SCHE vs. SWISX

Last updated Jun 23, 2026

SCHE (Schwab Emerging Markets Equity ETF) and SWISX (Schwab International Index Fund) are both funds - SCHE is a Emerging Markets Equities fund tracking the FTSE Emerging Index, while SWISX is a Foreign Large Cap Equities fund tracking the MSCI EAFE Index (Net). Both are passively managed. Over the past 10 years, SCHE returned 9.30%/yr vs 9.58%/yr for SWISX. A 0.78 correlation means they provide meaningful diversification when combined. SCHE charges 0.11%/yr vs 0.06%/yr for SWISX.

Performance

SCHE vs. SWISX - Performance Comparison

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

Returns By Period

In the year-to-date period, SCHE achieves a 13.71% return, which is significantly higher than SWISX's 10.58% return. Both investments have delivered pretty close results over the past 10 years, with SCHE having a 9.30% annualized return and SWISX not far ahead at 9.58%.

SCHE

• 1D: 0.98%
• 1M: 4.17%
• YTD: 13.71%
• 6M: 14.37%
• 1Y: 31.95%
• 3Y*: 18.83%
• 5Y*: 5.77%
• 10Y*: 9.30%

SWISX

• 1D: 0.83%
• 1M: 1.99%
• YTD: 10.58%
• 6M: 10.97%
• 1Y: 25.29%
• 3Y*: 16.19%
• 5Y*: 9.33%
• 10Y*: 9.58%

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

SCHE vs. SWISX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHE Schwab Emerging Markets Equity ETF	13.71%	26.54%	10.60%	8.93%	-17.84%	-0.65%	14.49%	20.31%	-13.57%	32.70%
SWISX Schwab International Index Fund	10.58%	31.59%	3.54%	18.13%	-14.30%	11.25%	8.14%	21.87%	-13.38%	25.32%

Correlation

The correlation between SCHE and SWISX is 0.77, 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	0.77
Correlation (3Y) Calculated over the trailing 3-year period	0.73
Correlation (5Y) Calculated over the trailing 5-year period	0.75
Correlation (10Y) Calculated over the trailing 10-year period	0.75
Correlation (All Time) Calculated using the full available price history since Jan 14, 2010	0.78

The correlation between SCHE and SWISX has been stable across timeframes, ranging from 0.73 to 0.78 - a consistent structural relationship.

SCHE vs. SWISX - Sectors Allocation Comparison

Sectors	SCHE	SWISX
Technology	33.7%	12.0%
Financial Services	20.0%	24.1%
Consumer Cyclical	9.6%	7.8%
Basic Materials	7.5%	6.4%
Communication Services	7.1%	4.9%
Industrials	6.7%	19.8%
Energy	4.4%	3.8%
Consumer Defensive	3.4%	6.7%
Healthcare	3.2%	9.0%
Utilities	2.8%	3.8%
Real Estate	1.6%	1.8%

Return for Risk

SCHE vs. SWISX — Risk / Return Rank

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

SCHE

SCHE Risk / Return Rank: 58
SCHE Sharpe Ratio Rank: 58
SCHE Sortino Ratio Rank: 55
SCHE Omega Ratio Rank: 59
SCHE Calmar Ratio Rank: 59
SCHE Martin Ratio Rank: 58

SWISX

SWISX Risk / Return Rank: 35
SWISX Sharpe Ratio Rank: 34
SWISX Sortino Ratio Rank: 33
SWISX Omega Ratio Rank: 33
SWISX Calmar Ratio Rank: 36
SWISX Martin Ratio Rank: 39

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. SWISX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Emerging Markets Equity ETF (SCHE) and Schwab International Index Fund (SWISX). 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	SWISX	Difference
Sharpe ratio: Return per unit of total volatility	1.88	1.56	+0.32
Sortino ratio: Return per unit of downside risk	2.57	2.23	+0.34
Omega ratio: Gain probability vs. loss probability	1.35	1.28	+0.07
Calmar ratio: Return relative to maximum drawdown	2.84	2.14	+0.70
Martin ratio: Return relative to average drawdown	10.03	8.03	+2.00

SCHE vs. SWISX - Sharpe Ratio Comparison

The current SCHE Sharpe Ratio is 1.88, which is comparable to the SWISX Sharpe Ratio of 1.56. The chart below compares the historical Sharpe Ratios of SCHE and SWISX, 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. SWISX - Drawdown Comparison

The maximum SCHE drawdown since its inception was -36.20%, smaller than the maximum SWISX drawdown of -60.65%. Use the drawdown chart below to compare losses from any high point for SCHE and SWISX.

Drawdown Indicators

	SCHE	SWISX	Difference
Max Drawdown Largest peak-to-trough decline	-36.20%	-60.65%	+24.45%
Max Drawdown (1Y) Largest decline over 1 year	-11.29%	-11.39%	+0.10%
Max Drawdown (3Y) Largest decline over 3 years	-17.08%	-13.68%	-3.40%
Max Drawdown (5Y) Largest decline over 5 years	-33.31%	-29.42%	-3.89%
Max Drawdown (10Y) Largest decline over 10 years	-36.20%	-33.83%	-2.37%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-12.57%	-14.79%	+2.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.19%	3.04%	+0.15%

Volatility

SCHE vs. SWISX - Volatility Comparison

Schwab Emerging Markets Equity ETF (SCHE) has a higher volatility of 6.77% compared to Schwab International Index Fund (SWISX) at 5.02%. This indicates that SCHE's price experiences larger fluctuations and is considered to be riskier than SWISX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHE	SWISX	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.77%	5.02%	+1.75%
Volatility (6M) Calculated over the trailing 6-month period	14.69%	13.02%	+1.67%
Volatility (1Y) Calculated over the trailing 1-year period	17.09%	15.62%	+1.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.84%	16.37%	+1.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.50%	16.88%	+2.62%

SCHE vs. SWISX - Expense Ratio Comparison

SCHE has a 0.11% expense ratio, which is higher than SWISX's 0.06% 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. SWISX - Dividend Comparison

SCHE's dividend yield for the trailing twelve months is around 2.53%, less than SWISX's 3.21% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHE Schwab Emerging Markets Equity ETF	2.53%	2.88%	3.03%	3.83%	2.88%	2.86%	2.09%	3.27%	2.64%	2.31%	2.27%	2.50%
SWISX Schwab International Index Fund	3.21%	3.55%	3.29%	3.31%	2.73%	3.34%	1.88%	3.09%	3.15%	2.71%	3.19%	2.71%

Frequently Asked Questions

Can I hold both SCHE and SWISX in my portfolio?

SCHE and SWISX have a correlation of 0.77, 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 SWISX?

SCHE has higher volatility (6.77%) compared to SWISX (5.02%). In terms of maximum drawdown, SCHE dropped -36.20% vs SWISX's -60.65%.

Which has better risk-adjusted returns?

SCHE currently has the higher Sharpe Ratio (1.88 vs 1.56), 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.