JPEM vs. SCHE

Last updated Jun 23, 2026

JPEM (J.P. Morgan Diversified Return Emerging Markets Equity ETF) and SCHE (Schwab Emerging Markets Equity ETF) are both Emerging Markets Equities funds - JPEM tracks the JPMorgan Diversified Factor Emerging Markets Equity Index while SCHE tracks the FTSE Emerging Index. Both are passively managed. Over the past 10 years, JPEM returned 8.20%/yr vs 9.30%/yr for SCHE. Their correlation of 0.89 suggests significant overlap in exposure. JPEM charges 0.44%/yr vs 0.11%/yr for SCHE.

Performance

JPEM vs. SCHE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in J.P. Morgan Diversified Return Emerging Markets Equity ETF (JPEM) 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, JPEM achieves a 7.50% return, which is significantly lower than SCHE's 13.71% return. Over the past 10 years, JPEM has underperformed SCHE with an annualized return of 8.20%, while SCHE has yielded a comparatively higher 9.30% annualized return.

JPEM

• 1D: -0.02%
• 1M: 1.31%
• YTD: 7.50%
• 6M: 8.40%
• 1Y: 23.92%
• 3Y*: 14.04%
• 5Y*: 6.55%
• 10Y*: 8.20%

SCHE

• 1D: 0.98%
• 1M: 4.17%
• YTD: 13.71%
• 6M: 14.37%
• 1Y: 31.95%
• 3Y*: 18.83%
• 5Y*: 5.77%
• 10Y*: 9.30%

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

JPEM vs. SCHE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
JPEM J.P. Morgan Diversified Return Emerging Markets Equity ETF	7.50%	22.90%	4.23%	11.01%	-9.03%	8.11%	-0.46%	16.21%	-10.55%	28.80%
SCHE Schwab Emerging Markets Equity ETF	13.71%	26.54%	10.60%	8.93%	-17.84%	-0.65%	14.49%	20.31%	-13.57%	32.70%

Correlation

The correlation between JPEM and SCHE is 0.87, 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	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (10Y) Calculated over the trailing 10-year period	0.92
Correlation (All Time) Calculated using the full available price history since Jan 9, 2015	0.89

The correlation between JPEM and SCHE has been stable across timeframes, ranging from 0.87 to 0.92 - a consistent structural relationship.

JPEM vs. SCHE - Sectors Allocation Comparison

Sectors	JPEM	SCHE
Financial Services	19.2%	20.0%
Industrials	12.7%	6.7%
Basic Materials	11.4%	7.5%
Consumer Cyclical	9.9%	9.6%
Utilities	9.1%	2.8%
Consumer Defensive	8.5%	3.4%
Communication Services	8.3%	7.1%
Technology	7.8%	33.7%
Energy	7.1%	4.4%
Healthcare	4.2%	3.2%
Real Estate	1.8%	1.6%

Return for Risk

JPEM vs. SCHE — Risk / Return Rank

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

JPEM

JPEM Risk / Return Rank: 52
JPEM Sharpe Ratio Rank: 55
JPEM Sortino Ratio Rank: 53
JPEM Omega Ratio Rank: 56
JPEM Calmar Ratio Rank: 48
JPEM Martin Ratio Rank: 50

SCHE

SCHE Risk / Return Rank: 58
SCHE Sharpe Ratio Rank: 58
SCHE Sortino Ratio Rank: 55
SCHE Omega Ratio Rank: 59
SCHE Calmar Ratio Rank: 59
SCHE Martin Ratio Rank: 58

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.

JPEM vs. SCHE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for J.P. Morgan Diversified Return Emerging Markets Equity ETF (JPEM) 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.

	JPEM	SCHE	Difference
Sharpe ratio: Return per unit of total volatility	1.79	1.88	-0.09
Sortino ratio: Return per unit of downside risk	2.47	2.57	-0.10
Omega ratio: Gain probability vs. loss probability	1.34	1.35	-0.01
Calmar ratio: Return relative to maximum drawdown	2.33	2.84	-0.52
Martin ratio: Return relative to average drawdown	8.37	10.03	-1.66

JPEM vs. SCHE - Sharpe Ratio Comparison

The current JPEM Sharpe Ratio is 1.79, which is comparable to the SCHE Sharpe Ratio of 1.88. The chart below compares the historical Sharpe Ratios of JPEM 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

JPEM vs. SCHE - Drawdown Comparison

The maximum JPEM drawdown since its inception was -40.22%, which is greater than SCHE's maximum drawdown of -36.20%. Use the drawdown chart below to compare losses from any high point for JPEM and SCHE.

Drawdown Indicators

	JPEM	SCHE	Difference
Max Drawdown Largest peak-to-trough decline	-40.22%	-36.20%	-4.02%
Max Drawdown (1Y) Largest decline over 1 year	-10.32%	-11.29%	+0.97%
Max Drawdown (3Y) Largest decline over 3 years	-14.30%	-17.08%	+2.78%
Max Drawdown (5Y) Largest decline over 5 years	-21.57%	-33.31%	+11.74%
Max Drawdown (10Y) Largest decline over 10 years	-40.22%	-36.20%	-4.02%
Current Drawdown Current decline from peak	-2.80%	0.00%	-2.80%
Average Drawdown Average peak-to-trough decline	-9.44%	-12.57%	+3.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.87%	3.19%	-0.32%

Volatility

JPEM vs. SCHE - Volatility Comparison

The current volatility for J.P. Morgan Diversified Return Emerging Markets Equity ETF (JPEM) is 4.77%, while Schwab Emerging Markets Equity ETF (SCHE) has a volatility of 6.77%. This indicates that JPEM experiences smaller price fluctuations and is considered to be less risky than SCHE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	JPEM	SCHE	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.77%	6.77%	-2.00%
Volatility (6M) Calculated over the trailing 6-month period	11.85%	14.69%	-2.84%
Volatility (1Y) Calculated over the trailing 1-year period	13.42%	17.09%	-3.67%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.58%	17.84%	-4.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.02%	19.50%	-2.48%

JPEM vs. SCHE - Expense Ratio Comparison

JPEM has a 0.44% expense ratio, which is higher than SCHE's 0.11% expense ratio.

Dividends

JPEM vs. SCHE - Dividend Comparison

JPEM's dividend yield for the trailing twelve months is around 4.39%, more than SCHE's 2.53% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
JPEM J.P. Morgan Diversified Return Emerging Markets Equity ETF	4.39%	4.65%	5.12%	4.46%	4.71%	4.40%	2.85%	3.47%	2.79%	2.14%	1.28%	3.22%
SCHE Schwab Emerging Markets Equity ETF	2.53%	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 JPEM and SCHE in my portfolio?

JPEM and SCHE have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, JPEM or SCHE?

SCHE has higher volatility (6.77%) compared to JPEM (4.77%). In terms of maximum drawdown, JPEM dropped -40.22% vs SCHE's -36.20%.

Which ETF is better, JPEM or SCHE?

On 10-year performance, SCHE leads with 9.30% vs 8.20% for JPEM. On fees, SCHE is cheaper at 0.11% per year. On volatility, JPEM has been the lower-risk option at 4.77%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, JPEM or SCHE?

Over the 10-year period, SCHE has performed better with a 9.30% return vs 8.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, JPEM or SCHE?

SCHE is cheaper with a 0.11% expense ratio, compared with 0.44% for JPEM.

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

JPEM has the higher dividend yield at 4.39%, compared with 2.53% for SCHE.

What is the main difference between JPEM and SCHE?

JPEM tracks JPMorgan Diversified Factor Emerging Markets Equity Index, while SCHE tracks FTSE Emerging Index. They also come from different issuers: JPMorgan and Charles Schwab. Their fees differ too: 0.44% for JPEM and 0.11% for SCHE.

Which has better risk-adjusted returns?

SCHE currently has the higher Sharpe Ratio (1.88 vs 1.79), 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.