What Is the SCHE ETF? A Complete Guide to Returns, Fees, Holdings and Alternative ETFs
The Schwab Emerging Markets Equity ETF (SCHE) tracks the FTSE Emerging Index and is a core product whose strengths are a low expense ratio and broad diversification across roughly 20 emerging markets. Differences from IEMG and VWO in index, country mix, dividends and fees are the key selection criteria.
SubscribeWhat Is the Schwab Emerging Markets Equity ETF?
It is a core ETF that tracks the FTSE Emerging Index and diversifies across large- and mid-cap stocks in emerging markets. It holds stocks from roughly 20 emerging markets at their market-capitalization weights and invests most of its net assets in the index constituents.
It suits investors who want long-term, low-cost diversification across emerging market equities.
It is a passively managed (index-tracking) ETF run by Schwab.
How Does the Schwab Emerging Markets Equity ETF Invest?
| Item | Details |
|---|---|
| Tracked index | FTSE Emerging Index |
| Management style | Passive (index tracking) |
| Rebalancing frequency | Follows the index committee schedule |
| Dividend frequency | Quarterly dividends |
| Manager | Schwab |
| Total expense ratio | 0.06% |
The ETF holds the constituents of the FTSE Emerging Index at their market-capitalization weights, tracking the performance of large- and mid-cap emerging market stocks as a whole. It invests most of its net assets in index constituents and is run passively, replicating the index as is without stock selection.
- Management fee that is low relative to the category average
- An index characteristic under which FTSE classifies South Korea as a developed market and excludes it
Schwab Emerging Markets Equity ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $12.1B, and the total expense ratio is 0.06% per year.
Its strength is a fee level lower than comparable products in the same emerging market category, and the country mix differs because the tracked index is supplied by a different provider.
Schwab Emerging Markets Equity ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeEmerging market equities tend to be highly volatile, depending on global risk appetite, the strength or weakness of the dollar, and the economic trends of major emerging economies such as China. Price swings are generally wider than in developed markets, and the trend can diverge from one period to the next.
Fund flows continue on demand for core assets that offer diversified emerging market exposure, though flows can slow during periods of dollar strength or when investors shun emerging market risk. The fund is used as a diversification tool from a global asset allocation perspective.
Schwab Emerging Markets Equity ETF Pros and Cons
Its strengths are low fees and broad emerging market diversification, while its weaknesses are the high volatility typical of emerging markets and currency and country risk.
💪 Key Strengths
⚠️ Points to Watch
Schwab Emerging Markets Equity ETF Alternative ETFs and Related Products
IEMG, VWO, EEM and others shown in the table are leading ETFs in the same emerging market category, and they differ in index provider and fee level. The VWO family follows the same FTSE index as this product, while the IEMG and EEM families track MSCI indexes and therefore differ in country mix, such as whether South Korea is included. Investors who want emerging market exposure excluding China can also consider products such as EMXC.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 IEMG | iShares Core MSCI Emerging Markets ETF | $74.38 | +0.2% | $145.9B | 0.09% | 2.42% | +8.9% |
 VWO | Vanguard FTSE Emerging Markets ETF | $55.70 | +0.3% | $117.5B | 0.06% | 2.18% | +1.3% |
 EEM | iShares MSCI Emerging Markets ETF | $61.11 | +0.1% | $28.2B | 0.72% | 1.82% | +10.5% |
 AVEM | Avantis Emerging Markets Equity ETF | $85.98 | -0.1% | $26.7B | 0.33% | 2.79% | +10.9% |
 EMXC | IShares MSCI Emerging Markets ex China ETF | $89.70 | +0.0% | $25.4B | 0.25% | 2.14% | +24.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| TSM | Taiwan Semiconductor Manufacturing ADR | 0.49% | $398.63 | -1.9% | $2.07T | 25.7 | 1.05% |
| BABA | Alibaba Group Holding Ltd ADR | 0.08% | $101.50 | +3.5% | $252.5B | 23.9 | 1.1% |
 MYMK | State Street My2031 Municipal Bond ETF | 0.03% | $24.64 | -0.1% | $0.0M | - | 2.61% |
| HDB | HDFC Bank Ltd ADR | 0.01% | $22.70 | +2.3% | $116.7B | 13.5 | 1.89% |
Schwab Emerging Markets Equity ETF Investor Checkpoints
Here are the points to review before investing in SCHE. It is a low-fee emerging market core asset, but it is wise to check in advance the country mix of the tracked index, the volatility typical of emerging markets, and currency exposure. You should also consider the weight it will take in your asset allocation.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense ratio | Check the cumulative cost impact over a long holding period | Low level |
| 🌏 Country mix | Composition differences, such as the FTSE index excluding South Korea | Needs checking |
| 📉 Volatility | The range of price swings typical of emerging markets | Large |
| 💱 Currency | Impact on returns when converted to won | Unhedged |
The high volatility typical of emerging market equities, together with currency and country risk, is the main driver of short-term volatility. In phases of global risk aversion, declines can be deeper than in developed markets, so position sizing is important.
It is a core ETF suited to investors who want long-term, low-cost diversification across emerging market equities. It is advisable to understand the differences in the country mix of the tracked index, and to compare SCHE and VWO if you prefer the FTSE family, or IEMG and EEM if you prefer the MSCI family.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 21, 2026.
Today's 5 AI picks, all free