SCHE vs VWO: Head-to-Head Comparison
SCHE vs VWO: Schwab Emerging Markets Equity ETF has an expense ratio of 0.11% while Vanguard FTSE Emerging Markets ETF charges 0.08%. SCHE holds 1,800 securities vs VWO's 5,830. 5-year returns: 5.50% vs 3.20%.
Last updated: April 2026
Emerging Markets
Quick Verdict
Both ETFs score equally well for beginners (9.5/10). Your choice depends on your specific investment goals.
Side-by-Side Comparison
| Metric | SCHE | VWO |
|---|---|---|
| Expense Ratio | 0.11% | 0.08% |
| AUM | $9.0B | $75.0B |
| Dividend Yield | 2.50% | 3.20% |
| Holdings | 1,800 | 5,830 |
| 1-Year Return | 14.50% | 7.20% |
| 5-Year Return (Ann.) | 5.50% | 3.20% |
| 10-Year Return (Ann.) | 4.80% | 3.50% |
| Beta | 0.85 | 0.88 |
| P/E Ratio | 14.5 | 14.5 |
SCHE 5-year annualized return is 5.50% compared to VWO's 3.20%. Over 10 years, SCHE returned 4.80% vs VWO's 3.50%.
View data table
| Period | SCHE Return | VWO Return |
|---|---|---|
| YTD | 2.50% | 1.50% |
| 1 Year | 14.50% | 7.20% |
| 3 Year | 3.50% | -0.80% |
| 5 Year | 5.50% | 3.20% |
| 10 Year | 4.80% | 3.50% |
Key Differences Between SCHE and VWO
SCHE (Schwab Emerging Markets Equity ETF) is a emerging markets equity fund managed by Schwab. SCHE provides low-cost access to stocks in developing economies like China, India, Taiwan, and Brazil through the FTSE Emerging Index. Emerging markets offer higher growth potential than developed nations but come with added political and currency risks. Beginners who want international diversification beyond the U.S. and Europe can use SCHE to tap into the world's fastest-growing economies.
VWO (Vanguard FTSE Emerging Markets ETF) is a emerging markets fund managed by Vanguard. VWO gives investors access to stocks in emerging economies such as China, India, Brazil, Taiwan, and South Africa. These countries have younger populations and faster economic growth potential than developed nations. Beginners should know that emerging markets can be more volatile than developed markets, but VWO offers this higher-growth exposure at a very low cost of 0.08%.
The most notable differences are in fees (0.11% vs 0.08%), number of holdings (1,800 vs 5,830), and 5-year returns (5.50% vs 3.20%).
SCHE vs VWO multi-factor comparison: SCHE has a 0.11% expense ratio, 5.50% 5-year return, 1,800 holdings, 0.85 beta, and 2.50% yield. VWO has 0.08% expense ratio, 3.20% 5-year return, 5,830 holdings, 0.88 beta, and 3.20% yield.
View data table
| Metric | SCHE | VWO |
|---|---|---|
| Expense Ratio | 0.11% | 0.08% |
| 5-Year Return | 5.50% | 3.20% |
| Holdings | 1,800 | 5,830 |
| Beta | 0.85 | 0.88 |
| Dividend Yield | 2.50% | 3.20% |
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Holdings Overlap Analysis
43%
Holdings Overlap
SCHE and VWO share 43% of their top holdings. There is moderate overlap, so owning both provides some additional diversification but with diminishing returns.
SCHE and VWO share 43% of their top holdings (moderate overlap). SCHE has 1,800 total holdings and VWO has 5,830. Common holdings include TSM, TCEHY, BABA.
View data table
| Metric | SCHE | VWO |
|---|---|---|
| Overlap | 43% | 43% |
| Unique Holdings | 57% | 57% |
| Total Holdings | 1,800 | 5,830 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
SCHE
Fee cost: $940
VWO
Fee cost: $686
Over 20 years, the fee difference amounts to $254 on a $10,000 investment. VWO saves you more in fees over time.
On a $10,000 investment over 20 years at 8% return, SCHE (0.11% fee) grows to $45,669 while VWO (0.08% fee) grows to $45,924. The fee difference costs $255.
View data table
| Year | SCHE Value | VWO Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,619 | $14,639 |
| 10 | $21,370 | $21,430 |
| 15 | $31,240 | $31,371 |
| 20 | $45,669 | $45,924 |
Which One Should a Beginner Choose?
Choose SCHE if: You want globally diversified investors seeking exposure to developing economies, long-term investors who believe emerging markets will outperform over decades, schwab customers who want affordable emerging market equity access. It's managed by Schwab with an expense ratio of 0.11%.
Choose VWO if: You want long-term investors who want exposure to the world's fastest-growing economies, those building a globally diversified portfolio who want to pair vwo with vea for full international coverage, contrarian investors who believe emerging markets are undervalued relative to u.s. stocks. It's managed by Vanguard with an expense ratio of 0.08%.
Can You Own Both SCHE and VWO?
Absolutely! With only 43% overlap, SCHE and VWO complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
Frequently Asked Questions
Should I buy SCHE or VWO?▾
Both ETFs score equally well for beginners (9.5/10). Your choice depends on your specific investment goals. However, both are solid options. SCHE is best for investors who want globally diversified investors seeking exposure to developing economies, while VWO is better suited for long-term investors who want exposure to the world's fastest-growing economies.
What is the difference between SCHE and VWO?▾
SCHE (Schwab Emerging Markets Equity ETF) tracks emerging markets equity investments with 1,800 holdings and a 0.11% expense ratio. VWO (Vanguard FTSE Emerging Markets ETF) focuses on emerging markets with 5,830 holdings at 0.08%. Their top holdings overlap by 43%.
Can I own both SCHE and VWO?▾
Yes! With only 43% holdings overlap, SCHE and VWO complement each other well. Owning both gives you broader diversification.