DEM vs. SCHD

Last updated Jun 4, 2026

DEM (WisdomTree Emerging Markets Equity Income Fund) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - DEM is a Emerging Markets Equities fund tracking the WisdomTree Emerging Markets Equity income Index, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Both are passively managed. Over the past 10 years, DEM returned 10.45%/yr vs 12.77%/yr for SCHD. A 0.61 correlation means they provide meaningful diversification when combined. DEM charges 0.63%/yr vs 0.06%/yr for SCHD.

Performance

DEM vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Emerging Markets Equity Income Fund (DEM) and Schwab U.S. Dividend Equity ETF (SCHD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with DEM having a 19.97% return and SCHD slightly lower at 19.01%. Over the past 10 years, DEM has underperformed SCHD with an annualized return of 10.45%, while SCHD has yielded a comparatively higher 12.77% annualized return.

DEM

• 1D: -1.19%
• 1M: 6.63%
• YTD: 19.97%
• 6M: 20.75%
• 1Y: 32.23%
• 3Y*: 19.32%
• 5Y*: 9.57%
• 10Y*: 10.45%

SCHD

• 1D: 0.00%
• 1M: 2.70%
• YTD: 19.01%
• 6M: 18.63%
• 1Y: 27.16%
• 3Y*: 15.09%
• 5Y*: 8.36%
• 10Y*: 12.77%

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

DEM vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DEM WisdomTree Emerging Markets Equity Income Fund	19.97%	21.29%	4.46%	20.93%	-10.43%	11.49%	-5.84%	19.84%	-7.69%	26.26%
SCHD Schwab U.S. Dividend Equity ETF	19.01%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between DEM and SCHD is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.42
Correlation (3Y) Calculated over the trailing 3-year period	0.46
Correlation (5Y) Calculated over the trailing 5-year period	0.53
Correlation (10Y) Calculated over the trailing 10-year period	0.57
Correlation (All Time) Calculated using the full available price history since Oct 21, 2011	0.62

The correlation between DEM and SCHD shifts across timeframes, from 0.42 (1 year) to 0.61 (all time), reflecting how their relationship changes across market environments.

DEM vs. SCHD - Sectors Allocation Comparison

Sectors	DEM	SCHD
Financial Services	21.9%	9.3%
Technology	17.4%	16.4%
Industrials	9.5%	7.5%
Energy	6.1%	16.2%
Consumer Defensive	5.8%	19.2%
Consumer Cyclical	5.0%	6.3%
Basic Materials	3.5%	1.2%
Real Estate	3.0%	-
Utilities	3.0%	0.0%
Communication Services	3.0%	6.3%
Healthcare	0.6%	18.8%

Return for Risk

DEM vs. SCHD — Risk / Return Rank

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

DEM

DEM Risk / Return Rank: 74
DEM Sharpe Ratio Rank: 72
DEM Sortino Ratio Rank: 71
DEM Omega Ratio Rank: 71
DEM Calmar Ratio Rank: 79
DEM Martin Ratio Rank: 75

SCHD

SCHD Risk / Return Rank: 80
SCHD Sharpe Ratio Rank: 75
SCHD Sortino Ratio Rank: 84
SCHD Omega Ratio Rank: 73
SCHD Calmar Ratio Rank: 91
SCHD Martin Ratio Rank: 75

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.

DEM vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Emerging Markets Equity Income Fund (DEM) and Schwab U.S. Dividend Equity ETF (SCHD). 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.

	DEM	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	2.38	2.49	-0.11
Sortino ratio: Return per unit of downside risk	3.28	3.87	-0.58
Omega ratio: Gain probability vs. loss probability	1.43	1.45	-0.01
Calmar ratio: Return relative to maximum drawdown	4.10	5.91	-1.81
Martin ratio: Return relative to average drawdown	14.52	14.53	-0.01
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DEM vs. SCHD - Sharpe Ratio Comparison

The current DEM Sharpe Ratio is 2.38, which is comparable to the SCHD Sharpe Ratio of 2.49. The chart below compares the historical Sharpe Ratios of DEM and SCHD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	DEM	SCHD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.38	2.49	-0.11
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.63	0.58	+0.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	0.77	-0.18
Sharpe Ratio (All Time) Calculated using the full available price history	0.22	0.86	-0.64

Drawdowns

DEM vs. SCHD - Drawdown Comparison

The maximum DEM drawdown since its inception was -51.85%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for DEM and SCHD.

Drawdown Indicators

	DEM	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-51.85%	-33.37%	-18.48%
Max Drawdown (1Y) Largest decline over 1 year	-7.89%	-4.61%	-3.28%
Max Drawdown (3Y) Largest decline over 3 years	-15.64%	-16.13%	+0.49%
Max Drawdown (5Y) Largest decline over 5 years	-27.18%	-16.85%	-10.33%
Max Drawdown (10Y) Largest decline over 10 years	-37.79%	-33.37%	-4.42%
Current Drawdown Current decline from peak	-1.19%	-1.40%	+0.21%
Average Drawdown Average peak-to-trough decline	-12.90%	-3.32%	-9.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.22%	1.88%	+0.34%

Volatility

DEM vs. SCHD - Volatility Comparison

WisdomTree Emerging Markets Equity Income Fund (DEM) has a higher volatility of 5.64% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 2.66%. This indicates that DEM's price experiences larger fluctuations and is considered to be riskier than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DEM	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.64%	2.66%	+2.98%
Volatility (6M) Calculated over the trailing 6-month period	11.33%	7.66%	+3.67%
Volatility (1Y) Calculated over the trailing 1-year period	13.59%	10.96%	+2.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.33%	14.38%	+0.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.96%	16.72%	+1.24%

DEM vs. SCHD - Expense Ratio Comparison

DEM has a 0.63% expense ratio, which is higher than SCHD's 0.06% expense ratio.

Dividends

DEM vs. SCHD - Dividend Comparison

DEM's dividend yield for the trailing twelve months is around 3.76%, more than SCHD's 3.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEM WisdomTree Emerging Markets Equity Income Fund	3.76%	4.88%	5.24%	5.49%	8.62%	5.87%	4.21%	4.78%	4.47%	3.67%	3.63%	5.21%
SCHD Schwab U.S. Dividend Equity ETF	3.26%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%

Frequently Asked Questions

Can I hold both DEM and SCHD in my portfolio?

DEM and SCHD have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DEM or SCHD?

DEM has higher volatility (5.64%) compared to SCHD (2.66%). In terms of maximum drawdown, DEM dropped -51.85% vs SCHD's -33.37%.

Which ETF is better, DEM or SCHD?

On 10-year performance, SCHD leads with 12.77% vs 10.45% for DEM. On fees, SCHD is cheaper at 0.06% per year. On volatility, SCHD has been the lower-risk option at 2.66%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DEM or SCHD?

Over the 10-year period, SCHD has performed better with a 12.77% return vs 10.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DEM or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.63% for DEM.

Which ETF pays a higher dividend yield, DEM or SCHD?

DEM has the higher dividend yield at 3.76%, compared with 3.26% for SCHD.

What is the main difference between DEM and SCHD?

DEM is categorized as Emerging Markets Equities, while SCHD is Dividend. DEM tracks WisdomTree Emerging Markets Equity income Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: WisdomTree and Charles Schwab. Their fees differ too: 0.63% for DEM and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.49 vs 2.38), 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.