SCHE vs. SCHZ
SCHE (Schwab Emerging Markets Equity ETF) and SCHZ (Schwab U.S. Aggregate Bond ETF) are both exchange-traded funds - SCHE is a Emerging Markets Equities fund tracking the FTSE Emerging Index, while SCHZ is a Total Bond Market fund tracking the Bloomberg US Aggregate Bond Index. Both are passively managed. Over the past 10 years, SCHE returned 9.02%/yr vs 1.50%/yr for SCHZ. At a correlation of -0.02, they often move in opposite directions. SCHE charges 0.11%/yr vs 0.03%/yr for SCHZ.
Performance
SCHE vs. SCHZ - Performance Comparison
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Returns By Period
In the year-to-date period, SCHE achieves a 10.50% return, which is significantly higher than SCHZ's 0.51% return. Over the past 10 years, SCHE has outperformed SCHZ with an annualized return of 9.02%, while SCHZ has yielded a comparatively lower 1.50% 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%
SCHZ
- 1D
- -0.13%
- 1M
- 0.48%
- YTD
- 0.51%
- 6M
- 0.93%
- 1Y
- 4.88%
- 3Y*
- 4.17%
- 5Y*
- 0.02%
- 10Y*
- 1.50%
SCHE vs. SCHZ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
SCHZ Schwab U.S. Aggregate Bond ETF | 0.51% | 7.24% | 1.26% | 5.60% | -13.17% | -1.72% | 7.46% | 8.65% | -0.26% | 3.50% |
Correlation
The correlation between SCHE and SCHZ is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.32 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.23 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.16 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.06 |
Correlation (All Time) Calculated using the full available price history since Jul 14, 2011 | -0.02 |
The correlation between SCHE and SCHZ shifts across timeframes, from -0.02 (all time) to 0.32 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
SCHE vs. SCHZ — Risk / Return Rank
SCHE
SCHZ
SCHE vs. SCHZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Emerging Markets Equity ETF (SCHE) and Schwab U.S. Aggregate Bond ETF (SCHZ). 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.
| SCHE | SCHZ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.26 | ||
| Sortino ratioReturn per unit of downside risk | +0.25 | ||
| Omega ratioGain probability vs. loss probability | 1.27 | 1.21 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 2.18 | 1.66 | +0.52 |
| Martin ratioReturn relative to average drawdown | 7.70 | 4.89 | +2.80 |
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Drawdowns
SCHE vs. SCHZ - Drawdown Comparison
The maximum SCHE drawdown since its inception was -36.20%, which is greater than SCHZ's maximum drawdown of -18.74%. Use the drawdown chart below to compare losses from any high point for SCHE and SCHZ.
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Drawdown Indicators
| SCHE | SCHZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -36.20% | -18.74% | -17.46% |
Max Drawdown (1Y)Largest decline over 1 year | -11.29% | -2.70% | -8.59% |
Max Drawdown (3Y)Largest decline over 3 years | -17.08% | -6.18% | -10.90% |
Max Drawdown (5Y)Largest decline over 5 years | -33.31% | -18.01% | -15.30% |
Max Drawdown (10Y)Largest decline over 10 years | -36.20% | -18.74% | -17.46% |
Current DrawdownCurrent decline from peak | -2.66% | -2.26% | -0.40% |
Average DrawdownAverage peak-to-trough decline | -12.58% | -3.68% | -8.90% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.20% | 0.92% | +2.28% |
Volatility
SCHE vs. SCHZ - Volatility Comparison
Schwab Emerging Markets Equity ETF (SCHE) has a higher volatility of 6.91% compared to Schwab U.S. Aggregate Bond ETF (SCHZ) at 1.34%. This indicates that SCHE's price experiences larger fluctuations and is considered to be riskier than SCHZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SCHE | SCHZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.91% | 1.34% | +5.57% |
Volatility (6M)Calculated over the trailing 6-month period | 14.48% | 2.76% | +11.72% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.97% | 3.77% | +13.20% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.79% | 6.09% | +11.70% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.49% | 5.42% | +14.07% |
SCHE vs. SCHZ - Expense Ratio Comparison
SCHE has a 0.11% expense ratio, which is higher than SCHZ's 0.03% 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. SCHZ - Dividend Comparison
SCHE's dividend yield for the trailing twelve months is around 2.61%, less than SCHZ's 4.11% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
SCHZ Schwab U.S. Aggregate Bond ETF | 4.11% | 4.05% | 3.96% | 3.28% | 2.63% | 2.16% | 2.43% | 2.79% | 2.56% | 2.40% | 2.24% | 2.11% |
Frequently Asked Questions
SCHE and SCHZ have a correlation of 0.32, 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 SCHZ (1.34%). In terms of maximum drawdown, SCHE dropped -36.20% vs SCHZ's -18.74%.
On 10-year performance, SCHE leads with 9.02% vs 1.50% for SCHZ. On fees, SCHZ is cheaper at 0.03% per year. On volatility, SCHZ has been the lower-risk option at 1.34%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SCHE has performed better with a 9.02% return vs 1.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHZ is cheaper with a 0.03% expense ratio, compared with 0.11% for SCHE.
SCHZ has the higher dividend yield at 4.11%, compared with 2.61% for SCHE.
SCHE is categorized as Emerging Markets Equities, while SCHZ is Total Bond Market. SCHE tracks FTSE Emerging Index, while SCHZ tracks Bloomberg US Aggregate Bond Index. Their fees differ too: 0.11% for SCHE and 0.03% for SCHZ.
SCHE currently has the higher Sharpe Ratio (1.45 vs 1.19), 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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