Wealthy PotSCHF vs VEA: Same Fee, 89% Overlap, and VEA Adds the Small Caps
SCHF and VEA are the Schwab and Vanguard versions of the same idea: a 0.03% ETF holding developed-market stocks outside the US, built on FTSE indexes. Their overlap is 89.4%, and 99.2% of SCHF's money sits in companies VEA also owns. The one real design difference is company size. SCHF holds large and mid caps, about 1,440 stocks. VEA adds small caps, for about 3,900. Both include South Korea and Canada, which matters if you are comparing them with MSCI-based funds. Over the ten years to 30 June 2026 they returned 10.63% and 10.52% a year at NAV. Pick the one your broker makes easiest, and do not hold both.
Table of Contents
The Short Answer
- Overlap: 89.4%. 99.2% of SCHF's weight is in companies VEA holds, and 91.0% of VEA's weight is in companies SCHF holds. Our calculation from the funds' SEC portfolio filings for 31 May and 30 June 2026.
- Fees: a tie at 0.03%. Both prospectuses show $3 after one year and $39 after ten years on $10,000. SCHF only reached 0.03% in June 2025, when Schwab cut its fee from 0.06%.
- Holdings: 1,442 vs 3,895. SCHF tracks the FTSE Developed ex US Index (large and mid caps). VEA tracks the FTSE Developed All Cap ex US Index, which adds small caps.
- Same countries. Korea was about 10% of each fund and Canada about 10.5% in their mid-2026 filings. Japan was about 21% of each.
- Ten-year return to 30 June 2026: SCHF 10.63%, VEA 10.52% a year at NAV. The gap over one, three and five years was also under a percentage point.
- Do not hold both. Nearly all of SCHF is already inside VEA.
How Much SCHF and VEA Overlap
We matched Schwab's SEC portfolio filing for SCHF (period ended 31 May 2026, 1,470 positions) with Vanguard's for the fund behind VEA (30 June 2026, 3,846 positions). The filings are a month apart because those were the latest in our dataset.
| Overlap measure | Result |
|---|---|
| Shared holdings | 1,464 |
| Overlap (sum of the smaller weight of each shared holding) | 89.4% |
| Share of SCHF's weight also in VEA | 99.2% |
| Share of VEA's weight also in SCHF | 91.0% |
| VEA positions SCHF did not hold | 2,382, together 8.5% of VEA |
Almost everything in SCHF is in VEA: 1,464 of its 1,470 positions. The biggest shared names are the same in both funds and at nearly the same weights: Samsung Electronics (3.32% of SCHF, 3.17% of VEA), SK hynix (2.81% and 3.02%), ASML (2.10% and 2.36%), then HSBC, Novartis and Royal Bank of Canada at around 1% each.
VEA's extra 2,382 positions are its small caps. There are a lot of them, but they are small, so together they came to only about 8.5% of the fund. That slice is the main reason the two funds behave slightly differently.
SCHF vs VEA Side by Side
| SCHF | VEA | |
|---|---|---|
| Full name | Schwab International Equity ETF | Vanguard FTSE Developed Markets ETF |
| Index | FTSE Developed ex US Index | FTSE Developed All Cap ex US Index |
| Company size | Large and mid caps | Large, mid and small caps |
| Expense ratio | 0.03% | 0.03% |
| Prospectus cost on $10,000, 10 years | $39 | $39 |
| Holdings | 1,442 (2 Oct 2026) | 3,895 (31 Aug 2026) |
| Indexing method | Sampling | Replication |
| Turnover (latest fiscal year) | 4% | 4% |
| Korea / Canada in the mid-2026 filing | 10.2% / 10.4% | 10.1% / 10.5% |
| Top ten positions (filing weights) | 14.8% | 14.7% |
| Assets | $67.9bn (2 Oct 2026) | ETF class $238.1bn; whole fund $323.8bn (31 Aug 2026) |
| Inception | 3 Nov 2009 | 20 Jul 2007 |
| Exchange | NYSE Arca | NYSE Arca |
| 10-year return, NAV, to 30 Jun 2026 | 10.63% | 10.52% |
Where They Differ
Small caps. SCHF's prospectus describes its index as "large and mid capitalization companies," covering "approximately the top 90% of the eligible universe." At 31 August 2025 that meant 1,428 stocks in 24 developed countries. VEA's prospectus says its index holds "large-, mid-, and small-cap companies located in Canada and the major markets of Europe and the Pacific region." The extra small companies explain the gap between roughly 1,400 and 3,900 holdings.
How they copy the index. SCHF uses sampling, which means it can hold fewer stocks than its index. VEA "attempts to replicate" its index, holding nearly every stock. Both approaches track closely. Over the ten years to 30 June 2026, SCHF's NAV return beat its index by 0.15 points a year, according to Schwab's own table.
Fee history. Today the fees are equal. Schwab's annual report says SCHF's advisory fee was "reduced from 0.06% to 0.03%" on 10 June 2025, so most of SCHF's ten-year record was earned at the higher fee.
What does not differ: Korea and Canada. Both indexes come from FTSE, which treats South Korea as a developed market. Schwab's SCHF page says it provides "exposure to South Korea and Canada." In the funds' filings, Korean securities were 10.2% of SCHF and 10.1% of VEA. That is not true of MSCI EAFE funds such as Schwab's own SWISX, which hold neither Korea nor Canada. We cover that split in SCHF vs SWISX and in VEA vs VWO.
Returns to 30 June 2026
| Average annual, NAV, to 30 Jun 2026 | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| SCHF | 29.35% | 19.39% | 10.32% | 10.63% |
| FTSE Developed ex US Index (Net) | 29.19 | 19.21 | 10.14 | 10.48 |
| VEA | 28.64% | 19.29% | 10.12% | 10.52% |
| SCHF minus VEA | +0.71 | +0.10 | +0.20 | +0.11 |
The two funds landed within about a fifth of a point a year over three, five and ten years. That is what 89% overlap looks like in practice. The one-year gap was wider at 0.71 points, which fits VEA's extra small caps lagging the larger companies over that year. No filing breaks that down, so treat it as our reading rather than a measured attribution.
We used 30 June because that is the latest quarter-end Schwab had published for SCHF when we checked. Vanguard already shows VEA to 30 September 2026: 20.77% over one year and 9.76% a year over ten.
For scale, $10,000 at SCHF's ten-year rate would have grown to about $27,462, and at VEA's to about $27,190. (Hypothetical arithmetic on the published ten-year rates, ignoring taxes and trading costs. Not a forecast.)
Which One Fits You
Your account is at Schwab? SCHF is the natural fit, and it pairs with Schwab's emerging-markets ETF if you want that slice. At Vanguard? VEA, which pairs with VWO. Both trade commission-free at most large brokers, so this is about convenience, not cost.
Want small caps included? VEA. Its extra holdings are a modest 8.5% of the fund, but they give you the whole size range in one ticker.
Want the fewest, largest companies? SCHF. The difference is small, and it is not a reason to sell one to buy the other in a taxable account.
Taxable account? Both are ETFs holding foreign stocks, so both have tax withheld abroad. IRS Publication 514 explains how fund shareholders can claim the foreign tax credit when a fund passes those taxes through. Schwab posts foreign tax credit information for SCHF on its site. Check your Form 1099-DIV for either fund.
Tax-loss harvesting? The two track different FTSE indexes, so some investors swap one for the other after a loss. The IRS has never defined "substantially identical" for funds, and an 89% overlap is high. Get tax advice before relying on it, and read our note on wash sales.
Want emerging markets too? Neither fund holds China, Taiwan or India. For a single fund that does, see SCHF vs VXUS and VEA vs VXUS.
This is educational information, not personalized investment advice. Past performance does not guarantee future results, and all investing carries the risk of loss.
Sources & Methodology
- SCHF summary prospectus, 27 February 2026: fee table, cost example, index definition, 1,428 stocks in 24 countries, sampling, turnover.
- Schwab Strategic Trust Form N-CSR, year ended 31 August 2025: the June 2025 fee cut.
- Schwab SCHF product page: holdings, assets, the Korea and Canada statement, returns as of 30 June 2026.
- VEA summary prospectus, 28 April 2026: fee table, cost example, index definition.
- VEA fact sheet as of 30 June 2026 and Vanguard's VEA profile: returns, holdings, assets.
- IRS Publication 514: the foreign tax credit for fund shareholders.
How the overlap was computed. Our Portfolio Overlap Checker reads each fund's Form N-PORT holdings and adds up the smaller of the two weights for every shared holding. Country weights are the share of each filing in securities with Korean or Canadian ISIN codes. The SCHF filing is for 31 May 2026 and the VEA filing for 30 June 2026, so individual weights are approximate.
What we did not verify. We did not compare yields, because we could not get both funds' SEC yields for the same date. Neither issuer explains the small return gap; our explanation is an inference from the index definitions.
This article is for general education and is not investment, tax or legal advice. Fund data changes daily, index returns cannot be invested in directly, and past performance does not guarantee future results. International investing carries currency and political risks. Figures were checked against the sources above on 5 October 2026; confirm current figures with Schwab and Vanguard before acting.
FAQ: SCHF vs VEA
Is SCHF or VEA better?
Neither by much. Both charge 0.03%, overlap 89.4%, and returned within about 0.2 points a year of each other over three, five and ten years to 30 June 2026. VEA adds small caps; SCHF stops at mid caps.
Do SCHF and VEA track the same index?
No, but both indexes come from FTSE. SCHF tracks the FTSE Developed ex US Index (large and mid caps). VEA tracks the FTSE Developed All Cap ex US Index, which also includes small caps.
Do SCHF and VEA include South Korea?
Yes. FTSE treats Korea as developed, so Korean stocks were about 10% of each fund in their mid-2026 filings. Samsung Electronics and SK hynix were the two largest holdings in both.
Should I own both SCHF and VEA?
No. 99.2% of SCHF's weight is already in VEA's holdings, so owning both just adds a second line to track.
Which has more holdings?
VEA: 3,895 stocks at 31 August 2026, against SCHF's 1,442 at 2 October 2026. The extra companies are small ones and were about 8.5% of VEA in its June 2026 filing.
Do SCHF or VEA hold emerging markets?
No. Neither holds China, Taiwan or India. Pair either with an emerging-markets fund, or use a total-international fund such as VXUS.
Can I swap SCHF and VEA for tax-loss harvesting?
Some investors do, because the indexes differ. There is no IRS ruling that makes it safe, and the funds overlap heavily, so get tax advice for your situation.
Cite This Page
Journalists, educators and bloggers are welcome to cite this comparison. Please link back so readers can reach the underlying filings.
"SCHF vs VEA: Same Fee, 89% Overlap, and VEA Adds the Small Caps." Wealthy Pot, 2026. https://wealthypot.com/schf-vs-vea/
Related comparisons: SCHF vs VXUS · SCHF vs SWISX · VEA vs VXUS · VEA vs VWO · VT vs VXUS · All ETF comparisons
