What is the expense ratio of SCHE vs VWO?

SCHE has an expense ratio of 0.07%, while VWO has an expense ratio of 0.06%.

SCHE vs VWO

Schwab Emerging Markets Equity ETF vs Vanguard Emerging Markets Stock Index Fund

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

VWO Vanguard

Vanguard Emerging Markets Stock Index Fund (VWO) is an exchange-traded fund issued by Vanguard that provides exposure to stocks in emerging market economies with higher growth potential. It charges a low expense ratio of 0.06%. The fund offers an attractive dividend yield of 2.64%. Launched in 2005, the fund has a 21-year track record.

AUM: $114.9B ER: 0.06% Yield: 2.64% Since: Mar 4, 2005

Quick Verdict

Both funds have nearly identical expense ratios (0.06% vs 0.07%), so fees are not a differentiator here. Both funds have delivered similar 1-year returns (35.1% vs 35.4%), tracking closely.

Key Metrics

Metric	SCHE	VWO
Expense Ratio	0.07%	0.06%
Dividend Yield	2.7%	2.6%
Fund Family	Schwab	Vanguard
Category	Emerging Markets	Emerging Markets

Performance Chart

Indexed to 100 at start (5-year comparison)

SCHE +9.4%

VWO +9.5%

Performance Comparison

Period	SCHE	VWO	Difference
1 Month	+2.22%	+2.17%	+0.05%
3 Months	+0.61%	+0.84%	-0.23%
6 Months	+3.88%	+5.12%	-1.24%
YTD	+3.16%	+3.34%	-0.18%
1 Year	+35.14%	+35.35%	-0.21%
3 Years	+40.07%	+39.47%	+0.60%
5 Years	+9.40%	+9.46%	-0.06%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment	Period	SCHE Fees	VWO Fees	You Save
$10,000	10 years	$140	$120	$20
$10,000	20 years	$600	$515	$85
$10,000	30 years	$1,938	$1,664	$275
$50,000	10 years	$698	$598	$99
$50,000	30 years	$9,692	$8,318	$1,373
$100,000	30 years	$19,383	$16,637	$2,747

Risk Metrics

Based on 5 years of daily returns

Metric	SCHE	VWO
Annualized Volatility	17.8%	17.4%
Max Drawdown	-35.8%	-35.9%
Sharpe Ratio	-0.06	-0.07

Dividend Comparison

Metric	SCHE	VWO
Annual Dividend (per share)	$0.94	$1.45
Dividend Yield	2.73%	2.56%
Distribution Frequency	Semi-Annual or Annual	Quarterly

Top Holdings

7 of top 8 holdings overlap (88% overlap in top holdings)

SCHE Top Holdings

Name	Weight
Taiwan Semiconductor Manufacturing Company Limited!tpe/2330	14.12%
Tencent Holdings Limited!hkg/0700	3.97%
Alibaba Group Holding Limited!otc/BABAF	2.78%
Reliance Industries Limited!nse/RELIANCE	0.98%
China Construction Bank Corporation!hkg/0939	0.96%
HDFC Bank Limited!nse/HDFCBANK	0.96%
Delta Electronics, Inc.!tpe/2308	0.88%
PDD Holdings Inc.PDD	0.79%
Hon Hai Precision Industry Co., Ltd.!tpe/2317	0.75%

VWO Top Holdings

Name	Weight
Taiwan Semiconductor Manufacturing Company Limited!tpe/2330	12.71%
Tencent Holdings Limited!hkg/0700	3.44%
Alibaba Group Holding Limited!otc/BABAF	2.74%
HDFC Bank Limited!nse/HDFCBANK	0.93%
Reliance Industries Limited!nse/RELIANCE	0.88%
Hon Hai Precision Industry Co., Ltd.!tpe/2317	0.78%
MediaTek Inc.!tpe/2454	0.76%
China Construction Bank Corporation!hkg/0939	0.75%

Which One Should You Choose?

Either works if...

you just need broad emerging markets exposure. Both are solid options — pick whichever your brokerage offers commission-free.

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