ETF Versus

SCHE vs SCHZ

Schwab Emerging Markets Equity ETF vs Schwab U.S. Aggregate Bond 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
SCHZ Schwab

Schwab U.S. Aggregate Bond ETF (SCHZ) is an exchange-traded fund issued by Schwab that provides exposure to the broad U.S. investment-grade bond market. It charges a very low expense ratio of 0.03%. The fund offers a high dividend yield of 4.10%. Launched in 2011, the fund has a 15-year track record.

AUM: N/A ER: 0.03% Yield: 4.10% Since: 2011-07-14

Quick Verdict

SCHZ has a slightly lower expense ratio (0.03% vs 0.11%), saving about $159 per $10,000 over 10 years. Over the past year, SCHE has significantly outperformed with a 18.3% return vs 0.3%. Income investors may prefer SCHZ for its higher yield (4.1% vs 2.9%).

Key Metrics

Metric SCHE SCHZ
Expense Ratio 0.11% 0.03%
Dividend Yield 2.9% 4.1%
Fund Family Schwab Schwab
Category Emerging Markets US Aggregate Bond

Performance Chart

Indexed to 100 at start (5-year comparison)

65 75 85 95 105 115 2021-04 2022-06 2023-10 2024-12 2026-04
SCHE +2.1%
SCHZ -13.9%

Performance Comparison

Period SCHE SCHZ Difference
1 Month -2.32% -1.33% -0.99%
3 Months -2.03% -0.66% -1.37%
6 Months -3.04% -0.78% -2.26%
YTD -2.03% -0.66% -1.37%
1 Year +18.31% +0.29% +18.02%
3 Years +33.24% -1.18% +34.42%
5 Years +2.12% -13.92% +16.04%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period SCHE Fees SCHZ Fees You Save
$10,000 10 years $219 $60 $159
$10,000 20 years $940 $258 $682
$10,000 30 years $3,030 $835 $2,195
$50,000 10 years $1,094 $299 $795
$50,000 30 years $15,149 $4,176 $10,973
$100,000 30 years $30,297 $8,352 $21,945

Risk Metrics

Based on 5 years of daily returns

Metric SCHE SCHZ
Annualized Volatility 17.7% 6.1%
Max Drawdown -35.8% -21.9%
Sharpe Ratio -0.14 -1.20

Dividend Comparison

Metric SCHE SCHZ
Annual Dividend (per share) $0.94 $0.95
Dividend Yield 2.87% 4.10%
Distribution Frequency Semi-Annual or Annual Monthly

Which One Should You Choose?

Choose SCHZ 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...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose SCHZ if...

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

Related Comparisons

AGG vs SCHZ BND vs SCHZ EEM vs SCHE IEMG vs SCHE SCHA vs SCHE SCHA vs SCHZ SCHB vs SCHE SCHB vs SCHZ