RNEM vs. SCHD

Last updated Jun 24, 2026

RNEM (First Trust Emerging Markets Equity Select ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - RNEM is a Emerging Markets Equities fund tracking the Nasdaq Riskalyze Emerging Markets Equity Select Index, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Both are passively managed. Over the past 5 years, RNEM returned 4.54%/yr vs 8.71%/yr for SCHD. At a 0.43 correlation, their price movements are largely independent. RNEM charges 0.75%/yr vs 0.06%/yr for SCHD.

Performance

RNEM vs. SCHD - Performance Comparison

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

Returns By Period

In the year-to-date period, RNEM achieves a -0.01% return, which is significantly lower than SCHD's 17.72% return.

RNEM

• 1D: -1.32%
• 1M: 1.05%
• YTD: -0.01%
• 6M: -0.61%
• 1Y: 4.82%
• 3Y*: 7.54%
• 5Y*: 4.54%
• 10Y*: —

SCHD

• 1D: 0.41%
• 1M: -2.47%
• YTD: 17.72%
• 6M: 17.25%
• 1Y: 24.56%
• 3Y*: 14.60%
• 5Y*: 8.71%
• 10Y*: 12.72%

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

RNEM vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RNEM First Trust Emerging Markets Equity Select ETF	-0.01%	15.58%	-1.47%	23.43%	-8.75%	6.16%	-8.16%	12.76%	-9.34%	11.97%
SCHD Schwab U.S. Dividend Equity ETF	17.72%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	14.09%

Correlation

The correlation between RNEM and SCHD is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.31
Correlation (3Y) Calculated over the trailing 3-year period	0.39
Correlation (5Y) Calculated over the trailing 5-year period	0.47
Correlation (All Time) Calculated using the full available price history since Jun 23, 2017	0.43

The correlation between RNEM and SCHD shifts across timeframes, from 0.31 (1 year) to 0.47 (5 years), reflecting how their relationship changes across market environments.

RNEM vs. SCHD - Sectors Allocation Comparison

Sectors	RNEM	SCHD
Financial Services	35.0%	9.1%
Basic Materials	14.2%	1.2%
Consumer Cyclical	9.9%	6.7%
Communication Services	8.7%	6.0%
Energy	7.0%	14.6%
Technology	6.4%	19.4%
Consumer Defensive	6.0%	18.5%
Healthcare	4.5%	18.4%
Industrials	3.9%	7.4%
Utilities	3.5%	0.0%
Real Estate	0.8%	-

Return for Risk

RNEM vs. SCHD — Risk / Return Rank

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

RNEM

RNEM Risk / Return Rank: 13
RNEM Sharpe Ratio Rank: 14
RNEM Sortino Ratio Rank: 13
RNEM Omega Ratio Rank: 13
RNEM Calmar Ratio Rank: 14
RNEM Martin Ratio Rank: 13

SCHD

SCHD Risk / Return Rank: 77
SCHD Sharpe Ratio Rank: 72
SCHD Sortino Ratio Rank: 80
SCHD Omega Ratio Rank: 70
SCHD Calmar Ratio Rank: 90
SCHD Martin Ratio Rank: 71

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.

RNEM vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Emerging Markets Equity Select ETF (RNEM) 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.

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.

	RNEM	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	0.36	2.23	-1.87
Sortino ratio: Return per unit of downside risk	0.61	3.40	-2.79
Omega ratio: Gain probability vs. loss probability	1.07	1.40	-0.32
Calmar ratio: Return relative to maximum drawdown	0.45	5.35	-4.89
Martin ratio: Return relative to average drawdown	1.00	12.94	-11.93

RNEM vs. SCHD - Sharpe Ratio Comparison

The current RNEM Sharpe Ratio is 0.36, which is lower than the SCHD Sharpe Ratio of 2.23. The chart below compares the historical Sharpe Ratios of RNEM 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.

Drawdowns

RNEM vs. SCHD - Drawdown Comparison

The maximum RNEM drawdown since its inception was -38.38%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for RNEM and SCHD.

Drawdown Indicators

	RNEM	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-38.38%	-33.37%	-5.01%
Max Drawdown (1Y) Largest decline over 1 year	-10.71%	-4.61%	-6.10%
Max Drawdown (3Y) Largest decline over 3 years	-13.09%	-16.13%	+3.04%
Max Drawdown (5Y) Largest decline over 5 years	-21.41%	-16.85%	-4.56%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.37%	—
Current Drawdown Current decline from peak	-6.06%	-2.47%	-3.59%
Average Drawdown Average peak-to-trough decline	-9.28%	-3.31%	-5.97%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.83%	1.90%	+2.93%

Volatility

RNEM vs. SCHD - Volatility Comparison

First Trust Emerging Markets Equity Select ETF (RNEM) has a higher volatility of 4.04% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 3.58%. This indicates that RNEM'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

	RNEM	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.04%	3.58%	+0.46%
Volatility (6M) Calculated over the trailing 6-month period	10.80%	7.73%	+3.07%
Volatility (1Y) Calculated over the trailing 1-year period	13.64%	11.07%	+2.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.47%	14.36%	+0.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.21%	16.71%	+0.50%

RNEM vs. SCHD - Expense Ratio Comparison

RNEM has a 0.75% expense ratio, which is higher than SCHD's 0.06% expense ratio.

Dividends

RNEM vs. SCHD - Dividend Comparison

RNEM's dividend yield for the trailing twelve months is around 2.75%, less than SCHD's 3.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RNEM First Trust Emerging Markets Equity Select ETF	2.75%	2.75%	3.45%	1.63%	2.99%	3.20%	3.01%	2.85%	2.85%	2.28%	0.00%	0.00%
SCHD Schwab U.S. Dividend Equity ETF	3.30%	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 RNEM and SCHD in my portfolio?

RNEM and SCHD have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RNEM or SCHD?

RNEM has higher volatility (4.04%) compared to SCHD (3.58%). In terms of maximum drawdown, RNEM dropped -38.38% vs SCHD's -33.37%.

Which ETF is better, RNEM or SCHD?

On 5-year performance, SCHD leads with 8.71% vs 4.54% for RNEM. On fees, SCHD is cheaper at 0.06% per year. On volatility, SCHD has been the lower-risk option at 3.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, RNEM or SCHD?

Over the 5-year period, SCHD has performed better with a 8.71% return vs 4.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, RNEM or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.75% for RNEM.

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

SCHD has the higher dividend yield at 3.30%, compared with 2.75% for RNEM.

What is the main difference between RNEM and SCHD?

RNEM is categorized as Emerging Markets Equities, while SCHD is Dividend. RNEM tracks Nasdaq Riskalyze Emerging Markets Equity Select Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: First Trust and Charles Schwab. Their fees differ too: 0.75% for RNEM and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.23 vs 0.36), 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.