SPEM vs. SCHD

Last updated Jun 12, 2026

SPEM (SPDR Portfolio Emerging Markets ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - SPEM is a Emerging Markets Equities fund tracking the S&P Emerging Markets BMI, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Both are passively managed. Over the past 10 years, SPEM returned 9.52%/yr vs 12.82%/yr for SCHD. A 0.60 correlation means they provide meaningful diversification when combined. SPEM charges 0.11%/yr vs 0.06%/yr for SCHD.

Performance

SPEM vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR Portfolio Emerging Markets ETF (SPEM) and Schwab U.S. Dividend Equity ETF (SCHD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SPEM achieves a 10.36% return, which is significantly lower than SCHD's 19.60% return. Over the past 10 years, SPEM has underperformed SCHD with an annualized return of 9.52%, while SCHD has yielded a comparatively higher 12.82% annualized return.

SPEM

• 1D: 2.36%
• 1M: 0.16%
• YTD: 10.36%
• 6M: 11.13%
• 1Y: 24.73%
• 3Y*: 17.37%
• 5Y*: 5.42%
• 10Y*: 9.52%

SCHD

• 1D: 0.84%
• 1M: 2.42%
• YTD: 19.60%
• 6M: 18.52%
• 1Y: 25.79%
• 3Y*: 14.80%
• 5Y*: 8.55%
• 10Y*: 12.82%

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

SPEM vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPEM SPDR Portfolio Emerging Markets ETF	10.36%	25.63%	11.40%	10.51%	-17.90%	1.51%	14.55%	19.69%	-13.26%	34.82%
SCHD Schwab U.S. Dividend Equity ETF	19.60%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between SPEM and SCHD is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.30
Correlation (3Y) Calculated over the trailing 3-year period	0.41
Correlation (5Y) Calculated over the trailing 5-year period	0.47
Correlation (10Y) Calculated over the trailing 10-year period	0.54
Correlation (All Time) Calculated using the full available price history since Oct 20, 2011	0.60

Over the past year, the correlation between SPEM and SCHD has dropped to 0.30 - well below their long-term average of 0.60, suggesting their price drivers have been diverging.

SPEM vs. SCHD - Sectors Allocation Comparison

Sectors	SPEM	SCHD
Technology	28.2%	16.4%
Financial Services	20.2%	9.3%
Consumer Cyclical	10.4%	6.3%
Industrials	8.5%	7.5%
Basic Materials	8.2%	1.2%
Communication Services	7.2%	6.3%
Energy	4.7%	16.2%
Healthcare	4.0%	18.8%
Consumer Defensive	3.9%	19.2%
Utilities	2.8%	0.0%
Real Estate	1.9%	-

Return for Risk

SPEM vs. SCHD — Risk / Return Rank

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

SPEM

SPEM Risk / Return Rank: 53
SPEM Sharpe Ratio Rank: 52
SPEM Sortino Ratio Rank: 51
SPEM Omega Ratio Rank: 54
SPEM Calmar Ratio Rank: 53
SPEM Martin Ratio Rank: 54

SCHD

SCHD Risk / Return Rank: 88
SCHD Sharpe Ratio Rank: 87
SCHD Sortino Ratio Rank: 91
SCHD Omega Ratio Rank: 85
SCHD Calmar Ratio Rank: 93
SCHD Martin Ratio Rank: 83

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.

SPEM vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR Portfolio Emerging Markets ETF (SPEM) and Schwab U.S. Dividend Equity ETF (SCHD). 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.

	SPEM	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	1.49	2.38	-0.89
Sortino ratio: Return per unit of downside risk	2.08	3.67	-1.59
Omega ratio: Gain probability vs. loss probability	1.28	1.43	-0.15
Calmar ratio: Return relative to maximum drawdown	2.19	5.61	-3.43
Martin ratio: Return relative to average drawdown	7.82	13.71	-5.89

SPEM vs. SCHD - Sharpe Ratio Comparison

The current SPEM Sharpe Ratio is 1.49, which is lower than the SCHD Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of SPEM and SCHD, 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

SPEM vs. SCHD - Drawdown Comparison

The maximum SPEM drawdown since its inception was -64.41%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for SPEM and SCHD.

Drawdown Indicators

	SPEM	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-64.41%	-33.37%	-31.04%
Max Drawdown (1Y) Largest decline over 1 year	-11.36%	-4.61%	-6.75%
Max Drawdown (3Y) Largest decline over 3 years	-17.62%	-16.13%	-1.49%
Max Drawdown (5Y) Largest decline over 5 years	-31.75%	-16.85%	-14.90%
Max Drawdown (10Y) Largest decline over 10 years	-36.06%	-33.37%	-2.69%
Current Drawdown Current decline from peak	-3.24%	-0.91%	-2.33%
Average Drawdown Average peak-to-trough decline	-14.73%	-3.32%	-11.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.17%	1.89%	+1.28%

Volatility

SPEM vs. SCHD - Volatility Comparison

SPDR Portfolio Emerging Markets ETF (SPEM) has a higher volatility of 6.93% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 2.96%. This indicates that SPEM's price experiences larger fluctuations and is considered to be riskier than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SPEM	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.93%	2.96%	+3.97%
Volatility (6M) Calculated over the trailing 6-month period	14.21%	7.60%	+6.61%
Volatility (1Y) Calculated over the trailing 1-year period	16.65%	10.91%	+5.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.26%	14.38%	+2.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.84%	16.72%	+2.12%

SPEM vs. SCHD - Expense Ratio Comparison

SPEM has a 0.11% expense ratio, which is higher than SCHD'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

SPEM vs. SCHD - Dividend Comparison

SPEM's dividend yield for the trailing twelve months is around 2.51%, less than SCHD's 3.25% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHD Schwab U.S. Dividend Equity ETF	3.25%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%
SPEM SPDR Portfolio Emerging Markets ETF	2.51%	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 SPEM and SCHD in my portfolio?

SPEM and SCHD have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SPEM or SCHD?

SPEM has higher volatility (6.93%) compared to SCHD (2.96%). In terms of maximum drawdown, SPEM dropped -64.41% vs SCHD's -33.37%.

Which ETF is better, SPEM or SCHD?

On 10-year performance, SCHD leads with 12.82% vs 9.52% for SPEM. On fees, SCHD is cheaper at 0.06% per year. On volatility, SCHD has been the lower-risk option at 2.96%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPEM or SCHD?

Over the 10-year period, SCHD has performed better with a 12.82% return vs 9.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPEM or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.11% for SPEM.

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

SCHD has the higher dividend yield at 3.25%, compared with 2.51% for SPEM.

What is the main difference between SPEM and SCHD?

SPEM is categorized as Emerging Markets Equities, while SCHD is Dividend. SPEM tracks S&P Emerging Markets BMI, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: State Street and Charles Schwab. Their fees differ too: 0.11% for SPEM and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.38 vs 1.49), 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.