VWO vs. SCHE
Compare and contrast key facts about Vanguard FTSE Emerging Markets ETF (VWO) and Schwab Emerging Markets Equity ETF (SCHE).
VWO and SCHE are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VWO is a passively managed fund by Vanguard that tracks the performance of the FTSE Emerging Index. It was launched on Mar 4, 2005. SCHE is a passively managed fund by Charles Schwab that tracks the performance of the FTSE All-World Emerging. It was launched on Jan 14, 2010. Both VWO and SCHE are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VWO or SCHE.
Key characteristics
| VWO | SCHE | |
|---|---|---|
| YTD Return | 10.63% | 10.95% |
| 1Y Return | 15.46% | 15.98% |
| 3Y Return (Ann) | -1.59% | -1.72% |
| 5Y Return (Ann) | 4.26% | 3.77% |
| 10Y Return (Ann) | 3.58% | 3.64% |
| Sharpe Ratio | 0.96 | 0.97 |
| Sortino Ratio | 1.44 | 1.46 |
| Omega Ratio | 1.18 | 1.18 |
| Calmar Ratio | 0.61 | 0.58 |
| Martin Ratio | 5.01 | 5.03 |
| Ulcer Index | 2.85% | 2.92% |
| Daily Std Dev | 14.79% | 15.06% |
| Max Drawdown | -67.68% | -36.16% |
| Current Drawdown | -10.94% | -12.69% |
Correlation
The correlation between VWO and SCHE is 0.99, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VWO vs. SCHE - Performance Comparison
The year-to-date returns for both investments are quite close, with VWO having a 10.63% return and SCHE slightly higher at 10.95%. Both investments have delivered pretty close results over the past 10 years, with VWO having a 3.58% annualized return and SCHE not far ahead at 3.64%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VWO vs. SCHE - Expense Ratio Comparison
VWO has a 0.08% 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%.
Risk-Adjusted Performance
VWO vs. SCHE - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) 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.
Dividends
VWO vs. SCHE - Dividend Comparison
VWO's dividend yield for the trailing twelve months is around 2.68%, less than SCHE's 3.12% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VWO Vanguard FTSE Emerging Markets ETF | 2.68% | 3.52% | 4.11% | 2.63% | 1.91% | 3.24% | 2.88% | 2.30% | 2.52% | 3.26% | 2.86% | 2.73% |
SCHE Schwab Emerging Markets Equity ETF | 3.12% | 3.83% | 2.87% | 2.86% | 2.09% | 3.27% | 2.69% | 2.31% | 2.26% | 2.50% | 2.86% | 2.56% |
Drawdowns
VWO vs. SCHE - Drawdown Comparison
The maximum VWO drawdown since its inception was -67.68%, which is greater than SCHE's maximum drawdown of -36.16%. Use the drawdown chart below to compare losses from any high point for VWO and SCHE. For additional features, visit the drawdowns tool.
Volatility
VWO vs. SCHE - Volatility Comparison
Vanguard FTSE Emerging Markets ETF (VWO) and Schwab Emerging Markets Equity ETF (SCHE) have volatilities of 4.61% and 4.72%, 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.