SCHE vs. SPEM

Last updated Jul 14, 2026

SCHE (Schwab Emerging Markets Equity ETF) and SPEM (SPDR Portfolio Emerging Markets ETF) are both Emerging Markets Equities funds - SCHE tracks the FTSE Emerging Index while SPEM tracks the S&P Emerging BMI Index. Both are passively managed. Over the past 10 years, SCHE returned 7.95%/yr vs 8.59%/yr for SPEM. With a 0.98 correlation, they move nearly in lockstep. SCHE charges 0.11%/yr vs 0.07%/yr for SPEM.

Performance

SCHE vs. SPEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Emerging Markets Equity ETF (SCHE) and SPDR Portfolio Emerging Markets ETF (SPEM). 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 9.54% return and SPEM slightly higher at 9.96%. Over the past 10 years, SCHE has underperformed SPEM with an annualized return of 7.95%, while SPEM has yielded a comparatively higher 8.59% annualized return.

SCHE

• 1D: -1.89%
• 1M: -0.87%
• 6M: 4.41%
• YTD: 9.54%
• 1Y: 22.13%
• 3Y*: 15.66%
• 5Y*: 5.20%
• 10Y*: 7.95%

SPEM

• 1D: -1.94%
• 1M: -1.22%
• 6M: 5.04%
• YTD: 9.96%
• 1Y: 22.24%
• 3Y*: 16.12%
• 5Y*: 5.89%
• 10Y*: 8.59%

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

SCHE vs. SPEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHE Schwab Emerging Markets Equity ETF	9.54%	26.54%	10.60%	8.93%	-17.84%	-0.65%	14.49%	20.31%	-13.57%	32.70%
SPEM SPDR Portfolio Emerging Markets ETF	9.96%	25.63%	11.40%	10.51%	-17.90%	1.51%	14.55%	19.69%	-13.26%	34.82%

Correlation

The correlation between SCHE and SPEM is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.99
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (10Y) Calculated over the trailing 10-year period	0.99
Correlation (All Time) Calculated using the full available price history since Jan 14, 2010	0.98

The correlation between SCHE and SPEM has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.

SCHE vs. SPEM - Sectors Allocation Comparison

Sectors	SCHE	SPEM
Technology	33.7%	32.1%
Financial Services	20.0%	19.2%
Consumer Cyclical	9.6%	9.6%
Basic Materials	7.5%	8.0%
Communication Services	7.1%	6.7%
Industrials	6.7%	8.3%
Energy	4.4%	4.2%
Consumer Defensive	3.4%	3.6%
Healthcare	3.2%	3.7%
Utilities	2.8%	2.8%
Real Estate	1.6%	1.8%

Return for Risk

SCHE vs. SPEM — Risk / Return Rank

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

SCHE

SCHE Risk / Return Rank: 47
SCHE Sharpe Ratio Rank: 45
SCHE Sortino Ratio Rank: 43
SCHE Omega Ratio Rank: 46
SCHE Calmar Ratio Rank: 49
SCHE Martin Ratio Rank: 50

SPEM

SPEM Risk / Return Rank: 47
SPEM Sharpe Ratio Rank: 46
SPEM Sortino Ratio Rank: 44
SPEM Omega Ratio Rank: 47
SPEM Calmar Ratio Rank: 49
SPEM Martin Ratio Rank: 51

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. SPEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Emerging Markets Equity ETF (SCHE) and SPDR Portfolio Emerging Markets ETF (SPEM). 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	SPEM	Difference
Sharpe ratio: Return per unit of total volatility	1.26	1.30	-0.03
Sortino ratio: Return per unit of downside risk	1.79	1.82	-0.03
Omega ratio: Gain probability vs. loss probability	1.24	1.24	0.00
Calmar ratio: Return relative to maximum drawdown	1.97	1.97	0.00
Martin ratio: Return relative to average drawdown	6.75	6.83	-0.08

SCHE vs. SPEM - Sharpe Ratio Comparison

The current SCHE Sharpe Ratio is 1.26, which is comparable to the SPEM Sharpe Ratio of 1.30. The chart below compares the historical Sharpe Ratios of SCHE and SPEM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

SCHE vs. SPEM - Drawdown Comparison

The maximum SCHE drawdown since its inception was -36.20%, smaller than the maximum SPEM drawdown of -64.41%. Use the drawdown chart below to compare losses from any high point for SCHE and SPEM.

Drawdown Indicators

	SCHE	SPEM	Difference
Max Drawdown Largest peak-to-trough decline	-36.20%	-64.41%	+28.21%
Max Drawdown (1Y) Largest decline over 1 year	-11.29%	-11.36%	+0.07%
Max Drawdown (3Y) Largest decline over 3 years	-17.08%	-17.62%	+0.54%
Max Drawdown (5Y) Largest decline over 5 years	-31.40%	-30.03%	-1.37%
Max Drawdown (10Y) Largest decline over 10 years	-36.20%	-36.06%	-0.14%
Current Drawdown Current decline from peak	-3.67%	-4.08%	+0.41%
Average Drawdown Average peak-to-trough decline	-12.53%	-14.69%	+2.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.29%	3.26%	+0.03%

Volatility

SCHE vs. SPEM - Volatility Comparison

Schwab Emerging Markets Equity ETF (SCHE) and SPDR Portfolio Emerging Markets ETF (SPEM) have volatilities of 6.54% and 6.46%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHE	SPEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.54%	6.46%	+0.08%
Volatility (6M) Calculated over the trailing 6-month period	15.24%	15.05%	+0.19%
Volatility (1Y) Calculated over the trailing 1-year period	17.61%	17.28%	+0.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.90%	17.38%	+0.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.41%	18.76%	+0.65%

SCHE vs. SPEM - Expense Ratio Comparison

SCHE has a 0.11% expense ratio, which is higher than SPEM's 0.07% 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. SPEM - Dividend Comparison

SCHE's dividend yield for the trailing twelve months is around 2.66%, more than SPEM's 2.55% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHE Schwab Emerging Markets Equity ETF	2.66%	2.88%	3.03%	3.83%	2.88%	2.86%	2.09%	3.27%	2.64%	2.31%	2.27%	2.50%
SPEM SPDR Portfolio Emerging Markets ETF	2.55%	2.77%	2.78%	2.80%	3.38%	3.14%	1.92%	2.94%	2.34%	1.12%	1.51%	2.40%

Frequently Asked Questions

Can I hold both SCHE and SPEM in my portfolio?

With a correlation of 0.99, SCHE and SPEM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, SCHE or SPEM?

SCHE has higher volatility (6.54%) compared to SPEM (6.46%). In terms of maximum drawdown, SCHE dropped -36.20% vs SPEM's -64.41%.

Which ETF is better, SCHE or SPEM?

On 10-year performance, SPEM leads with 8.59% vs 7.95% for SCHE. On fees, SPEM is cheaper at 0.07% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHE or SPEM?

Over the 10-year period, SPEM has performed better with a 8.59% return vs 7.95%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHE or SPEM?

SPEM is cheaper with a 0.07% expense ratio, compared with 0.11% for SCHE.

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

SCHE has the higher dividend yield at 2.66%, compared with 2.55% for SPEM.

What is the main difference between SCHE and SPEM?

SCHE tracks FTSE Emerging Index, while SPEM tracks S&P Emerging BMI Index. They also come from different issuers: Charles Schwab and State Street. Their fees differ too: 0.11% for SCHE and 0.07% for SPEM.

Which has better risk-adjusted returns?

SPEM currently has the higher Sharpe Ratio (1.29 vs 1.26), 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.