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 | 1.38% | 1.37% |
1Y Return | 7.90% | 7.56% |
3Y Return (Ann) | -3.92% | -4.46% |
5Y Return (Ann) | 2.75% | 2.36% |
10Y Return (Ann) | 3.27% | 3.21% |
Sharpe Ratio | 0.67 | 0.65 |
Daily Std Dev | 13.78% | 14.06% |
Max Drawdown | -67.68% | -36.16% |
Current Drawdown | -18.39% | -20.23% |
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 stocks are quite close, with VWO having a 1.38% return and SCHE slightly lower at 1.37%. Both investments have delivered pretty close results over the past 10 years, with VWO having a 3.27% annualized return and SCHE not far behind at 3.21%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
VWO vs. SCHE - Expense Ratio Comparison
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.
Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Ulcer Index | |
---|---|---|---|---|---|
Vanguard FTSE Emerging Markets ETF | 0.67 | ||||
Schwab Emerging Markets Equity ETF | 0.65 |
Dividends
VWO vs. SCHE - Dividend Comparison
VWO's dividend yield for the trailing twelve months is around 3.50%, less than SCHE's 3.78% yield.
TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
Vanguard FTSE Emerging Markets ETF | 3.50% | 3.52% | 4.11% | 2.63% | 1.91% | 3.23% | 2.88% | 2.30% | 2.52% | 3.26% | 2.86% | 2.73% |
Schwab Emerging Markets Equity ETF | 3.78% | 3.83% | 2.88% | 2.86% | 2.09% | 3.27% | 2.69% | 2.31% | 2.27% | 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%. The drawdown chart below compares losses from any high point along the way for VWO and SCHE
Volatility
VWO vs. SCHE - Volatility Comparison
Vanguard FTSE Emerging Markets ETF (VWO) and Schwab Emerging Markets Equity ETF (SCHE) have volatilities of 3.16% and 3.17%, 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.