|Bid||29.69 x 34100|
|Ask||29.94 x 21500|
|Day's Range||29.75 - 29.85|
|52 Week Range||25.29 - 30.81|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.68|
|Expense Ratio (net)||0.35%|
The exchange-traded fund's ultralow expense ratio and market-cap-weighted approach curb the cost of ownership, providing it with a significant advantage over its more expensive rivals. The fund tracks the FTSE Global All Cap ex US Index, which targets stocks of all sizes from more than 40 overseas developed and emerging markets. It weights its holdings by market capitalization, an approach that benefits investors by capturing the market's consensus opinion of each stock's value while mitigating turnover.
Among the myriad reasons advisors and investors have gravitated to exchange traded funds over actively managed funds in recent years are superior tax efficiencies. BlackRock Inc.'s (NYSE: BLK) iShares unit is the world's largest ETF issuer not just in terms of assets, but also in terms of offerings. In the U.S., iShares offers more than 300 ETFs, a scant percentage of which will deliver capital gains distributions in 2018.
SCHF has a well-diversified, cap-weighted portfolio that captures the market's collective wisdom, and is complemented by one of the lowest expense ratios in the foreign large-blend Morningstar Category. The fund's target index, the FTSE Developed Ex US Index, is composed of large- and mid-cap companies from 24 developed markets outside of the United States, including companies listed in Canada and South Korea. FTSE defines large- and mid-cap firms as those that land in the top 86% of the investable universe by market capitalization.
A version of this article was published in the April 2018 issue of Morningstar ETFInvestor. Download a complimentary copy of Morningstar ETFInvestor by visiting the website. Edwin Lefevre's classic tome, Reminiscences of a Stock Operator, chronicles the career of Jesse Livermore, an infamous trader from the early 20th century.
The once-sluggish U.S. dollar is roaring back with vengeance. For the 90 days ended May 15, the PowerShares DB US Dollar Bullish ETF (NYSE: UUP ) returned 4.7 percent. While dollar strength is not yet ...
Currency-hedging won't always help performance and could hurt tax efficiency, but it should consistently reduce volatility. Its diversified portfolio captures a large chunk of the available foreign market capitalization while also hedging currency risk. The fund tracks the MSCI EAFE 100% Hedged to USD Index, which covers stocks from the MSCI EAFE Index while hedging currency risk.
These ETFs look to strip out currency exposure to a foreign economy via the use of currency forwards or other instruments that bet against the non-dollar currency while at the same time offer exposure to foreign stocks.
Retirees are often on the hunt for income, and foreign stocks and bonds tantalize by offering yields that are often higher than comparable payouts available on the home front. Foreign bonds from developed markets yield less than U.S. bonds today, but emerging-markets bonds, especially those denominated in local currencies, offer positively robust yields of 5% or 6%. When foreign currencies gain in value relative to the dollar, investors who own foreign-currency-denominated stocks and bonds win.