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Is the Schwab International Equity ETF or Vanguard Total World Stock ETF Better for Long-Term Diversification?

Key Points

  • Vanguard Total World Stock ETF provides comprehensive exposure to both domestic and international markets, while Schwab International Equity ETF focuses solely on developed ex-U.S. stocks.

  • Schwab International Equity ETF is the more cost-effective choice with an expense ratio of 0.03% compared to 0.06% for the Vanguard fund.

  • Investors prioritizing current income may prefer Schwab International Equity ETF, which offers a 3.0% dividend yield compared to 1.5% for Vanguard Total World Stock ETF.

Vanguard Total World Stock ETF (NYSEMKT:VT) provides investors with exposure to both U.S. and international markets, whereas Schwab International Equity ETF (NYSEMKT:SCHF) serves as a low-cost specialist for developed economies outside the United States.

While both funds offer global reach, the Vanguard Total World Stock ETF follows the FTSE Global All Cap Index to capture the entire investable world. In contrast, the Schwab International Equity ETF tracks the FTSE Developed ex US Index, making it a dedicated tool for those wanting to isolate international developed markets at a rock-bottom price point.

Snapshot (cost & size)

MetricSCHFVT
IssuerSchwabVanguard
Share price (as of 9/28/26)$27.72$158.81
Expense ratio0.03%0.06%
1-yr return (as of 9/28/26)24.2%18.0%
Dividend yield3.0%1.5%
Beta0.820.92
AUM$67.8 billion$101.7 billion

Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

The Schwab International Equity ETF is a more affordable option for investors, carrying a low 0.03% expense ratio compared to 0.06% for the Vanguard Total World Stock ETF. This 0.03-percentage-point difference can affect long-term compounding over decades. Additionally, the Schwab fund offers a significantly higher payout, with a 3% yield versus 1.5% for the Vanguard fund.

Performance & risk comparison

MetricSCHFVT
Max drawdown (5 yr)(29.1%)(26.4%)
Growth of $1,000 over 5 years (total return)$1,660$1,710

What's inside

The Vanguard Total World Stock ETF casts a wide net, holding more than 10,000 securities across the globe. Its portfolio leans heavily into technology at 30%, followed by financial services at 16% and industrials at 11%. Its largest positions include Nvidia at 4.3%, Apple at 3.8%, and Microsoft at 3.1%. The fund was launched in 2008. Vanguard Total World Stock ETF has paid $2.41 per share over the trailing 12 months, which on its recent ~$158.81 share price works out to a 1.5% yield.

The Schwab International Equity ETF focuses more narrowly on developed markets outside the U.S., with a portfolio of 1,442 holdings. Its sector allocation is led by financial services at 25%, technology at 17.7%, and industrials at 17.6%. Its largest positions include Samsung Electronics at 3.2%, SK Hynix at 2.5%, and ASML Holding at 2.4%. The fund was launched in 2009. Schwab International Equity ETF has paid $0.84 per share over the trailing 12 months, which on its recent ~$27.72 share price works out to a 3% yield.

For more guidance on ETF investing, check out the full guide at this link.

Which looks like the better buy

When you're looking to diversify your stock portfolio, leaning toward international funds is a good idea. Vanguard's Total World Stock ETF is often suggested as a good starting point, as it covers both domestic and foreign stocks in both developed and emerging markets. It's relatively inexpensive to own, and while its exposure to emerging markets comes with some risk, its breadth across 10,000 holdings gives it a good deal of stability. For long-term investors, it's an easy set-it-and-forget-it holding. But investors who are truly seeking diversification may not be satisfied with VT's approach. Indeed, its top three names are familiar U.S. tech giants, and while it offers a slightly higher dividend yield, it's underperformed the S&P 500 index over the last five years.

SCHF leans further into the international diversification theme, providing access to large- and mid-cap stocks from developed countries outside the U.S., including South Korea and Canada. Its market cap and geographic limits protect investors from the most extreme risk, but the fund has demonstrated a sharper five-year maximum drawdown. Like VT, it’s also underperformed the S&P 500 over the last five years. That said, it's also cheaper to own and generates more dividend income than VT. And it gives you exposure to stocks that may not already be in your portfolio.

Should you buy stock in Vanguard International Equity Index Funds - Vanguard Total World Stock ETF right now?

Before you buy stock in Vanguard International Equity Index Funds - Vanguard Total World Stock ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard International Equity Index Funds - Vanguard Total World Stock ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $375,240!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,403,292!*

Now, it’s worth noting Stock Advisor’s total average return is 932% β€” a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

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*Stock Advisor returns as of October 1, 2026.

Sarah Sidlow has positions in Apple, Microsoft, Nvidia, and Vanguard International Equity Index Funds - Vanguard Total World Stock ETF. The Motley Fool has positions in and recommends ASML, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

Bristol-Myers Squibb vs. Johnson & Johnson: Comparing Quarterly Revenue Scale

Key Points

  • Johnson & Johnson generates consistently higher quarterly revenue than Bristol-Myers Squibb, maintaining a clear lead in total dollars over the entire observed eight-quarter period without any interruption.

  • Both companies experienced a gentle pattern of quarter-over-quarter revenue growth over the last two calendar years, though the exact quarterly figures occasionally fluctuated between consecutive reporting periods.

  • Investors should monitor whether the existing revenue gap between the two companies continues to gradually expand or begins to narrow during upcoming quarterly reporting cycles.

Bristol Myers Squibb: Slow and Steady Revenue Growth

Bristol Myers Squibb (NYSE:BMY) operates as a global biopharmaceutical entity that researches, develops, and commercializes a worldwide medicinal portfolio spanning therapeutic areas like hematology, oncology, and cardiovascular health, offering pharmaceutical products such as Revlimid and Eliquis.

It received accelerated regulatory approval from the U.S. Food and Drug Administration for its Zenbexus combination therapy for adult patients with multiple myeloma in August 2026, and it selected Houston for a new $2.3 billion multi-modal manufacturing campus designed to increase its production capacity for next-generation medicines.

Johnson & Johnson: Maintaining a Larger Revenue Base

Johnson & Johnson (NYSE:JNJ) functions as a broad healthcare holding company that engages in the research, development, manufacture, and global sale of products primarily through its dedicated innovative medicine and medical technology segments.

It finalized a $1 billion cash acquisition of Firefly Bio in July 2026 to integrate a targeted antibody-drug conjugate platform, while it also secured regulatory approval for its IMAAVY treatment for patients dealing with warm autoimmune hemolytic anemia.

Why Revenue Matters for Investors

Revenue here refers to the data provider's standardized income-statement revenue line item, which gives investors a direct baseline measurement of the total volume of money a business brings in from its core commercial operations before deducting any associated operating expenses, interest, or taxes.

Bristol-Myers Squibb vs. Johnson & Johnson Revenue chart

Comparing Quarterly Revenue for Bristol Myers Squibb and Johnson & Johnson

Calendar quarterBristol-Myers Squibb RevenueJohnson & Johnson Revenue
Q3 2024$11.9 billion (quarter ended Sept. 30, 2024)$22.5 billion (quarter ended Sept. 29, 2024)
Q4 2024$12.3 billion (quarter ended Dec. 31, 2024)$22.5 billion (quarter ended Dec. 29, 2024)
Q1 2025$11.2 billion (quarter ended March 31, 2025)$21.9 billion (quarter ended March 30, 2025)
Q2 2025$12.3 billion (quarter ended June 30, 2025)$23.7 billion (quarter ended June 29, 2025)
Q3 2025$12.2 billion (quarter ended Sept. 30, 2025)$24.0 billion (quarter ended Sept. 28, 2025)
Q4 2025$12.5 billion (quarter ended Dec. 31, 2025)$24.6 billion (quarter ended Dec. 28, 2025)
Q1 2026$11.5 billion (quarter ended March 31, 2026)$24.1 billion (quarter ended March 29, 2026)
Q2 2026$13.0 billion (quarter ended June 30, 2026)$25.3 billion (quarter ended June 28, 2026)

Data source: Financial Modeling Prep. Data as of Sept. 25, 2026.

Foolish Take

Both Bristol Myers Squibb and Johnson & Johnson are consistently, if slowly, growing their revenue, though Johnson & Johnson is obviously starting from a much larger base. In fact, despite Johnson & Johnson's revenue being about double that of Bristol Myers Squibb, over the period shown above, it grew its revenue at a slightly higher rate. That's impressive.

One thing to watch from here will be Johnson & Johnson's medical technology division, an area Bristol Myers Squibb, a biopharmaceuticals company, doesn't have. J&J's medtech division grew operational sales 3.6% in the second quarter, and in 2025, it generated $33.79 billion in revenue. It's growing the segment via both acquisitions and in-house research and development, which can be costly. However, once those products are approved and in use, they can generate exceptional revenue and high profit margins.

In July, J&J received FDA market authorization in the U.S. for its OTTAVA Robotic Surgical System, "the world's first table-integrated soft tissue robotic system." At the time of the announcement, a U.S. clinical trial for OTTAVA in inguinal hernia procedures was ongoing. Customer uptake and success with this system could provide a strong moat and a new recurring revenue stream for the legacy healthcare company.

Should you buy stock in Bristol Myers Squibb right now?

Before you buy stock in Bristol Myers Squibb, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bristol Myers Squibb wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $375,240!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,403,292!*

Now, it’s worth noting Stock Advisor’s total average return is 932% β€” a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks Β»

*Stock Advisor returns as of October 1, 2026.

Sarah Sidlow has positions in Johnson & Johnson. The Motley Fool has positions in and recommends Bristol Myers Squibb. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.

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