SCHE vs. XCEM

Last updated Jun 6, 2026

SCHE (Schwab Emerging Markets Equity ETF) and XCEM (Columbia EM Core ex-China ETF) are both Emerging Markets Equities funds - SCHE tracks the FTSE Emerging Index while XCEM tracks the MSCI Emerging Markets ex China Index. Both are passively managed. Over the past 10 years, SCHE returned 8.21%/yr vs 11.61%/yr for XCEM. A 0.78 correlation means they provide meaningful diversification when combined. SCHE charges 0.11%/yr vs 0.16%/yr for XCEM.

Performance

SCHE vs. XCEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Emerging Markets Equity ETF (SCHE) and Columbia EM Core ex-China ETF (XCEM). 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 XCEM's 27.53% return. Over the past 10 years, SCHE has underperformed XCEM with an annualized return of 8.21%, while XCEM has yielded a comparatively higher 11.61% 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%

XCEM

• 1D: -6.91%
• 1M: -2.37%
• YTD: 27.53%
• 6M: 32.40%
• 1Y: 55.56%
• 3Y*: 22.91%
• 5Y*: 10.15%
• 10Y*: 11.61%

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

SCHE vs. XCEM - 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%
XCEM Columbia EM Core ex-China ETF	27.53%	34.05%	0.42%	19.96%	-17.59%	7.87%	9.47%	19.74%	-11.75%	34.78%

Correlation

The correlation between SCHE and XCEM is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (10Y) Calculated over the trailing 10-year period	0.81
Correlation (All Time) Calculated using the full available price history since Sep 3, 2015	0.78

The correlation between SCHE and XCEM shifts across timeframes, from 0.78 (all time) to 0.89 (1 year), reflecting how their relationship changes across market environments.

SCHE vs. XCEM - Sectors Allocation Comparison

Sectors	SCHE	XCEM
Technology	30.8%	1.1%
Financial Services	13.6%	7.7%
Consumer Cyclical	8.9%	1.1%
Communication Services	5.2%	4.2%
Industrials	4.9%	0.4%
Basic Materials	3.9%	0.7%
Energy	3.1%	0.2%
Healthcare	2.8%	0.1%
Utilities	2.1%	1.9%
Consumer Defensive	2.0%	0.3%
Real Estate	1.0%	0.0%

Return for Risk

SCHE vs. XCEM — 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

XCEM

XCEM Risk / Return Rank: 78
XCEM Sharpe Ratio Rank: 81
XCEM Sortino Ratio Rank: 72
XCEM Omega Ratio Rank: 81
XCEM Calmar Ratio Rank: 78
XCEM Martin Ratio Rank: 80

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. XCEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Emerging Markets Equity ETF (SCHE) and Columbia EM Core ex-China ETF (XCEM). 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	XCEM	Difference
Sharpe ratio: Return per unit of total volatility	1.42	2.53	-1.11
Sortino ratio: Return per unit of downside risk	1.99	3.15	-1.16
Omega ratio: Gain probability vs. loss probability	1.27	1.47	-0.20
Calmar ratio: Return relative to maximum drawdown	2.10	3.86	-1.76
Martin ratio: Return relative to average drawdown	7.54	15.40	-7.86
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. XCEM - Sharpe Ratio Comparison

The current SCHE Sharpe Ratio is 1.42, which is lower than the XCEM Sharpe Ratio of 2.53. The chart below compares the historical Sharpe Ratios of SCHE and XCEM, 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	XCEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.42	2.53	-1.11
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.23	0.57	-0.33
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.42	0.59	-0.17
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	0.59	-0.35

Drawdowns

SCHE vs. XCEM - Drawdown Comparison

The maximum SCHE drawdown since its inception was -36.20%, smaller than the maximum XCEM drawdown of -41.24%. Use the drawdown chart below to compare losses from any high point for SCHE and XCEM.

Drawdown Indicators

	SCHE	XCEM	Difference
Max Drawdown Largest peak-to-trough decline	-36.20%	-41.24%	+5.04%
Max Drawdown (1Y) Largest decline over 1 year	-11.29%	-14.46%	+3.17%
Max Drawdown (3Y) Largest decline over 3 years	-17.08%	-18.92%	+1.84%
Max Drawdown (5Y) Largest decline over 5 years	-33.37%	-29.65%	-3.72%
Max Drawdown (10Y) Largest decline over 10 years	-36.20%	-41.24%	+5.04%
Current Drawdown Current decline from peak	-5.46%	-8.95%	+3.49%
Average Drawdown Average peak-to-trough decline	-12.59%	-8.59%	-4.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.14%	3.62%	-0.48%

Volatility

SCHE vs. XCEM - Volatility Comparison

The current volatility for Schwab Emerging Markets Equity ETF (SCHE) is 6.56%, while Columbia EM Core ex-China ETF (XCEM) has a volatility of 11.51%. This indicates that SCHE experiences smaller price fluctuations and is considered to be less risky than XCEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHE	XCEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.56%	11.51%	-4.95%
Volatility (6M) Calculated over the trailing 6-month period	14.22%	20.19%	-5.97%
Volatility (1Y) Calculated over the trailing 1-year period	16.76%	22.09%	-5.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.75%	18.01%	-0.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.50%	19.82%	-0.32%

SCHE vs. XCEM - Expense Ratio Comparison

SCHE has a 0.11% expense ratio, which is lower than XCEM's 0.16% expense ratio. Despite the difference, 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. XCEM - Dividend Comparison

SCHE's dividend yield for the trailing twelve months is around 2.68%, more than XCEM's 2.55% 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%
XCEM Columbia EM Core ex-China ETF	2.55%	3.25%	2.76%	1.22%	2.42%	1.94%	1.63%	2.11%	2.70%	9.56%	1.24%	2.63%

Frequently Asked Questions

Can I hold both SCHE and XCEM in my portfolio?

SCHE and XCEM have a correlation of 0.89, 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 XCEM?

XCEM has higher volatility (11.51%) compared to SCHE (6.56%). In terms of maximum drawdown, SCHE dropped -36.20% vs XCEM's -41.24%.

Which ETF is better, SCHE or XCEM?

On 10-year performance, XCEM leads with 11.61% vs 8.21% for SCHE. On fees, SCHE is cheaper at 0.11% per year. On volatility, SCHE has been the lower-risk option at 6.56%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHE or XCEM?

Over the 10-year period, XCEM has performed better with a 11.61% 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 XCEM?

SCHE is cheaper with a 0.11% expense ratio, compared with 0.16% for XCEM.

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

SCHE has the higher dividend yield at 2.68%, compared with 2.55% for XCEM.

What is the main difference between SCHE and XCEM?

SCHE tracks FTSE Emerging Index, while XCEM tracks MSCI Emerging Markets ex China Index. They also come from different issuers: Charles Schwab and Ameriprise Financial. Their fees differ too: 0.11% for SCHE and 0.16% for XCEM.

Which has better risk-adjusted returns?

XCEM currently has the higher Sharpe Ratio (2.53 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.