What are the expense ratios for SCHE and VWO?

Both SCHE and VWO have an expense ratio of 0.06%. This is the annual fee charged to manage the fund, deducted from assets. Since both fees are identical, there is no direct cost advantage in annual fees. This low expense ratio is typical for broad emerging market ETFs, helping to keep ongoing costs minimal for investors.

How do the net assets of SCHE and VWO compare?

VWO has significantly larger net assets of $126.6 billion compared to SCHE's $12.9 billion. Larger assets often support higher liquidity and tighter bid-ask spreads. While SCHE's size is smaller, $12.9 billion is still substantial. The difference in scale may influence how each fund handles inflows and outflows, though both are major emerging market ETFs.

Why does index transparency matter in ETF comparisons?

Index transparency helps investors understand what securities and sectors the ETF holds. For SCHE and VWO, the specific index tracked and sector weights are listed as not available. Without this data, it is harder to verify exact diversification, concentration risks, or the methodology used to select holdings. Investors should be aware that missing data limits full compositional analysis.

Do SCHE and VWO hold the same top stocks?

Yes, there is overlap in the top holdings provided. PDD and AU appear in the top holdings for both SCHE and VWO. For SCHE, PDD is at 0.56% and AU at 0.46%. For VWO, PDD is at 0.52% and AU at 0.46%. The similar weights suggest a degree of common exposure to these specific companies within their respective portfolios.

How do the dividend yields of SCHE and VWO differ?

SCHE has a dividend yield of 2.54%, while VWO has a yield of 1.99%. SCHE offers a higher yield based on the provided data. Dividend yields in ETFs reflect the income generated by the underlying holdings, distributed to shareholders. A higher yield may be attractive for income-focused investors, but it should be viewed alongside capital appreciation potential and fund volatility.

Which fund has a longer track record, SCHE or VWO?

VWO has a longer track record. Its inception date is March 4, 2005, whereas SCHE started on January 14, 2010. VWO's additional five years of history provide more data for analysing long-term performance through different market cycles. While past performance does not guarantee future results, a longer history can offer more insight into how a fund behaves over time.

Are the sector exposures of SCHE and VWO the same?

It is not possible to confirm if the sector exposures are the same. The data provided lists sector weights as 'not available' for both SCHE and VWO. While both funds are categorised as Diversified Emerging Markets and share some top holdings, the lack of published sector weight data means we cannot accurately compare their specific allocation to industries like technology or financials.

How does fund size potentially affect trading liquidity?

Liquidity in ETFs is influenced by the fund's assets and trading volume. VWO, with $126.6 billion in net assets, likely has high trading volume and deep liquidity. SCHE, with $12.9 billion, also participates significantly in the market. Generally, larger funds may have narrower bid-ask spreads due to higher volume, but liquidity is also driven by the underlying market makers.

Why is emerging market exposure often associated with higher volatility?

Emerging markets, tracked by funds like SCHE and VWO, often experience greater volatility than developed markets. This is due to factors like less mature regulatory environments, currency fluctuations, and geopolitical risks. Investors looking at these funds should expect their value to fluctuate more sharply. This higher risk profile is typical for the 'Diversified Emerging Mkts' category to which both funds belong.

What does 'not available' mean for index data in this comparison?

For both SCHE and VWO, the 'index tracked' field is marked as 'not available' in this specific dataset. Usually, these ETFs track major FTSE or MSCI indices, but without confirmed data here, we cannot name the index. This means you cannot verify if the tracking error or methodology differs. Treat this as a limitation of the provided comparison data rather than a fund characteristic.

How should a beginner interpret the top holdings weights?

Top holdings weights show the percentage of the fund's total assets invested in the largest companies. For example, PDD is 0.56% in SCHE and 0.52% in VWO. These low individual weights (under 1%) indicate high diversification. The fund holds many other stocks not listed as 'top' holdings. This helps reduce risk from any single company's performance impacting the entire fund.

Which investing goal aligns with these emerging market funds?

These funds are typically associated with long-term growth and portfolio diversification. SCHE's higher dividend yield of 2.54% may appeal to investors seeking some income alongside growth. VWO's massive asset base and 2005 inception might appeal to those prioritising liquidity and a longer historical track record. Both serve the goal of gaining broad exposure to developing economies.

SCHE vs VWO

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

Compare SCHE and VWO side by side. This page details how each fund tracks emerging markets, examining expense ratios, holdings and dividend yields to help you understand their structure and focus. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SCHE

Metric

VWO

0.06%

Expense Ratio

0.06%

2.54%

Dividend Yield

1.99%

$12.89B

Net Assets

$126.59B

2,194

Holdings

5,061

Jan 14, 2010

Inception Date

Mar 4, 2005

–

Index Tracked

–

Diversified Emerging Mkts

Fund Category

Diversified Emerging Mkts

Both funds charge the same annual fee.

Shared Top Holdings

Holding	SCHE	VWO
PDDPDD Holdings Inc.	0.56%	0.52%
AUAngloGold Ashanti plc	0.46%	0.46%

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Investment Analysis

SCHE

Pros

SCHE offers a competitive expense ratio of 0.06%, which helps minimise ongoing investment costs for investors.
The fund has accumulated substantial net assets of $12.9 billion, indicating significant market participation and liquidity.
SCHE provides a dividend yield of 2.54%, which is higher than the comparable emerging markets fund in this analysis.

Considerations

The index methodology and sector weights are not available, limiting transparency regarding the fund's underlying investment strategy.
With a shorter track record since its 2010 inception, it has less historical performance data than the older fund.
The fund is smaller in size at $12.9 billion compared to the much larger alternative fund in the comparison.

VWO

Pros

VWO's massive net assets of $126.6 billion support high liquidity and deep trading volumes in the market.
Established in March 2005, the fund benefits from a long and well-documented operational history for investors.
The expense ratio of 0.06% matches the competitor, providing a cost-efficient way to gain broad emerging market exposure.

Considerations

VWO's dividend yield of 1.99% is lower than the other fund's yield, which may impact income generation.
The absence of available index and sector weight data restricts a complete understanding of the fund's composition and risks.
Its immense size might make it more difficult to maintain precise tracking against the underlying index during periods of volatility.

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About SCHE and VWO

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.

VWO (VWO)

The Vanguard FTSE Emerging Markets ETF provides investors with broad exposure to publicly traded companies in emerging market countries. As a diversified fund, it aims to track the performance of the emerging markets equity asset class, encompassing thousands of holdings across various sectors and geographies. With a low expense ratio of 0.06%, it offers a cost-efficient way to gain access to these dynamic economies. The fund, established in March 2005, holds net assets of approximately USD 126.59 billion. Investors should be aware that emerging market investments can be more volatile than developed markets, with returns not guaranteed and values subject to rise and fall. It is suitable for those seeking diversification and long-term growth potential within emerging economies.

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SCHE vs VWO

Fund Snapshot