SCHF’s worst year over the past decade yielded -14.39% and occurred in 2018. In most years the Schwab International Equity ETF provided moderate returns such as in 2016, 2010, and 2020 where annual returns amounted to 2.88%, 8.6%, and 9.86% respectively.

The year 2013 was the strongest year for EFV, returning 22.61% on an annual basis. The poorest year for EFV in the last ten years was 2018, with a yield of -14.88%. Most years the iShares MSCI EAFE Value ETF has given investors modest returns, such as in 2020, 2010, and 2016, when gains were -2.78%, 3.18%, and 4.87% respectively.

Portfolio Growth

SCHF vs. EFV - Portfolio Growth

Fund Initial Balance Final Balance CAGR
SCHF $10,000 $17,089 6.43%
EFV $10,000 $13,698 3.99%

A $10,000 investment in SCHF would have resulted in a final balance of $17,089. This is a profit of $7,089 over 10 years and amounts to a compound annual growth rate (CAGR) of 6.43%.

With a $10,000 investment in EFV, the end total would have been $13,698. This equates to a $3,698 profit over 10 years and a compound annual growth rate (CAGR) of 3.99%.

SCHF’s CAGR is 2.43 percentage points higher than that of EFV and as a result, would have yielded $3,391 more on a $10,000 investment. Thus, SCHF outperformed EFV by 2.43% annually.


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