ETF Evaluator: Schwab International Small-Cap Eq ETF™ () Follow This ETF

Schwab International Small-Cap Eq ETF™ Overview

Schwab International Small-Cap Eq ETF™ (SCHC) is a passively managed International Equity Foreign Small/Mid Blend exchange-traded fund (ETF). Schwab ETFs launched the ETF in 2010.

The investment seeks to track as closely as possible, before fees and expenses, the total return of the FTSE Developed Small Cap ex U.S. Liquid Index. The index is comprised of small capitalization companies in developed countries outside the United States. The fund will invest at least 90% of its net assets in stocks, including depositary receipts representing securities of the index; such depositary receipts may be in the form of American Depositary Receipts, Global Depositary Receipts and European Depositary Receipts.

About Schwab International Small-Cap Eq ETF™ (SCHC)

There are 4 members of the management team with an average tenure of 5.69 years: Christopher Bliss (2017), David Rios (2017), Joselle Duncan (2023) and Mariela Jobson (2024). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: MSCI EAFE NR USD index with a weighting of 100% and FTSE Dvlp Small Cap Ex US Liquid NR USD index with a weighting of 100%. Schwab International Small-Cap Eq ETF™ has 2206 securities in its portfolio. The top 10 holdings constitute 3.4% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Schwab International Small-Cap Eq ETF™ is part of the Equity global asset class and is within the International Equity ETF group. Schwab International Small-Cap Eq ETF™ has 98.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 1.2% There is 98.2% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Schwab International Small-Cap Eq ETF™ has 0.3% of the portfolio in cash.

Assets Under Management

The fund has $5 billion in total assets, which is above the $3 billion average for the Foreign Small/Mid Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

SCHC Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Schwab International Small-Cap Eq ETF™ expense ratio is low compared to funds in the Foreign Small/Mid Blend category. Schwab International Small-Cap Eq ETF™ has an expense ratio of 0.06%, which is 85% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Schwab International Small-Cap Eq ETF™ has a portfolio turnover rate of 16%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 17% for the Foreign Small/Mid Blend category.

Recently, in the month of July 2026, Schwab International Small-Cap Eq ETF™ returned 0.9%, which earned it a grade of D, as the Foreign Small/Mid Blend category had an average return of 1.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Schwab International Small-Cap Eq ETF™ has a trailing yield of 3.48%, which is above the 2.98% category average. The fund normally distributes its income semi-annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Schwab International Small-Cap Eq ETF™ Grades

Year to date, the ETF has returned 6.2%, 2.5 percentage points worse than the category, which translates into a grade of F. The fund has returned 17.8% over the past year (grade of F), 14.7% over the past three years (grade of C) and 5.8% per year over the past five years (grade of C) and 7.7% per year over the past 10 years (grade of D).

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