What is the main difference in investment focus between SCHE and SCHY?

SCHE is a diversified emerging markets equity fund, designed to provide broad exposure to companies in developing economies. In contrast, SCHY is an international dividend equity fund, categorised as Foreign Large Value. This means SCHE focuses on growth potential in emerging nations, while SCHY targets developed international markets with a specific emphasis on large companies that offer consistent dividends. Their underlying goals are distinct.

What do the categories 'Diversified Emerging Mkts' and 'Foreign Large Value' indicate?

These categories describe the fund's strategy. 'Diversified Emerging Mkts' means the fund holds stocks from multiple developing countries to reduce country-specific risk, as seen with SCHE. 'Foreign Large Value' implies the fund invests in established international companies that appear undervalued relative to their earnings, often paying dividends, which characterises SCHY. Understanding these labels helps investors grasp the geographical and stylistic differences between the two funds.

Why does the index tracked data show as 'not available' for both funds?

When the index tracked data is listed as 'not available', it means that specific benchmark identifier is not currently published in the data source. This does not imply the funds are not benchmarked, but rather that the precise name of the index SCHE or SCHY follows is absent from this dataset. Investors should consult official fund documents from Schwab for detailed methodology and benchmark information if needed for deeper analysis.

How do the expense ratios of SCHE and SCHY compare?

SCHE charges an annual expense ratio of 0.06%, while SCHY has a slightly higher expense ratio of 0.08%. This represents a difference of 0.02 percentage points. While SCHE is cheaper, both fees are considered low by industry standards. The expense ratio reduces the investor's return by the specified percentage each year, so a lower fee like SCHE's can lead to marginally better net returns over long periods, all else being equal.

Which fund has a longer operational history, and does this matter?

SCHE has a significantly longer operational history, with an inception date of 14 January 2010. SCHY is relatively new, launched on 29 April 2021. A longer track record, like SCHE's, can provide more data on how the fund has performed during various market cycles, such as bear or bull markets. However, past performance does not guarantee future results, and newer funds like SCHY may still follow well-established strategies despite their shorter history.

How do the net assets of the two funds compare, and what is scale?

SCHE manages substantial net assets of $12.9 billion, indicating significant investor adoption and scale. SCHY manages $2.6 billion, which is considerably smaller. Larger asset bases, like SCHE's, often provide better liquidity, meaning the fund's shares can be bought or sold more easily without significantly impacting the price. They may also benefit from economies of scale regarding transaction costs. However, SCHY's size is still large enough to be a stable vehicle for investors.

Which fund currently has no top holdings listed in the data?

The data indicates that top holdings are 'not available' for SCHY. In contrast, SCHE lists specific holdings such as PDD at 0.56% and AU at 0.46%. For SCHY, the absence of top holdings data means investors cannot currently see the largest individual company weights within the fund through this dataset. This limits the ability to assess concentration risk or specific company exposure for SCHY compared to SCHE, where partial visibility is provided.

Are there any shared top holdings between SCHE and SCHY?

According to the provided data, there are no shared top-10 holdings between SCHE and SCHY among the listed positions. SCHE lists PDD and AU, while SCHY's top holdings are not available. The explicit note that 'none among the listed top holdings' are shared suggests that the portfolios are constructed from largely different companies. This reinforces that the funds target distinct market segments, reducing overlap if an investor holds both in a portfolio.

What is the difference in the top holding weights reported for SCHE?

SCHE's data shows its largest position, PDD, accounts for only 0.56% of the fund's total assets, followed by AU at 0.46%. This indicates a highly diversified portfolio structure where no single stock dominates the fund's performance. A small top holding weight generally implies lower risk associated with individual company events, as the impact of any one stock's movement on the overall fund is limited compared to funds with higher concentration.

Why is sector weight data not available for either fund?

The data for both SCHE and SCHY lists sector weights as 'not available'. This means the specific breakdown of how much of the fund is invested in sectors like Technology, Healthcare, or Financials is not currently provided in this dataset. Without this information, investors cannot directly assess sector concentration or diversification across industries from the comparison tool alone, potentially requiring them to seek external fact sheets for a complete sector analysis.

How do the geographic exposures differ between SCHE and SCHY?

SCHE focuses on 'Diversified Emerging Mkts', exposing investors to developing economies such as China, India, Brazil, and South Africa. SCHY targets 'Foreign Large Value', which typically involves developed international markets like Europe, Japan, and Canada, excluding the US and emerging markets. Therefore, while both offer non-US exposure, SCHE captures high-growth potential in riskier economies, whereas SCHY seeks stability and income from mature foreign markets with undervalued stocks.

What should income-focused investors consider regarding the dividend yields?

For investors prioritising income, SCHY offers a higher dividend yield of 3.39% compared to SCHE's 2.54%. This 0.85 percentage point difference suggests SCHY may provide more current income distribution per dollar invested, assuming yields remain stable. However, emerging market funds like SCHE might offer lower yields because they reinvest profits into growth or because dividends in those markets are taxed differently. Investors should weigh the desire for immediate income against potential capital appreciation.

SCHE vs SCHY

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

Compare the Emerging Markets Equity ETF Schwab (SCHE) and the Schwab International Dividend Equity ETF (SCHY). This page reviews fees, holdings, dividends and how each fund tracks its market. SCHE carries a 0.06% expense ratio, while SCHY has a 0.08% expense ratio. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SCHE

Metric

SCHY

0.06%

Expense Ratio

0.08%

2.54%

Dividend Yield

3.39%

$12.89B

Net Assets

$2.58B

2,194

Holdings

133

Jan 14, 2010

Inception Date

Apr 29, 2021

–

Index Tracked

–

Diversified Emerging Mkts

Fund Category

Foreign Large Value

SCHE costs about $2.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Compare SCHE and SCHF on fees, holdings, dividends, tracking. SCHE emerging markets at 0.06% expense ratio; SCHF international large blend at 0.03% expense.

Investment Analysis

SCHE

Pros

SCHE offers a low expense ratio of 0.06% for emerging markets exposure.
SCHE manages substantial net assets of $12.9 billion indicating significant scale.
SCHE has a longer operational history with an inception date of January 2010.

Considerations

The specific index methodology SCHE tracks is currently not available.
SCHE provides a dividend yield of 2.54% which may appeal less to income-focused investors.
SCHE's top holdings data indicates a relatively small allocation to its largest position at 0.56%.

SCHY

Pros

SCHY provides a competitive dividend yield of 3.39% suitable for income-oriented investors.
SCHY charges a modest expense ratio of 0.08% for international dividend exposure.
SCHY targets foreign large value stocks offering distinct sector and geographic characteristics.

Considerations

SCHY is relatively new with an inception date of April 2021 lacking long-term history.
The specific index methodology SCHY tracks is not available.
SCHY manages significantly smaller net assets of $2.6 billion compared to larger ETFs.

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About SCHE and SCHY

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.

SCHY (SCHY)

Schwab International Dividend Equity ETF (SCHY) is an exchange-traded fund designed to offer investors exposure to dividend-paying companies located outside the United States, primarily in developed markets. The fund aims to provide income through regular distributions while also offering geographic diversification away from US equities. As an ETF, SCHY trades like a stock on exchanges and holds a basket of international equities that meet its dividend criteria. Investors should be aware that returns depend on both dividend payments and market price movements; dividends are not guaranteed and may be cut. Currency fluctuations, geopolitical events and differing corporate governance standards can add volatility versus domestic funds. This information is general and educational only and is not personal financial advice — consider whether the ETF’s objectives, risk profile and fees suit your needs before investing.

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SCHE vs SCHY

Fund Snapshot