SCHA vs. SPEM

Last updated Jun 13, 2026

SCHA (Schwab U.S. Small-Cap ETF) and SPEM (SPDR Portfolio Emerging Markets ETF) are both exchange-traded funds - SCHA is a Small Cap Blend Equities fund tracking the Dow Jones U.S. Small-Cap Total Stock Market Index, while SPEM is a Emerging Markets Equities fund tracking the S&P Emerging Markets BMI. Both are passively managed. Over the past 10 years, SCHA returned 11.55%/yr vs 9.63%/yr for SPEM. A 0.67 correlation means they provide meaningful diversification when combined. SCHA charges 0.04%/yr vs 0.11%/yr for SPEM.

Performance

SCHA vs. SPEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Small-Cap ETF (SCHA) and SPDR Portfolio Emerging Markets ETF (SPEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCHA achieves a 22.49% return, which is significantly higher than SPEM's 11.32% return. Over the past 10 years, SCHA has outperformed SPEM with an annualized return of 11.55%, while SPEM has yielded a comparatively lower 9.63% annualized return.

SCHA

• 1D: 1.16%
• 1M: 5.29%
• YTD: 22.49%
• 6M: 19.84%
• 1Y: 41.48%
• 3Y*: 18.37%
• 5Y*: 7.19%
• 10Y*: 11.55%

SPEM

• 1D: 0.87%
• 1M: -0.21%
• YTD: 11.32%
• 6M: 13.11%
• 1Y: 25.79%
• 3Y*: 17.37%
• 5Y*: 5.60%
• 10Y*: 9.63%

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

SCHA vs. SPEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHA Schwab U.S. Small-Cap ETF	22.49%	11.60%	11.16%	18.46%	-19.81%	16.45%	19.34%	26.50%	-11.79%	14.94%
SPEM SPDR Portfolio Emerging Markets ETF	11.32%	25.63%	11.40%	10.51%	-17.90%	1.51%	14.55%	19.69%	-13.26%	34.82%

Correlation

The correlation between SCHA and SPEM is 0.66, 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	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.61
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (10Y) Calculated over the trailing 10-year period	0.62
Correlation (All Time) Calculated using the full available price history since Nov 3, 2009	0.67

The correlation between SCHA and SPEM has been stable across timeframes, ranging from 0.61 to 0.67 - a consistent structural relationship.

SCHA vs. SPEM - Sectors Allocation Comparison

Sectors	SCHA	SPEM
Technology	23.9%	28.2%
Industrials	15.6%	8.5%
Financial Services	15.3%	20.2%
Healthcare	13.2%	4.0%
Consumer Cyclical	9.0%	10.4%
Real Estate	5.9%	1.9%
Energy	5.4%	4.7%
Basic Materials	4.4%	8.2%
Consumer Defensive	2.5%	3.9%
Utilities	2.3%	2.8%
Communication Services	2.3%	7.2%

Return for Risk

SCHA vs. SPEM — Risk / Return Rank

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

SCHA

SCHA Risk / Return Rank: 82
SCHA Sharpe Ratio Rank: 81
SCHA Sortino Ratio Rank: 81
SCHA Omega Ratio Rank: 74
SCHA Calmar Ratio Rank: 87
SCHA Martin Ratio Rank: 87

SPEM

SPEM Risk / Return Rank: 52
SPEM Sharpe Ratio Rank: 52
SPEM Sortino Ratio Rank: 49
SPEM Omega Ratio Rank: 53
SPEM Calmar Ratio Rank: 52
SPEM Martin Ratio Rank: 54

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.

SCHA vs. SPEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Small-Cap ETF (SCHA) and SPDR Portfolio Emerging Markets ETF (SPEM). 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.

	SCHA	SPEM	Difference
Sharpe ratio: Return per unit of total volatility	2.24	1.55	+0.69
Sortino ratio: Return per unit of downside risk	3.10	2.16	+0.95
Omega ratio: Gain probability vs. loss probability	1.37	1.29	+0.08
Calmar ratio: Return relative to maximum drawdown	4.38	2.28	+2.11
Martin ratio: Return relative to average drawdown	16.08	8.16	+7.92

SCHA vs. SPEM - Sharpe Ratio Comparison

The current SCHA Sharpe Ratio is 2.24, which is higher than the SPEM Sharpe Ratio of 1.55. The chart below compares the historical Sharpe Ratios of SCHA and SPEM, 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

SCHA vs. SPEM - Drawdown Comparison

The maximum SCHA drawdown since its inception was -42.41%, smaller than the maximum SPEM drawdown of -64.41%. Use the drawdown chart below to compare losses from any high point for SCHA and SPEM.

Drawdown Indicators

	SCHA	SPEM	Difference
Max Drawdown Largest peak-to-trough decline	-42.41%	-64.41%	+22.00%
Max Drawdown (1Y) Largest decline over 1 year	-9.50%	-11.36%	+1.86%
Max Drawdown (3Y) Largest decline over 3 years	-27.29%	-17.62%	-9.67%
Max Drawdown (5Y) Largest decline over 5 years	-30.79%	-31.75%	+0.96%
Max Drawdown (10Y) Largest decline over 10 years	-42.41%	-36.06%	-6.35%
Current Drawdown Current decline from peak	0.00%	-2.40%	+2.40%
Average Drawdown Average peak-to-trough decline	-7.57%	-14.73%	+7.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.59%	3.17%	-0.58%

Volatility

SCHA vs. SPEM - Volatility Comparison

Schwab U.S. Small-Cap ETF (SCHA) and SPDR Portfolio Emerging Markets ETF (SPEM) have volatilities of 6.62% and 6.87%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHA	SPEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.62%	6.87%	-0.25%
Volatility (6M) Calculated over the trailing 6-month period	13.67%	14.21%	-0.54%
Volatility (1Y) Calculated over the trailing 1-year period	18.62%	16.67%	+1.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.03%	17.26%	+4.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.75%	18.83%	+3.92%

SCHA vs. SPEM - Expense Ratio Comparison

SCHA has a 0.04% expense ratio, which is lower than SPEM's 0.11% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SCHA vs. SPEM - Dividend Comparison

SCHA's dividend yield for the trailing twelve months is around 0.98%, less than SPEM's 2.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHA Schwab U.S. Small-Cap ETF	0.98%	1.26%	1.51%	1.42%	1.37%	1.19%	1.05%	1.39%	1.58%	1.24%	1.50%	1.48%
SPEM SPDR Portfolio Emerging Markets ETF	2.49%	2.77%	2.78%	2.80%	3.38%	3.14%	1.92%	2.94%	2.34%	1.12%	1.51%	2.40%

Frequently Asked Questions

Can I hold both SCHA and SPEM in my portfolio?

SCHA and SPEM have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHA or SPEM?

SPEM has higher volatility (6.87%) compared to SCHA (6.62%). In terms of maximum drawdown, SCHA dropped -42.41% vs SPEM's -64.41%.

Which ETF is better, SCHA or SPEM?

On 10-year performance, SCHA leads with 11.55% vs 9.63% for SPEM. On fees, SCHA is cheaper at 0.04% per year. On volatility, SCHA has been the lower-risk option at 6.62%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHA or SPEM?

Over the 10-year period, SCHA has performed better with a 11.55% return vs 9.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHA or SPEM?

SCHA is cheaper with a 0.04% expense ratio, compared with 0.11% for SPEM.

Which ETF pays a higher dividend yield, SCHA or SPEM?

SPEM has the higher dividend yield at 2.49%, compared with 0.98% for SCHA.

What is the main difference between SCHA and SPEM?

SCHA is categorized as Small Cap Blend Equities, while SPEM is Emerging Markets Equities. SCHA tracks Dow Jones U.S. Small-Cap Total Stock Market Index, while SPEM tracks S&P Emerging Markets BMI. They also come from different issuers: Charles Schwab and State Street. Their fees differ too: 0.04% for SCHA and 0.11% for SPEM.

Which has better risk-adjusted returns?

SCHA currently has the higher Sharpe Ratio (2.24 vs 1.55), 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.