SCHE vs. EEM
Compare and contrast key facts about Schwab Emerging Markets Equity ETF (SCHE) and iShares MSCI Emerging Markets ETF (EEM).
SCHE and EEM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SCHE is a passively managed fund by Charles Schwab that tracks the performance of the FTSE All-World Emerging. It was launched on Jan 14, 2010. EEM is a passively managed fund by iShares that tracks the performance of the MSCI Emerging Markets Index. It was launched on Apr 11, 2003. Both SCHE and EEM are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: SCHE or EEM.
Key characteristics
| SCHE | EEM | |
|---|---|---|
| YTD Return | 7.02% | 6.49% |
| 1Y Return | 14.64% | 14.06% |
| 3Y Return (Ann) | -2.64% | -4.68% |
| 5Y Return (Ann) | 4.12% | 3.09% |
| 10Y Return (Ann) | 3.21% | 2.19% |
| Sharpe Ratio | 0.95 | 0.86 |
| Daily Std Dev | 14.26% | 14.82% |
| Max Drawdown | -36.16% | -66.44% |
| Current Drawdown | -15.78% | -20.82% |
Correlation
The correlation between SCHE and EEM is 0.98, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
SCHE vs. EEM - Performance Comparison
In the year-to-date period, SCHE achieves a 7.02% return, which is significantly higher than EEM's 6.49% return. Over the past 10 years, SCHE has outperformed EEM with an annualized return of 3.21%, while EEM has yielded a comparatively lower 2.19% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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SCHE vs. EEM - Expense Ratio Comparison
SCHE has a 0.11% expense ratio, which is lower than EEM's 0.68% expense ratio.
Risk-Adjusted Performance
SCHE vs. EEM - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Emerging Markets Equity ETF (SCHE) and iShares MSCI Emerging Markets ETF (EEM). 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.
Dividends
SCHE vs. EEM - Dividend Comparison
SCHE's dividend yield for the trailing twelve months is around 3.58%, more than EEM's 2.47% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHE Schwab Emerging Markets Equity ETF | 3.58% | 3.83% | 2.88% | 2.86% | 2.09% | 3.27% | 2.69% | 2.31% | 2.27% | 2.50% | 2.86% | 2.56% |
EEM iShares MSCI Emerging Markets ETF | 2.47% | 2.63% | 2.50% | 1.99% | 1.45% | 2.76% | 2.22% | 1.87% | 1.88% | 2.48% | 2.22% | 2.04% |
Drawdowns
SCHE vs. EEM - Drawdown Comparison
The maximum SCHE drawdown since its inception was -36.16%, smaller than the maximum EEM drawdown of -66.44%. Use the drawdown chart below to compare losses from any high point for SCHE and EEM. For additional features, visit the drawdowns tool.
Volatility
SCHE vs. EEM - Volatility Comparison
Schwab Emerging Markets Equity ETF (SCHE) and iShares MSCI Emerging Markets ETF (EEM) have volatilities of 4.00% and 4.05%, 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.