SCHC vs. SPEM

Last updated Jun 13, 2026

SCHC (Schwab International Small-Cap Equity ETF) and SPEM (SPDR Portfolio Emerging Markets ETF) are both exchange-traded funds - SCHC is a Foreign Small & Mid Cap Equities fund tracking the FTSE Custom Developed Small Cap ex-US Liquid Net of Tax (Lux), while SPEM is a Emerging Markets Equities fund tracking the S&P Emerging Markets BMI. Both are passively managed. Over the past 10 years, SCHC returned 8.48%/yr vs 9.63%/yr for SPEM. A 0.79 correlation means they provide meaningful diversification when combined. Both charge a 0.11% expense ratio.

Performance

SCHC vs. SPEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab International Small-Cap Equity ETF (SCHC) 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, SCHC achieves a 9.25% return, which is significantly lower than SPEM's 11.32% return. Over the past 10 years, SCHC has underperformed SPEM with an annualized return of 8.48%, while SPEM has yielded a comparatively higher 9.63% annualized return.

SCHC

• 1D: 0.71%
• 1M: -2.18%
• YTD: 9.25%
• 6M: 11.25%
• 1Y: 23.99%
• 3Y*: 17.06%
• 5Y*: 6.10%
• 10Y*: 8.48%

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)

SCHC vs. SPEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHC Schwab International Small-Cap Equity ETF	9.25%	37.59%	1.97%	14.36%	-21.74%	12.02%	10.48%	23.10%	-18.60%	29.42%
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 SCHC and SPEM is 0.80, 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	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.77
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	0.78
Correlation (All Time) Calculated using the full available price history since Jan 14, 2010	0.79

The correlation between SCHC and SPEM has been stable across timeframes, ranging from 0.77 to 0.80 - a consistent structural relationship.

SCHC vs. SPEM - Sectors Allocation Comparison

Sectors	SCHC	SPEM
Industrials	22.4%	8.5%
Basic Materials	13.7%	8.2%
Financial Services	12.6%	20.2%
Consumer Cyclical	10.0%	10.4%
Technology	9.2%	28.2%
Real Estate	8.6%	1.9%
Energy	6.5%	4.7%
Healthcare	6.5%	4.0%
Consumer Defensive	4.1%	3.9%
Communication Services	3.2%	7.2%
Utilities	3.2%	2.8%

Return for Risk

SCHC vs. SPEM — Risk / Return Rank

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

SCHC

SCHC Risk / Return Rank: 47
SCHC Sharpe Ratio Rank: 49
SCHC Sortino Ratio Rank: 48
SCHC Omega Ratio Rank: 48
SCHC Calmar Ratio Rank: 44
SCHC Martin Ratio Rank: 48

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.

SCHC vs. SPEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab International Small-Cap Equity ETF (SCHC) 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.

	SCHC	SPEM	Difference
Sharpe ratio: Return per unit of total volatility	1.49	1.55	-0.07
Sortino ratio: Return per unit of downside risk	2.09	2.16	-0.07
Omega ratio: Gain probability vs. loss probability	1.27	1.29	-0.02
Calmar ratio: Return relative to maximum drawdown	1.93	2.28	-0.35
Martin ratio: Return relative to average drawdown	7.12	8.16	-1.04

SCHC vs. SPEM - Sharpe Ratio Comparison

The current SCHC Sharpe Ratio is 1.49, which is comparable to the SPEM Sharpe Ratio of 1.55. The chart below compares the historical Sharpe Ratios of SCHC 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

SCHC vs. SPEM - Drawdown Comparison

The maximum SCHC drawdown since its inception was -43.94%, smaller than the maximum SPEM drawdown of -64.41%. Use the drawdown chart below to compare losses from any high point for SCHC and SPEM.

Drawdown Indicators

	SCHC	SPEM	Difference
Max Drawdown Largest peak-to-trough decline	-43.94%	-64.41%	+20.47%
Max Drawdown (1Y) Largest decline over 1 year	-12.48%	-11.36%	-1.12%
Max Drawdown (3Y) Largest decline over 3 years	-15.52%	-17.62%	+2.10%
Max Drawdown (5Y) Largest decline over 5 years	-36.48%	-31.75%	-4.73%
Max Drawdown (10Y) Largest decline over 10 years	-43.94%	-36.06%	-7.88%
Current Drawdown Current decline from peak	-3.49%	-2.40%	-1.09%
Average Drawdown Average peak-to-trough decline	-10.04%	-14.73%	+4.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.38%	3.17%	+0.21%

Volatility

SCHC vs. SPEM - Volatility Comparison

The current volatility for Schwab International Small-Cap Equity ETF (SCHC) is 6.31%, while SPDR Portfolio Emerging Markets ETF (SPEM) has a volatility of 6.87%. This indicates that SCHC experiences smaller price fluctuations and is considered to be less risky than SPEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHC	SPEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.31%	6.87%	-0.56%
Volatility (6M) Calculated over the trailing 6-month period	13.88%	14.21%	-0.33%
Volatility (1Y) Calculated over the trailing 1-year period	16.21%	16.67%	-0.46%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.62%	17.26%	+0.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.02%	18.83%	-0.81%

SCHC vs. SPEM - Expense Ratio Comparison

Both SCHC and SPEM have an expense ratio of 0.11%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

SCHC vs. SPEM - Dividend Comparison

SCHC's dividend yield for the trailing twelve months is around 3.35%, more than SPEM's 2.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHC Schwab International Small-Cap Equity ETF	3.35%	3.66%	3.72%	2.94%	1.78%	3.02%	1.62%	3.23%	2.51%	2.73%	2.01%	2.34%
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 SCHC and SPEM in my portfolio?

SCHC and SPEM have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHC or SPEM?

SPEM has higher volatility (6.87%) compared to SCHC (6.31%). In terms of maximum drawdown, SCHC dropped -43.94% vs SPEM's -64.41%.

Which ETF is better, SCHC or SPEM?

On 10-year performance, SPEM leads with 9.63% vs 8.48% for SCHC. Both ETFs have the same 0.11% expense ratio. On volatility, SCHC has been the lower-risk option at 6.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHC or SPEM?

Over the 10-year period, SPEM has performed better with a 9.63% return vs 8.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHC or SPEM?

SCHC and SPEM have the same expense ratio: 0.11% per year.

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

SCHC has the higher dividend yield at 3.35%, compared with 2.49% for SPEM.

What is the main difference between SCHC and SPEM?

SCHC is categorized as Foreign Small & Mid Cap Equities, while SPEM is Emerging Markets Equities. SCHC tracks FTSE Custom Developed Small Cap ex-US Liquid Net of Tax (Lux), while SPEM tracks S&P Emerging Markets BMI. They also come from different issuers: Charles Schwab and State Street.

Which has better risk-adjusted returns?

SPEM currently has the higher Sharpe Ratio (1.55 vs 1.49), 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.