SCHE vs. VOO

Last updated Jun 6, 2026

SCHE (Schwab Emerging Markets Equity ETF) and VOO (Vanguard S&P 500 ETF) are both exchange-traded funds - SCHE is a Emerging Markets Equities fund tracking the FTSE Emerging Index, while VOO is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, SCHE returned 8.21%/yr vs 15.23%/yr for VOO. A 0.71 correlation means they provide meaningful diversification when combined. SCHE charges 0.11%/yr vs 0.03%/yr for VOO.

Performance

SCHE vs. VOO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Emerging Markets Equity ETF (SCHE) and Vanguard S&P 500 ETF (VOO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCHE achieves a 7.33% return, which is significantly lower than VOO's 8.45% return. Over the past 10 years, SCHE has underperformed VOO with an annualized return of 8.21%, while VOO has yielded a comparatively higher 15.23% annualized return.

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%

VOO

• 1D: -2.59%
• 1M: 0.50%
• YTD: 8.45%
• 6M: 8.18%
• 1Y: 25.87%
• 3Y*: 21.52%
• 5Y*: 13.39%
• 10Y*: 15.23%

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

SCHE vs. VOO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHE Schwab Emerging Markets Equity ETF	7.33%	26.54%	10.60%	8.93%	-17.84%	-0.65%	14.49%	20.31%	-13.57%	32.70%
VOO Vanguard S&P 500 ETF	8.45%	17.82%	24.98%	26.32%	-18.17%	28.79%	18.32%	31.37%	-4.50%	21.77%

Correlation

The correlation between SCHE and VOO is 0.74, 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	0.74
Correlation (3Y) Calculated over the trailing 3-year period	0.64
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (10Y) Calculated over the trailing 10-year period	0.67
Correlation (All Time) Calculated using the full available price history since Sep 10, 2010	0.71

The correlation between SCHE and VOO shifts across timeframes, from 0.63 (5 years) to 0.74 (1 year), reflecting how their relationship changes across market environments.

SCHE vs. VOO - Sectors Allocation Comparison

Sectors	SCHE	VOO
Technology	30.8%	35.7%
Financial Services	13.6%	11.6%
Consumer Cyclical	8.9%	10.2%
Communication Services	5.2%	11.3%
Industrials	4.9%	8.3%
Basic Materials	3.9%	1.8%
Energy	3.1%	3.5%
Healthcare	2.8%	8.5%
Utilities	2.1%	2.4%
Consumer Defensive	2.0%	4.9%
Real Estate	1.0%	1.9%

Return for Risk

SCHE vs. VOO — 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

VOO

VOO Risk / Return Rank: 66
VOO Sharpe Ratio Rank: 67
VOO Sortino Ratio Rank: 63
VOO Omega Ratio Rank: 66
VOO Calmar Ratio Rank: 60
VOO Martin Ratio Rank: 73

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. VOO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Emerging Markets Equity ETF (SCHE) and Vanguard S&P 500 ETF (VOO). 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	VOO	Difference
Sharpe ratio: Return per unit of total volatility	1.42	2.15	-0.73
Sortino ratio: Return per unit of downside risk	1.99	2.89	-0.90
Omega ratio: Gain probability vs. loss probability	1.27	1.39	-0.12
Calmar ratio: Return relative to maximum drawdown	2.10	2.92	-0.82
Martin ratio: Return relative to average drawdown	7.54	13.53	-5.99
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. VOO - Sharpe Ratio Comparison

The current SCHE Sharpe Ratio is 1.42, which is lower than the VOO Sharpe Ratio of 2.15. The chart below compares the historical Sharpe Ratios of SCHE and VOO, 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	VOO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.42	2.15	-0.73
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.23	0.80	-0.57
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.42	0.85	-0.43
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	0.88	-0.64

Drawdowns

SCHE vs. VOO - Drawdown Comparison

The maximum SCHE drawdown since its inception was -36.20%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for SCHE and VOO.

Drawdown Indicators

	SCHE	VOO	Difference
Max Drawdown Largest peak-to-trough decline	-36.20%	-33.99%	-2.21%
Max Drawdown (1Y) Largest decline over 1 year	-11.29%	-8.90%	-2.39%
Max Drawdown (3Y) Largest decline over 3 years	-17.08%	-18.69%	+1.61%
Max Drawdown (5Y) Largest decline over 5 years	-33.37%	-24.52%	-8.85%
Max Drawdown (10Y) Largest decline over 10 years	-36.20%	-33.99%	-2.21%
Current Drawdown Current decline from peak	-5.46%	-2.90%	-2.56%
Average Drawdown Average peak-to-trough decline	-12.59%	-3.69%	-8.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.14%	1.92%	+1.22%

Volatility

SCHE vs. VOO - Volatility Comparison

Schwab Emerging Markets Equity ETF (SCHE) has a higher volatility of 6.56% compared to Vanguard S&P 500 ETF (VOO) at 3.74%. This indicates that SCHE's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHE	VOO	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.56%	3.74%	+2.82%
Volatility (6M) Calculated over the trailing 6-month period	14.22%	9.30%	+4.92%
Volatility (1Y) Calculated over the trailing 1-year period	16.76%	12.10%	+4.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.75%	16.84%	+0.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.50%	18.02%	+1.48%

SCHE vs. VOO - Expense Ratio Comparison

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

SCHE's dividend yield for the trailing twelve months is around 2.68%, more than VOO's 1.05% 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%
VOO Vanguard S&P 500 ETF	1.05%	1.13%	1.24%	1.46%	1.69%	1.25%	1.54%	1.88%	2.06%	1.78%	2.02%	2.10%

Frequently Asked Questions

Can I hold both SCHE and VOO in my portfolio?

SCHE and VOO have a correlation of 0.74, 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 VOO?

SCHE has higher volatility (6.56%) compared to VOO (3.74%). In terms of maximum drawdown, SCHE dropped -36.20% vs VOO's -33.99%.

Which ETF is better, SCHE or VOO?

On 10-year performance, VOO leads with 15.23% vs 8.21% for SCHE. On fees, VOO is cheaper at 0.03% per year. On volatility, VOO has been the lower-risk option at 3.74%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHE or VOO?

Over the 10-year period, VOO has performed better with a 15.23% return vs 8.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHE or VOO?

VOO is cheaper with a 0.03% expense ratio, compared with 0.11% for SCHE.

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

SCHE has the higher dividend yield at 2.68%, compared with 1.05% for VOO.

What is the main difference between SCHE and VOO?

SCHE is categorized as Emerging Markets Equities, while VOO is S&P 500. SCHE tracks FTSE Emerging Index, while VOO tracks S&P 500 Index. They also come from different issuers: Charles Schwab and Vanguard. Their fees differ too: 0.11% for SCHE and 0.03% for VOO.

Which has better risk-adjusted returns?

VOO currently has the higher Sharpe Ratio (2.15 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.