Can interest in international stocks outrun global headwinds?
Speakers
David Botset
— Head of Equity Product and Strategy, Schwab Asset Management
Summary
David Botset discusses renewed investor interest in international equities after 2025 outperformance ended a period of U.S. dominance. He highlights Schwab's low-cost broad international index ETF, SCHF, as a strategic allocation vehicle and downplays tactical focus on rates and currencies.
- International markets are seen as having record outperformance and rising investor interest.
- U.S. equities dominated in 2023 and 2024, while international resilience returned in 2025.
- Schwab Asset Management saw over $8 billion in index ETF and mutual fund flows.
- SCHF, Schwab International Equity ETF, is approaching $70 billion in assets.
- Key fund selection factors cited are low cost and broad-based index exposure.
- The guest prefers long-term strategic allocation over tactical rate or currency calls.
Ideas
International equities resilient, outperforming in 2025.
After U.S.-dominated markets in 2023 and 2024, international markets showed resilience and outperformance in 2025, which is driving investor interest and flows into international index products. Investors are beginning to see the strategic benefit of international investing.
Use low-cost broad international index fund.
For international equity exposure, investors should favor low-cost, broad-based index products rather than making specific tactical plays. Schwab International Equity ETF, SCHF, costs only 3 basis points and provides broad beta exposure, making it a great value.
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