SCHE vs. EMBD

Last updated Jun 6, 2026

SCHE (Schwab Emerging Markets Equity ETF) and EMBD (Global X Emerging Markets Bond ETF) are both exchange-traded funds - SCHE is a Emerging Markets Equities fund tracking the FTSE Emerging Index, while EMBD is a Emerging Markets Bonds fund actively managed by Global X. SCHE is passively managed, while EMBD is actively managed. Over the past 5 years, SCHE returned 4.08%/yr vs 2.84%/yr for EMBD. At a 0.39 correlation, their price movements are largely independent. SCHE charges 0.11%/yr vs 0.39%/yr for EMBD.

Performance

SCHE vs. EMBD - Performance Comparison

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

Returns By Period

In the year-to-date period, SCHE achieves a 7.33% return, which is significantly higher than EMBD's 1.14% return.

SCHE

• 1D: -4.07%
• 1M: -4.85%
• YTD: 7.33%
• 6M: 7.81%
• 1Y: 23.65%
• 3Y*: 16.32%
• 5Y*: 4.08%
• 10Y*: 8.21%

EMBD

• 1D: -0.63%
• 1M: -0.12%
• YTD: 1.14%
• 6M: 1.49%
• 1Y: 9.31%
• 3Y*: 9.29%
• 5Y*: 2.84%
• 10Y*: —

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

SCHE vs. EMBD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
SCHE Schwab Emerging Markets Equity ETF	7.33%	26.54%	10.60%	8.93%	-17.84%	-0.65%	28.00%
EMBD Global X Emerging Markets Bond ETF	1.14%	12.55%	6.76%	10.60%	-13.84%	-1.84%	11.53%

Correlation

The correlation between SCHE and EMBD is 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.43
Correlation (3Y) Calculated over the trailing 3-year period	0.35
Correlation (5Y) Calculated over the trailing 5-year period	0.36
Correlation (All Time) Calculated using the full available price history since Jun 4, 2020	0.39

SCHE vs. EMBD - Sectors Allocation Comparison

Sectors	SCHE	EMBD
Technology	30.8%	-
Financial Services	13.6%	0.8%
Consumer Cyclical	8.9%	-
Communication Services	5.2%	-
Industrials	4.9%	-
Basic Materials	3.9%	-
Energy	3.1%	-
Healthcare	2.8%	-
Utilities	2.1%	-
Consumer Defensive	2.0%	-
Real Estate	1.0%	-

Return for Risk

SCHE vs. EMBD — Risk / Return Rank

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

SCHE

SCHE Risk / Return Rank: 43
SCHE Sharpe Ratio Rank: 41
SCHE Sortino Ratio Rank: 40
SCHE Omega Ratio Rank: 43
SCHE Calmar Ratio Rank: 44
SCHE Martin Ratio Rank: 47

EMBD

EMBD Risk / Return Rank: 49
EMBD Sharpe Ratio Rank: 47
EMBD Sortino Ratio Rank: 50
EMBD Omega Ratio Rank: 46
EMBD Calmar Ratio Rank: 47
EMBD Martin Ratio Rank: 53

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. EMBD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Emerging Markets Equity ETF (SCHE) and Global X Emerging Markets Bond ETF (EMBD). 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.

	SCHE	EMBD	Difference
Sharpe ratio: Return per unit of total volatility	1.42	1.55	-0.14
Sortino ratio: Return per unit of downside risk	1.99	2.32	-0.33
Omega ratio: Gain probability vs. loss probability	1.27	1.28	-0.01
Calmar ratio: Return relative to maximum drawdown	2.10	2.21	-0.10
Martin ratio: Return relative to average drawdown	7.54	8.57	-1.03
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SCHE vs. EMBD - Sharpe Ratio Comparison

The current SCHE Sharpe Ratio is 1.42, which is comparable to the EMBD Sharpe Ratio of 1.55. The chart below compares the historical Sharpe Ratios of SCHE and EMBD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	SCHE	EMBD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.42	1.55	-0.14
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.23	0.31	-0.08
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.42	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	0.46	-0.22

Drawdowns

SCHE vs. EMBD - Drawdown Comparison

The maximum SCHE drawdown since its inception was -36.20%, which is greater than EMBD's maximum drawdown of -24.27%. Use the drawdown chart below to compare losses from any high point for SCHE and EMBD.

Drawdown Indicators

	SCHE	EMBD	Difference
Max Drawdown Largest peak-to-trough decline	-36.20%	-24.27%	-11.93%
Max Drawdown (1Y) Largest decline over 1 year	-11.29%	-4.23%	-7.06%
Max Drawdown (3Y) Largest decline over 3 years	-17.08%	-7.03%	-10.05%
Max Drawdown (5Y) Largest decline over 5 years	-33.37%	-24.27%	-9.10%
Max Drawdown (10Y) Largest decline over 10 years	-36.20%	—	—
Current Drawdown Current decline from peak	-5.46%	-0.63%	-4.83%
Average Drawdown Average peak-to-trough decline	-12.59%	-5.87%	-6.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.14%	1.09%	+2.05%

Volatility

SCHE vs. EMBD - Volatility Comparison

Schwab Emerging Markets Equity ETF (SCHE) has a higher volatility of 6.56% compared to Global X Emerging Markets Bond ETF (EMBD) at 1.69%. This indicates that SCHE's price experiences larger fluctuations and is considered to be riskier than EMBD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHE	EMBD	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.56%	1.69%	+4.87%
Volatility (6M) Calculated over the trailing 6-month period	14.22%	4.24%	+9.98%
Volatility (1Y) Calculated over the trailing 1-year period	16.76%	6.04%	+10.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.75%	9.17%	+8.58%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.50%	8.89%	+10.61%

SCHE vs. EMBD - Expense Ratio Comparison

SCHE has a 0.11% expense ratio, which is lower than EMBD's 0.39% expense ratio.

Dividends

SCHE vs. EMBD - Dividend Comparison

SCHE's dividend yield for the trailing twelve months is around 2.68%, less than EMBD's 5.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EMBD Global X Emerging Markets Bond ETF	5.70%	5.48%	5.83%	5.29%	4.53%	4.99%	3.34%	0.00%	0.00%	0.00%	0.00%	0.00%
SCHE Schwab Emerging Markets Equity ETF	2.68%	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 EMBD in my portfolio?

SCHE and EMBD have a correlation of 0.43, 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 EMBD?

SCHE has higher volatility (6.56%) compared to EMBD (1.69%). In terms of maximum drawdown, SCHE dropped -36.20% vs EMBD's -24.27%.

Which ETF is better, SCHE or EMBD?

On 5-year performance, SCHE leads with 4.08% vs 2.84% for EMBD. On fees, SCHE is cheaper at 0.11% per year. On volatility, EMBD has been the lower-risk option at 1.69%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHE or EMBD?

Over the 5-year period, SCHE has performed better with a 4.08% return vs 2.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHE or EMBD?

SCHE is cheaper with a 0.11% expense ratio, compared with 0.39% for EMBD.

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

EMBD has the higher dividend yield at 5.70%, compared with 2.68% for SCHE.

What is the main difference between SCHE and EMBD?

SCHE is categorized as Emerging Markets Equities, while EMBD is Emerging Markets Bonds. They also come from different issuers: Charles Schwab and Global X. Their fees differ too: 0.11% for SCHE and 0.39% for EMBD.

Which has better risk-adjusted returns?

EMBD currently has the higher Sharpe Ratio (1.55 vs 1.42), 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.