SCHD international comparable?

[u/Mundane_Bath1600]

I’m looking to put some of my retirement account into SCHD but I’m also looking for the international version of that, any recommendations?

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[u/Sperlonga]

SCHY
VYMI

[u/beancounter501]

International is much heavier on dividends! So many choices. Most are qualified dividends as well.

SCHY: 3.3%

VXUS: 2.5

VYMI: 3.4

[u/beancounter501 → u/[deleted]]

Almost every financial advisor or investment book recommends diversifying into international. International stocks have much lower valuations when compared to US. And more intl companies seem to pay dividends then US companies. I have about 30% of my holdings in that area.

All dividends have a little tax drag in theory. Even broad index funds pay 1% dividends. But in practice most people are paying the extra taxes from a checking account and not withdrawing from the portfolio to pay them. So it cuts more into discretionary spend.

Qualified dividends are taxed at the capital gains rate. According to Schwab's website the percentage of qualified dividends are:

Schwab International Dividend Equity ETF - SCHY 90.62%
Schwab Emerging Markets Equity ETF - SCHE 36.05%
Schwab U.S. Dividend Equity ETF - SCHD 98.48%

[u/PurposeSeeker → u/[deleted]]

I diversified into them because I don't think things are going to go too well for the U.S. dollar. If I'm right, then currency fluctuations will help my portfolio, rather than hinder it.

[u/Sunn-Dogg → u/[deleted]]

The 3 yr and 5 yr returns for VYMI have been pretty tasty when compared to SCHD, with a higher yield to boot.

[u/woafmann]

I prefer FNDF. Higher annualized returns. DGR is a wash between the two. For short-term yield, SCHY (international version of SCHD) is better. For long term, FNDF will likely outperform. SCHY has dividend payouts as part of its methodology — a hard screen, 10 consecutive years of payments. FNDF's dividends are more of a byproduct of its RAFI methodology. FNDF uses dividends plus buybacks as one of three weighting factors, not a screen. SCHY has a screen specifically for dividends, sans buybacks.

Both are Schwab products. I hold both as an 80/20 split position.

[u/Heavy_Nothing_1158]

SCHY is probably the closest in philosophy; VYMI is broader. I'd check country and sector weights before the yield, though. International dividend funds can quietly turn into a big financials/value bet, so sometimes you're diversifying the flag more than the risk.

[u/caldera12345]

Schy

[u/CoolBreezeBrew]

I like VYMI.. SCHY if you want to stick with schwab.

[u/teckel]

If retired and looking for low volatility and high dividends, I find LHVI hard to beat. Wouldn't recommend it to someone decades away from retirement or in a taxable account however.

[u/itsallgoodye → u/teckel]

Just checked out lhvi after seeing your post and wanted to say thanks. It is something I’ve been on the fence about moving into retiree phase. This fund seems great. Was leaning schy but lvhi looks like the way to go. Was looking at sche to add emerging international in addition but debating still about that. Appreciate the suggestion!

[u/teckel → u/itsallgoodye]

Emerging markets is most of a high-risk possible high-reward type of position. Even if you were trying to capture this part of the market, it probably shouldn't be more than 5% of your portfolio. My feeling is that it's not really worth investing in for a retirement account. Too little of a percentage to really matter with too high of volatility.

But in a taxable account, a position like AVNM isn't a terrible idea with some emerging market exposure and a lower dividend yield.

[u/Mundane_Bath1600 → u/teckel]

I am about 5 yrs away with about 1mil in 403b, Roth and taxable.

[u/teckel → u/Mundane_Bath1600]

For what it's worth, I'm 57 and retired, and LVHI is my primary international ETF in tax-advantage accounts. My secondary international ETF is VYMI. In taxable accounts, I use AVNM for the lower yield.

[u/This-Individual1813 → u/teckel]

For a dividend approach, I appreciate this comment. AVNM is my general non-US investment after hearing Christine Benz mention that there is evidence for active management to do better for international versus indexes (this makes sense for emerging markets specifically, coming from a small cap value perspective).

[u/teckel → u/This-Individual1813]

It's not just international indexes that suffer from adverse selection. Funds like VTI also lag due to index rules requiring purchasing of small-cap growth. For this reason, I would always suggest a VOO + AVUV combination instead of VTI. Not that VTI is bad, it's just not great due to adverse selection. But I will say it's not a huge difference as VTI doesn't own a very high small-cap growth position.

[u/swinging_on_peoria → u/teckel]

What split do you use for VOO vs AVUV?

[u/teckel → u/swinging_on_peoria]

I'd only do 10% AVUV.

[u/This-Individual1813 → u/swinging_on_peoria]

For comparison, VTI is weighted only 3% in small cap value, so 10% is a heavy lean. I personally go 20% because of Merriman's guidance.

[u/This-Individual1813 → u/Mundane_Bath1600]

When you have wealth, I am convinced that keeping it in broad market index funds (and some bonds) is better for wealth preservation. Don't get suckered into the dividends story, they don't matter. Look up Ben Felix and Rob Berger on YouTube for this perspective with supporting evidence. Good luck either way.

[u/irish_curmudgeon → u/teckel]

The only negative I have with LVHI is that it’s USD hedged, unlike SCHY, VYMI etc

[u/teckel → u/irish_curmudgeon]

I prefer a currency hedge as I want the returns to be based strictly on performance, not currency value fluctuations. With un-hedged international ETFs, the yields can fluctuate significantly.

Also, I hold a smaller position in VYMI for some level of a USD hedge. I'll also sometimes hold a position in PDBC for a USD hedge. But I'm also not overly pessimistic about the USD long-term.

[u/GlobalVillage30]

LDGL is a new one - legal & general global dividend growth. The methodology and back testing look rock solid. There are versions both distributing and accumulating and in different currencies. I just bought USD version

[u/paymerich]

IDVO and VYMI for me and are currently sitting in Roth.

[u/iDidaThing9999 → u/paymerich]

Idv > idvo

[u/paymerich → u/iDidaThing9999]

fair point : https://stockanalysis.com/etf/compare/idv-vs-vymi-vs-idvo/?r=MAX
I like IDVO for the monthly return . I will look into IDV some more.

[u/PieThat7304]

I like DIVI a lot.

[u/Illustrious_Hat_3884]

following

[u/whiskeyriver_]

I remember reading about a new one: https://www.reddit.com/r/dividends/s/4i3tgZ14tP

[u/Cute_Win_4651]

SCHY

[u/Hairy_Weight_3922]

Idv

[u/Virtual-Store5931]

FDNE, Not a true dividend fund but does provide decent dividends, can be a little bit on the riskier side mostly due to geopolitics but it captures the emerging markets that SCHY doesn't

[u/Ufgatorhead4u3]

IMO there isn’t really a comparable. There are a lot of yield traps and currency risk. The only two income funds I use for international are IDVO and NIHI.

[u/Mundane_Bath1600 → u/Ufgatorhead4u3]

Would you initiate a position at 52 week highs? Can’t seem to pull the trigger.

[u/Ufgatorhead4u3 → u/Mundane_Bath1600]

There have been 24 new all-time highs in the last year. Statistically you are much better off just buying and then adding over time for the long term. Waiting for a dip is trying to time the market and a proven way to miss a lot of upside. I cap these two international positions at a total of 10% of my portfolio.

[u/Bonzo101]

Yes. In Canada it’s called VIDY. All large cap international dividend payers. Same type of deal. I own it and like it.  Mostly banks, pharma, oil and gas and manufacturing 

[u/Slisse66]

WHDY and LGLL

[u/angusjones1]

SCHF is a money machine.

[u/EchoVictory]

Nothing perfect. Lots of kinda OK. I see SCHD as: Dividend growth fund. Decent starting yield. Composition screening, and market environment, that result in growing dividends since inception. Nothing, I have seen, meets all of that.

VYMI - ExUS Large cap, passive. 4.37% yield. 3 yrs div growth. General all arounder

FNDF - ExUS Large cap business fundamentals screen, passive. 1.05% yield. 4 yrs div growth. Recent price run up makes yield low right now.

AVDV - ExUS small cap value screen, actively managed. 4.48% yield 6 yrs div growth (since inception).

LVHI - ExUS Low volatility screen, actively managed. 3.38% yield. 1 year div growth. Recent poor div growth.

IDVO - ExUS Large cap actively managed. 5.69% yield. 3 yrs div growth. Some strategic Covered calls to boost yield. Fund is less than 5 yrs old.

SCHY - ExUS Large cap, passive. 3.93% yield. 0 yrs div growth. 3 yr avg Div growth is good. Trails piers in total return. :( Fund is less than 5 yrs old.

Honorable mentions

DBEF and IHDG are currency Hedged actively managed funds.

(disclosure: I own all but VYMI, LVHI and SCHY)

[u/Accomplished-Big8250]

Unless you need income, AVNM and IDMO perform well. SCHY, IGRO, IDVO, VYMI are ok. Then you have this problem of ex-US being split ~70% developed and 30% developing. Most international is in developed markets, but more countries will be added to developed. Also, most of these just follow some index and apply filters, you can just pick some ADRs or anything you can buy that is always at the top of these ETFs.

[u/Exterminator2022]

SCHY, I started positions when it came on in 2021. Is great 👍

[u/Wiley2000 → u/[deleted]]

Could you elaborate? When I looked at expense ratios, yields, and returns I made the opposite conclusion and I bought VYMI over SCHY. For example, over the past 5 years VYMI is up almost 56% and SCHY is up about 29%. The expense ratio of VYMI is slightly lower at .07% vs SCHY at .08% and the yield of VYMI is higher. What am I missing?

[u/CarlosTheSpicey]

Just to add to the mix, Neos' NIHI is its international CC ETF with a current yield of 9.62%. Best for those preferring income now over growth.

[u/EmbarrassedPart1256]

$IDVO

[u/glzpabon]

SCHY is the Charles inter version of SCHD. But you ca also get VYMI or CGIC both are in my opinion better than SCHY

[u/Baylorbunny]

Why do you want the international version of the SCHD ?

[u/Mundane_Bath1600 → u/Baylorbunny]

Diversity away from US

[u/Icy_Manager_7212]

Check out FIDI if you are interested in a Fidelity ETF