VGK vs. SCHE

Last updated Aug 2, 2026

VGK (Vanguard FTSE Europe ETF) and SCHE (Schwab Emerging Markets Equity ETF) are both exchange-traded funds - VGK is a Europe Equities fund tracking the FTSE Developed Europe All Cap Index, while SCHE is a Emerging Markets Equities fund tracking the FTSE Emerging Index. Both are passively managed. Over the past 10 years, VGK returned 10.03%/yr vs 7.97%/yr for SCHE. Their 0.75 correlation means they have sometimes moved together and sometimes differently. VGK charges 0.06%/yr vs 0.11%/yr for SCHE.

Performance

VGK vs. SCHE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Europe ETF (VGK) 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 VGK having a 10.34% return and SCHE slightly lower at 10.15%. Over the past 10 years, VGK has outperformed SCHE with an annualized return of 10.03%, while SCHE has yielded a comparatively lower 7.97% annualized return.

VGK

• 1D: -0.44%
• 1M: 1.39%
• 6M: 5.43%
• YTD: 10.34%
• 1Y: 24.06%
• 3Y*: 16.62%
• 5Y*: 9.31%
• 10Y*: 10.03%
• ALL TIME*: 6.47%

SCHE

• 1D: 0.87%
• 1M: 0.50%
• 6M: 4.90%
• YTD: 10.15%
• 1Y: 22.24%
• 3Y*: 15.34%
• 5Y*: 6.23%
• 10Y*: 7.97%
• ALL TIME*: 4.92%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
SCHE Schwab Emerging Markets Equity ETF	$121.98M	$115.93M	$116.46M
VGK Vanguard FTSE Europe ETF	$214.81M	$182.15M	$234.17M

VGK vs. SCHE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGK Vanguard FTSE Europe ETF	10.34%	35.83%	1.88%	20.19%	-15.98%	16.89%	5.43%	24.85%	-14.89%	26.98%
SCHE Schwab Emerging Markets Equity ETF	10.15%	26.54%	10.60%	8.93%	-17.84%	-0.65%	14.49%	20.31%	-13.57%	32.70%

Correlation

The correlation between VGK and SCHE is 0.73, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.73
Correlation (3Y) Balances recent behavior with more history.	0.70
Correlation (5Y) Shows whether the relationship held over a longer period.	0.72
Correlation (10Y) Provides a long-term view across more market conditions.	0.72
Correlation (All Time) Calculated using the full available price history since Jan 14, 2010	0.75

The correlation between VGK and SCHE has been stable across timeframes, ranging from 0.70 to 0.75 - a consistent structural relationship.

VGK vs. SCHE - Sectors Allocation Comparison

Sectors	VGK	SCHE
Financial Services	24.1%	21.1%
Industrials	20.0%	6.8%
Healthcare	12.6%	3.4%
Technology	9.9%	33.8%
Consumer Defensive	7.8%	3.3%
Consumer Cyclical	7.0%	8.9%
Basic Materials	5.2%	7.0%
Energy	4.5%	4.2%
Utilities	4.5%	2.8%
Communication Services	2.8%	7.1%
Real Estate	1.5%	1.6%

Return for Risk

VGK vs. SCHE — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VGK

VGK Risk / Return Rank: 62
VGK Sharpe Ratio Rank: 65
VGK Sortino Ratio Rank: 66
VGK Omega Ratio Rank: 61
VGK Calmar Ratio Rank: 55
VGK Martin Ratio Rank: 62

SCHE

SCHE Risk / Return Rank: 52
SCHE Sharpe Ratio Rank: 50
SCHE Sortino Ratio Rank: 49
SCHE Omega Ratio Rank: 50
SCHE Calmar Ratio Rank: 55
SCHE Martin Ratio Rank: 55

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VGK vs. SCHE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Europe ETF (VGK) 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.

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.

	VGK	SCHE	Difference
Sharpe ratio: Return per unit of total volatility	1.48	1.22	+0.26
Sortino ratio: Return per unit of downside risk	2.16	1.74	+0.42
Omega ratio: Gain probability vs. loss probability	1.26	1.23	+0.04
Calmar ratio: Return relative to maximum drawdown	1.95	1.94	0.00
Martin ratio: Return relative to average drawdown	7.41	6.43	+0.97

VGK vs. SCHE - Sharpe Ratio Comparison

The current VGK Sharpe Ratio is 1.48, which is comparable to the SCHE Sharpe Ratio of 1.22. The chart below compares the historical Sharpe Ratios of VGK 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.

Drawdowns

VGK vs. SCHE - Drawdown Comparison

The maximum VGK drawdown since its inception was -63.61%, which is greater than SCHE's maximum drawdown of -36.20%. Use the drawdown chart below to compare losses from any high point for VGK and SCHE.

Drawdown Indicators

	VGK	SCHE	Difference
Max Drawdown Largest peak-to-trough decline	-63.61%	-36.20%	-27.41%
Max Drawdown (1Y) Largest decline over 1 year	-12.09%	-11.29%	-0.80%
Max Drawdown (3Y) Largest decline over 3 years	-14.31%	-17.08%	+2.77%
Max Drawdown (5Y) Largest decline over 5 years	-32.74%	-31.38%	-1.36%
Max Drawdown (10Y) Largest decline over 10 years	-37.24%	-36.20%	-1.04%
Current Drawdown Current decline from peak	-0.44%	-3.13%	+2.69%
Average Drawdown Average peak-to-trough decline	-13.25%	-12.51%	-0.74%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.17%	3.40%	-0.23%

Volatility

VGK vs. SCHE - Volatility Comparison

The current volatility for Vanguard FTSE Europe ETF (VGK) is 4.44%, while Schwab Emerging Markets Equity ETF (SCHE) has a volatility of 5.70%. This indicates that VGK experiences smaller price fluctuations and is considered to be less risky than SCHE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGK	SCHE	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.44%	5.70%	-1.26%
Volatility (6M) Calculated over the trailing 6-month period	13.76%	15.60%	-1.84%
Volatility (1Y) Calculated over the trailing 1-year period	15.90%	17.99%	-2.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.97%	17.87%	+0.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.49%	19.44%	-0.95%

VGK vs. SCHE - Expense Ratio Comparison

VGK has a 0.06% expense ratio, which is lower than SCHE's 0.11% 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

VGK vs. SCHE - Dividend Comparison

VGK's dividend yield for the trailing twelve months is around 2.83%, more than SCHE's 2.64% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHE Schwab Emerging Markets Equity ETF	2.64%	2.88%	3.03%	3.83%	2.88%	2.86%	2.09%	3.27%	2.64%	2.31%	2.27%	2.50%
VGK Vanguard FTSE Europe ETF	2.83%	2.86%	3.61%	3.15%	3.25%	3.05%	2.11%	3.27%	3.95%	2.70%	3.52%	3.25%

Frequently Asked Questions

Can I hold both VGK and SCHE in my portfolio?

VGK and SCHE have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGK or SCHE?

SCHE has higher volatility (5.70%) compared to VGK (4.44%). In terms of maximum drawdown, VGK dropped -63.61% vs SCHE's -36.20%.

Which ETF is better, VGK or SCHE?

On 10-year performance, VGK leads with 10.03% vs 7.97% for SCHE. On fees, VGK is cheaper at 0.06% per year. On volatility, VGK has been the lower-risk option at 4.44%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGK or SCHE?

Over the 10-year period, VGK has performed better with a 10.03% return vs 7.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGK or SCHE?

VGK is cheaper with a 0.06% expense ratio, compared with 0.11% for SCHE.

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

VGK has the higher dividend yield at 2.83%, compared with 2.64% for SCHE.

What is the main difference between VGK and SCHE?

VGK is categorized as Europe Equities, while SCHE is Emerging Markets Equities. VGK tracks FTSE Developed Europe All Cap Index, while SCHE tracks FTSE Emerging Index. They also come from different issuers: Vanguard and Charles Schwab. Their fees differ too: 0.06% for VGK and 0.11% for SCHE.

Which has better risk-adjusted returns?

VGK currently has the higher Sharpe Ratio (1.48 vs 1.22), 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.