SCHE vs. PXF

Last updated Jun 6, 2026

SCHE (Schwab Emerging Markets Equity ETF) and PXF (Invesco FTSE RAFI Developed Markets ex-U.S. ETF) are both exchange-traded funds - SCHE is a Emerging Markets Equities fund tracking the FTSE Emerging Index, while PXF is a Foreign Large Cap Equities fund tracking the FTSE RAFI Developed Markets ex-U.S. Index. Both are passively managed. Over the past 10 years, SCHE returned 8.21%/yr vs 11.13%/yr for PXF. A 0.78 correlation means they provide meaningful diversification when combined. SCHE charges 0.11%/yr vs 0.45%/yr for PXF.

Performance

SCHE vs. PXF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Emerging Markets Equity ETF (SCHE) and Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF). 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 lower than PXF's 15.52% return. Over the past 10 years, SCHE has underperformed PXF with an annualized return of 8.21%, while PXF has yielded a comparatively higher 11.13% annualized 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%

PXF

• 1D: -3.90%
• 1M: -1.39%
• YTD: 15.52%
• 6M: 18.72%
• 1Y: 37.72%
• 3Y*: 23.28%
• 5Y*: 12.53%
• 10Y*: 11.13%

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

SCHE vs. PXF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHE Schwab Emerging Markets Equity ETF	7.33%	26.54%	10.60%	8.93%	-17.84%	-0.65%	14.49%	20.31%	-13.57%	32.70%
PXF Invesco FTSE RAFI Developed Markets ex-U.S. ETF	15.52%	42.51%	4.54%	18.46%	-9.09%	15.93%	2.58%	17.50%	-14.84%	24.52%

Correlation

The correlation between SCHE and PXF is 0.76, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.74
Correlation (5Y) Calculated over the trailing 5-year period	0.74
Correlation (10Y) Calculated over the trailing 10-year period	0.75
Correlation (All Time) Calculated using the full available price history since Jan 15, 2010	0.78

The correlation between SCHE and PXF has been stable across timeframes, ranging from 0.74 to 0.78 - a consistent structural relationship.

SCHE vs. PXF - Sectors Allocation Comparison

Sectors	SCHE	PXF
Technology	30.8%	11.4%
Financial Services	13.6%	19.7%
Consumer Cyclical	8.9%	10.2%
Communication Services	5.2%	4.3%
Industrials	4.9%	15.1%
Basic Materials	3.9%	10.1%
Energy	3.1%	10.6%
Healthcare	2.8%	7.2%
Utilities	2.1%	3.6%
Consumer Defensive	2.0%	6.1%
Real Estate	1.0%	1.8%

Return for Risk

SCHE vs. PXF — 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

PXF

PXF Risk / Return Rank: 74
PXF Sharpe Ratio Rank: 77
PXF Sortino Ratio Rank: 72
PXF Omega Ratio Rank: 77
PXF Calmar Ratio Rank: 72
PXF Martin Ratio Rank: 73

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. PXF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Emerging Markets Equity ETF (SCHE) and Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF). 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	PXF	Difference
Sharpe ratio: Return per unit of total volatility	1.42	2.41	-0.99
Sortino ratio: Return per unit of downside risk	1.99	3.14	-1.15
Omega ratio: Gain probability vs. loss probability	1.27	1.44	-0.17
Calmar ratio: Return relative to maximum drawdown	2.10	3.47	-1.37
Martin ratio: Return relative to average drawdown	7.54	13.26	-5.72
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. PXF - Sharpe Ratio Comparison

The current SCHE Sharpe Ratio is 1.42, which is lower than the PXF Sharpe Ratio of 2.41. The chart below compares the historical Sharpe Ratios of SCHE and PXF, 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	PXF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.42	2.41	-0.99
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.23	0.76	-0.53
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.42	0.62	-0.20
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	0.23	+0.01

Drawdowns

SCHE vs. PXF - Drawdown Comparison

The maximum SCHE drawdown since its inception was -36.20%, smaller than the maximum PXF drawdown of -64.74%. Use the drawdown chart below to compare losses from any high point for SCHE and PXF.

Drawdown Indicators

	SCHE	PXF	Difference
Max Drawdown Largest peak-to-trough decline	-36.20%	-64.74%	+28.54%
Max Drawdown (1Y) Largest decline over 1 year	-11.29%	-10.91%	-0.38%
Max Drawdown (3Y) Largest decline over 3 years	-17.08%	-14.06%	-3.02%
Max Drawdown (5Y) Largest decline over 5 years	-33.37%	-26.82%	-6.55%
Max Drawdown (10Y) Largest decline over 10 years	-36.20%	-41.59%	+5.39%
Current Drawdown Current decline from peak	-5.46%	-4.74%	-0.72%
Average Drawdown Average peak-to-trough decline	-12.59%	-15.27%	+2.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.14%	2.85%	+0.29%

Volatility

SCHE vs. PXF - Volatility Comparison

Schwab Emerging Markets Equity ETF (SCHE) has a higher volatility of 6.56% compared to Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF) at 6.22%. This indicates that SCHE's price experiences larger fluctuations and is considered to be riskier than PXF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHE	PXF	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.56%	6.22%	+0.34%
Volatility (6M) Calculated over the trailing 6-month period	14.22%	13.51%	+0.71%
Volatility (1Y) Calculated over the trailing 1-year period	16.76%	15.75%	+1.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.75%	16.53%	+1.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.50%	18.07%	+1.43%

SCHE vs. PXF - Expense Ratio Comparison

SCHE has a 0.11% expense ratio, which is lower than PXF's 0.45% expense ratio.

Dividends

SCHE vs. PXF - Dividend Comparison

SCHE's dividend yield for the trailing twelve months is around 2.68%, less than PXF's 3.21% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PXF Invesco FTSE RAFI Developed Markets ex-U.S. ETF	3.21%	3.64%	3.48%	3.55%	3.58%	3.74%	2.11%	3.50%	3.38%	2.78%	3.21%	3.10%
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 PXF in my portfolio?

SCHE and PXF have a correlation of 0.76, 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 PXF?

SCHE has higher volatility (6.56%) compared to PXF (6.22%). In terms of maximum drawdown, SCHE dropped -36.20% vs PXF's -64.74%.

Which ETF is better, SCHE or PXF?

On 10-year performance, PXF leads with 11.13% vs 8.21% for SCHE. On fees, SCHE is cheaper at 0.11% per year. On volatility, PXF has been the lower-risk option at 6.22%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHE or PXF?

Over the 10-year period, PXF has performed better with a 11.13% return vs 8.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHE or PXF?

SCHE is cheaper with a 0.11% expense ratio, compared with 0.45% for PXF.

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

PXF has the higher dividend yield at 3.21%, compared with 2.68% for SCHE.

What is the main difference between SCHE and PXF?

SCHE is categorized as Emerging Markets Equities, while PXF is Foreign Large Cap Equities. SCHE tracks FTSE Emerging Index, while PXF tracks FTSE RAFI Developed Markets ex-U.S. Index. They also come from different issuers: Charles Schwab and Invesco. Their fees differ too: 0.11% for SCHE and 0.45% for PXF.

Which has better risk-adjusted returns?

PXF currently has the higher Sharpe Ratio (2.41 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.