RNEM vs SCHD
First Trust Emerging Markets Equity Select ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. RNEM offers more diversification with 272 holdings.
Side-by-Side Comparison
| Metric | RNEM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.76% | 0.06% | |
| AUM | $17M | $103.7B | |
| Dividend Yield | 2.77% | 3.31% | |
| Holdings | 290 | 104 | |
| YTD Return | +2.84% | +25.33% | |
| 1Y Return | +7.85% | +32.31% | |
| 3Y Return (annualized) | +7.80% | +15.40% | |
| 5Y Return (annualized) | +5.71% | +9.70% | |
| Volatility (annualized) | 14.3% | 13.6% | |
| Max Drawdown | -42.3% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jun 20, 2017 | Oct 20, 2011 |
RNEM vs SCHD Performance
First Trust Emerging Markets Equity Select ETF (RNEM) is a ETF from First Trust Portfolios (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year RNEM returned +7.85% while SCHD returned +32.31%. Year to date, RNEM is up 2.84% versus a gain of 25.33% for SCHD.
Over three years, RNEM compounded at +7.80% per year against +15.40% for SCHD; over five years the annualized figures are +5.71% and +9.70% respectively. Across the full 9-year window we track, SCHD has the edge at +11.45% annualized vs +3.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RNEM has been the more volatile fund, with annualized monthly volatility of 14.3% compared with 13.6% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -42.3% for RNEM and -33.4% for SCHD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RNEM charges 0.76% per year while SCHD charges 0.06%. On a $10,000 position that is $76 vs $6 annually, a gap of $70 per year that compounds over a long holding period. On income, RNEM currently yields 2.77% against 3.31% for SCHD.
Holdings Overlap
RNEM and SCHD share 0 holdings out of 372 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, RNEM or SCHD?
RNEM has an expense ratio of 0.76% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $70 per year of difference.
Which performed better, RNEM or SCHD?
Over the past year RNEM returned +7.85% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), RNEM annualized +3.12% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, RNEM or SCHD?
RNEM has been the more volatile fund at 14.3% annualized versus 13.6% for SCHD. Worst drawdown: RNEM -42.3% vs SCHD -33.4%.
Should I hold both RNEM and SCHD?
RNEM and SCHD have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RNEM and SCHD?
RNEM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 372 unique securities.
Which pays a higher dividend, RNEM or SCHD?
RNEM yields 2.77% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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