ETF Versus

SCHE vs SCHM

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

Last updated: 2026-04-02

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 0.11%. The fund offers an attractive dividend yield of 2.87%. Launched in 2010, the fund has a 16-year track record.

AUM: N/A ER: 0.11% Yield: 2.87% Since: 2010-01-14
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 1.39%. Launched in 2011, the fund has a 15-year track record.

AUM: N/A ER: 0.04% Yield: 1.39% Since: 2011-01-13

Quick Verdict

SCHM has a slightly lower expense ratio (0.04% vs 0.11%), saving about $139 per $10,000 over 10 years. SCHE has edged ahead over the past year (18.3% vs 17.1%). Income investors may prefer SCHE for its higher yield (2.9% vs 1.4%).

Key Metrics

Metric SCHE SCHM
Expense Ratio 0.11% 0.04%
Dividend Yield 2.9% 1.4%
Fund Family Schwab Schwab
Category Emerging Markets US Mid Cap

Performance Chart

Indexed to 100 at start (5-year comparison)

65 79 93 107 121 135 2021-04 2022-06 2023-10 2024-12 2026-04
SCHE +2.1%
SCHM +23.6%

Performance Comparison

Period SCHE SCHM Difference
1 Month -2.32% -3.75% +1.43%
3 Months -2.03% +2.59% -4.62%
6 Months -3.04% +4.10% -7.14%
YTD -2.03% +2.59% -4.62%
1 Year +18.31% +17.12% +1.19%
3 Years +33.24% +38.34% -5.10%
5 Years +2.12% +23.57% -21.45%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period SCHE Fees SCHM Fees You Save
$10,000 10 years $219 $80 $139
$10,000 20 years $940 $344 $596
$10,000 30 years $3,030 $1,112 $1,918
$50,000 10 years $1,094 $399 $695
$50,000 30 years $15,149 $5,560 $9,588
$100,000 30 years $30,297 $11,121 $19,176

Risk Metrics

Based on 5 years of daily returns

Metric SCHE SCHM
Annualized Volatility 17.7% 19.5%
Max Drawdown -35.8% -27.4%
Sharpe Ratio -0.14 0.08

Dividend Comparison

Metric SCHE SCHM
Annual Dividend (per share) $0.94 $0.44
Dividend Yield 2.87% 1.39%
Distribution Frequency Semi-Annual or Annual Quarterly

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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