UAE vs. SCHE

Last updated Jun 4, 2026

UAE (iShares MSCI UAE ETF) and SCHE (Schwab Emerging Markets Equity ETF) are both Emerging Markets Equities funds - UAE tracks the MSCI All UAE Capped Index while SCHE tracks the FTSE All-World Emerging. Both are passively managed. Over the past 10 years, UAE returned 5.59%/yr vs 8.87%/yr for SCHE. At a 0.39 correlation, their price movements are largely independent. UAE charges 0.59%/yr vs 0.11%/yr for SCHE.

Performance

UAE vs. SCHE - Performance Comparison

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

Returns By Period

In the year-to-date period, UAE achieves a -2.82% return, which is significantly lower than SCHE's 11.88% return. Over the past 10 years, UAE has underperformed SCHE with an annualized return of 5.59%, while SCHE has yielded a comparatively higher 8.87% annualized return.

UAE

• 1D: -1.38%
• 1M: -2.11%
• YTD: -2.82%
• 6M: -0.47%
• 1Y: 4.41%
• 3Y*: 12.18%
• 5Y*: 8.83%
• 10Y*: 5.59%

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)

UAE vs. SCHE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
UAE iShares MSCI UAE ETF	-2.82%	21.35%	15.25%	2.91%	-5.36%	44.16%	-7.23%	1.59%	-14.42%	4.99%
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 UAE and SCHE is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.38
Correlation (3Y) Calculated over the trailing 3-year period	0.33
Correlation (5Y) Calculated over the trailing 5-year period	0.33
Correlation (10Y) Calculated over the trailing 10-year period	0.38
Correlation (All Time) Calculated using the full available price history since May 2, 2014	0.39

UAE vs. SCHE - Sectors Allocation Comparison

Sectors	UAE	SCHE
Financial Services	38.0%	13.6%
Real Estate	20.5%	1.0%
Industrials	11.4%	4.9%
Communication Services	9.6%	5.2%
Energy	8.3%	3.1%
Consumer Cyclical	5.2%	8.9%
Utilities	4.3%	2.1%
Consumer Defensive	1.7%	2.0%
Technology	1.0%	30.8%
Basic Materials	0.1%	3.9%
Healthcare	-	2.8%

Return for Risk

UAE vs. SCHE — Risk / Return Rank

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

UAE

UAE Risk / Return Rank: 11
UAE Sharpe Ratio Rank: 11
UAE Sortino Ratio Rank: 11
UAE Omega Ratio Rank: 11
UAE Calmar Ratio Rank: 11
UAE Martin Ratio Rank: 11

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.

UAE vs. SCHE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI UAE ETF (UAE) 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.

	UAE	SCHE	Difference
Sharpe ratio: Return per unit of total volatility	0.20	1.89	-1.69
Sortino ratio: Return per unit of downside risk	0.44	2.63	-2.19
Omega ratio: Gain probability vs. loss probability	1.06	1.35	-0.29
Calmar ratio: Return relative to maximum drawdown	0.21	2.72	-2.52
Martin ratio: Return relative to average drawdown	0.53	9.82	-9.29
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

UAE vs. SCHE - Sharpe Ratio Comparison

The current UAE Sharpe Ratio is 0.20, which is lower than the SCHE Sharpe Ratio of 1.89. The chart below compares the historical Sharpe Ratios of UAE 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

	UAE	SCHE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.20	1.89	-1.69
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.47	0.28	+0.19
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.29	0.46	-0.17
Sharpe Ratio (All Time) Calculated using the full available price history	0.06	0.25	-0.19

Drawdowns

UAE vs. SCHE - Drawdown Comparison

The maximum UAE drawdown since its inception was -60.49%, which is greater than SCHE's maximum drawdown of -36.20%. Use the drawdown chart below to compare losses from any high point for UAE and SCHE.

Drawdown Indicators

	UAE	SCHE	Difference
Max Drawdown Largest peak-to-trough decline	-60.49%	-36.20%	-24.29%
Max Drawdown (1Y) Largest decline over 1 year	-21.50%	-11.29%	-10.21%
Max Drawdown (3Y) Largest decline over 3 years	-21.50%	-17.08%	-4.42%
Max Drawdown (5Y) Largest decline over 5 years	-27.47%	-33.59%	+6.12%
Max Drawdown (10Y) Largest decline over 10 years	-49.71%	-36.20%	-13.51%
Current Drawdown Current decline from peak	-16.42%	-1.45%	-14.97%
Average Drawdown Average peak-to-trough decline	-23.91%	-12.60%	-11.31%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.37%	3.12%	+5.25%

Volatility

UAE vs. SCHE - Volatility Comparison

iShares MSCI UAE ETF (UAE) has a higher volatility of 6.49% compared to Schwab Emerging Markets Equity ETF (SCHE) at 5.80%. This indicates that UAE's price experiences larger fluctuations and is considered to be riskier than SCHE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	UAE	SCHE	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.49%	5.80%	+0.69%
Volatility (6M) Calculated over the trailing 6-month period	19.05%	13.58%	+5.47%
Volatility (1Y) Calculated over the trailing 1-year period	21.99%	16.26%	+5.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.77%	17.67%	+1.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.54%	19.46%	+0.08%

UAE vs. SCHE - Expense Ratio Comparison

UAE has a 0.59% expense ratio, which is higher than SCHE's 0.11% expense ratio.

Dividends

UAE vs. SCHE - Dividend Comparison

UAE's dividend yield for the trailing twelve months is around 4.22%, more 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%
UAE iShares MSCI UAE ETF	4.22%	4.10%	3.32%	3.25%	2.67%	4.88%	4.75%	3.54%	5.56%	3.38%	4.74%	3.77%

Frequently Asked Questions

Can I hold both UAE and SCHE in my portfolio?

UAE and SCHE have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, UAE or SCHE?

UAE has higher volatility (6.49%) compared to SCHE (5.80%). In terms of maximum drawdown, UAE dropped -60.49% vs SCHE's -36.20%.

Which ETF is better, UAE or SCHE?

On 10-year performance, SCHE leads with 8.87% vs 5.59% for UAE. On fees, SCHE is cheaper at 0.11% per year. On volatility, SCHE has been the lower-risk option at 5.80%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, UAE or SCHE?

Over the 10-year period, SCHE has performed better with a 8.87% return vs 5.59%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, UAE or SCHE?

SCHE is cheaper with a 0.11% expense ratio, compared with 0.59% for UAE.

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

UAE has the higher dividend yield at 4.22%, compared with 2.57% for SCHE.

What is the main difference between UAE and SCHE?

UAE tracks MSCI All UAE Capped Index, while SCHE tracks FTSE All-World Emerging. They also come from different issuers: iShares and Charles Schwab. Their fees differ too: 0.59% for UAE and 0.11% for SCHE.

Which has better risk-adjusted returns?

SCHE currently has the higher Sharpe Ratio (1.89 vs 0.20), 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.