Loading…
Loading…
URTH targets developed markets, while SCHE focuses on emerging economies. SCHE offers a significantly lower expense ratio and higher yield than URTH.
Schwab Emerging Markets Equity ETF offers a significantly lower expense ratio of 0.06% compared to the 0.72% charged by iShares MSCI Emerging Markets ETF. iShares MSCI Emerging Markets ETF has outperformed over the past year with a 37.30% total return but carries a higher 5-year maximum drawdown.
IXUS offers broader global diversification with higher returns, while SCHE targets emerging markets at lower cost. Which aligns with your investment goals?
Compare risk and returns for the Vanguard FTSE Developed Markets ETF and the Schwab Emerging Markets Equity ETF.
Schwab Emerging Markets Equity ETF is rated a buy, driven by growth potential in top holdings and compressed valuations. SCHE offers broad diversification, low fees (0.06% expense ratio), and a leading 2.56% dividend yield with steady growth. Concentration in Taiwan Semiconductor, Tencent, and Alibaba positions SCHE for strong returns as emerging markets rebound.
The Vanguard FTSE Developed Markets ETF offers a lower expense ratio and higher assets under management than the Schwab Emerging Markets Equity ETF. The Vanguard FTSE Developed Markets ETF has provided higher total returns over the last five years and experienced a lower maximum drawdown.
These two international ETFs take different approaches to global diversification -- if you can call it that.
On Thursday, June 11, Schwab Asset Management announced that it cut down the expense ratios on four of its existing indexed ETFs. Each of these funds is a longstanding strategy in Schwab's collection, with a significant asset base and compelling track record.