Great question, Sarim! Let’s break it down simply:
🌍 What is an
International ETF?
🧠 Definition:
An International ETF (Exchange-Traded Fund) is a type
of investment that lets you own shares in companies from other countries
— not just the U.S.
You buy one ETF, but inside it are dozens or
hundreds of foreign stocks. It's like a basket of global companies.
✅ Why Use International ETFs?
|
Benefit |
What It Means |
|
Diversification |
Spreads your money across different countries (less risk) |
|
Global Growth |
Lets you invest in fast-growing markets (like India,
Vietnam) |
|
Easy Access |
No need to open foreign accounts – just buy it on Schwab |
|
Low Cost |
Lower fees compared to buying many individual foreign
stocks |
🧺 Examples of
International ETFs (You Can Buy on Schwab)
|
Ticker |
Name |
Focus Area |
|
SCHF |
Schwab International Equity ETF |
Large companies in Europe, Japan, etc. |
|
VEA |
Vanguard FTSE Developed Markets ETF |
Developed markets outside the U.S. |
|
VXUS |
Vanguard Total International Stock ETF |
All countries (developed + emerging) |
|
VWO |
Vanguard FTSE Emerging Markets ETF |
Growing economies (India, Brazil, etc.) |
|
INDA |
iShares MSCI India ETF |
Companies in India only |
|
EWJ |
iShares MSCI Japan ETF |
Japan-focused companies |
🔄 How It Works
- You
buy it just like a regular stock on Schwab.
- It automatically
includes foreign companies.
- The
value moves up/down based on how those international companies perform.
🧭 Simple Example:
If you buy SCHF:
- You
don’t own just 1 company.
- You
get exposure to many large companies from Europe, Japan, Canada, and
more, all in one ETF.
Would you like a beginner's recommendation on which international ETF to start with? Or want to compare two ETFs like SCHF vs VXUS?