SCHE vs. SCHY

Last updated Jun 6, 2026

SCHE (Schwab Emerging Markets Equity ETF) and SCHY (Schwab International Dividend Equity ETF) are both exchange-traded funds - SCHE is a Emerging Markets Equities fund tracking the FTSE Emerging Index, while SCHY is a Dividend fund tracking the Dow Jones International Dividend 100 Index. Both are passively managed. Over the past 5 years, SCHE returned 4.08%/yr vs 7.84%/yr for SCHY. A 0.68 correlation means they provide meaningful diversification when combined. SCHE charges 0.11%/yr vs 0.08%/yr for SCHY.

Performance

SCHE vs. SCHY - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with SCHE having a 7.33% return and SCHY slightly higher at 7.37%.

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%

SCHY

• 1D: -1.09%
• 1M: -2.15%
• YTD: 7.37%
• 6M: 9.86%
• 1Y: 20.98%
• 3Y*: 14.88%
• 5Y*: 7.84%
• 10Y*: —

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

SCHE vs. SCHY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
SCHE Schwab Emerging Markets Equity ETF	7.33%	26.54%	10.60%	8.93%	-17.84%	-6.91%
SCHY Schwab International Dividend Equity ETF	7.37%	33.98%	-1.79%	14.27%	-9.43%	4.08%

Correlation

The correlation between SCHE and SCHY is 0.60, 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	0.60
Correlation (3Y) Calculated over the trailing 3-year period	0.65
Correlation (5Y) Calculated over the trailing 5-year period	0.68
Correlation (All Time) Calculated using the full available price history since Apr 30, 2021	0.68

The correlation between SCHE and SCHY has been stable across timeframes, ranging from 0.60 to 0.68 - a consistent structural relationship.

SCHE vs. SCHY - Sectors Allocation Comparison

Sectors	SCHE	SCHY
Technology	30.8%	3.8%
Financial Services	13.6%	15.8%
Consumer Cyclical	8.9%	7.9%
Communication Services	5.2%	15.8%
Industrials	4.9%	13.8%
Basic Materials	3.9%	5.7%
Energy	3.1%	10.3%
Healthcare	2.8%	4.0%
Utilities	2.1%	7.4%
Consumer Defensive	2.0%	14.8%
Real Estate	1.0%	0.9%

Return for Risk

SCHE vs. SCHY — 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

SCHY

SCHY Risk / Return Rank: 49
SCHY Sharpe Ratio Rank: 52
SCHY Sortino Ratio Rank: 50
SCHY Omega Ratio Rank: 51
SCHY Calmar Ratio Rank: 48
SCHY Martin Ratio Rank: 46

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. SCHY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Emerging Markets Equity ETF (SCHE) and Schwab International Dividend Equity ETF (SCHY). 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	SCHY	Difference
Sharpe ratio: Return per unit of total volatility	1.42	1.77	-0.35
Sortino ratio: Return per unit of downside risk	1.99	2.43	-0.44
Omega ratio: Gain probability vs. loss probability	1.27	1.31	-0.04
Calmar ratio: Return relative to maximum drawdown	2.10	2.31	-0.21
Martin ratio: Return relative to average drawdown	7.54	7.30	+0.24
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. SCHY - Sharpe Ratio Comparison

The current SCHE Sharpe Ratio is 1.42, which is comparable to the SCHY Sharpe Ratio of 1.77. The chart below compares the historical Sharpe Ratios of SCHE and SCHY, 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	SCHY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.42	1.77	-0.35
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.23	0.59	-0.36
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	0.65	-0.41

Drawdowns

SCHE vs. SCHY - Drawdown Comparison

The maximum SCHE drawdown since its inception was -36.20%, which is greater than SCHY's maximum drawdown of -24.04%. Use the drawdown chart below to compare losses from any high point for SCHE and SCHY.

Drawdown Indicators

	SCHE	SCHY	Difference
Max Drawdown Largest peak-to-trough decline	-36.20%	-24.04%	-12.16%
Max Drawdown (1Y) Largest decline over 1 year	-11.29%	-9.11%	-2.18%
Max Drawdown (3Y) Largest decline over 3 years	-17.08%	-12.16%	-4.92%
Max Drawdown (5Y) Largest decline over 5 years	-33.37%	-24.04%	-9.33%
Max Drawdown (10Y) Largest decline over 10 years	-36.20%	—	—
Current Drawdown Current decline from peak	-5.46%	-5.64%	+0.18%
Average Drawdown Average peak-to-trough decline	-12.59%	-4.97%	-7.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.14%	2.88%	+0.26%

Volatility

SCHE vs. SCHY - Volatility Comparison

Schwab Emerging Markets Equity ETF (SCHE) has a higher volatility of 6.56% compared to Schwab International Dividend Equity ETF (SCHY) at 3.24%. This indicates that SCHE's price experiences larger fluctuations and is considered to be riskier than SCHY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHE	SCHY	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.56%	3.24%	+3.32%
Volatility (6M) Calculated over the trailing 6-month period	14.22%	9.86%	+4.36%
Volatility (1Y) Calculated over the trailing 1-year period	16.76%	11.94%	+4.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.75%	13.25%	+4.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.50%	13.23%	+6.27%

SCHE vs. SCHY - Expense Ratio Comparison

SCHE has a 0.11% expense ratio, which is higher than SCHY's 0.08% 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. SCHY - Dividend Comparison

SCHE's dividend yield for the trailing twelve months is around 2.68%, less than SCHY's 3.46% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
SCHY Schwab International Dividend Equity ETF	3.46%	3.55%	4.64%	3.97%	3.67%	1.73%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SCHE and SCHY in my portfolio?

SCHE and SCHY have a correlation of 0.60, 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 SCHY?

SCHE has higher volatility (6.56%) compared to SCHY (3.24%). In terms of maximum drawdown, SCHE dropped -36.20% vs SCHY's -24.04%.

Which ETF is better, SCHE or SCHY?

On 5-year performance, SCHY leads with 7.84% vs 4.08% for SCHE. On fees, SCHY is cheaper at 0.08% per year. On volatility, SCHY has been the lower-risk option at 3.24%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHE or SCHY?

Over the 5-year period, SCHY has performed better with a 7.84% return vs 4.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHE or SCHY?

SCHY is cheaper with a 0.08% expense ratio, compared with 0.11% for SCHE.

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

SCHY has the higher dividend yield at 3.46%, compared with 2.68% for SCHE.

What is the main difference between SCHE and SCHY?

SCHE is categorized as Emerging Markets Equities, while SCHY is Dividend. SCHE tracks FTSE Emerging Index, while SCHY tracks Dow Jones International Dividend 100 Index. Their fees differ too: 0.11% for SCHE and 0.08% for SCHY.

Which has better risk-adjusted returns?

SCHY currently has the higher Sharpe Ratio (1.77 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.