What Is SCHC? Schwab International Small-Cap Equity ETF
Last updated July 2026
Short answer
SCHC is a passive ETF from Schwab Asset Management that holds thousands of small-cap stocks in developed markets outside the United States, tracking the FTSE Developed Small Cap ex US Liquid Index. It gives inexpensive, diversified exposure to smaller companies across Europe, Japan, Canada, and the Asia-Pacific region in one ticker, at a 0.06% expense ratio. It is often compared to Vanguard's VSS and typically carries a higher dividend yield than U.S. small-cap funds because foreign companies tend to pay more.
SCHC is issued by Schwab Asset Management and tracks FTSE Developed Small Cap ex US Liquid Index. It charges a 0.06% expense ratio, holds approximately ~$5.5 billion in assets under management, yields about ~3.5%, and launched in January 2010.
What is SCHC?
SCHC is the Schwab International Small-Cap Equity ETF, a passively managed fund that holds thousands of smaller companies in developed markets outside the United States. It tracks the FTSE Developed Small Cap ex US Liquid Index, spanning countries such as Japan, the United Kingdom, Canada, and much of Europe, weighted by market value.
The fund exists to give investors inexpensive, one-ticker access to a corner of the market that is easy to overlook: foreign small caps. This segment behaves differently from both U.S. stocks and large-cap international shares, which is why it is used mainly for diversification.
SCHC holdings
Approximate weights as of mid-2026; refresh quarterly from Schwab Asset Management's fund page. Each ticker links to its individual stock guide in Walnut.
| Rank | Ticker | Company | % of SCHC | |
|---|---|---|---|---|
| 1 | ATZ | Aritzia Inc. | ~0.4% | |
| 2 | HBM | Hudbay Minerals Inc. | ~0.4% | |
| 3 | ACLN | Accelleron Industries AG | ~0.4% | |
| 4 | FTT | Finning International Inc. | ~0.4% | |
| 5 | GAW | Games Workshop Group PLC | ~0.4% | |
| 6 | NKT | NKT A/S | ~0.3% | |
| 7 | IGG | IG Group Holdings plc | ~0.3% | |
| 8 | GTT | Gaztransport & Technigaz SA | ~0.3% | |
| 9 | CPX | Capital Power Corporation | ~0.3% | |
| 10 | N/A | MSCI EAFE index futures (cash equitization sleeve) | ~0.7% |
SCHC is extremely diversified, holding thousands of stocks with no single name reaching even 1% of the fund. Top positions rotate among companies like Aritzia, Hudbay Minerals, Finning International, and Games Workshop, spread across many countries and sectors. A small futures sleeve is sometimes used to equitize incoming cash.
Because the index is market-cap weighted and country-diversified, the fund's largest exposures tilt toward the developed markets with the most small-cap companies, notably Japan, Canada, and the U.K. This breadth is the point: it smooths out the risk of any one company or country.
SCHC vs VSS and developed large-cap funds
SCHC's closest competitor is Vanguard's VSS. Both cover international small caps cheaply, but VSS also includes emerging-market small caps, making it broader, while SCHC sticks to developed markets only. Investors who want a cleaner developed-markets exposure lean toward SCHC.
SCHC also differs sharply from developed large-cap international funds such as those tracking the MSCI EAFE index. Those hold big, well-known multinationals, whereas SCHC holds smaller, more domestically oriented foreign companies. The two are complements: large caps for stability, SCHC for the small-cap diversification tilt.
Performance and outlook
As an index fund, SCHC seeks to match its benchmark rather than beat it, so its results track developed international small caps minus a small fee. Returns are shaped by both foreign stock performance and currency moves, which can add or subtract meaningfully in any given year.
The outlook for SCHC is tied to the health of smaller companies in Europe, Japan, and other developed markets, plus the direction of the U.S. dollar. Investors who expect international diversification and currency exposure to pay off over time use SCHC to capture that segment at low cost.
Is SCHC a good fit
SCHC can suit an investor seeking to broaden a U.S.-heavy portfolio with international small-cap exposure, typically as a modest satellite position. Its 0.06% fee and deep diversification make it efficient, and its higher yield can appeal to income-aware investors.
Whether it belongs in your portfolio depends on your goals, time horizon, and comfort with currency and small-cap volatility. Walnut is not an investment adviser, so this is descriptive information to support your own research, not a recommendation.
How to buy SCHC
SCHC trades on NYSE Arca and is available through major brokerages including Robinhood, Fidelity, Schwab, and Public. Most offer commission-free trading and fractional shares, so you can invest a set dollar amount rather than buying whole shares.
To track SCHC alongside your investment thesis and existing positions, you can connect your brokerage to Walnut. Walnut mirrors your holdings read-only and lets you place SCHC inside a thematic basket, while the actual trades continue to run through your own broker.
The bottom line on SCHC
SCHC is one of the cheapest ways to add international small-cap stocks to a portfolio, a corner of the market many investors under-own. At 0.06% and with thousands of holdings, it works as a diversifying satellite alongside U.S. and international large-cap funds rather than as a core position.
More on SCHC
Whether SCHC is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is SCHC a buy?
SCHC yields ~3.5% as of mid-2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see SCHC dividend: yield and schedule.
Build a portfolio around SCHC with Walnut
Use SCHC as your core holding, then let Walnut's AI propose thematic satellites: AI infrastructure, dividend growth, clean energy, whatever you believe in. Connect your broker, build the basket in conversation, track it as one unit.
FAQ
What is SCHC?
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SCHC is the Schwab International Small-Cap Equity ETF, a passive fund holding thousands of smaller companies in developed markets outside the United States. It tracks the FTSE Developed Small Cap ex US Liquid Index and gives broad, low-cost access to international small-cap stocks across Europe, Japan, Canada, and Asia-Pacific in one ticker.
Who issues SCHC and what does it track?
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SCHC is issued by Schwab Asset Management, part of Charles Schwab. It tracks the FTSE Developed Small Cap ex US Liquid Index, which covers small-capitalization companies in developed markets outside the U.S., weighted by market value and screened for liquidity.
How is SCHC different from VSS?
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SCHC and Vanguard's VSS both target international small caps, but their coverage differs. SCHC follows a developed-markets-only FTSE index, while VSS includes emerging-market small caps as well. That makes VSS slightly broader, whereas SCHC is a cleaner, developed-markets-only exposure.
What is inside SCHC?
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SCHC holds thousands of small-cap stocks spread across developed countries such as Japan, the United Kingdom, Canada, and much of Europe. No single holding is large, with even the top positions well under 1% of the fund, so exposure is highly diversified by both company and country.
What is the expense ratio for SCHC?
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SCHC has an expense ratio of 0.06%, or about 60 cents per year on a $1,000 investment. That is very low for international small-cap exposure, an area that typically costs more to run than large-cap or U.S. domestic funds.
Does SCHC pay a dividend?
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Yes. SCHC pays dividends from its underlying holdings, and its yield, recently around 3.5%, is generally higher than U.S. small-cap funds because companies in Europe and Japan tend to distribute a larger share of earnings. Distributions can vary seasonally with foreign payout schedules.
How do I buy SCHC?
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SCHC trades on NYSE Arca and can be bought at major brokerages including Robinhood, Fidelity, Schwab, and Public, most of which offer commission-free trades and fractional shares. You can also connect your existing brokerage to Walnut to track SCHC within a thematic basket next to your other holdings.
How large is SCHC?
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SCHC manages roughly $5.5 billion in assets as of mid-2026. That is smaller than the largest U.S. equity ETFs but ample for an international small-cap fund, supporting reasonable liquidity for most investors.
Is SCHC a good investment?
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SCHC provides cheap, diversified exposure to a segment many portfolios under-own: small companies in developed markets abroad. It adds currency and geographic diversification but is more volatile than large-cap international funds. Whether it fits depends on your goals and risk tolerance, and Walnut is not an investment adviser, so treat this as descriptive information.
When was SCHC created?
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SCHC launched in January 2010 as part of Schwab's low-cost ETF lineup, extending the family's index approach into international small-cap equities.
Does SCHC include emerging markets?
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No. SCHC is limited to developed markets outside the United States, such as Japan, the U.K., Canada, and Western Europe. Investors who want emerging-market small caps as well often pair it with a separate emerging-markets fund or choose a broader competitor.
What currencies does SCHC expose me to?
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Because SCHC holds foreign stocks, its returns include movements in currencies like the euro, Japanese yen, British pound, and Canadian dollar against the U.S. dollar. This currency exposure can add to or subtract from returns and is part of the diversification the fund provides.
Is SCHC good for a long-term portfolio?
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Many investors use SCHC as a small satellite position to round out global diversification, holding it for the long term alongside U.S. and international large-cap funds. Its low fee suits buy-and-hold investors, though the segment can be volatile and is usually a modest slice rather than a core holding.
How do I compare SCHC to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. SCHC's figures are above; the full method is in Walnut's guide on how to compare ETFs.
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Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to mid-2026; verify current figures against Schwab Asset Management's fund page or your broker before investing.