|Bid||31.00 x 1200|
|Ask||34.00 x 36200|
|Day's Range||31.78 - 32.06|
|52 Week Range||29.89 - 34.12|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-1.34%|
|Beta (5Y Monthly)||0.96|
|Expense Ratio (net)||0.06%|
There are more decisions to make when selecting foreign stock funds than U.S. stock funds, including which markets to focus on and whether to hedge currency risk. HFXI is a low-cost, well-diversified foreign stock fund that could be used as a core holding. Most currency-hedged strategies try to eliminate all of their currency risk.
One of the least expensive is the Schwab International Equity ETF (SCHF). SCHF follows the FTSE Developed ex-US Index, which is comprised of large- and mid-cap stocks from developed markets outside the U.S. That index is weighted by market capitalization and features exposure to 24 developed markets, excluding the U.S. SCHF, which turned 10 years old earlier this month, has $19.7 billion in assets under management and could be worth considering at a time when many developed markets outside the U.S. sport discounted valuations relative to the S&P 500.
One of those ETFs is the $19.7-billion Schwab International Equity ETF (NYSE: SCHF). Up nearly 18% year-to-date, the Schwab International Equity ETF follows the FTSE Developed ex US Index, making it an alternative to MSCI EAFE Index tracking funds. SCHF is big, broad and diverse, both in terms of number of holdings (nearly 1,500) and the number of countries represented in the portfolio (24).
The fund's target index, the FTSE Developed Ex U.S. 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. It weights its holdings by market cap, an approach that benefits investors by capturing the market's consensus opinion of each stock's value while mitigating turnover. Investors can drive valuations up if they get excited about a particular area of the market, and market-cap weighting will increase the fund's exposure to it.
Here, I will share some simple ways to cut back on the amount of risk in your investment portfolio. The relationship between stocks and bonds provides some insight as to how we can think about the stock-bond mix. The point in the upper right-hand corner represents a 100% stock portfolio and the point on the lower left a 100% bond portfolio.