SCHE
Schwab Emerging Markets Equity ETF
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21 Year Old Looking for Most Value/Growth for a Roth IRA
Why diversify a growth portfolio with international markets?
I want to increase my exposure to emerging markets with ETFs and I'm considering IEMG, SCHE and VWO. The overlap between them is ~ 50%. Would it make more sense to hold just one of them or break down my emerging markets portion into 2 or 3 different funds?
Emerging Market index funds holding Russian companies?
Anyone have any good stock mutual funds or stock ETFs that are actively managed emerging markets for int. emerging market exposure?
Why does VWO have P/E Ratio of 5, while other EM ETFs have P/Es more like 15-20?
Why does VWO have P/E Ratio of 5, while other EM ETFs have P/Es more like 15-20?
Portfolio allocation advice for 21-year old (through Schwab)?
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Pretty solid start for 3 months in, but you’ve got some overlap. SWTSX already covers large caps like SWLGX, and SWISX + SCHE gives a slight tilt abroad but still leaves you heavy on the US. PLTR and IBIT are just pure bets, so know they’ll swing hard. Personally, I’d simplify and focus on broad exposure first. Check this breakdown of your allocation: [https://www.insightfol.io/en/portfolios/report/ee02071325/](https://www.insightfol.io/en/portfolios/report/ee02071325/)
Looks like a good blend overall imo. The only thing I would mention is an international developed market ETF like IDEV doesn't target emerging markets like China or Taiwan so you're losing some diversification there. Unless that was your intention you might consider weaving in some emerging market ETF like SCHE/VWO or just buying a total international market ETF like VXUS instead.
SCHY, SCHE, and GdX. Simple as that. Emerging markets and gold stocks will do well.
I started investing in January and my emerging market ETF (SCHE) has outperformed my VOO by 20%. I know this won’t be the case forever, but just aiming to diversify a bit, it’s really worked out.
And I'll keep moving my SCHG to SCHF, small caps and SCHE little by little. Way too uncomfortable with the Ai boon right now. Over the past year I've moved from 100% growth fund into 70/30 and looking to draw it to 50/50 over the next six months. I'm not ready to commit my entire retirement dreams on a few American corporations that keep pushing AI nonsense as the cure to all their ailments.
I made the mistake initially of having my 401k and Roth almost mirroring each other. So if you can find low cost index funds then you should have that as bulk or your 401k and at least in my humble opinion take different risks in your brokerage account. e.g. I used to have S&P 500 index fund, small cap, in 401k and SPY, SCHA in my Roth brokerage. Then realized that it was the same risk and in my brokerage account I have what 401k doesn't offer (bit of SCHG, SCHD, SCHH, SCHE, GLD, BTC). hopefully this helps.
For total international (non-US), it’s VXUS or VEU for Vanguard. VXUS has more small caps as a % though VEU has a slight performance advantage most years. The iShares IXUS is between the 2. Some separate international further out into 3 developed to 1 emerging (so VEA, IDEV or SCHF to VWO, IEMG, or SCHE).
For total international (non-US), it’s VXUS or VEU. VXUS has more small caps as a % though VEU has a slight performance advantage most years. The iShares IXUS is between the 2. Some separate international further out into developed> emerging (so VEA, IDEV or SCHF>VWO, IEMG, or SCHE).
Not the I agree with your assessment , but if you want to limit your exposure to these big tech you can 1. Buy value funds like SCHV or VTV, the tech companies are usually classified as growth so value funds won't hold a lot of tech companies but will still give you large cap exposure 2. You could buy some equal weighted S&P 500 fund like RSP, as its an equal weight fund it will allocate much more to the smaller components of the S&P500 outside the large tech companies (nvidia , msft, goog, meta, apple) 3. Buy foreign funds like VXUS / SCHF/SCHE 4. As you said allocate to small/midcap funds like VXF 5. Allocate to bonds, if the large companies take a down turn, they are so large they could drag other stocks down as well, so invest in some safe haven asset like bonds.
If you feel overweight in tech just drop QTUM. Your portfolio really does not make sense You have VOO/SCHB great Then you add QTUM (TECH AI) Then to balance out your over exposure to tech you add SCHD? Just drop QTUM ? As you said VOO/SCHB is already allocated a healthy amount to tech , so why add more tech only to then counter it with SCHD? Just do SCHB, if you feel SCHB is too tech heavy probably add some foreign funds like SCHF or SCHE
Yup. My Roth IRA has been a mix of SCHB SCHE and SCHF for like 6 years since I started it.
SCHD, SCHG, and SCHF with SCHE sometimes.
If you’re into indexing, you can either do an all ex-US fund like VXUS or split it between developed and developing, like SCHF and SCHE. If you choose the latter route, make sure you know what’s in each fund because China is sometimes considered one or the other depending on whose fund it is (you want China if you want global exposure, but you don’t want to unknowingly double dip on China). There’s some really interesting new research on weighing developed ex-US and US returns, so it might be worth splitting into developed and developing (beyond just the market cap weight) depending on how you feel about that research. Ben Felix has a YouTube video called “The Most Controversial Paper in Finance” if you’re curious.
Yep. I think it's easier to use something like VEA and VWO though if you just want the full caps, rather than needing to extend SCHF and SCHE. Most often what you hear from folks who want to target that segment is that they're trying to capture the factor investing small cap value premium, and so they're looking at ISVL, AVDV, etc. At market caps, those segments are so small that I really don't think it's a big deal. https://www.bogleheads.org/wiki/Blackrock_iShares btw has a good table of etfs from the major providers if you want to compare.
SCHA is redundant because you already have US small cap in SWTSX. SCHE is not redundant because you don't have exposure to emerging markets. A core global stock position using Schwab funds would be SCHB (or SWTSX), SCHF, and SCHE. F and E are only large cap, so if you wanted to fill in there you'd need to add additional funds.
Is it too redundant to add SCHA and SCHE to my portfolio of SCHG SCHF and SWTSX? I have a large growth tilt going that I am ok with but I want to be sure I am fully diversified too. I am 23 and will hold this for 40 years
Lots of Europe, lots of international defense. As for China, I’m only exposed to their stocks within emerging markets ETFs. All have done really well this year. See performance charts for EUAD, SHLD, VGK, SCHE, VEA, VYMI for reference. I also bought some GRAB as a single international stock.
Well, I can tell you what I use. But I don't think you actually _do_ care about that - you want to know what _you_ should use. And since we are different people with different situations, it would be intellectually lazy of me to just jump to the end, and not helpful (and being helpful is why I'm here). If you insist though: portfolio: - 85: # equity - 60: # US - 85: SCHB # broad - 15: AVUV # small cap value tilt - 40: # international - 75: # developed ex-US - 85: SCHF # broad - 15: AVDV # small cap value tilt - 25: # emerging - 85: SCHE # broad - 15: AVES # value tilt - 15: # bonds - 100: SCHQ # long-term treasuries
Not interested in opinions/covered call ETFs. I like SCHF, SCHY and SCHE instead of VXUS, lower fees and I can allocate the way I want to emerging markets, etc.
For your IRA you could buy dividend funds. SCHD and for foreign: SCHF, SCHE
SCHE since it's just SCHF with an extra _
If you already have a US ETF in your mix, SCHE. If you want US and international exposure SCHF. SCHF also has a lower expense ratio, so I would bias towards that.
>would it be beneficial to do 3:1 SCHF/SCHE? That is a reasonable approximation of what the ex-US market cap weight looks like. >or choose one. Have you considered VXUS or IXUS or similar? These combine developed and emerging into one, at market cap weight. >my biggest holding is SCHG Are you aware that despite recent history, it is the complete opposite corner of the style box that tends to do best in the long run, small and value?
That misses the excellent run that SCHE would have had from 2000-2010.
I have SCHF. Plan to add some SCHE next week.
The problem with the S&P 500 index funds is the faulty weighting algorithm. The idea was to be diversified. They now hold 30% of the portfolio in a handful of stocks in the same sector. That’s not diversified. So, no more buying an S&P 500 index fund and chilling. Not a huge issue, but yes, it’s smart to add some other funds and/or stocks so your portfolio is more diversified. For foreign, I like SCHF and SCHE. They don’t overlap, pay dividends, and I don’t have to pay foreign fees and taxes to own foreign stocks.
Thank you very much for the information. But I have no idea about SHCF and SCHE. Would you be able to tell me more about it?
I buy SCHF and SCHE. They don’t overlap. If you buy foreign individual stocks, there’s a $50 fee to buy and you will probably also have foreign taxes withheld. For instance I looked into buying Nestle, and they withhold 15% Swedish taxes. But SCHF holds it, and deals with all that for me in an ETF.
So do you think SCHB SCHE SCHF for longterm would be good and diversified
It's a weird place for this information, but if you look at https://www.bogleheads.org/wiki/Blackrock_iShares it has tables that show comparable funds across the major etf providers. The most common portfolio versions of this are: 1. Developed markets fund 2. Developed markets fund + emerging markets fund 3. Combined developed+emerging fund VXUS is Vanguard's category 3 and is very popular. I use Schwab's SCHF and SCHE as a category 2 option. Some of the funds you'll find invest only in large caps, while others include some mid caps and maybe small caps as well. You'll need to decide what you want. Also take a look at https://www.bogleheads.org/wiki/Developed_market_index_returns and https://www.bogleheads.org/wiki/Emerging_markets_index_returns to see how the different indexes have slightly different sets of countries included; if you have strong feelings on that make sure to pick a fund that uses the appropriate index.
Late 20s, holding this for long term: SCHB - 40% SCHF - 20% SCHE - 20% SCHZ - 10% BNDX - 10%
The easiest thing is to buy VT, which covers (as best they can) the entire world market in market cap weighting. If you want to manually control the weighting though there are plenty of cheap funds. VXUS is Vanguard's. It sounds like you're at Schwab; they have SCHF and SCHE for developed and emerging markets respectively, or some mutual funds I don't remember the names of offhand.
SCHH is Schwab’s REIT ETF (since you asked about REITs). SCHA is US small-cap. SCHC is foreign (developed) small-cap. For broader market ETFs you can go with SCHB (broad US market), SCHF (broad foreign (developed) market) and/or SCHE (broad foreign (emerging) market).
If you want international exposure I would say VXUS as I still think emerging markets are still important for diversification If you want to control the split you can invest in SCHF (developed) and SCHE (emerging) with schwab or VEA (developed) and VWO (emerging) with vanguard
I immediately think of covered calls when you say "hedge". If you sell a call, you make money when the stock is flat or goes down by promising to sell to somebody if the price gets high enough. Essentially, you're temporarily selling some of your upside for cash and reducing your "delta" (an options term roughly meaning your exposure to price changes). r/thetagang and r/options have info in their wikis to help you get started. In my opinion, looking for short opportunities is looking for trouble most of the time. "Markets can stay irrational longer than you can stay solvent" and all that. As far as diversification goes, I'm big on having (a) global diversification and (b) market cap diversification. Stock standard international indexing gives you VXUS or your own blend of Emerging and Developed (SCHF and SCHE, for example). I hold AVUV and XMMO as my factor investing/market cap diversification plays. NTSX is awesome and it sounds like exactly what you're looking for as far as "sp500, but better resilience and less volatility". You could sort of get a DIY version by adding TMF to your US Large Cap holdings or playing with derivatives on bonds/bond ETFs, but just holding NTSX for some of that sweet, sweet risk parity juice is enough for me.
I'm an all-American free market capitalist, yet somehow I trust Xi Jinping more than I trust Donald Trump. If that's the case for me, it's definitely the case for every foreign leader. Globalization is continuing, just without us. Obviously Chinese communism sucks, but American fascism isn't any better. Liberal democracy is the best form of government (meaning classical liberalism, not liberal/conservative or Democrat/Republican.) The problem for America is that there's a ton of liberal countries out there now. The US isn't even in the top 10 on the Heritage Foundation's Index of Economic Freedom and Cato Institute's Human Freedom Index. https://www.heritage.org/index/ https://www.cato.org/human-freedom-index/2024 America is rich because American businesses generate revenue from all around the world. America First policies are cutting off our biggest inflows. Trump says he's making deals, but who wants to waste time negotiating deals on every little thing? I don't negotiate investments in small businesses. I buy stocks, bond, and options at market price in an open free market auction. This is why the involvement of politicians, lawyers, union leaders, etc. in a given investment is generally associated with lower returns. The US market has outperformed foreign markets for a long time. But I think we might look back at this as the inflection point where VXUS, VWO, SCHE, etc. started outperforming VOO, SPY, VTI, etc. If you've been overweighting US stocks in your actual, non-gambling, portfolio, I think now's the time to get back to global market weight.
A 50/50 split between **SWISX** (for stability in developed markets) and **SCHE** (for growth potential in emerging markets with a low expense ratio) is a solid strategy. This approach balances risk, cost, and growth potential. SWISX offers safety with that low 0.06% expense ratio, while SCHE gives you emerging market exposure at a much lower cost (0.11%) than SFENX. This way you can at least test the waters without high fees.
Here are 4 ETFs that invest primarily in "emerging markets". Looking at the 5 year record, it's not something I'm going to dive into any time soon. * Vanguard FTSE Emerging Markets ETF (VWO)5-year annualized return (as of December 31, 2023): 3.23% * iShares Core MSCI Emerging Markets ETF (IEMG)5-year annualized return (as of December 31, 2023): 3.13% * Schwab Emerging Markets Equity ETF (SCHE)5-year annualized return (as of December 31, 2023): 3.17% * SPDR Portfolio Emerging Markets ETF (SPEM)5-year annualized return (as of December 31, 2023): 3.78%
Agreed. I never understood why SCHE have 30% or little so in China. That’s too much for what’s going on there. IDEV a good choice?
80% in SWPPX and the rest in SCHE.
90% SCHG 10% SCHE. Personally I like 50% SCHG 20% SCHA 20% SCHM 10% SCHE
Schwab rough equivalents would be SCHB and SCHF (though the latter is developed only and excludes small-cap while VXUS is total (SCHC is developed small-cap and SCHE is emerging markets (excluding small-cap)).
40% Large Cap (SCHX), 25% Mid Cap (SCHM), 25% Small Cap (SCHA), 10% Emerging Markets (SCHE)
>10k index funds...I have set monthly recurring of 350$ deposit to VOO You are mostly in stocks, which is appropriate for a 31 year old. But your stock investments are primarily large cap (large company) US stocks. If you want to diversify, the obvious directions are smaller companies and non-US companies. For smaller companies look at AVUV. For international stocks look at something like VXUS, SCHF, or SCHE. If you are interested in India specifically look at INDA, EPI, and FLIN.
Please critique or give pointers on my portfolio. I’m in this for the long haul so I can take on risk and deal with it no problem. SWPPX SCHD SCHA SCHH SCHF SCHE
SWPPX and SCHX are almost the same thing (SWPPX is S&P500 while SCHX is dow jones large cap) they are a bit different indexes but they are going to perform almost the same or very very close All of the companies arel also contained in SCHH and SCHD so unless you want to be over weight real estate or dividends/value However SCHE and SCHF have no overlap as they hold foreign funds so I would keep those as it So nothing wrong with holding those but I might consolidate SWPPX and SCHX and just hold one or the other
I have my Roth IRA on Charles Schwab. Currently, I have my money in SWPPX, SCHH, SCHE, SCHF, SCHD, SCHX, SCHA. I chose these trying to mirror a target date index fund but didn't really want bonds included so I did everything individually and I also like the process of buying whatever I choose every week. I.guess I want to know if these funds are pointless if I'm investing in SWPPX and if there is a lot of overlap here.
The sub does have a bit of a vangaurd bias as lots of us are bogleheads but also because vangaurd sort of invented ETFs lots of people just know vangaurd tickers better One thing about SWISX however its only holds companies from developed markets and is missing emerging markets Schwab does have one emerging market index fund SCHE as an ETF . Some of the iShares funds are just not as well known but there is nothing wrong with them Vangaurd funds are sort of like the kleenex of index funds, as far as active vs passive well thats probably about as hard as just stock picking what people are not great at either Even if there is a hot stock that is up 100% in the past few years it doesn't mean going forward its a good investment just like avtive funds I will say active management is mostly helpful in bond funds for varous reasons and can routinely outperform the index
SCHF lacks emerging markets, if those are desired they'd need to either add SCHE or use something like VXUS instead of SCHF. There may be a gaop created by using VB instead of VXF as well when paired with S&P 500.
I probably shouldn’t’ve gotten long emerging markets today (+100 SCHE). I guess I’ll be able to average down as long as all my short puts done get assigned. I guess I won’t be averaging down.
It's what I use fwiw. I want most of my ex-US equities to be large caps in developed economies so I hold VEA. I hold a little SCHE for exposure to emerging economies.
For what it's worth, my strategy is as follows, and I wish I had done this when I was your age: 1) Max out 401k for the year, currently $23,000 2) Max out traditional or Roth IRA, currently at $7,000. I have to do a backdoor Roth conversion to do this. 3) If available, choose your company's high deductible plan and max out the HSA, currently at $4,150 for an individual and $8,300 for family. I no longer use the HSA to pay for medical expenses. I pay them out of pocket and invest the HSA. I.e., I basically treat the HSA like a 401k. 4) Personally invest in broad market ETFs. I was putting money into SCHB, but now I've stopped. My original reason was that I reinvested all dividends, and I thought that since SCHB tracked the market and was more stable that it would be good. But I've been trying to consolidate my ETFs and not have so much overlap. So now it's just SCHB, SCHA, SCHG, SCHE, SCHF. I wish I had done this *much, much, much* sooner. It took me until my late thirties to figure this all out. I'd probably be a millionaire by now if I had done this. And I regret working for startups that didn't have 401k matches.
SCHB- Schwab broad market USA index fund SCHF- Schwab foreign developed market index fund SCHE- Schwab foreign emerging market index fund SCHZ - Schwab total bond fund You can use these to construct a lazy portfolio [https://www.bogleheads.org/wiki/Three-fund\_portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio)
I was doing all SCHG as well but started to diversify a bit. SCHG is just way too tech heavy for me even if my investment window is 25 years. I'm now 55% SCHG, 20% SCHB, 10% SCHA, and 10% SCHF, 5% SCHE. I feel a lot better about this blend going forward. I realize I'll probably earn a percent or two less with this but I just don't fathom tech being the bull it's been for another twenty years. I think Ai is going to be a lot like the driverless car craze not too long ago. Everyone was convinced travel would be automated by now but like most things the final 10% is 90% of the actual work. Ai is going to change a lot of minor things quickly and then stall out.
Yeah I was also thinking of doing 15/5 on SCHD/SCHE
The only minor thing I would think about is you probably could just use VTI/VXUS or whatever combo you want to use like swtsx/vxus at schwab to get global exposure as opposed to using schwab active fund that has pretty high er which is basically using index funds. SWISX is an odd one that you would have to pair with IEMG to get complete coverage, since for some reason swisx+ SCHE/VWO leaves out south korea and one of the largest companies in the world Samsung.
Hey everyone. I just turned 21 and have finally been able to earn $6500 to invest in my Roth. Most of my money is in a high yield savings account in Wealthfront. For my Roth IRA, I'm thinking about the following mix: 70% Large Cap ETFS = 70% SCHG 10% Small Cap ETFS = 10% SCHA 15% International ETFS = 15% SCHF 5% Emerging ETFS = 5% SCHE I also want to invest in SWTSX but don't know how I would include that in my mix. If I was to input my SWTSX, I'm thinking 50% SCHG and 20% SWTSX. Thoughts?
> Robinhood didn't disrupt the industry. After they announced zero commission trades, every other brokerage followed suit. Before that, users had to pay a massive fee to buy a competing broker's mutual fund. So Schwab users stuck with Schwab funds, Fidelity with Fidelity (or their ETF partner, BlackRock), and Vanguard with Vanguard. With commission free trading, you could buy VTI at Schwab, SCHE at Fidelity, etc. This completely changed the business models of all the brokerages. They had to rethink their whole "loss leader" strategies. > just tax inefficiency. Yes, but that cuts into your long term returns and it costs nothing to avoid it. > An investor that really wants to capture tax harvesting benefits can simply use an SMA or direct indexing product instead The costs/fees to do that are very high at the moment though. > If you want to make an argument for Robinhood - I agree that Robinhood makes it very simple and can be a good option for someone with limited investing knowledge who just needs automated contributions into a set of ETF allocations. And who wants the convinience of using a mobile application. I think simplicity is good for advanced investors too. They're the cheapest place to trade stocks, stock ETFs, bond ETFs, crypto, and options. I've heard they're bringing futures to the platform soon too. They don't have mutual funds, but I don't think it's worth trading mutual funds since all the good ones are already in ETF form. They don't have individual bonds either, but I think that's similarly pointless to trade. > But I often imagine that investors may outgrow Robinhood's services. And the risk is how quickly Robinhood will start to mature and offer additional services. I don't think it's much of a risk. It's very easy to open up multiple brokerage accounts and move money between them. I regularly use TDA, Fidelity, and Robinhood. Brokerages are a commodity business. They're all basically the same. There's no need to use anything but the best/cheapest one in a given year. And right now, going from Fidelity/Schwab/Vanguard to Robinhood feels like going from a brick and mortar bank like Chase to an online HYSA like Ally did a decade ago.
Without getting into all the nuances, even excellent mutual funds like VTSAX are inherently inferior compared to equivalent exchange traded funds like VTI. Broadly speaking, they cost more to run, are less tax efficient, and expose investors to additional risks based on the behavior of other investors in the fund. At the individual level, Robinhood has commission free automated fractional share investments in ETFs from any fund company. This means that all the old benefits of mutual funds are gone. For example, you can now set up Robinhood to automatically buy $60 of ITOT, $30 of VEA, and $10 of SCHE every Friday. Most of the advice in this space was written before before Robinhood disrupted the industry.
Oh that’s smart, was wondering what’s the best thing to do with leftover funds that can’t evenly split into my SCHB/SCHZ/SCHF/SCHE setup. I’ll definitely make use of that strategy to holdover whatever extra is auto-deposited.
In my research, Schwab has the lowest expense ratios, best customer service, and best website out of Fidelity, Schwab, and Vanguard. At Schwab, take a look at: * SCHF * SCHE * SCHD * SCHA * SCHB * SCHG * SCHY It's basically all you need.
Yeah those three are also good. I also mix in SCHA SCHM and SCHE for other risk exposure but they just haven't done as well as SCHX. But I think they do offer better buying opportunities when they react strongly to economic shocks. So I don't usually buy them regularly instead I buy the dip with them. Also I wouldn't advise dabbling in options unless you at least have experience with stocks. Options are an easy way to lose a lot of money fast.
Schwab, by a country mile. I went through this a few years ago and went with Schwab, and I couldn't be happier. * Schwab's color scheme is both pleasant and professional. * Schwab's customer service is honestly the best customer service I have experienced. They do not read from scripts. The only time they ever do that is when they're required to provide some disclosure that's obviously required by law or regulation. They just talk to you. If you ask them something they don't know, they try and figure it out, but then they're more than willing to transfer you or give you the direct line to specific departments. You do not have to jump through automated calls and systems to speak to a person, and when you do speak to a person (I usually do online chat or phone calls), they are efficient. * Schwab's customer service has *never* tried to sell me a Schwab product. Not once. Fidelity holds a former employer's 401(k) of mine, and they are forcing me to call in to roll it over to an external party (i.e., my Schwab account). I called them and had to listen to a guy blabber for 50 minutes (!), and in the end, we didn't perform the rollover and he had scheduled an appointment with a Fidelity investment advisor for me. * Schwab is the only brokerage who is also a bank. You can transfer money between your checking and brokerage accounts instantaneously. They have unlimited reimbursement for ATM fees, including internationally. * They have been pretty steadily updating the website and mobile app, and I generally feel it's an improvement. It's not perfect, but it's clear they're paying attention to feedback. * They once fixed a bug I reported in just a few days or a week. In general, their customer service offers up to forward on feedback to the relevant teams. * Since they purchased TD Ameritrade, they are now the only brokerage of Fidelity and Vanguard that has a trader API (i.e., an HTTP API) available to individuals. There is now a new Schwab Developer Portal, and they're rolling this out now. * No commissions for their customer service and broker workers, so they just talk to you like normal human beings. No fees on any normal trading. Very low expense ratios. * They have a wide selection of great ETS and mutual funds. Good ETFs are SCHB, SCHD, SCHE, SCHY, SCHH, SCHA, SCHG, SCHF. * They have stock slices and a robo advisor. I haven't used the latter yet. * They are an extremely conservative and professional company. This means that they treat you like an adult, don't try to upsell you on anything, and provide good warnings when trading to make sure you aren't cowboying it up. They really make sure that the thing that *you* are doing is in *your* best interest. * They have a Schwab branded American Express Platinum credit card that is a 1.5% flat cash back (no moving categories). The cash back deposits directly into your linked brokerage account with no action from you. Fidelity's card has 2.0%, but I feel Schwab is better than Fidelity in general, and the 0.5% wasn't enough to make me get their card and split management across Schwab and Fidelity. Schwab's credit card could be better, but it's good enough for my uses. (I use two other dedicated credit cards for most purchases and then the Schwab as back for anything those two don't cover well.) * Schwab has some automated investing features. Could it be better? Yes. Could it allow automated investing of more products? Yes. However, I'm happy enough currently with what they have. I just really like them. It's just astounding how pleasant it is to talk to their people. It's clear that they are trained very well. Schwab has basically every product you need. Do Fidelity and Vanguard have some features that are tweaked in their favor over Schwab? Yes. But Schwab has features they don't have as well, and I believe Schwab's features are much more enabling in general for my needs.
You can always replicate Wealtfront's allocation as there's only 6 or so categories. Manual tax loss harvesting isn't that hard to do. When the market has been down check for unrealized losses and purchase a similar ETF. Each category has similar ETFs to TLH between (e.g. VTI=SCHB, VIG=SCHD, VEA=SCHF, VWO=SCHE). Don't forget about wash sales.
A hypothetical scenario, let’s say SCHE files for bankruptcy, what happens to their ETFs? Will it go down on value as some bigger banks would buy it for pennies on the dollar?
FZROX is much closer to total US market than FNILX is. Though at Schwab, it'll be SWTSX. ​ Schwab doesn't offer total international of their own, your choices are either use a non-Schwab ETF (like VXUS) or pair a developed + emerging market fund (like SCHF + SCHE; be careful with any other pairing when it comes to South Korea - you could end up with either double or none).
>$SCHG Value, not Growth, has the better expected long term returns. >$SCHF, $VWO or $SCHE Is either VXUS or IXUS an option? None of the 3 you listed are total ex-US. If not, then pair SCHF with SCHE in about a 3:1 to 2:1 ratio.
I have one. Show the global stock market and which ETF covers what. For example, VWO, EEM, SCHE, IEMG all cover emerging markets. 25% of all non US stocks are emerging markets. Combine that with 75% developed markets like with SCHF and you get all non US stocks like VXUS. Combine that with total US in a 60/40 ratio and you get total world stocks. Total US can be split into large, mid, and small cap. Or it can be value, growth, or blend. Or you can do it by industry. You can slice and dice markets many ways, but a site where it all comes together would be helpful. I’m thinking about making one like this myself someday.
Put it all on SCHE puts
VTI (total stock market) or voo (S&P500 as a base). Since you are young and possibly risk tolerant I would tilt towards Small Cap Value i.e. VBR/AVUV and emerging markets i.e. SCHE.
If you want to only focus on large cap stocks VEU is great, VXUS is very similar but contains mid/small cap stocks in addition to large cap Personally I use schwab funds and split between developed markets (SCHF) and emerging markets (SCHE) but that probably just complicates things
VXUS, FSGGX (has no small caps, I think), SWISX/SCHF (has no emerging markets, maybe combine it with SCHE)
What is the rate on your debt? You might be better off paying off our debt for a 100% risk free return then focusing on investing My only issue with this is SCHG/SCHD is basically a mix of growth and value and all are a sub-set of basically SCHX I just recommend a simple 3-4 fund portfolio , I do not try to focus on growth or value in an IRA for long term hold I would just buy the market In schwab this would be something like 90% SCHB - USA total market 5% SCHF - Foreign developed market 5% SCHE - Foreign emerging market
Wow thank you for this information, makes a lot of sense how you explain it. I definitely will do more research before i start putting money in things, youve helped a ton! So a revised allocation that might be better is maybe SCHE 10%, SCHB 35%, SCHG 35%, SCHD 20% I also dont understand what tax drag is, i will look it up, okay I looked it up. I understand that dividends get taxed like income in a traditional account, but I thought this was different for a ROTH IRA, is my assumption wrong then? Again, thank you!
SCHY is an international dividend fund which holds about 150 stocks, in comparison with the \~7000 that are tracked by broad ex-US funds. For SCHY and SCHD, do you understand the role of dividends, how they aren't "free money" in excess of growth, and how they cause tax drag? SCHX is a large cap fund, not a broad market fund, it holds about 750 stocks. Around 250 of those compose SCHG. The other 500 or so are in the large cap value fund SCHV. Holding both SCHG and SCHX is like going to the grocery store and picking up a bottle of ketchup and also grabbing the two-pack thing of ketchup and mustard. Maybe you're someone who actually wants two bottles of ketchup, plenty of people do, but you shouldn't walk out of the store thinking that "bottle of ketchup" and "ketchup/mustard two-pack" are two totally different, unrelated, entirely complementary products. Schwab's broad US ETF is SCHB and their internationals are split into SCHE for emerging markets and SCHF for developed markets, just for reference.
I would go with VWO over SCHE. Lower expense ratio, higher dividend yield, higher AUM, higher volume, larger number of holdings.
Similarity is just too much for all those three, I would only keep only SCHE and ignore other two. I'd recommend finding etf's which have better track record than SPY during bad times
Hard to recommend anything specific to guarantee profits, if you’re looking individual stocks I like infrastructure stocks, for exciting go with NOK (5G+ development) and for boomer go NUE (down today, sorry) or VALE. However, you should invest in more ETFs to reduce your unsystematic risk. I’d recommend VOO for starters, but I prefer emerging markets etfs like SCHE or country specific like EIDO or INDA. Hope this helps and good luck!
Okay thank you so much. That makes sense on timing the market doing that also. We do DCA into market already but we don't have enough to cover our travel + living expenses in 3.5-4% yearly. But seems like if we get there all inclusive then it will pay off big time. Our living expenses are cheap so travel is our big yearly category spender. May I ask what your recommendation would be if we invested about 3/4 of travel fund (would be about 50k). Would you just up your DCA in over 6 months or so? Or just put it in market as a bulk sum. I'd likely just drop it into our "Early retirement" which is SCHB, SCHF, SCHC, SCHE at 70/20/5/5 to consolidate with those funds.
No I used to have SCHE, but I decided to go into SCHY for more stability. Might go back into SCHE since it's been dropping ever since I sold it.
By DCAing into SCHB, SCHF, and SCHE, I am only down about 1%! I think the SP500 is down about 6%
this is true to add emerging markets to a schwab core you would add SCHE. that said South Korea is sometimes in emerging, sometimes out depending on the index and they include that in SCHF. When doing emerging it is important to stick to matching funds.
I mean you're fine with SCHE's 35% allocation to china which is committing genocide with the uygher or the allocation to saudi arabia which is killing yemen but put your foot down on a skirmish in eastern europe? seems like just some bandwagon jumping to me.
You might want to add some international exposure through SCHF and SCHE.
SCHE ? (Schwab Emerging Markets Fund) top holders looked like what you'd expect. Alibaba etc
VMMSX is a fund, not ETF, but pretty much tracks VWO yet consistently good at netting some minor outperformance thanks to trading alpha and avoiding most of the names that are difficult to analyze. Best fund imo if you want to avoid tracking regret. Other funds will deviate significantly from SCHE/VWO but that will sting if/when deviation is to the negative.
What is the disadvantage of having a (for example) Vanguard EFT held in a Schwab account? Or likewise, is there any advantage to holding a Schwab ETF in a Schwab account? I live and work overseas and Schwab is the only brokerage that will let me have a non-US address on my account. But I am interested in holding VT as just a single fund where I would have to hold SCHB+SCHF+SCHC+SCHE to do the same thing. From what I have searched, the main drawback I have read is that there is a transaction fee. But that info seems to be out of date as Schwab now has zero commission for online trades. So as far as I can tell, the only disadvantage to cross-brokerage holdings is no longer a disadvantage. Am I missing something obvious?
I'll add another vote for [AVES](https://www.avantisinvestors.com/content/avantis/en/investments/avantis-emerging-markets-value-etf.html). Emerging market value is at cheap valuations and could potentially do very well. Among the funds that retail investors can access, Avantis arguably has the best implementation of value strategies. If you want a standard EM blend fund, SCHE or VWO would work. Be conscious of which countries are included in the context of the rest of your portfolio. BlackRock counts South Korea as an emerging market, but the other managers don't.
My favorite? MSOS .... Because the moment America legalizes, it's on like Donkey Kong. My other favorite? SCHE .... Because I think international emerging well be the biggest growth post-COVID. My centerpiece? VTI ... but that's boring I'm also in: FNDF (fundamental international large cap), and XLF (financial).
And if you want a straight emerging (potentially high volatility) play, look at SCHE
Sorry. I meant. SCHE- 2.89% - I actually just started holding that this week. I will look at those recommendations and try to implement them.
Is one of those supposed to be SCHE? Common current recommendations and global market cap weights are both around 40% (of stock) as ex-US. * https://investor.vanguard.com/mutual-funds/profile/portfolio/vtwax - Global market cap weights * https://investor.vanguard.com/investing/investment/international-investing - Vanguard 40% of stock is recommended to be international. This is what both Fidelity and Vanguard use for their target date funds, Schwab is at least over 30%.
What percentages for the SWISX and SCHE?
>VTI >SCHD, SCHE, SWISX and SWTSX SWTSX and VTI are essentially the same thing, I'd choose one or the other, not both. SCHD should be fully included within SWTSX/VTI, it makes you less diverse. SCHE + SWISX after fine. What ratios were you thinking of for everything?
20% allocatiin is good. Look into Vanguard's VWO for stability with 4,000+ holdings. SCHE has more growth, but is extremely volitile. Same high volitility & high growth applies to Ishares IEMG.