SCHE vs. DFAE

Last updated Jul 21, 2026

SCHE (Schwab Emerging Markets Equity ETF) and DFAE (Dimensional Emerging Core Equity Market ETF) are both Emerging Markets Equities funds. SCHE is passively managed, while DFAE is actively managed. Over the past 5 years, SCHE returned 5.24%/yr vs 8.02%/yr for DFAE. With a 0.97 correlation, they move nearly in lockstep. SCHE charges 0.11%/yr vs 0.29%/yr for DFAE.

Performance

SCHE vs. DFAE - Performance Comparison

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

Returns By Period

In the year-to-date period, SCHE achieves a 8.41% return, which is significantly lower than DFAE's 15.47% return.

SCHE

• 1D: 0.28%
• 1M: -3.73%
• 6M: 3.99%
• YTD: 8.41%
• 1Y: 18.66%
• 3Y*: 15.81%
• 5Y*: 5.24%
• 10Y*: 7.76%
• ALL TIME*: 4.83%

DFAE

• 1D: -0.03%
• 1M: -10.02%
• 6M: 9.68%
• YTD: 15.47%
• 1Y: 29.15%
• 3Y*: 18.65%
• 5Y*: 8.02%
• 10Y*: —
• ALL TIME*: 9.48%

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

SCHE vs. DFAE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
SCHE Schwab Emerging Markets Equity ETF	8.41%	26.54%	10.60%	8.93%	-17.84%	-0.65%	3.90%
DFAE Dimensional Emerging Core Equity Market ETF	15.47%	31.48%	7.68%	12.63%	-17.52%	3.53%	5.93%

Correlation

The correlation between SCHE and DFAE is 0.95, 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	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (All Time) Calculated using the full available price history since Dec 2, 2020	0.97

The correlation between SCHE and DFAE has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

SCHE vs. DFAE - Sectors Allocation Comparison

Sectors	SCHE	DFAE
Technology	33.8%	42.5%
Financial Services	21.1%	16.4%
Consumer Cyclical	8.9%	7.5%
Communication Services	7.1%	5.5%
Basic Materials	7.0%	6.6%
Industrials	6.8%	8.9%
Energy	4.2%	3.3%
Healthcare	3.4%	3.1%
Consumer Defensive	3.3%	2.8%
Utilities	2.8%	2.1%
Real Estate	1.6%	1.4%

Return for Risk

SCHE vs. DFAE — Risk / Return Rank

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

SCHE

SCHE Risk / Return Rank: 40
SCHE Sharpe Ratio Rank: 39
SCHE Sortino Ratio Rank: 37
SCHE Omega Ratio Rank: 39
SCHE Calmar Ratio Rank: 42
SCHE Martin Ratio Rank: 45

DFAE

DFAE Risk / Return Rank: 54
DFAE Sharpe Ratio Rank: 50
DFAE Sortino Ratio Rank: 46
DFAE Omega Ratio Rank: 54
DFAE Calmar Ratio Rank: 62
DFAE Martin Ratio Rank: 58

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. DFAE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Emerging Markets Equity ETF (SCHE) and Dimensional Emerging Core Equity Market ETF (DFAE). 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	DFAE	Difference
Sharpe ratio: Return per unit of total volatility	1.06	1.30	-0.24
Sortino ratio: Return per unit of downside risk	1.53	1.78	-0.25
Omega ratio: Gain probability vs. loss probability	1.20	1.25	-0.06
Calmar ratio: Return relative to maximum drawdown	1.66	2.29	-0.63
Martin ratio: Return relative to average drawdown	5.62	7.44	-1.82

SCHE vs. DFAE - Sharpe Ratio Comparison

The current SCHE Sharpe Ratio is 1.06, which is comparable to the DFAE Sharpe Ratio of 1.30. The chart below compares the historical Sharpe Ratios of SCHE and DFAE, 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. DFAE - Drawdown Comparison

The maximum SCHE drawdown since its inception was -36.20%, which is greater than DFAE's maximum drawdown of -32.21%. Use the drawdown chart below to compare losses from any high point for SCHE and DFAE.

Drawdown Indicators

	SCHE	DFAE	Difference
Max Drawdown Largest peak-to-trough decline	-36.20%	-32.21%	-3.99%
Max Drawdown (1Y) Largest decline over 1 year	-11.29%	-12.80%	+1.51%
Max Drawdown (3Y) Largest decline over 3 years	-17.08%	-18.12%	+1.04%
Max Drawdown (5Y) Largest decline over 5 years	-31.38%	-29.70%	-1.68%
Max Drawdown (10Y) Largest decline over 10 years	-36.20%	—	—
Current Drawdown Current decline from peak	-4.66%	-10.49%	+5.83%
Average Drawdown Average peak-to-trough decline	-12.52%	-10.21%	-2.31%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.33%	3.93%	-0.60%

Volatility

SCHE vs. DFAE - Volatility Comparison

The current volatility for Schwab Emerging Markets Equity ETF (SCHE) is 5.89%, while Dimensional Emerging Core Equity Market ETF (DFAE) has a volatility of 9.17%. This indicates that SCHE experiences smaller price fluctuations and is considered to be less risky than DFAE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHE	DFAE	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.89%	9.17%	-3.28%
Volatility (6M) Calculated over the trailing 6-month period	15.30%	20.59%	-5.29%
Volatility (1Y) Calculated over the trailing 1-year period	17.72%	22.50%	-4.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.91%	18.59%	-0.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.42%	18.43%	+0.99%

SCHE vs. DFAE - Expense Ratio Comparison

SCHE has a 0.11% expense ratio, which is lower than DFAE's 0.29% expense ratio.

Dividends

SCHE vs. DFAE - Dividend Comparison

SCHE's dividend yield for the trailing twelve months is around 2.69%, more than DFAE's 1.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFAE Dimensional Emerging Core Equity Market ETF	1.87%	2.20%	2.35%	2.43%	2.85%	1.63%	0.01%	0.00%	0.00%	0.00%	0.00%	0.00%
SCHE Schwab Emerging Markets Equity ETF	2.69%	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 DFAE in my portfolio?

With a correlation of 0.95, SCHE and DFAE 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 DFAE?

DFAE has higher volatility (9.17%) compared to SCHE (5.89%). In terms of maximum drawdown, SCHE dropped -36.20% vs DFAE's -32.21%.

Which ETF is better, SCHE or DFAE?

On 5-year performance, DFAE leads with 8.02% vs 5.24% for SCHE. On fees, SCHE is cheaper at 0.11% per year. On volatility, SCHE has been the lower-risk option at 5.89%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHE or DFAE?

Over the 5-year period, DFAE has performed better with a 8.02% return vs 5.24%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHE or DFAE?

SCHE is cheaper with a 0.11% expense ratio, compared with 0.29% for DFAE.

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

SCHE has the higher dividend yield at 2.69%, compared with 1.87% for DFAE.

What is the main difference between SCHE and DFAE?

They also come from different issuers: Charles Schwab and Dimensional. Their fees differ too: 0.11% for SCHE and 0.29% for DFAE.

Which has better risk-adjusted returns?

DFAE currently has the higher Sharpe Ratio (1.30 vs 1.06), 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.