SCHE vs VYM
SCHE vs VYM
Schwab Emerging Markets Equity ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. SCHE offers more diversification with 1409 holdings.
Side-by-Side Comparison
| Metric | SCHE | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.04% | |
| AUM | $12.5B | $79.0B | |
| Dividend Yield | 2.66% | 2.86% | |
| Holdings | 2,210 | 568 | |
| YTD Return | +10.52% | +15.80% | |
| 1Y Return | +22.39% | +26.12% | |
| 3Y Return (annualized) | +17.52% | +18.25% | |
| 5Y Return (annualized) | +6.65% | +12.51% | |
| Volatility (annualized) | 17.2% | 14.6% | |
| Max Drawdown | -43.1% | -58.8% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 14, 2010 | Nov 10, 2006 |
SCHE vs VYM Performance
Schwab Emerging Markets Equity ETF (SCHE) is a ETF from Charles Schwab Asset Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SCHE returned +22.39% while VYM returned +26.12%. Year to date, SCHE is up 10.52% versus a gain of 15.80% for VYM.
Over three years, SCHE compounded at +17.52% per year against +18.25% for VYM; over five years the annualized figures are +6.65% and +12.51% respectively. Across the full 17-year window we track, VYM has the edge at +7.07% annualized vs +3.27%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHE has been the more volatile fund, with annualized monthly volatility of 17.2% compared with 14.6% for VYM. 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 -43.1% for SCHE and -58.8% for VYM. 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
SCHE charges 0.06% per year while VYM charges 0.04%. On a $10,000 position that is $6 vs $4 annually, a gap of $2 per year that compounds over a long holding period. On income, SCHE currently yields 2.66% against 2.86% for VYM.
Holdings Overlap
SCHE and VYM share 1 holdings out of 1966 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCHE | Weight in VYM | Difference |
|---|---|---|---|
| HAL | 0.08% | 0.13% | 0.05% |
Frequently Asked Questions
Which is cheaper, SCHE or VYM?
SCHE has an expense ratio of 0.06% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, SCHE or VYM?
Over the past year SCHE returned +22.39% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), SCHE annualized +3.27% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, SCHE or VYM?
SCHE has been the more volatile fund at 17.2% annualized versus 14.6% for VYM. Worst drawdown: SCHE -43.1% vs VYM -58.8%.
Should I hold both SCHE and VYM?
SCHE and VYM 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 SCHE and VYM?
SCHE and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1966 unique securities.
Which pays a higher dividend, SCHE or VYM?
SCHE yields 2.66% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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