SCHD vs SPEM
SCHD vs SPEM
Schwab US Dividend Equity ETF vs State Street SPDR Portfolio Emerging Markets ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SPEM offers more diversification with 2853 holdings.
Side-by-Side Comparison
| Metric | SCHD | SPEM | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.07% | |
| AUM | $103.7B | $17.2B | |
| Dividend Yield | 3.31% | 2.53% | |
| Holdings | 104 | 3,044 | |
| YTD Return | +24.26% | +10.79% | |
| 1Y Return | +31.38% | +22.76% | |
| 3Y Return (annualized) | +15.08% | +17.10% | |
| 5Y Return (annualized) | +9.72% | +6.83% | |
| Volatility (annualized) | 13.6% | 20.1% | |
| Max Drawdown | -33.4% | -65.1% | |
| Fund Family | Charles Schwab Asset Management | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Mar 19, 2007 |
SCHD vs SPEM Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and State Street SPDR Portfolio Emerging Markets ETF (SPEM) is a ETF from SPDR State Street Global Advisors. Over the past year SCHD returned +31.38% while SPEM returned +22.76%. Year to date, SCHD is up 24.26% versus a gain of 10.79% for SPEM.
Over three years, SCHD compounded at +15.08% per year against +17.10% for SPEM; over five years the annualized figures are +9.72% and +6.83% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +3.93%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPEM has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -33.4% for SCHD and -65.1% for SPEM. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SPEM charges 0.07%. On a $10,000 position that is $6 vs $7 annually, a gap of $1 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 2.53% for SPEM.
Holdings Overlap
SCHD and SPEM share 4 holdings out of 2949 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, SCHD or SPEM?
SCHD has an expense ratio of 0.06% while SPEM charges 0.07%. SCHD is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, SCHD or SPEM?
Over the past year SCHD returned +31.38% vs +22.76% for SPEM, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +3.93% for SPEM. Past performance does not guarantee future results.
Which is riskier, SCHD or SPEM?
SPEM has been the more volatile fund at 20.1% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SPEM -65.1%.
Should I hold both SCHD and SPEM?
SCHD and SPEM have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SPEM?
SCHD and SPEM share 4 common holdings with a 0.0% weight overlap. Combined, they hold 2949 unique securities.
Which pays a higher dividend, SCHD or SPEM?
SCHD yields 3.31% while SPEM yields 2.53%, so SCHD currently pays the higher dividend yield.
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