How To Keep & Grow Your Money #34

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In this letter, we analyze the Schwab International Equity ETF (SCHF).

Ticker: SCHF | Price: $20.86 | Gross Expense Ratio: 0.06% | Assets Under Management (AUM): $45.8 billion | 10-Year Average Annual Return: 5.63% (as of April 2025)

What is it (short)?

The Schwab International Equity ETF (SCHF) offers investors exposure to large- and mid-cap companies in developed markets outside the United States, providing a diversified approach to international investing.

What is it (long)?

SCHF aims to track the performance of the FTSE Developed ex US Index, encompassing approximately 1,000 stocks from over 20 developed countries, including Japan, the United Kingdom, Canada, and Germany. The fund employs a passively managed, full-replication strategy, ensuring broad diversification across various sectors and regions. With a low expense ratio of 0.06%, SCHF is designed as a cost-effective option for investors seeking international equity exposure.

Our thoughts:

SCHF is a solid choice for investors looking to diversify their portfolios beyond U.S. borders. Its broad exposure to developed international markets can help mitigate country-specific risks and capture global growth opportunities. The fund's low expense ratio enhances its appeal for long-term investors. However, it's important to consider factors such as currency fluctuations and varying economic conditions across countries, which can impact returns. As always, investors should assess how this international exposure aligns with their individual investment goals and risk tolerance.

Do your own research and if you would like to take our free course to learn how to invest into ETFs and Index Funds at Index Institution™ go here.

The Expat Tax Rules That Could Save You 6 Figures This Year

If you're earning big and still paying full freight in your home country… it's time to pause.

Because once you cross borders, the rules change.

Here’s what high-income expats are using to legally slash their tax bills in 2025:

1. 183-Day Rule
Spend less than 183 days in a country, and you likely avoid becoming a tax resident there. That means no tax liability in many cases—if you plan it properly.

2. Territorial Tax Systems
Countries like Paraguay, Georgia, and Costa Rica only tax local income.
If your money is made online or abroad, it’s untouched.

3. Flat-Fee Residency Models
Places like Antigua & Barbuda or Anguilla let you pay a fixed fee (as little as $20K/year) and forget about personal income tax altogether.

4. Zero-Tax on Foreign Income
Malaysia, Uruguay, and Panama offer extended or permanent tax holidays on foreign-sourced income—no tricks, just structure.

5. Treaties and Tiebreakers
If two countries both want to tax you, tax treaties often have “tiebreaker rules” that work in your favor—if you know how to use them.

These aren’t loopholes. They’re rules. And the people who understand them don’t just save on taxes—they buy freedom, options, and time.

The real question isn’t if you can lower your taxes… it’s how soon you’ll start.

If you would like to explore legally paying less taxes and maximizing your freedom check out Global Optimizer™ or click here.

Financial Concept to Learn in This Edition: Yield

What Is Yield and Why Is It Important for Investing?

Definition: Yield represents the income generated from an investment over a specific period, typically expressed as an annual percentage relative to the investment's cost, current market value, or face value. It encompasses earnings from interest or dividends and is a key indicator of the return on investment.

Key Aspects of Yield:

• Dividend Yield: For stocks, this measures the annual dividends paid out by a company relative to its stock price, indicating the income return on a stock investment.

• Bond Yield: In bonds, yield can refer to various calculations, such as:

  • Current Yield: Annual interest payment divided by the bond's current market price.

  • Yield to Maturity (YTM): Total return anticipated if the bond is held until it matures, accounting for all interest payments and the difference between purchase price and face value.

• Mutual Funds and ETFs: Yield here often refers to the income (from dividends and interest) distributed to investors, relative to the fund's price.

Why Investors Should Care:

• Income Assessment: Yield helps investors evaluate the income-generating potential of an investment, crucial for income-focused strategies.

• Comparative Analysis: It allows for comparison between different investments, aiding in portfolio diversification and risk assessment.

• Market Insight: Changes in yield can reflect market conditions, investor sentiment, and economic outlooks, serving as a barometer for investment decisions.

Key Considerations for Investors:

• Yield vs. Total Return: Yield focuses on income, while total return includes both income and capital gains. Depending on investment goals, one may be more relevant than the other.

• Risk Assessment: Higher yields may indicate higher risk; it's essential to assess the underlying factors contributing to a high yield.

• Tax Implications: Different types of yield may be taxed differently, affecting the net return on investment.

In summary, understanding yield is fundamental for evaluating the income potential and overall performance of investments. It serves as a critical tool for making informed investment choices aligned with financial goals and risk tolerance.

To learn more about Yield read more on Investopedia here or learn more from our full FREE investing course & community here.