SCHE vs. DBEM

Last updated Jul 14, 2026

SCHE (Schwab Emerging Markets Equity ETF) and DBEM (Xtrackers MSCI Emerging Markets Hedged Equity ETF) are both Emerging Markets Equities funds - SCHE tracks the FTSE Emerging Index while DBEM tracks the MSCI EM US Dollar Hedged Index. Both are passively managed. Over the past 10 years, SCHE returned 7.95%/yr vs 9.51%/yr for DBEM. Their correlation of 0.87 suggests significant overlap in exposure. SCHE charges 0.11%/yr vs 0.66%/yr for DBEM.

Performance

SCHE vs. DBEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Emerging Markets Equity ETF (SCHE) and Xtrackers MSCI Emerging Markets Hedged Equity ETF (DBEM). 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 DBEM's 22.75% return. Over the past 10 years, SCHE has underperformed DBEM with an annualized return of 7.95%, while DBEM has yielded a comparatively higher 9.51% annualized 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%

DBEM

• 1D: -3.04%
• 1M: -4.10%
• 6M: 15.35%
• YTD: 22.75%
• 1Y: 43.79%
• 3Y*: 21.35%
• 5Y*: 8.60%
• 10Y*: 9.51%

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

SCHE vs. DBEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHE Schwab Emerging Markets Equity ETF	9.54%	26.54%	10.60%	8.93%	-17.84%	-0.65%	14.49%	20.31%	-13.57%	32.70%
DBEM Xtrackers MSCI Emerging Markets Hedged Equity ETF	22.75%	30.42%	10.61%	10.53%	-17.00%	-2.26%	18.12%	16.77%	-10.81%	27.10%

Correlation

The correlation between SCHE and DBEM is 0.90, 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	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.93
Correlation (All Time) Calculated using the full available price history since Jun 9, 2011	0.87

The correlation between SCHE and DBEM has been stable across timeframes, ranging from 0.87 to 0.93 - a consistent structural relationship.

SCHE vs. DBEM - Sectors Allocation Comparison

Sectors	SCHE	DBEM
Technology	33.7%	43.6%
Financial Services	20.0%	17.9%
Consumer Cyclical	9.6%	8.4%
Basic Materials	7.5%	6.0%
Communication Services	7.1%	6.1%
Industrials	6.7%	6.7%
Energy	4.4%	3.5%
Consumer Defensive	3.4%	2.5%
Healthcare	3.2%	2.5%
Utilities	2.8%	1.8%
Real Estate	1.6%	1.0%

Return for Risk

SCHE vs. DBEM — 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

DBEM

DBEM Risk / Return Rank: 82
DBEM Sharpe Ratio Rank: 81
DBEM Sortino Ratio Rank: 73
DBEM Omega Ratio Rank: 81
DBEM Calmar Ratio Rank: 89
DBEM Martin Ratio Rank: 85

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. DBEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Emerging Markets Equity ETF (SCHE) and Xtrackers MSCI Emerging Markets Hedged Equity ETF (DBEM). 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	DBEM	Difference
Sharpe ratio: Return per unit of total volatility	1.26	2.05	-0.78
Sortino ratio: Return per unit of downside risk	1.79	2.60	-0.82
Omega ratio: Gain probability vs. loss probability	1.24	1.38	-0.14
Calmar ratio: Return relative to maximum drawdown	1.97	4.19	-2.22
Martin ratio: Return relative to average drawdown	6.75	13.77	-7.02

SCHE vs. DBEM - Sharpe Ratio Comparison

The current SCHE Sharpe Ratio is 1.26, which is lower than the DBEM Sharpe Ratio of 2.05. The chart below compares the historical Sharpe Ratios of SCHE and DBEM, 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. DBEM - Drawdown Comparison

The maximum SCHE drawdown since its inception was -36.20%, which is greater than DBEM's maximum drawdown of -33.51%. Use the drawdown chart below to compare losses from any high point for SCHE and DBEM.

Drawdown Indicators

	SCHE	DBEM	Difference
Max Drawdown Largest peak-to-trough decline	-36.20%	-33.51%	-2.69%
Max Drawdown (1Y) Largest decline over 1 year	-11.29%	-10.51%	-0.78%
Max Drawdown (3Y) Largest decline over 3 years	-17.08%	-15.12%	-1.96%
Max Drawdown (5Y) Largest decline over 5 years	-31.40%	-29.25%	-2.15%
Max Drawdown (10Y) Largest decline over 10 years	-36.20%	-33.51%	-2.69%
Current Drawdown Current decline from peak	-3.67%	-9.04%	+5.37%
Average Drawdown Average peak-to-trough decline	-12.53%	-11.64%	-0.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.29%	3.19%	+0.10%

Volatility

SCHE vs. DBEM - Volatility Comparison

The current volatility for Schwab Emerging Markets Equity ETF (SCHE) is 6.54%, while Xtrackers MSCI Emerging Markets Hedged Equity ETF (DBEM) has a volatility of 10.57%. This indicates that SCHE experiences smaller price fluctuations and is considered to be less risky than DBEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHE	DBEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.54%	10.57%	-4.03%
Volatility (6M) Calculated over the trailing 6-month period	15.24%	19.54%	-4.30%
Volatility (1Y) Calculated over the trailing 1-year period	17.61%	21.53%	-3.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.90%	17.87%	+0.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.41%	17.46%	+1.95%

SCHE vs. DBEM - Expense Ratio Comparison

SCHE has a 0.11% expense ratio, which is lower than DBEM's 0.66% expense ratio.

Dividends

SCHE vs. DBEM - Dividend Comparison

SCHE's dividend yield for the trailing twelve months is around 2.66%, more than DBEM's 2.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DBEM Xtrackers MSCI Emerging Markets Hedged Equity ETF	2.15%	1.84%	2.48%	2.55%	2.65%	1.77%	1.74%	2.59%	2.85%	1.51%	1.59%	3.49%
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 DBEM in my portfolio?

SCHE and DBEM have a correlation of 0.90, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHE or DBEM?

DBEM has higher volatility (10.57%) compared to SCHE (6.54%). In terms of maximum drawdown, SCHE dropped -36.20% vs DBEM's -33.51%.

Which ETF is better, SCHE or DBEM?

On 10-year performance, DBEM leads with 9.51% vs 7.95% for SCHE. On fees, SCHE is cheaper at 0.11% per year. 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 DBEM?

Over the 10-year period, DBEM has performed better with a 9.51% return vs 7.95%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHE or DBEM?

SCHE is cheaper with a 0.11% expense ratio, compared with 0.66% for DBEM.

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

SCHE has the higher dividend yield at 2.66%, compared with 2.15% for DBEM.

What is the main difference between SCHE and DBEM?

SCHE tracks FTSE Emerging Index, while DBEM tracks MSCI EM US Dollar Hedged Index. They also come from different issuers: Charles Schwab and Deutsche Bank. Their fees differ too: 0.11% for SCHE and 0.66% for DBEM.

Which has better risk-adjusted returns?

DBEM currently has the higher Sharpe Ratio (2.05 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.