EMF vs. SCHE

Last updated Jun 24, 2026

EMF (Templeton Emerging Markets Fund) and SCHE (Schwab Emerging Markets Equity ETF) are both Emerging Markets Equities funds. EMF is actively managed, while SCHE is passively managed. Over the past 10 years, EMF returned 15.62%/yr vs 8.96%/yr for SCHE. Their correlation of 0.85 suggests significant overlap in exposure. EMF charges 1.43%/yr vs 0.11%/yr for SCHE.

Performance

EMF vs. SCHE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Templeton Emerging Markets Fund (EMF) 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, EMF achieves a 38.50% return, which is significantly higher than SCHE's 10.23% return. Over the past 10 years, EMF has outperformed SCHE with an annualized return of 15.62%, while SCHE has yielded a comparatively lower 8.96% annualized return.

EMF

• 1D: -5.61%
• 1M: 6.38%
• YTD: 38.50%
• 6M: 43.73%
• 1Y: 82.29%
• 3Y*: 35.33%
• 5Y*: 11.55%
• 10Y*: 15.62%

SCHE

• 1D: -3.06%
• 1M: 0.98%
• YTD: 10.23%
• 6M: 10.33%
• 1Y: 26.99%
• 3Y*: 17.60%
• 5Y*: 4.91%
• 10Y*: 8.96%

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

EMF vs. SCHE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EMF Templeton Emerging Markets Fund	38.50%	58.20%	6.56%	8.84%	-21.53%	-8.23%	24.48%	27.20%	-14.78%	53.55%
SCHE Schwab Emerging Markets Equity ETF	10.23%	26.54%	10.60%	8.93%	-17.84%	-0.65%	14.49%	20.31%	-13.57%	32.70%

Correlation

The correlation between EMF and SCHE is 0.73, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.73
Correlation (3Y) Calculated over the trailing 3-year period	0.78
Correlation (5Y) Calculated over the trailing 5-year period	0.80
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Jan 14, 2010	0.85

The correlation between EMF and SCHE shifts across timeframes, from 0.73 (1 year) to 0.85 (all time), reflecting how their relationship changes across market environments.

Return for Risk

EMF vs. SCHE — Risk / Return Rank

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

EMF

EMF Risk / Return Rank: 91
EMF Sharpe Ratio Rank: 97
EMF Sortino Ratio Rank: 89
EMF Omega Ratio Rank: 89
EMF Calmar Ratio Rank: 89
EMF Martin Ratio Rank: 90

SCHE

SCHE Risk / Return Rank: 48
SCHE Sharpe Ratio Rank: 47
SCHE Sortino Ratio Rank: 45
SCHE Omega Ratio Rank: 48
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.

EMF vs. SCHE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Templeton Emerging Markets Fund (EMF) 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.

	EMF	SCHE	Difference
Sharpe ratio: Return per unit of total volatility	3.39	1.56	+1.83
Sortino ratio: Return per unit of downside risk	4.01	2.16	+1.85
Omega ratio: Gain probability vs. loss probability	1.60	1.29	+0.31
Calmar ratio: Return relative to maximum drawdown	4.25	2.40	+1.84
Martin ratio: Return relative to average drawdown	16.55	8.46	+8.10

EMF vs. SCHE - Sharpe Ratio Comparison

The current EMF Sharpe Ratio is 3.39, which is higher than the SCHE Sharpe Ratio of 1.56. The chart below compares the historical Sharpe Ratios of EMF 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

EMF vs. SCHE - Drawdown Comparison

The maximum EMF drawdown since its inception was -76.97%, which is greater than SCHE's maximum drawdown of -36.20%. Use the drawdown chart below to compare losses from any high point for EMF and SCHE.

Drawdown Indicators

	EMF	SCHE	Difference
Max Drawdown Largest peak-to-trough decline	-76.97%	-36.20%	-40.77%
Max Drawdown (1Y) Largest decline over 1 year	-19.48%	-11.29%	-8.19%
Max Drawdown (3Y) Largest decline over 3 years	-19.48%	-17.08%	-2.40%
Max Drawdown (5Y) Largest decline over 5 years	-45.08%	-33.31%	-11.77%
Max Drawdown (10Y) Largest decline over 10 years	-47.65%	-36.20%	-11.45%
Current Drawdown Current decline from peak	-5.61%	-3.06%	-2.55%
Average Drawdown Average peak-to-trough decline	-28.96%	-12.56%	-16.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.99%	3.20%	+1.79%

Volatility

EMF vs. SCHE - Volatility Comparison

Templeton Emerging Markets Fund (EMF) has a higher volatility of 11.23% compared to Schwab Emerging Markets Equity ETF (SCHE) at 7.54%. This indicates that EMF'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

	EMF	SCHE	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.23%	7.54%	+3.69%
Volatility (6M) Calculated over the trailing 6-month period	22.06%	15.01%	+7.05%
Volatility (1Y) Calculated over the trailing 1-year period	24.39%	17.35%	+7.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.89%	17.89%	+3.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.68%	19.45%	+1.23%

EMF vs. SCHE - Expense Ratio Comparison

EMF has a 1.43% expense ratio, which is higher than SCHE's 0.11% expense ratio.

Dividends

EMF vs. SCHE - Dividend Comparison

EMF's dividend yield for the trailing twelve months is around 7.27%, more than SCHE's 2.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EMF Templeton Emerging Markets Fund	7.27%	9.73%	4.28%	6.22%	9.89%	6.92%	3.51%	7.36%	5.92%	12.11%	1.62%	12.81%
SCHE Schwab Emerging Markets Equity ETF	2.61%	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 EMF and SCHE in my portfolio?

EMF and SCHE have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EMF or SCHE?

EMF has higher volatility (11.23%) compared to SCHE (7.54%). In terms of maximum drawdown, EMF dropped -76.97% vs SCHE's -36.20%.

Which has better risk-adjusted returns?

EMF currently has the higher Sharpe Ratio (3.39 vs 1.56), 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.