Schwab Emerging Markets Equity ETF (SCHE): Complete Beginner's Guide
Schwab Emerging Markets Equity ETF (SCHE) is a emerging markets equity ETF from Schwab with an expense ratio of 0.11% and $9.0B in assets under management. Our Beginner Suitability Score: 9.5/10 (Great for Beginners). 5-year annualized return: 5.50%.
Last updated: April 2026
Schwab • Emerging Markets Equity
Expense Ratio
0.11%
AUM
$9.0B
Dividend Yield
2.50%
Inception
2010
Beginner Score
9.5/10
What is Schwab Emerging Markets Equity ETF?
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.
SCHE is managed by Schwab and has been available since 2010. With $9.0B in assets under management, it's a growing fund that has attracted significant investor interest. The fund charges an expense ratio of 0.11%, which means for every $10,000 you invest, you pay approximately $11 per year in management fees.
SCHE at a Glance — Key Metrics
| Expense Ratio | 0.11% |
| Total Holdings | 1,800 |
| P/E Ratio | 14.5 |
| Beta | 0.85 |
| Dividend Yield | 2.50% |
| AUM | $9.0B |
| Inception Year | 2010 |
| Issuer | Schwab |
Top 10 Holdings in SCHE
SCHE holds 1,800 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Taiwan Semiconductor | TSM | 9.50% |
| 2 | Tencent Holdings Ltd. | TCEHY | 4.20% |
| 3 | Alibaba Group Holding | BABA | 3.00% |
| 4 | Samsung Electronics | 005930.KS | 2.80% |
| 5 | Reliance Industries | RELIANCE.NS | 2.00% |
| 6 | Meituan | 3690.HK | 1.80% |
| 7 | Infosys Ltd. | INFY | 1.50% |
| 8 | China Construction Bank | 0939.HK | 1.40% |
| 9 | Vale S.A. | VALE | 1.30% |
| 10 | ICICI Bank Ltd. | IBN | 1.20% |
SCHE's top holding is Taiwan Semiconductor (TSM) at 9.50%, followed by Tencent Holdings Ltd. (TCEHY) at 4.20% and Alibaba Group Holding (BABA) at 3.00%. The top 10 holdings account for 28.70% of the fund's 1,800 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Taiwan Semiconductor | TSM | 9.50% |
| 2 | Tencent Holdings Ltd. | TCEHY | 4.20% |
| 3 | Alibaba Group Holding | BABA | 3.00% |
| 4 | Samsung Electronics | 005930.KS | 2.80% |
| 5 | Reliance Industries | RELIANCE.NS | 2.00% |
| 6 | Meituan | 3690.HK | 1.80% |
| 7 | Infosys Ltd. | INFY | 1.50% |
| 8 | China Construction Bank | 0939.HK | 1.40% |
| 9 | Vale S.A. | VALE | 1.30% |
| 10 | ICICI Bank Ltd. | IBN | 1.20% |
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SCHE Performance History
Here's how SCHE has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
2.50%
1 Year
14.50%
3 Year
3.50%
5 Year
5.50%
10 Year
4.80%
SCHE has returned 5.50% annualized over 5 years and 4.80% over 10 years. YTD return is 2.50%.
View data table
| Period | Return |
|---|---|
| YTD | 2.50% |
| 1 Year | 14.50% |
| 3 Year | 3.50% |
| 5 Year | 5.50% |
| 10 Year | 4.80% |
Beginner Suitability Score: 9.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
SCHE scores 9.5/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 1,800 holdings, and has been available since 2010, giving it a proven track record.
How to Buy SCHE — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "SCHE" — Use the search bar in your brokerage platform to find Schwab Emerging Markets Equity ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
SCHE Sector Allocation
Here's how SCHE distributes its investments across different sectors of the economy:
SCHE's largest sector allocation is Information Technology at 22.5%, followed by Financials at 21.0% and Consumer Discretionary at 13.5%.
View data table
| Sector | Weight |
|---|---|
| Information Technology | 22.5% |
| Financials | 21.0% |
| Consumer Discretionary | 13.5% |
| Communication Services | 9.5% |
| Materials | 7.5% |
| Energy | 6.5% |
| Industrials | 6.0% |
| Consumer Staples | 5.5% |
| Health Care | 4.0% |
| Utilities | 2.5% |
| Real Estate | 1.5% |
Dollar Cost Averaging Into SCHE
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With SCHE's expense ratio of 0.11%, a $10,000 investment would lose approximately $940 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
SCHE's expense ratio of 0.11% costs $941 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $45,669.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,619 | $74 |
| 10 | $21,589 | $21,370 | $219 |
| 15 | $31,722 | $31,240 | $482 |
| 20 | $46,610 | $45,669 | $941 |
Pros and Cons of SCHE
Pros
- ✓Low expense ratio of 0.11% undercuts most competing emerging market ETFs
- ✓Access to nearly 1,800 stocks across the world's fastest-growing economies
- ✓Higher growth potential than developed-market equities over the long term
- ✓Broad diversification across multiple countries reduces single-country risk
Cons
- ✗Emerging market stocks carry higher political, regulatory, and currency risks
- ✗Can experience sharp sell-offs during global risk-aversion episodes
- ✗Heavy concentration in Chinese and Taiwanese stocks increases regional risk
SCHE vs Similar ETFs
See how SCHE stacks up against similar funds:
Frequently Asked Questions
Is SCHE a good ETF for beginners?▾
SCHE has a Beginner Suitability Score of 9.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of SCHE?▾
SCHE has an expense ratio of 0.11%. This means for every $10,000 you invest, you pay approximately $11 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in SCHE?▾
You can invest in SCHE with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does SCHE pay dividends?▾
Yes, SCHE pays dividends with a current yield of approximately 2.50%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in SCHE?▾
The top holdings in SCHE include Taiwan Semiconductor (9.50%), Tencent Holdings Ltd. (4.20%), Alibaba Group Holding (3.00%), and more. The fund holds 1,800 total positions, providing broad diversification across many companies.
What sectors does SCHE invest in?▾
SCHE's largest sector allocations are Information Technology (22.50%), Financials (21.00%), Consumer Discretionary (13.50%). This sector distribution shows a focus on information technology stocks.
How much do SCHE's fees cost over time?▾
With an expense ratio of 0.11%, a $10,000 investment in SCHE would lose approximately $940 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.