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SCHE vs. SCHM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

SCHE vs. SCHM

Last updated Jun 14, 2026

SCHE (Schwab Emerging Markets Equity ETF) and SCHM (Schwab US Mid-Cap ETF) are both exchange-traded funds - SCHE is a Emerging Markets Equities fund tracking the FTSE Emerging Index, while SCHM is a Mid Cap Blend Equities fund tracking the Dow Jones US Total Stock Market Mid-Cap. Both are passively managed. Over the past 10 years, SCHE returned 9.02%/yr vs 11.64%/yr for SCHM. A 0.67 correlation means they provide meaningful diversification when combined. SCHE charges 0.11%/yr vs 0.04%/yr for SCHM.

Performance

SCHE vs. SCHM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Emerging Markets Equity ETF (SCHE) and Schwab US Mid-Cap ETF (SCHM). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, SCHE achieves a 10.50% return, which is significantly lower than SCHM's 20.08% return. Over the past 10 years, SCHE has underperformed SCHM with an annualized return of 9.02%, while SCHM has yielded a comparatively higher 11.64% annualized return.

SCHE

1D
0.84%
1M
-0.58%
YTD
10.50%
6M
12.18%
1Y
26.49%
3Y*
16.79%
5Y*
4.83%
10Y*
9.02%

SCHM

1D
1.09%
1M
4.25%
YTD
20.08%
6M
18.66%
1Y
34.69%
3Y*
17.18%
5Y*
8.05%
10Y*
11.64%
*Multi-year figures are annualized to reflect compound growth (CAGR)

SCHE vs. SCHM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
SCHE
Schwab Emerging Markets Equity ETF		10.50%26.54%10.60%8.93%-17.84%-0.65%14.49%20.31%-13.57%32.70%
SCHM
Schwab US Mid-Cap ETF		20.08%10.17%11.98%16.69%-17.07%19.36%15.26%27.48%-8.77%19.60%

Correlation

The correlation between SCHE and SCHM is 0.63, 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

0.63

Correlation (3Y)
Calculated over the trailing 3-year period

0.60

Correlation (5Y)
Calculated over the trailing 5-year period

0.62

Correlation (10Y)
Calculated over the trailing 10-year period

0.63

Correlation (All Time)
Calculated using the full available price history since Jan 13, 2011

0.67

The correlation between SCHE and SCHM has been stable across timeframes, ranging from 0.60 to 0.67 - a consistent structural relationship.

SCHE vs. SCHM - Sectors Allocation Comparison

Sectors
SCHE
SCHM

Technology

33.7%
22.1%

Financial Services

20.0%
10.9%

Consumer Cyclical

9.6%
10.8%

Basic Materials

7.5%
4.7%

Communication Services

7.1%
2.6%

Industrials

6.7%
21.7%

Energy

4.4%
3.4%

Consumer Defensive

3.4%
3.4%

Healthcare

3.2%
10.9%

Utilities

2.8%
2.9%

Real Estate

1.6%
6.4%

Technology

SCHE
33.7%
SCHM
22.1%

Financial Services

SCHE
20.0%
SCHM
10.9%

Consumer Cyclical

SCHE
9.6%
SCHM
10.8%

Basic Materials

SCHE
7.5%
SCHM
4.7%

Communication Services

SCHE
7.1%
SCHM
2.6%

Industrials

SCHE
6.7%
SCHM
21.7%

Energy

SCHE
4.4%
SCHM
3.4%

Consumer Defensive

SCHE
3.4%
SCHM
3.4%

Healthcare

SCHE
3.2%
SCHM
10.9%

Utilities

SCHE
2.8%
SCHM
2.9%

Real Estate

SCHE
1.6%
SCHM
6.4%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Schwab Emerging Markets Equity ETF

Schwab US Mid-Cap ETF

Often compared with SCHE:
SCHE vs. SCHFSCHE vs. VWOSCHE vs. IEMGSCHE vs. FNDESCHE vs. SWISXSCHE vs. EEMSCHE vs. SFENX
Often compared with SCHM:
SCHM vs. SCHASCHM vs. VOSCHM vs. VOOSCHM vs. IJHSCHM vs. SWMCXSCHM vs. VOTSCHM vs. SPMD

Return for Risk

SCHE vs. SCHM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
SCHE
SCHE Risk / Return Rank: 4949
Overall Rank
SCHE Sharpe Ratio Rank: 4848
Sharpe Ratio Rank
SCHE Sortino Ratio Rank: 4646
Sortino Ratio Rank
SCHE Omega Ratio Rank: 4949
Omega Ratio Rank
SCHE Calmar Ratio Rank: 5050
Calmar Ratio Rank
SCHE Martin Ratio Rank: 5252
Martin Ratio Rank
SCHM
SCHM Risk / Return Rank: 7575
Overall Rank
SCHM Sharpe Ratio Rank: 7373
Sharpe Ratio Rank
SCHM Sortino Ratio Rank: 7373
Sortino Ratio Rank
SCHM Omega Ratio Rank: 6969
Omega Ratio Rank
SCHM Calmar Ratio Rank: 7878
Calmar Ratio Rank
SCHM Martin Ratio Rank: 8282
Martin Ratio Rank
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. SCHM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Emerging Markets Equity ETF (SCHE) and Schwab US Mid-Cap ETF (SCHM). 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.

SCHESCHMDifference
Sharpe ratioReturn per unit of total volatility
1.45
2.03

-0.58

Sortino ratioReturn per unit of downside risk
2.04
2.85

-0.81

Omega ratioGain probability vs. loss probability

1.27

1.35

-0.08

Calmar ratioReturn relative to maximum drawdown

2.18

3.52

-1.34

Martin ratioReturn relative to average drawdown

7.70

14.11

-6.41

SCHE vs. SCHM - Sharpe Ratio Comparison

The current SCHE Sharpe Ratio is 1.45, which is comparable to the SCHM Sharpe Ratio of 2.03. The chart below compares the historical Sharpe Ratios of SCHE and SCHM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

SCHE vs. SCHM - Drawdown Comparison

The maximum SCHE drawdown since its inception was -36.20%, smaller than the maximum SCHM drawdown of -42.43%. Use the drawdown chart below to compare losses from any high point for SCHE and SCHM.

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Drawdown Indicators

SCHESCHMDifference

Max Drawdown

Largest peak-to-trough decline

-36.20%

-42.43%

+6.23%

Max Drawdown (1Y)

Largest decline over 1 year

-11.29%

-9.32%

-1.97%

Max Drawdown (3Y)

Largest decline over 3 years

-17.08%

-23.27%

+6.19%

Max Drawdown (5Y)

Largest decline over 5 years

-33.31%

-26.46%

-6.85%

Max Drawdown (10Y)

Largest decline over 10 years

-36.20%

-42.43%

+6.23%

Current Drawdown

Current decline from peak

-2.66%

0.00%

-2.66%

Average Drawdown

Average peak-to-trough decline

-12.58%

-5.65%

-6.93%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.20%

2.33%

+0.87%

Volatility

SCHE vs. SCHM - Volatility Comparison

Schwab Emerging Markets Equity ETF (SCHE) has a higher volatility of 6.91% compared to Schwab US Mid-Cap ETF (SCHM) at 5.66%. This indicates that SCHE's price experiences larger fluctuations and is considered to be riskier than SCHM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

SCHESCHMDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.91%

5.66%

+1.25%

Volatility (6M)

Calculated over the trailing 6-month period

14.48%

12.39%

+2.09%

Volatility (1Y)

Calculated over the trailing 1-year period

16.97%

16.16%

+0.81%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.79%

19.65%

-1.86%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

19.49%

20.50%

-1.01%

SCHE vs. SCHM - Expense Ratio Comparison

SCHE has a 0.11% expense ratio, which is higher than SCHM's 0.04% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SCHE vs. SCHM - Dividend Comparison

SCHE's dividend yield for the trailing twelve months is around 2.61%, more than SCHM's 1.21% yield.

PositionTTM20252024202320222021202020192018201720162015
SCHE
Schwab Emerging Markets Equity ETF		2.61%2.88%3.03%3.83%2.88%2.86%2.09%3.27%2.64%2.31%2.27%2.50%
SCHM
Schwab US Mid-Cap ETF		1.21%1.46%1.43%1.50%1.67%1.13%1.31%1.48%1.56%1.27%1.51%1.54%

Frequently Asked Questions

SCHE and SCHM have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

SCHE has higher volatility (6.91%) compared to SCHM (5.66%). In terms of maximum drawdown, SCHE dropped -36.20% vs SCHM's -42.43%.

On 10-year performance, SCHM leads with 11.64% vs 9.02% for SCHE. On fees, SCHM is cheaper at 0.04% per year. On volatility, SCHM has been the lower-risk option at 5.66%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, SCHM has performed better with a 11.64% return vs 9.02%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

SCHM is cheaper with a 0.04% expense ratio, compared with 0.11% for SCHE.

SCHE has the higher dividend yield at 2.61%, compared with 1.21% for SCHM.

SCHE is categorized as Emerging Markets Equities, while SCHM is Mid Cap Blend Equities. SCHE tracks FTSE Emerging Index, while SCHM tracks Dow Jones US Total Stock Market Mid-Cap. Their fees differ too: 0.11% for SCHE and 0.04% for SCHM.

SCHM currently has the higher Sharpe Ratio (2.03 vs 1.45), 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.

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