ETF Versus

SCHE vs SCHM

Schwab Emerging Markets Equity ETF vs Schwab U.S. Mid-Cap ETF

Last updated: 2026-04-10

SCHE Schwab

Schwab Emerging Markets Equity ETF (SCHE) is an exchange-traded fund issued by Schwab that provides exposure to stocks in emerging market economies with higher growth potential. It charges a low expense ratio of 0.07%. The fund offers an attractive dividend yield of 2.73%. Launched in 2010, the fund has a 16-year track record.

AUM: $12.0B ER: 0.07% Yield: 2.73% Since: Jan 14, 2010
SCHM Schwab

Schwab U.S. Mid-Cap ETF (SCHM) is an exchange-traded fund issued by Schwab that provides exposure to mid-cap U.S. companies balancing growth potential and stability. It charges a very low expense ratio of 0.04%. The fund offers a moderate dividend yield of 1.35%. Launched in 2011, the fund has a 15-year track record.

AUM: $13.6B ER: 0.04% Yield: 1.35% Since: Jan 13, 2011

Quick Verdict

SCHM has a slightly lower expense ratio (0.04% vs 0.07%), saving about $60 per $10,000 over 10 years. Both funds have delivered similar 1-year returns (35.1% vs 34.8%), tracking closely. Income investors may prefer SCHE for its higher yield (2.7% vs 1.4%).

Key Metrics

Metric SCHE SCHM
Expense Ratio 0.07% 0.04%
Dividend Yield 2.7% 1.4%
Fund Family Schwab Schwab
Category Emerging Markets US Mid Cap

Performance Chart

Indexed to 100 at start (5-year comparison)

65 78 91 104 117 130 2021-04 2022-07 2023-10 2025-01 2026-04
SCHE +9.4%
SCHM +27.3%

Performance Comparison

Period SCHE SCHM Difference
1 Month +2.22% +2.71% -0.49%
3 Months +0.61% +2.19% -1.58%
6 Months +3.88% +10.03% -6.15%
YTD +3.16% +6.35% -3.19%
1 Year +35.14% +34.84% +0.30%
3 Years +40.07% +44.11% -4.04%
5 Years +9.40% +27.25% -17.85%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period SCHE Fees SCHM Fees You Save
$10,000 10 years $140 $80 $60
$10,000 20 years $600 $344 $256
$10,000 30 years $1,938 $1,112 $826
$50,000 10 years $698 $399 $298
$50,000 30 years $9,692 $5,560 $4,131
$100,000 30 years $19,383 $11,121 $8,263

Risk Metrics

Based on 5 years of daily returns

Metric SCHE SCHM
Annualized Volatility 17.8% 19.6%
Max Drawdown -35.8% -27.4%
Sharpe Ratio -0.06 0.12

Dividend Comparison

Metric SCHE SCHM
Annual Dividend (per share) $0.94 $0.44
Dividend Yield 2.73% 1.35%
Distribution Frequency Semi-Annual or Annual Quarterly

Top Holdings

0 of top 9 holdings overlap (0% overlap in top holdings)

SCHE Top Holdings

NameWeight
Taiwan Semiconductor Manufacturing Company Limited!tpe/233014.12%
Tencent Holdings Limited!hkg/07003.97%
Alibaba Group Holding Limited!otc/BABAF2.78%
Reliance Industries Limited!nse/RELIANCE0.98%
China Construction Bank Corporation!hkg/09390.96%
HDFC Bank Limited!nse/HDFCBANK0.96%
Delta Electronics, Inc.!tpe/23080.88%
PDD Holdings Inc.PDD0.79%
Hon Hai Precision Industry Co., Ltd.!tpe/23170.75%

SCHM Top Holdings

NameWeight
Sandisk CorporationSNDK2.21%
Ciena CorporationCIEN1.27%
Lumentum Holdings Inc.LITE1.14%
Coherent Corp.COHR0.98%
Bloom Energy CorporationBE0.72%
Tapestry, Inc.TPR0.60%
TechnipFMC plcFTI0.60%
Casey's General Stores, Inc.CASY0.57%
Texas Pacific Land CorporationTPL0.54%
Curtiss-Wright CorporationCW0.53%

Which One Should You Choose?

Choose SCHM if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose SCHE if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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