What are the main differences between EEM and SCHE?

EEM (Fund A) and SCHE (Fund B) both target diversified emerging markets equities. Key differences include EEM's 0.72% expense ratio versus SCHE's 0.06%, and EEM's April 2003 inception versus SCHE's January 2010. EEM has $31.3 billion in net assets compared to SCHE's $12.9 billion, while SCHE offers a higher dividend yield at 2.54% against EEM's 1.62%.

How do the dividend yields compare between these funds?

SCHE (Fund B) provides a notably higher dividend yield of 2.54% compared to EEM (Fund A)'s 1.62%. This 0.92 percentage point difference means SCHE distributes more income relative to its share price. For income-focused investors, this could be significant, though total returns include capital gains as well as dividends.

Which fund has the lower expense ratio?

SCHE (Fund B) offers a significantly lower expense ratio of 0.06% compared to EEM (Fund A) at 0.72%. This 0.66 percentage point difference means SCHE charges much less annually. For example, on a $10,000 investment, SCHE costs about $6 versus $72 for EEM. Lower fees preserve more of your investment returns over time, making expense ratios an important consideration for cost-conscious investors.

How do the fund size and inception dates differ?

EEM (Fund A) is substantially larger with $31.3 billion in net assets versus SCHE's (Fund B) $12.9 billion. EEM was launched much earlier, with an April 2003 inception compared to SCHE's January 2010 debut. EEM's longer track record provides more historical performance data, while SCHE's more recent launch aligns with its lower-cost approach.

What does the dividend yield tell investors about these ETFs?

The dividend yield indicates how much income each fund generates relative to its share price. SCHE (Fund B) provides a higher dividend yield of 2.54%, which might suggest better income generation compared to EEM (Fund A) with its 1.62% yield. However, ETFs distribute income from underlying holdings rather than promising fixed returns. Yield differences can reflect varying company dividends and fund strategies, not necessarily superior performance, and total returns include both dividends and capital appreciation.

How do the index tracking and exposure differ?

Both funds target diversified emerging markets, but the index tracked is listed as not available in our data. This limits detailed analysis of their specific tracking differences. Typically, different indices may emphasise different countries, market caps or sectors, affecting overall exposure and performance characteristics.

What is the significance of sector weights in these ETFs?

Sector weights are listed as not available for both EEM and SCHE, which limits our ability to compare their industry exposure. Without sector weight data, investors cannot assess how diversified each fund is across emerging market industries. This information is crucial for understanding concentration risk and sector-specific exposures that could significantly impact returns.

Can you compare the top holdings in these ETFs?

There is no overlap between the top holdings of EEM (Fund A) and SCHE (Fund B). EEM's only listed top holding is NU at 0.40%, while SCHE's top holdings include PDD at 0.56% and AU at 0.46%. This distinct portfolio composition highlights different stock selection approaches despite similar market targets.

What educational disclaimer applies to this ETF comparison?

This comparison is for educational purposes only and should not be considered financial advice. The data shown reflects figures as of September 2026 and may change over time. Investors should conduct their own research and consider consulting a qualified financial advisor before making investment decisions.

How does fund size affect emerging market ETF investing?

EEM has $31.3 billion in net assets versus SCHE's $12.9 billion. Larger funds may offer better liquidity through higher trading volumes, but can face challenges executing trades in smaller emerging markets without affecting prices. Size alone does not determine performance potential, as each fund structure serves different investor needs.

Why does EEM have such a large net asset base?

EEM launched in April 2003, giving it over seven years of additional market experience compared to SCHE's January 2010 inception. As an early diversified emerging markets ETF, EEM attracted significant investor capital during the growth of emerging market investing. Its longevity and established presence contributed to building substantial net assets, though this comes with higher fees compared to newer, lower-cost alternatives.

How might fee differences impact long-term returns?

SCHE (Fund B) charges only 0.06% versus EEM (Fund A)'s 0.72% expense ratio, creating a 0.66 percentage point annual fee difference. Over twenty years, this fee gap compounds significantly. For example, a $10,000 investment would cost $600 more in fees with EEM compared to SCHE over two decades, even before considering returns. Lower fees mean more money stays invested, potentially enhancing long-term compound growth. This cost efficiency represents one of SCHE's key advantages for investors focused on minimising expenses.

EEM vs SCHE

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

Explore EEM (iShares MSCI Emerging Markets ETF) vs SCHE (Schwab Emerging Markets Equity ETF). This page compares fees, holdings, dividends and how each fund tracks its market. Educational content, not financial advice.

Explore EEM (iShares MSCI Emerging Markets ETF) vs SCHE (Schwab Emerging Markets Equity ETF). This page compares fees, holdings, dividends and how each fund tracks its market. Educational content, not...

Fund Snapshot

Key Fund Metrics

EEM

Metric

SCHE

0.72%

Expense Ratio

0.06%

1.62%

Dividend Yield

2.54%

$31.27B

Net Assets

$12.89B

1,214

Holdings

2,194

Apr 7, 2003

Inception Date

Jan 14, 2010

–

Index Tracked

–

Diversified Emerging Mkts

Fund Category

Diversified Emerging Mkts

SCHE costs about $66.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

Discover More Comparisons

EEM vs VOO

Compare EEM and VOO. Review expense ratios, net assets, dividend yields, and holdings to understand differences in these emerging markets and US ETFs.

EEM vs SPY

Compare EEM and SPY ETFs. Review expense ratios of 0.72% vs 0.09%, dividend yields of 1.62% vs 0.98%, and distinct top holdings for informed research.

EEM vs VXUS

Compare EEM and VXUS on fees, yields, and history. EEM charges 0.72%, VXUS 0.05%. EEM yields 1.62%, VXUS 2.28%. See tracking details and asset sizes.

Investment Analysis

EEM

Pros

],
]: [
]: [

Considerations

The iShares fund carries a relatively high expense ratio of 0.72 percent for emerging market exposure.
The iShares fund carries a relatively high expense ratio of 0.72 percent for emerging market exposure.
The iShares fund carries a relatively high expense ratio of 0.72 percent for emerging market exposure.

SCHE

Pros

The Schwab fund offers a much lower expense ratio of 0.06 percent for diversified emerging market equity exposure.
The Schwab fund offers a much lower expense ratio of 0.06 percent for diversified emerging market equity exposure.
The Schwab fund offers a much lower expense ratio of 0.06 percent for diversified emerging market equity exposure.

Considerations

The Schwab fund provides a higher dividend yield of 2.54 percent, but its inception date in 2010 is later than EEM.
The Schwab fund provides a higher dividend yield of 2.54 percent, but its inception date in 2010 is later than EEM.
The Schwab fund provides a higher dividend yield of 2.54 percent, but its inception date in 2010 is later than EEM.

Related Market Insights

Banking On Emerging Market Wealth: The Financial Services Goldmine

Discover the goldmine in emerging market financial services. Invest in global institutions benefiting from expanding wealth & sophisticated banking demand in high-growth economies. Explore Nemes on Nemo.

Aimee Silverwood | Financial Analyst

31 July 2025

Read Insight

Related Market Insights

Banking On Emerging Market Wealth: The Financial Services Goldmine

Discover the goldmine in emerging market financial services. Invest in global institutions benefiting from expanding wealth & sophisticated banking demand in high-growth economies. Explore Nemes on Nemo.

Aimee Silverwood | Financial Analyst

31 July 2025

Read Insight

About EEM and SCHE

EEM (EEM)

EEM is the iShares MSCI Emerging Markets ETF, designed to give investors broad exposure to large- and mid-cap equity markets in emerging economies. The fund seeks to track the MSCI Emerging Markets Index, offering a single-line route to companies across China, Taiwan, India, Brazil and other developing markets. Investors should note ETFs can have tracking error versus their index and returns are not guaranteed. EEM is typically used for diversified emerging-market equity exposure, tactical allocation or as a complement to developed-market holdings. Key considerations include higher volatility, currency and political risk relative to developed markets, sector and country concentration (for example, a heavy weight to specific countries or sectors), and the impact of commodity cycles. This information is educational and not personalised advice; suitability depends on an investor’s objectives, time horizon and risk tolerance. Always consider reading the fund’s prospectus and, if needed, consult a regulated financial adviser.

SCHE (SCHE)

Schwab Emerging Markets Equity ETF (SCHE) is a passively managed exchange-traded fund that provides broad exposure to large- and mid-cap companies in emerging-market economies. It aims to give investors a cost-efficient route to participate in the growth potential of developing markets, with holdings spread across sectors such as financials, technology and energy — though country and sector weightings can shift with market movements. Benefits include international diversification and typically lower fees than many active strategies; drawbacks include higher volatility, currency fluctuations and political or regulatory risks common to emerging markets. SCHE can form part of a diversified, long-term portfolio for investors seeking international growth exposure, but it is not suitable for those needing short-term capital preservation. This is general educational information, not personal financial advice; values can fall as well as rise and past performance is not a reliable guide to future results.

Which Baskets Do They Appear In?

Banking On Emerging Market Wealth

Standard Chartered's impressive profit growth, driven by its wealth management success in emerging markets, highlights a significant investment opportunity. This theme focuses on other global financial institutions that are similarly positioned to capitalize on the expanding wealth and demand for sophisticated banking services in high-growth economies.

Published: 31 July 2025

Explore Basket