What is the fundamental difference between SCHC and SCHE?

SCHC and SCHE target different geographic segments. SCHC focuses on small-cap and mid-cap companies in international developed markets, often referred to as foreign small/mid blend. SCHE covers diversified emerging markets. While both are Schwab funds with identical expense ratios of 0.06% and similar inception dates, their underlying assets differ significantly. SCHC offers exposure to smaller companies abroad, while SCHE provides broad exposure to emerging economies. Investors should note these distinct market categories when reviewing their portfolio allocation needs.

How does the expense ratio affect long-term costs?

Both SCHC and SCHE feature an identical expense ratio of 0.06%. This low fee structure supports cost efficiency for investors in either fund. Because the fees are exactly the same, there is no cost difference to weigh between the two options. Over time, this 0.06% deduction applies annually to the fund's assets. Since the ratio does not vary, choosing between them should depend on desired market exposure rather than fee considerations. Both funds aim to minimise investor costs through this competitive pricing.

What does it mean when index tracking data is not available?

For both SCHC and SCHE, the specific index tracked is listed as not available. This limits transparency regarding the precise benchmark each fund follows. Investors cannot verify the exact methodology or component selection rules without this data. While the fund categories are known, the lack of index information prevents a detailed analysis of how the funds replicate their targets. This opacity may hinder investors who rely on strict index adherence for their portfolio construction. Future updates might clarify the underlying benchmarks for these Schwab ETFs.

How do the dividend yields of SCHC and SCHE compare?

SCHC offers a dividend yield of 3.31%, while SCHE provides a yield of 2.54%. This difference suggests that the small-cap international stocks in SCHC may currently generate more income relative to their price than the emerging market equities in SCHE. However, dividend yields fluctuate based on share prices and company payouts. Investors seeking higher immediate income might look at SCHC, but they should also consider the associated risks. Both yields are reported figures and do not guarantee future distributions or total return performance.

Are there overlapping holdings between these two funds?

There is no overlap among the listed top holdings for SCHC and SCHE. The top holdings for SCHC include SSRM and FRO, whereas SCHE's top holdings feature PDD and AU. Since no shared companies appear in these primary positions, the funds offer distinct exposure profiles. This lack of overlap reduces the risk of concentration if an investor holds both. Each fund selects companies based on its specific market focus, resulting in unique portfolio compositions. Investors should review full holdings for a complete picture of any minor overlaps.

What do the net asset sizes indicate about these funds?

SCHE has net assets of $12.9 billion, which is more than double the $5.8 billion found in SCHC. A larger asset base can sometimes indicate greater investor confidence and potentially better liquidity. However, both funds are considered substantial by industry standards. The size difference may impact trading volumes and bid-ask spreads for some investors. Despite the disparity in total assets, both funds maintain the same low expense ratio. Investors should consider their preference for established scale versus specific small-cap exposure when evaluating these metrics.

How do risks differ between small-cap international and emerging markets?

SCHC's small-cap international holdings often exhibit higher volatility and lower liquidity compared to large-cap stocks. SCHE, focused on emerging markets, faces significant geopolitical and currency risks. Both categories present distinct challenges: SCHC investors deal with the fragility of smaller foreign firms, while SCHE investors navigate unstable political environments and fluctuating exchange rates in developing nations. The choice depends on the investor's tolerance for specific risk types. Neither fund is inherently safer; they simply expose capital to different macroeconomic and corporate vulnerabilities.

How do sector weightings impact these comparisons?

Sector weight data is not available for either SCHC or SCHE. This absence prevents investors from assessing current industry exposure within these funds. Without this information, it is difficult to determine if one fund is over-represented in sectors like technology or healthcare compared to the other. Investors typically use sector analysis to avoid unintended concentration or to tilt portfolios. The lack of transparency here means users must rely on broader category definitions. Future disclosures may provide better insight into how these funds distribute capital across industries.

Which investing goals might suit SCHC versus SCHE?

SCHC is typically associated with goals seeking growth and income from smaller companies in developed international markets. Its higher yield of 3.31% might appeal to those prioritising income from established foreign economies. SCHE aligns with goals focused on high growth potential from emerging economies, accepting higher volatility and geopolitical risk. Its lower yield of 2.54% reflects different capital allocation strategies. Neither fund is recommended over the other; suitability depends on an investor's strategic need for developed small-cap exposure versus emerging market diversification.

How should investors interpret top holdings like SSRM and PDD?

Top holdings provide a snapshot of largest positions, not the entire portfolio. SCHC lists SSRM at 0.29% and FRO at 0.27%, while SCHE shows PDD at 0.56% and AU at 0.46%. These low weights suggest highly diversified portfolios without significant concentration in single stocks. Investors should not judge fund quality solely on top names, as they represent a tiny fraction of total assets. The diversity implied by these small percentages reduces idiosyncratic risk, though the overall market risk remains dependent on the fund's geographic focus.

What does the inception date tell us about these funds?

Both SCHC and SCHE share an inception date of 14 January 2010. This indicates that both funds have been operating for the same duration, allowing for comparable track records. Their longevity suggests stability and consistent management since their launch. Investors can review performance data over an identical timeframe to assess how each strategy has handled market cycles. The shared start date eliminates age as a differentiating factor. Both funds have survived various market conditions, demonstrating resilience as Schwab's international equity offerings over more than a decade.

Why might 'Foreign Small/Mid Blend' differ from 'Diversified Emerging Mkts'?

The category 'Foreign Small/Mid Blend' for SCHC implies exposure to smaller and mid-sized companies in developed international markets. 'Diversified Emerging Mkts' for SCHE indicates a broader mix of companies, typically larger, across developing nations. The key difference lies in economic development stage and company size. Developed markets usually offer greater regulatory stability and liquidity than emerging ones. Conversely, emerging markets may provide higher growth potential but with increased volatility. Understanding these category definitions helps investors grasp the fundamental divergence in risk and opportunity profiles.

SCHC vs SCHE

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

Compare the Schwab International Small-Cap Equity ETF (SCHC) and the Emerging Markets Equity ETF Schwab (SCHE). Both funds share a 0.06% expense ratio and a 14 January 2010 inception, yet target distinct markets: one focuses on foreign small/mid-cap equities, while the other covers diversified emerging markets. This page reviews fees, holdings, dividends and index tracking to help you understand each fund's approach. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SCHC

Metric

SCHE

0.06%

Expense Ratio

0.06%

3.31%

Dividend Yield

2.54%

$5.83B

Net Assets

$12.89B

2,196

Holdings

2,194

Jan 14, 2010

Inception Date

Jan 14, 2010

–

Index Tracked

–

Foreign Small/Mid Blend

Fund Category

Diversified Emerging Mkts

Both funds charge the same annual fee.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

SCHC

Pros

The fund features a low expense ratio of 0.06%, supporting long-term cost efficiency.
With net assets of $5.8 billion, the fund benefits from considerable scale and stability.
A high dividend yield of 3.31% offers attractive income potential for investors.

Considerations

The fund's index methodology is not available, limiting transparency on its tracking approach.
Sector weights are not available, making it difficult to assess current industry exposure.
Small-cap international holdings can exhibit higher volatility and lower liquidity than large caps.

SCHE

Pros

An expense ratio of 0.06% keeps investor costs minimal for this emerging markets fund.
Net assets of $12.9 billion indicate strong fund size and market confidence.
A dividend yield of 2.54% provides a reasonable income stream from equity holdings.

Considerations

The specific index tracked is not available, obscuring the fund's underlying benchmark.
Lack of sector weight data prevents a clear view of its diversified exposure.
Emerging markets are subject to higher geopolitical and currency risk than developed nations.

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About SCHC and SCHE

SCHC (SCHC)

Schwab International Small‑Cap Equity ETF (SCHC) offers investors broad exposure to small‑capitalisation companies in developed markets outside the United States. The fund seeks to track an index of international small‑cap equities, providing diversified access across countries and sectors in a single, exchange‑listed vehicle. Small‑cap stocks can offer attractive long‑term growth potential due to their capacity for rapid expansion, but they also tend to be more volatile, less liquid and more sensitive to local economic and currency shifts than large‑cap or domestic holdings. SCHC can complement a global equity allocation, but investors should expect wider performance swings and be mindful of political, market and currency risks. This information is educational and not personal financial advice. Consider your investment objectives, time horizon and risk tolerance, and consult a financial adviser if unsure whether this ETF suits your needs.

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.

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SCHC vs SCHE

Fund Snapshot