SCHF Overview

Comparison of ETFs: The Schwab International Equity ETF (SCHF) offers a higher dividend yield (3.5%) compared to the iShares Core MSCI EAFE ETF (IEFA) at 2.9%, while SCHF has a lower expense ratio of 0.03% versus IEFA's 0.07%.

Volatility and Holdings: IEFA holds more stocks (2,600) and has a lower beta, indicating less volatility, while SCHF has a more concentrated portfolio with 1,501 companies, focusing on broad diversification.

Sector Exposure: Both ETFs have significant exposure to financial services (22-24%) and similar top holdings, including ASML and Roche, but differ in their sector allocations, with SCHF leaning more towards technology.

Investment Appeal: Both funds are suitable for investors seeking international exposure, but SCHF may attract those focused on lower costs and higher income, while IEFA offers broader market coverage.

Record Inflows into ETFs: U.S.-listed ETFs saw $49.7 billion in inflows last week, bringing the year-to-date total to a record $1.33 trillion, although much of this activity was driven by quarter-end mechanics rather than new risk-taking.

Contrasting ETF Performance: The Vanguard S&P 500 ETF (VOO) experienced a significant inflow of $40.5 billion, while the iShares Core S&P 500 ETF (IVV) faced a $51.8 billion outflow, highlighting the complexities in interpreting ETF data.

Tech Sector Pullback: Investors reduced exposure to technology and semiconductor ETFs, with notable outflows from the Invesco QQQ Trust and the Direxion Daily Semiconductor Bull 3x Shares, indicating a more selective approach to tech investments.

Emerging Demand for Diversification: The Invesco S&P 500 Equal Weight ETF and Schwab International Equity ETF attracted substantial inflows, suggesting a shift towards diversification and a cautious stance against concentrated market leadership.

ETF Inflows: The HOII ETF experienced the largest increase in inflows, adding 20,000 units, which represents a 40.0% rise in outstanding units.

Author's Perspective: The opinions expressed in the article are solely those of the author and do not necessarily reflect the views of Nasdaq, Inc.

52 Week Range of SCHF: SCHF's share price has a 52-week low of $17.56 and a high of $24.28, with the last trade recorded at $24.18.

Understanding ETFs: Exchange-traded funds (ETFs) function like stocks, where investors buy and sell "units" that can be created or destroyed based on demand.

Monitoring ETF Flows: Weekly monitoring of shares outstanding helps identify ETFs with significant inflows (new units created) or outflows (old units destroyed), impacting the underlying holdings.

Disclaimer: The views expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.

Sale of Invesco QQQ Trust Shares: Miracle Mile Advisors, LLC sold 137,237 shares of Invesco QQQ Trust for an estimated $78.59 million, representing a 1.2% shift in their assets under management (AUM).

Retained Holdings: After the sale, the firm retains 263,399 shares of QQQ, valued at $158.14 million, which now constitutes 2.4% of their AUM and is the eighth-largest holding in their portfolio.

Performance of QQQ: As of October 20, 2025, Invesco QQQ Trust shares were priced at $611.54, showing a 23.7% increase over the past year and outperforming the S&P 500 by nearly 10 percentage points.

Investment Strategy: The sale appears to be a profit-taking move rather than a loss of confidence in the investment, as QQQ has had a strong performance year-to-date, increasing by approximately 20%.

Current Economic Landscape: Investors are facing uncertainty due to concerns over AI bubbles, overvalued U.S. asset prices, and geopolitical tensions, making diversification essential for portfolio protection.

Global Equity Exposure: Increasing investment in global equities, particularly through international equity ETFs, is recommended to mitigate risks associated with a potential U.S. stock market correction and to enhance overall portfolio diversification.