Average Daily Volume
1.45M
Fund Overview
The Schwab Emerging Markets Equity ETF (SCHE) is designed to provide investors with broad exposure to emerging market equities. The fund seeks to track the performance of the FTSE Emerging Index, which includes large and mid-cap stocks from over 20 emerging market countries. SCHE offers a low-cost, diversified way to invest in the growth potential of emerging economies, including countries like China, India, Brazil, and Taiwan. The ETF is passively managed, aiming to replicate the index's holdings and performance with minimal tracking error. With its low expense ratio and broad market coverage, SCHE is a popular choice for investors looking to add emerging market exposure to their portfolios.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 2.42 %
- Currency Hedged
-
No
- Portfolio Turnover
-
8 %
- Dividend Date
-
Why Invest in the SCHE ETF?
Potential Benefits
- Provides diversified exposure to emerging market equities across multiple countries and sectors.
- Low expense ratio compared to many actively managed emerging market funds.
- Passively managed, reducing the risk of underperformance due to active management decisions.
- Liquidity is strong, making it easy to buy and sell shares.
- Offers potential for long-term growth as emerging markets develop and expand.
Potential Risks
- Emerging markets can be volatile due to political instability, currency fluctuations, and economic uncertainty.
- Concentration risk in certain countries, such as China, which may dominate the index.
- Currency risk, as fluctuations in local currencies can impact returns for U.S. investors.
- Lower liquidity in some underlying holdings compared to developed markets.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+5.0%
|
+2.7%
|
-6.7%
|
+8.6%
|
+1.6%
|
-0.1%
|
-0.6%
|
+2.7%
|
-1.5%
|
+2.2%
|
-
|
-
|
| 2025 |
+1.2%
|
+0.8%
|
+1.5%
|
+0.2%
|
+3.6%
|
+5.4%
|
+1.0%
|
+3.4%
|
+6.1%
|
+1.5%
|
-1.0%
|
+0.4%
|
| 2024 |
-3.8%
|
+3.4%
|
+2.4%
|
+0.8%
|
+2.4%
|
+2.1%
|
+1.2%
|
+1.2%
|
+7.3%
|
-3.0%
|
-2.2%
|
-1.1%
|
| 2023 |
+8.4%
|
-6.8%
|
+2.5%
|
-0.7%
|
-2.8%
|
+4.6%
|
+6.0%
|
-5.9%
|
-2.6%
|
-3.2%
|
+6.8%
|
+3.7%
|
| 2022 |
+1.1%
|
-3.8%
|
-3.5%
|
-5.3%
|
+0.4%
|
-3.6%
|
-1.0%
|
-0.5%
|
-10.4%
|
-3.3%
|
+14.9%
|
-2.5%
|
| 2021 |
+3.2%
|
+1.5%
|
-1.0%
|
+1.4%
|
+1.8%
|
+0.8%
|
-6.1%
|
+2.3%
|
-3.5%
|
+1.4%
|
-3.5%
|
+1.4%
|
| 2020 |
-5.8%
|
-4.0%
|
-16.4%
|
+7.1%
|
+3.4%
|
+6.8%
|
+8.4%
|
+2.8%
|
-1.3%
|
+1.8%
|
+8.1%
|
+5.9%
|
| 2019 |
+9.5%
|
-0.7%
|
+1.7%
|
+2.6%
|
-6.4%
|
+5.7%
|
-1.7%
|
-3.8%
|
+1.2%
|
+5.3%
|
-0.7%
|
+7.0%
|
| 2018 |
+9.4%
|
-5.8%
|
-0.3%
|
-3.0%
|
-2.8%
|
-4.3%
|
+4.1%
|
-4.0%
|
-0.7%
|
-7.4%
|
+4.8%
|
-3.2%
|
| 2017 |
+5.7%
|
+2.5%
|
+2.6%
|
+1.8%
|
+1.2%
|
+0.6%
|
+5.7%
|
+2.9%
|
-0.4%
|
+2.3%
|
0.0%
|
+3.9%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
PDD
|
PDD HOLDINGS INC ADR |
0.9 % |
|
AU
|
ANGLOGOLD ASHANTI PLC |
0.2 % |
|
YUMC
|
YUM CHINA HOLDINGS INC |
0.2 % |
|
AMX
|
AMERICA MOVIL SAB DE CV ADR SERIES B |
0.2 % |
|
BEKE
|
KE HOLDINGS INC ADR |
0.2 % |
|
TME
|
TENCENT MUSIC ENTERTAINMENT GROUP ADR |
0.1 % |
|
YMM
|
FULL TRUCK ALLIANCE CO LTD ADR |
0.1 % |
|
BZ
|
KANZHUN LTD ADR |
0.1 % |
|
TAL
|
TAL EDUCATION GROUP ADR |
0.1 % |
|
VIPS
|
VIPSHOP HOLDINGS LTD ADR |
0.1 % |
Top 10 holdings shown, out of 2 total holdings.
Related ETFs: SCHE vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
SCHE is designed to track the FTSE Emerging Index, a market-cap-weighted index that includes large and mid-cap stocks from over 20 emerging market countries. The fund employs a passive management strategy, aiming to replicate the index's performance with minimal tracking error. SCHE primarily holds common stocks of companies in sectors such as financials, technology, and consumer goods. The fund is rebalanced periodically to align with the index's composition, ensuring that it maintains its target allocations. This approach provides broad, diversified exposure to emerging market equities at a low cost.
Frequently Asked Questions
What index does SCHE track?
SCHE tracks the FTSE Emerging Index, which includes large and mid-cap stocks from over 20 emerging market countries.
How does SCHE differ from VWO?
SCHE and VWO both provide broad emerging market exposure, but SCHE tracks the FTSE Emerging Index, while VWO follows the FTSE Emerging Markets All Cap China A Inclusion Index. SCHE also has a slightly lower expense ratio.
Is SCHE a good long-term investment?
SCHE can be a good long-term investment for those seeking growth from emerging markets, but it comes with higher volatility and risk compared to developed market ETFs.
Does SCHE include Chinese stocks?
Yes, SCHE includes Chinese stocks, which make up a significant portion of the FTSE Emerging Index.
How often is SCHE rebalanced?
SCHE is rebalanced periodically to align with the FTSE Emerging Index, typically on a quarterly basis.
Industry Overview
The Schwab Emerging Markets Equity ETF (SCHE) provides exposure to the dynamic and rapidly growing emerging markets sector. Emerging markets represent economies with high growth potential but also higher volatility compared to developed markets. Investing in SCHE allows investors to participate in the economic expansion of countries like China, India, and Brazil, which are expected to drive global growth in the coming decades. However, these markets are also subject to risks such as political instability, regulatory changes, and currency fluctuations. SCHE offers a cost-effective and diversified way to gain exposure to this asset class.
Alternative Comparison
Compared to its peers like VWO and IEMG, SCHE stands out for its low expense ratio, making it one of the most cost-effective options for emerging market exposure. While VWO tracks a slightly different index (FTSE Emerging Markets All Cap China A Inclusion Index), both funds offer similar broad exposure to emerging markets. IEMG, on the other hand, includes small-cap stocks, providing slightly broader market coverage. Unlike some actively managed emerging market funds, SCHE's passive approach minimizes costs and avoids the risk of manager underperformance.
Issuer Overview
SCHE is issued by Charles Schwab Investment Management, a subsidiary of The Charles Schwab Corporation. Schwab is a well-established financial services firm known for its low-cost, investor-friendly ETFs and mutual funds. The issuer emphasizes transparency, low fees, and broad market access, making SCHE an attractive option for cost-conscious investors seeking emerging market exposure.
Conclusion
The Schwab Emerging Markets Equity ETF (SCHE) is a compelling choice for investors seeking low-cost, diversified exposure to emerging markets. With its passive management strategy, broad index coverage, and competitive expense ratio, SCHE offers an efficient way to participate in the growth potential of emerging economies. However, investors should be mindful of the inherent risks, including volatility and currency fluctuations, when adding SCHE to their portfolios.
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