SPEM vs. SCHP

Last updated Jun 9, 2026

SPEM (SPDR Portfolio Emerging Markets ETF) and SCHP (Schwab U.S. TIPS ETF) are both exchange-traded funds - SPEM is a Emerging Markets Equities fund tracking the S&P Emerging Markets BMI, while SCHP is a Inflation-Protected Bonds fund tracking the Bloomberg US Treasury Inflation-Linked Bond Index (Series-L). Both are passively managed. Over the past 10 years, SPEM returned 9.23%/yr vs 2.53%/yr for SCHP. At a correlation of -0.02, they often move in opposite directions. SPEM charges 0.11%/yr vs 0.03%/yr for SCHP.

Performance

SPEM vs. SCHP - 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. TIPS ETF (SCHP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SPEM achieves a 8.69% return, which is significantly higher than SCHP's 0.96% return. Over the past 10 years, SPEM has outperformed SCHP with an annualized return of 9.23%, while SCHP has yielded a comparatively lower 2.53% annualized return.

SPEM

• 1D: 0.69%
• 1M: -3.31%
• YTD: 8.69%
• 6M: 10.06%
• 1Y: 24.84%
• 3Y*: 16.86%
• 5Y*: 5.19%
• 10Y*: 9.23%

SCHP

• 1D: -0.19%
• 1M: -0.89%
• YTD: 0.96%
• 6M: 0.95%
• 1Y: 4.80%
• 3Y*: 3.84%
• 5Y*: 1.02%
• 10Y*: 2.53%

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

SPEM vs. SCHP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPEM SPDR Portfolio Emerging Markets ETF	8.69%	25.63%	11.40%	10.51%	-17.90%	1.51%	14.55%	19.69%	-13.26%	34.82%
SCHP Schwab U.S. TIPS ETF	0.96%	6.76%	1.95%	3.91%	-12.02%	5.87%	10.86%	8.52%	-1.78%	3.02%

Correlation

The correlation between SPEM and SCHP is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.22
Correlation (3Y) Calculated over the trailing 3-year period	0.18
Correlation (5Y) Calculated over the trailing 5-year period	0.13
Correlation (10Y) Calculated over the trailing 10-year period	0.07
Correlation (All Time) Calculated using the full available price history since Aug 5, 2010	-0.02

The correlation between SPEM and SCHP shifts across timeframes, from -0.02 (all time) to 0.22 (1 year), reflecting how their relationship changes across market environments.

SPEM vs. SCHP - Sectors Allocation Comparison

Sectors	SPEM	SCHP
Technology	28.2%	-
Financial Services	20.2%	0.0%
Consumer Cyclical	10.4%	100.0%
Industrials	8.5%	-
Basic Materials	8.2%	-
Communication Services	7.2%	-
Energy	4.7%	-
Healthcare	4.0%	-
Consumer Defensive	3.9%	-
Utilities	2.8%	-
Real Estate	1.9%	-

Return for Risk

SPEM vs. SCHP — Risk / Return Rank

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

SPEM

SPEM Risk / Return Rank: 49
SPEM Sharpe Ratio Rank: 48
SPEM Sortino Ratio Rank: 47
SPEM Omega Ratio Rank: 50
SPEM Calmar Ratio Rank: 49
SPEM Martin Ratio Rank: 51

SCHP

SCHP Risk / Return Rank: 49
SCHP Sharpe Ratio Rank: 46
SCHP Sortino Ratio Rank: 50
SCHP Omega Ratio Rank: 45
SCHP Calmar Ratio Rank: 56
SCHP Martin Ratio Rank: 49

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. SCHP - 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. TIPS ETF (SCHP). 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	SCHP	Difference
Sharpe ratio: Return per unit of total volatility	1.52	1.47	+0.05
Sortino ratio: Return per unit of downside risk	2.10	2.23	-0.13
Omega ratio: Gain probability vs. loss probability	1.29	1.26	+0.03
Calmar ratio: Return relative to maximum drawdown	2.20	2.50	-0.30
Martin ratio: Return relative to average drawdown	7.95	7.59	+0.36
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. SCHP - Sharpe Ratio Comparison

The current SPEM Sharpe Ratio is 1.52, which is comparable to the SCHP Sharpe Ratio of 1.47. The chart below compares the historical Sharpe Ratios of SPEM and SCHP, 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	SCHP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.52	1.47	+0.05
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.30	0.17	+0.14
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.49	0.45	+0.04
Sharpe Ratio (All Time) Calculated using the full available price history	0.23	0.50	-0.27

Drawdowns

SPEM vs. SCHP - Drawdown Comparison

The maximum SPEM drawdown since its inception was -64.41%, which is greater than SCHP's maximum drawdown of -14.26%. Use the drawdown chart below to compare losses from any high point for SPEM and SCHP.

Drawdown Indicators

	SPEM	SCHP	Difference
Max Drawdown Largest peak-to-trough decline	-64.41%	-14.26%	-50.15%
Max Drawdown (1Y) Largest decline over 1 year	-11.36%	-1.93%	-9.43%
Max Drawdown (3Y) Largest decline over 3 years	-17.62%	-4.48%	-13.14%
Max Drawdown (5Y) Largest decline over 5 years	-31.76%	-14.26%	-17.50%
Max Drawdown (10Y) Largest decline over 10 years	-36.06%	-14.26%	-21.80%
Current Drawdown Current decline from peak	-4.70%	-0.89%	-3.81%
Average Drawdown Average peak-to-trough decline	-14.74%	-3.93%	-10.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.13%	0.63%	+2.50%

Volatility

SPEM vs. SCHP - Volatility Comparison

SPDR Portfolio Emerging Markets ETF (SPEM) has a higher volatility of 6.56% compared to Schwab U.S. TIPS ETF (SCHP) at 1.00%. This indicates that SPEM's price experiences larger fluctuations and is considered to be riskier than SCHP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SPEM	SCHP	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.56%	1.00%	+5.56%
Volatility (6M) Calculated over the trailing 6-month period	13.95%	2.24%	+11.71%
Volatility (1Y) Calculated over the trailing 1-year period	16.47%	3.29%	+13.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.22%	6.12%	+11.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.84%	5.59%	+13.25%

SPEM vs. SCHP - Expense Ratio Comparison

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

SPEM vs. SCHP - Dividend Comparison

SPEM's dividend yield for the trailing twelve months is around 2.55%, less than SCHP's 4.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHP Schwab U.S. TIPS ETF	4.01%	4.06%	2.99%	3.02%	7.19%	4.39%	1.11%	2.02%	2.26%	1.90%	1.38%	0.28%
SPEM SPDR Portfolio Emerging Markets ETF	2.55%	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 SCHP in my portfolio?

SPEM and SCHP have a correlation of 0.22, 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 SCHP?

SPEM has higher volatility (6.56%) compared to SCHP (1.00%). In terms of maximum drawdown, SPEM dropped -64.41% vs SCHP's -14.26%.

Which ETF is better, SPEM or SCHP?

On 10-year performance, SPEM leads with 9.23% vs 2.53% for SCHP. On fees, SCHP is cheaper at 0.03% per year. On volatility, SCHP has been the lower-risk option at 1.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPEM or SCHP?

Over the 10-year period, SPEM has performed better with a 9.23% return vs 2.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPEM or SCHP?

SCHP is cheaper with a 0.03% expense ratio, compared with 0.11% for SPEM.

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

SCHP has the higher dividend yield at 4.01%, compared with 2.55% for SPEM.

What is the main difference between SPEM and SCHP?

SPEM is categorized as Emerging Markets Equities, while SCHP is Inflation-Protected Bonds. SPEM tracks S&P Emerging Markets BMI, while SCHP tracks Bloomberg US Treasury Inflation-Linked Bond Index (Series-L). They also come from different issuers: State Street and Charles Schwab. Their fees differ too: 0.11% for SPEM and 0.03% for SCHP.

Which has better risk-adjusted returns?

SPEM currently has the higher Sharpe Ratio (1.52 vs 1.47), 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.