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.
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.
Sustainable international dividends attracting flows.
With uncertainty from inflation, geopolitics, and commodity prices, trades can break down quickly, so investors are favoring companies with strong fundamentals and sustainable dividends. Schwab's International Dividend ETF is seeing strong flows and approaching $2.5 billion in assets.