SPEM vs. SCHE

Last updated Jun 4, 2026

SPEM (SPDR Portfolio Emerging Markets ETF) and SCHE (Schwab Emerging Markets Equity ETF) are both Emerging Markets Equities funds - SPEM tracks the S&P Emerging Markets BMI while SCHE tracks the FTSE All-World Emerging. Both are passively managed. Over the past 10 years, SPEM returned 9.45%/yr vs 8.87%/yr for SCHE. With a 0.98 correlation, they move nearly in lockstep. Both charge a 0.11% expense ratio.

Performance

SPEM vs. SCHE - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with SPEM having a 12.45% return and SCHE slightly lower at 11.88%. Over the past 10 years, SPEM has outperformed SCHE with an annualized return of 9.45%, while SCHE has yielded a comparatively lower 8.87% annualized return.

SPEM

• 1D: -1.40%
• 1M: 3.20%
• YTD: 12.45%
• 6M: 14.11%
• 1Y: 31.35%
• 3Y*: 18.73%
• 5Y*: 5.70%
• 10Y*: 9.45%

SCHE

• 1D: -1.45%
• 1M: 2.69%
• YTD: 11.88%
• 6M: 12.88%
• 1Y: 30.59%
• 3Y*: 18.21%
• 5Y*: 4.94%
• 10Y*: 8.87%

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

SPEM vs. SCHE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPEM SPDR Portfolio Emerging Markets ETF	12.45%	25.63%	11.40%	10.51%	-17.90%	1.51%	14.55%	19.69%	-13.26%	34.82%
SCHE Schwab Emerging Markets Equity ETF	11.88%	26.54%	10.60%	8.93%	-17.84%	-0.65%	14.49%	20.31%	-13.57%	32.70%

Correlation

The correlation between SPEM and SCHE 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 15, 2010	0.98

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

SPEM vs. SCHE - Sectors Allocation Comparison

Sectors	SPEM	SCHE
Technology	28.2%	30.8%
Financial Services	20.2%	13.6%
Consumer Cyclical	10.4%	8.9%
Industrials	8.5%	4.9%
Basic Materials	8.2%	3.9%
Communication Services	7.2%	5.2%
Energy	4.7%	3.1%
Healthcare	4.0%	2.8%
Consumer Defensive	3.9%	2.0%
Utilities	2.8%	2.1%
Real Estate	1.9%	1.0%

Return for Risk

SPEM vs. SCHE — Risk / Return Rank

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

SPEM

SPEM Risk / Return Rank: 57
SPEM Sharpe Ratio Rank: 57
SPEM Sortino Ratio Rank: 56
SPEM Omega Ratio Rank: 58
SPEM Calmar Ratio Rank: 55
SPEM Martin Ratio Rank: 57

SCHE

SCHE Risk / Return Rank: 54
SCHE Sharpe Ratio Rank: 54
SCHE Sortino Ratio Rank: 53
SCHE Omega Ratio Rank: 55
SCHE Calmar Ratio Rank: 54
SCHE Martin Ratio Rank: 56

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. SCHE - Risk-Adjusted Trends Comparison

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

	SPEM	SCHE	Difference
Sharpe ratio: Return per unit of total volatility	1.98	1.89	+0.09
Sortino ratio: Return per unit of downside risk	2.73	2.63	+0.10
Omega ratio: Gain probability vs. loss probability	1.36	1.35	+0.02
Calmar ratio: Return relative to maximum drawdown	2.77	2.72	+0.05
Martin ratio: Return relative to average drawdown	10.14	9.82	+0.32
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SPEM vs. SCHE - Sharpe Ratio Comparison

The current SPEM Sharpe Ratio is 1.98, which is comparable to the SCHE Sharpe Ratio of 1.89. The chart below compares the historical Sharpe Ratios of SPEM and SCHE, 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

	SPEM	SCHE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.98	1.89	+0.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.33	0.28	+0.05
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.50	0.46	+0.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.23	0.25	-0.02

Drawdowns

SPEM vs. SCHE - Drawdown Comparison

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

Drawdown Indicators

	SPEM	SCHE	Difference
Max Drawdown Largest peak-to-trough decline	-64.41%	-36.20%	-28.21%
Max Drawdown (1Y) Largest decline over 1 year	-11.36%	-11.29%	-0.07%
Max Drawdown (3Y) Largest decline over 3 years	-17.62%	-17.08%	-0.54%
Max Drawdown (5Y) Largest decline over 5 years	-31.88%	-33.59%	+1.71%
Max Drawdown (10Y) Largest decline over 10 years	-36.06%	-36.20%	+0.14%
Current Drawdown Current decline from peak	-1.40%	-1.45%	+0.05%
Average Drawdown Average peak-to-trough decline	-14.75%	-12.60%	-2.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.10%	3.12%	-0.02%

Volatility

SPEM vs. SCHE - Volatility Comparison

SPDR Portfolio Emerging Markets ETF (SPEM) and Schwab Emerging Markets Equity ETF (SCHE) have volatilities of 5.69% and 5.80%, 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

	SPEM	SCHE	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.69%	5.80%	-0.11%
Volatility (6M) Calculated over the trailing 6-month period	13.29%	13.58%	-0.29%
Volatility (1Y) Calculated over the trailing 1-year period	15.92%	16.26%	-0.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.13%	17.67%	-0.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.80%	19.46%	-0.66%

SPEM vs. SCHE - Expense Ratio Comparison

Both SPEM and SCHE have an expense ratio of 0.11%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

SPEM vs. SCHE - Dividend Comparison

SPEM's dividend yield for the trailing twelve months is around 2.47%, less than SCHE's 2.57% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHE Schwab Emerging Markets Equity ETF	2.57%	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	2.47%	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 SCHE in my portfolio?

With a correlation of 0.99, SPEM and SCHE 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, SPEM or SCHE?

SCHE has higher volatility (5.80%) compared to SPEM (5.69%). In terms of maximum drawdown, SPEM dropped -64.41% vs SCHE's -36.20%.

Which ETF is better, SPEM or SCHE?

On 10-year performance, SPEM leads with 9.45% vs 8.87% for SCHE. Both ETFs have the same 0.11% expense ratio. On volatility, SPEM has been the lower-risk option at 5.69%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPEM or SCHE?

Over the 10-year period, SPEM has performed better with a 9.45% return vs 8.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPEM or SCHE?

SPEM and SCHE have the same expense ratio: 0.11% per year.

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

SCHE has the higher dividend yield at 2.57%, compared with 2.47% for SPEM.

What is the main difference between SPEM and SCHE?

SPEM tracks S&P Emerging Markets BMI, while SCHE tracks FTSE All-World Emerging. They also come from different issuers: State Street and Charles Schwab.

Which has better risk-adjusted returns?

SPEM currently has the higher Sharpe Ratio (1.98 vs 1.89), 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.