BKEM vs. SCHE

Last updated Jul 15, 2026

BKEM (BNY Mellon Emerging Markets Equity ETF) and SCHE (Schwab Emerging Markets Equity ETF) are both Emerging Markets Equities funds - BKEM tracks the Morningstar Emerging Markets Large Cap Index while SCHE tracks the FTSE Emerging Index. Both are passively managed. Over the past 5 years, BKEM returned 6.67%/yr vs 5.31%/yr for SCHE. With a 0.97 correlation, they move nearly in lockstep. Both charge a 0.11% expense ratio.

Performance

BKEM vs. SCHE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BNY Mellon Emerging Markets Equity ETF (BKEM) and Schwab Emerging Markets Equity ETF (SCHE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BKEM achieves a 22.14% return, which is significantly higher than SCHE's 10.21% return.

BKEM

• 1D: 1.71%
• 1M: -3.22%
• 6M: 16.09%
• YTD: 22.14%
• 1Y: 38.83%
• 3Y*: 19.62%
• 5Y*: 6.67%
• 10Y*: —

SCHE

• 1D: 0.61%
• 1M: -0.26%
• 6M: 5.72%
• YTD: 10.21%
• 1Y: 22.59%
• 3Y*: 15.89%
• 5Y*: 5.31%
• 10Y*: 8.01%

*Multi-year figures are annualized to reflect compound growth (CAGR)

BKEM vs. SCHE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
BKEM BNY Mellon Emerging Markets Equity ETF	22.14%	30.55%	7.53%	8.68%	-19.43%	-3.91%	48.44%
SCHE Schwab Emerging Markets Equity ETF	10.21%	26.54%	10.60%	8.93%	-17.84%	-0.65%	45.41%

Correlation

The correlation between BKEM and SCHE is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (All Time) Calculated using the full available price history since Apr 24, 2020	0.97

The correlation between BKEM and SCHE has been stable across timeframes, ranging from 0.92 to 0.97 - a consistent structural relationship.

BKEM vs. SCHE - Sectors Allocation Comparison

Sectors	BKEM	SCHE
Technology	43.0%	33.7%
Financial Services	16.9%	20.0%
Consumer Cyclical	8.7%	9.6%
Industrials	8.1%	6.7%
Communication Services	5.8%	7.1%
Basic Materials	5.7%	7.5%
Energy	3.4%	4.4%
Healthcare	2.7%	3.2%
Consumer Defensive	2.6%	3.4%
Utilities	2.0%	2.8%
Real Estate	1.1%	1.6%

Return for Risk

BKEM vs. SCHE — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BKEM

BKEM Risk / Return Rank: 67
BKEM Sharpe Ratio Rank: 66
BKEM Sortino Ratio Rank: 58
BKEM Omega Ratio Rank: 67
BKEM Calmar Ratio Rank: 74
BKEM Martin Ratio Rank: 70

SCHE

SCHE Risk / Return Rank: 47
SCHE Sharpe Ratio Rank: 46
SCHE Sortino Ratio Rank: 43
SCHE Omega Ratio Rank: 46
SCHE Calmar Ratio Rank: 50
SCHE Martin Ratio Rank: 51

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BKEM vs. SCHE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BNY Mellon Emerging Markets Equity ETF (BKEM) and Schwab Emerging Markets Equity ETF (SCHE). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	BKEM	SCHE	Difference
Sharpe ratio: Return per unit of total volatility	1.70	1.29	+0.41
Sortino ratio: Return per unit of downside risk	2.22	1.82	+0.40
Omega ratio: Gain probability vs. loss probability	1.32	1.24	+0.08
Calmar ratio: Return relative to maximum drawdown	2.98	2.01	+0.97
Martin ratio: Return relative to average drawdown	10.09	6.88	+3.21

BKEM vs. SCHE - Sharpe Ratio Comparison

The current BKEM Sharpe Ratio is 1.70, which is higher than the SCHE Sharpe Ratio of 1.29. The chart below compares the historical Sharpe Ratios of BKEM and SCHE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

BKEM vs. SCHE - Drawdown Comparison

The maximum BKEM drawdown since its inception was -39.48%, which is greater than SCHE's maximum drawdown of -36.20%. Use the drawdown chart below to compare losses from any high point for BKEM and SCHE.

Drawdown Indicators

	BKEM	SCHE	Difference
Max Drawdown Largest peak-to-trough decline	-39.48%	-36.20%	-3.28%
Max Drawdown (1Y) Largest decline over 1 year	-13.11%	-11.29%	-1.82%
Max Drawdown (3Y) Largest decline over 3 years	-18.38%	-17.08%	-1.30%
Max Drawdown (5Y) Largest decline over 5 years	-33.89%	-31.38%	-2.51%
Max Drawdown (10Y) Largest decline over 10 years	—	-36.20%	—
Current Drawdown Current decline from peak	-7.51%	-3.08%	-4.43%
Average Drawdown Average peak-to-trough decline	-15.80%	-12.53%	-3.27%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.86%	3.29%	+0.57%

Volatility

BKEM vs. SCHE - Volatility Comparison

BNY Mellon Emerging Markets Equity ETF (BKEM) has a higher volatility of 10.25% compared to Schwab Emerging Markets Equity ETF (SCHE) at 6.15%. This indicates that BKEM's price experiences larger fluctuations and is considered to be riskier than SCHE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BKEM	SCHE	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.25%	6.15%	+4.10%
Volatility (6M) Calculated over the trailing 6-month period	20.99%	15.25%	+5.74%
Volatility (1Y) Calculated over the trailing 1-year period	22.93%	17.58%	+5.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.51%	17.90%	+1.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.65%	19.41%	+0.24%

BKEM vs. SCHE - Expense Ratio Comparison

Both BKEM and SCHE have an expense ratio of 0.11%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

BKEM vs. SCHE - Dividend Comparison

BKEM's dividend yield for the trailing twelve months is around 1.92%, less than SCHE's 2.64% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BKEM BNY Mellon Emerging Markets Equity ETF	1.92%	2.25%	2.76%	3.02%	3.15%	2.22%	1.78%	0.00%	0.00%	0.00%	0.00%	0.00%
SCHE Schwab Emerging Markets Equity ETF	2.64%	2.88%	3.03%	3.83%	2.88%	2.86%	2.09%	3.27%	2.64%	2.31%	2.27%	2.50%

Frequently Asked Questions

Can I hold both BKEM and SCHE in my portfolio?

With a correlation of 0.92, BKEM and SCHE move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, BKEM or SCHE?

BKEM has higher volatility (10.25%) compared to SCHE (6.15%). In terms of maximum drawdown, BKEM dropped -39.48% vs SCHE's -36.20%.

Which ETF is better, BKEM or SCHE?

On 5-year performance, BKEM leads with 6.67% vs 5.31% for SCHE. Both ETFs have the same 0.11% expense ratio. On volatility, SCHE has been the lower-risk option at 6.15%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BKEM or SCHE?

Over the 5-year period, BKEM has performed better with a 6.67% return vs 5.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BKEM or SCHE?

BKEM and SCHE have the same expense ratio: 0.11% per year.

Which ETF pays a higher dividend yield, BKEM or SCHE?

SCHE has the higher dividend yield at 2.64%, compared with 1.92% for BKEM.

What is the main difference between BKEM and SCHE?

BKEM tracks Morningstar Emerging Markets Large Cap Index, while SCHE tracks FTSE Emerging Index. They also come from different issuers: BNY Mellon and Charles Schwab.

Which has better risk-adjusted returns?

BKEM currently has the higher Sharpe Ratio (1.70 vs 1.29), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.