Schwab Emerging Markets Equity ETF

SCHE

Market cap $12.7B

Asia's smaller companies have delivered stronger returns than the region's large-cap stocks over the past five years, while also offering lower volatility and broader sector exposure, according to HSBC Asset Management. The firm said Asia small-cap stocks outperformed their large-cap counterparts by nearly 3% annualised at the index level over the period.

Two members of the U.S. House of ​Representatives on Monday will introduce ‌legislation to toughen a U.S. government ban on Chinese ​automakers from entering ​the American market just before ⁠President Donald Trump heads to China ​for talks.

CNBC's Dan Murphy delves into the Middle East's investment flows and provide insights on the global energy hub and the vast amounts of capital originating from the region on Access Middle East (12:00 – 13:00 SIN/HK). Please note this livestream is only available in Europe and India.

EEM has delivered a stronger 1-year return but comes with a higher expense ratio and a slightly lower yield than SCHE EEM holds fewer stocks with a heavier technology tilt, while SCHE spreads assets across more companies and sectors EEM is more volatile and has experienced a deeper drawdown over the past five years

The Schwab Emerging Markets Equity ETF has modestly outperformed the S&P 500 so far in 2026. This comes as cheap valuations and solid long-term GDP growth expectations for emerging markets outweigh near-term energy price uncertainty. SCHE has modest direct Middle East exposure, but key holdings domiciled in China, Taiwan, and India are likely to see temporary earnings pressure amid the war in Iran.

The Schwab Emerging Markets Equity ETF features a higher dividend yield and stronger one-year return but carries greater historical drawdown than the SPDR Portfolio MSCI Global Stock Market ETF. The Schwab Emerging Markets Equity ETF is concentrated in emerging markets, with heavy exposure to Taiwan Semiconductor, Tencent, and Alibaba, while the SPDR Portfolio MSCI Global Stock Market ETF offers global diversification led by U.S. tech giants.

SCHE charges a slightly higher expense ratio and has lagged VXUS in recent one-year returns VXUS holds far more stocks and covers both developed and emerging markets, while SCHE is focused solely on emerging economies SCHE tilts heavily toward technology and a handful of large Chinese and Taiwanese firms, increasing concentration risk

IXUS covers a broader international universe and has delivered a higher 1-year return than SCHE. Both ETFs charge the same low expense ratio, but IXUS offers a slightly higher dividend yield.

IEFA carries a higher yield and even larger asset base than SCHE. Both funds charge the same low expense ratio but differ in geographic and sector exposure.

EEM commands a much higher expense ratio and has a longer track record than SCHE. SCHE delivers a higher dividend yield, while EEM has outperformed over the past year.