Better International ETF: iShares' IEFA vs. Schwab's SCHE

The Motley Fool

by newsfeedback@fool.com (Robert Izquierdo)

February 14, 2026

AI-Generated Deep Dive Summary

The iShares Core MSCI EAFE ETF (IEFA) and the Schwab Emerging Markets Equity ETF (SCHE) offer investors low-cost options for international diversification, but they cater to distinct investment goals. IEFA focuses on developed markets outside the U.S. and Canada, providing stability and liquidity with a sector mix dominated by consumer discretionary and financials. SCHE, on the other hand, targets emerging markets, offering growth potential through exposure to high-beta sectors like technology and industrials. Both ETFs have low expense ratios, but their regional and sectoral focuses make them suitable for different investor strategies. While IEFA's developed market focus makes it less volatile (lower beta) compared to the S&P 500, SCHE's emerging market emphasis brings higher risk and reward. IEFA has shown more consistent performance in recent years, with a trailing one-year return of 12.37%, while SCHE delivered an impressive 14.68% over the same period. This difference highlights the trade-off between stability and growth potential. Both ETFs are highly liquid and accessible, with strong trading

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Originally published on The Motley Fool on 2/14/2026