SCHE vs. BKEM

Last updated Jul 14, 2026

SCHE (Schwab Emerging Markets Equity ETF) and BKEM (BNY Mellon Emerging Markets Equity ETF) are both Emerging Markets Equities funds - SCHE tracks the FTSE Emerging Index while BKEM tracks the Morningstar Emerging Markets Large Cap Index. Both are passively managed. Over the past 5 years, SCHE returned 5.20%/yr vs 6.39%/yr for BKEM. With a 0.97 correlation, they move nearly in lockstep. Both charge a 0.11% expense ratio.

Performance

SCHE vs. BKEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Emerging Markets Equity ETF (SCHE) and BNY Mellon Emerging Markets Equity ETF (BKEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCHE achieves a 9.54% return, which is significantly lower than BKEM's 20.10% return.

SCHE

• 1D: -1.89%
• 1M: -0.87%
• 6M: 4.41%
• YTD: 9.54%
• 1Y: 22.13%
• 3Y*: 15.66%
• 5Y*: 5.20%
• 10Y*: 7.95%

BKEM

• 1D: -3.63%
• 1M: -4.84%
• 6M: 13.52%
• YTD: 20.10%
• 1Y: 36.79%
• 3Y*: 18.94%
• 5Y*: 6.39%
• 10Y*: —

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

SCHE vs. BKEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
SCHE Schwab Emerging Markets Equity ETF	9.54%	26.54%	10.60%	8.93%	-17.84%	-0.65%	45.41%
BKEM BNY Mellon Emerging Markets Equity ETF	20.10%	30.55%	7.53%	8.68%	-19.43%	-3.91%	48.44%

Correlation

The correlation between SCHE and BKEM is 0.92, 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	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (All Time) Calculated using the full available price history since Apr 24, 2020	0.97

The correlation between SCHE and BKEM has been stable across timeframes, ranging from 0.92 to 0.97 - a consistent structural relationship.

SCHE vs. BKEM - Sectors Allocation Comparison

Sectors	SCHE	BKEM
Technology	33.7%	43.0%
Financial Services	20.0%	16.9%
Consumer Cyclical	9.6%	8.7%
Basic Materials	7.5%	5.7%
Communication Services	7.1%	5.8%
Industrials	6.7%	8.1%
Energy	4.4%	3.4%
Consumer Defensive	3.4%	2.6%
Healthcare	3.2%	2.7%
Utilities	2.8%	2.0%
Real Estate	1.6%	1.1%

Return for Risk

SCHE vs. BKEM — Risk / Return Rank

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

SCHE

SCHE Risk / Return Rank: 47
SCHE Sharpe Ratio Rank: 45
SCHE Sortino Ratio Rank: 43
SCHE Omega Ratio Rank: 46
SCHE Calmar Ratio Rank: 49
SCHE Martin Ratio Rank: 50

BKEM

BKEM Risk / Return Rank: 64
BKEM Sharpe Ratio Rank: 62
BKEM Sortino Ratio Rank: 55
BKEM Omega Ratio Rank: 63
BKEM Calmar Ratio Rank: 71
BKEM Martin Ratio Rank: 67

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.

SCHE vs. BKEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Emerging Markets Equity ETF (SCHE) and BNY Mellon Emerging Markets Equity ETF (BKEM). 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.

	SCHE	BKEM	Difference
Sharpe ratio: Return per unit of total volatility	1.26	1.62	-0.35
Sortino ratio: Return per unit of downside risk	1.79	2.12	-0.34
Omega ratio: Gain probability vs. loss probability	1.24	1.30	-0.07
Calmar ratio: Return relative to maximum drawdown	1.97	2.82	-0.85
Martin ratio: Return relative to average drawdown	6.75	9.64	-2.88

SCHE vs. BKEM - Sharpe Ratio Comparison

The current SCHE Sharpe Ratio is 1.26, which is comparable to the BKEM Sharpe Ratio of 1.62. The chart below compares the historical Sharpe Ratios of SCHE and BKEM, 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

SCHE vs. BKEM - Drawdown Comparison

The maximum SCHE drawdown since its inception was -36.20%, smaller than the maximum BKEM drawdown of -39.48%. Use the drawdown chart below to compare losses from any high point for SCHE and BKEM.

Drawdown Indicators

	SCHE	BKEM	Difference
Max Drawdown Largest peak-to-trough decline	-36.20%	-39.48%	+3.28%
Max Drawdown (1Y) Largest decline over 1 year	-11.29%	-13.11%	+1.82%
Max Drawdown (3Y) Largest decline over 3 years	-17.08%	-18.38%	+1.30%
Max Drawdown (5Y) Largest decline over 5 years	-31.40%	-34.52%	+3.12%
Max Drawdown (10Y) Largest decline over 10 years	-36.20%	—	—
Current Drawdown Current decline from peak	-3.67%	-9.06%	+5.39%
Average Drawdown Average peak-to-trough decline	-12.53%	-15.81%	+3.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.29%	3.83%	-0.54%

Volatility

SCHE vs. BKEM - Volatility Comparison

The current volatility for Schwab Emerging Markets Equity ETF (SCHE) is 6.54%, while BNY Mellon Emerging Markets Equity ETF (BKEM) has a volatility of 10.87%. This indicates that SCHE experiences smaller price fluctuations and is considered to be less risky than BKEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHE	BKEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.54%	10.87%	-4.33%
Volatility (6M) Calculated over the trailing 6-month period	15.24%	20.93%	-5.69%
Volatility (1Y) Calculated over the trailing 1-year period	17.61%	22.92%	-5.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.90%	19.50%	-1.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.41%	19.65%	-0.24%

SCHE vs. BKEM - Expense Ratio Comparison

Both SCHE and BKEM 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

SCHE vs. BKEM - Dividend Comparison

SCHE's dividend yield for the trailing twelve months is around 2.66%, more than BKEM's 1.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BKEM BNY Mellon Emerging Markets Equity ETF	1.95%	2.25%	2.76%	3.02%	3.15%	2.22%	1.78%	0.00%	0.00%	0.00%	0.00%	0.00%
SCHE Schwab Emerging Markets Equity ETF	2.66%	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 SCHE and BKEM in my portfolio?

With a correlation of 0.92, SCHE and BKEM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, SCHE or BKEM?

BKEM has higher volatility (10.87%) compared to SCHE (6.54%). In terms of maximum drawdown, SCHE dropped -36.20% vs BKEM's -39.48%.

Which ETF is better, SCHE or BKEM?

On 5-year performance, BKEM leads with 6.39% vs 5.20% for SCHE. Both ETFs have the same 0.11% expense ratio. On volatility, SCHE has been the lower-risk option at 6.54%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHE or BKEM?

Over the 5-year period, BKEM has performed better with a 6.39% return vs 5.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHE or BKEM?

SCHE and BKEM have the same expense ratio: 0.11% per year.

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

SCHE has the higher dividend yield at 2.66%, compared with 1.95% for BKEM.

What is the main difference between SCHE and BKEM?

SCHE tracks FTSE Emerging Index, while BKEM tracks Morningstar Emerging Markets Large Cap Index. They also come from different issuers: Charles Schwab and BNY Mellon.

Which has better risk-adjusted returns?

BKEM currently has the higher Sharpe Ratio (1.62 vs 1.26), 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.