EMXC vs SCHE: Which ETF Is Better in 2026?
A metric-by-metric comparison of iShares MSCI Emerging Markets ex China ETF (EMXC) and Schwab Emerging Markets Equity ETF (SCHE) — both Emerging Markets funds — using ETFValuer's daily-updated rankings.
Educational content — not financial advice. Data as of July 25, 2026. ~5 minute read.
The Verdict
EMXC and SCHE compete directly — both are Emerging Markets funds chasing the same job in a portfolio. That makes this a genuine either/or: the index each tracks, what it costs, and how it has handled drawdowns are what separate them, not the broad exposure they give you.
On ETFValuer's overall model — which blends return, risk-adjusted performance, cost, drawdown, size and volatility — EMXC scores higher: 78.6 (Grade B+) versus 62.9 for SCHE. That doesn't make SCHE a bad fund; it means EMXC currently edges it out on this specific mix of factors. Read the metric-by-metric breakdown below before deciding which matters more for your own portfolio.
Head-to-Head: Every Metric
| EMXC | SCHE | |
|---|---|---|
| Category | Emerging Markets | Emerging Markets |
| Expense ratio | 0.25% | 0.06% |
| Fund size (AUM) | $26.1B | $12.5B |
| Dividend yield | 1.88% | 2.66% |
| 1-year return | +46.17% | +16.31% |
| 3-year return | +83.00% | +48.76% |
| Volatility | 26.91% | 17.78% |
| Max drawdown | -19.12% | -17.07% |
| Sharpe ratio | 1.53 | 0.64 |
| ETFValuer score | 78.6 | 62.9 |
| Grade | B+ | C |
| Overall rank | #21 | #197 |
Bold marks the better value in each row. "Better" is directional only (e.g. lower cost, higher return) — it isn't a recommendation by itself. See the full methodology.
Cost
SCHE is the cheaper fund, charging 0.06% a year versus 0.25% for EMXC — a gap of 0.19 percentage points (about $19.00/year on a $10,000 position) that compounds meaningfully over a multi-decade holding period. See the ETF Fee Calculator for the exact dollar impact at your investment size and horizon.
What EMXC's Fees Cost You
EMXC charges an expense ratio of 0.25% a year, deducted automatically from the fund's value. Small percentages compound into real money — adjust the figures below to see the impact on your own numbers.
Assumes a constant gross return and no additional contributions — a simplification, but it isolates exactly what the expense ratio costs. Try the full fee calculator to model contributions and compare any two funds.
Performance & Risk
Over the trailing 3 years, EMXC returned +83.00% versus +48.76% for SCHE — a gap of about 34.2 percentage points. On risk, SCHE has held up better historically, with a shallower max drawdown (-17.07% vs. -19.12%). EMXC currently has the better risk-adjusted return (Sharpe ratio of 1.53 vs. 0.64), meaning it delivered more return per unit of volatility taken on.
How Closely Do They Track Each Other?
Over the last 3.0 years of daily returns (752 shared trading days), EMXC and SCHE show a strong correlation of 0.862 — clearly related, with room to diverge. There is some genuine differentiation here, but not enough to call these complementary holdings. Pairing them mostly concentrates risk rather than spreading it.
| Measure | Value | What it means |
|---|---|---|
| Daily return correlation | 0.862 | Strong — clearly related, with room to diverge |
| R-squared | 74.3% | 74.3% of EMXC's daily moves are explained by SCHE's |
| Tracking error (annualised) | 10.17% | Typical yearly spread between the two funds' returns |
| Annualised return over 3.0y | EMXC +22.51% · SCHE +15.02% | EMXC ahead by 7.49 points a year |
Correlation alone understates how far these can drift. Across every rolling 12-month window in the period, EMXC finished as much as +50.5 points ahead of SCHE at the best extreme and -15.7 points at the worst — a 66.2-point spread between the best and worst year of relative performance. Two funds can correlate tightly day to day and still deliver very different outcomes over any single year you happen to hold them.
Calculated from daily total returns over the trailing 3-year window, recomputed every day this site refreshes. Correlation of 1.00 means the two funds moved in lockstep; 0.00 means their daily moves were unrelated.
Holdings Overlap
EMXC and SCHE hold 6 of the same companies among their top 10 positions. Those shared names make up 22.6% of EMXC and 23.1% of SCHE. That's meaningful duplication. The funds aren't interchangeable, but a good share of your money would be riding on the same companies twice.
| Shared Holding | EMXC Weight | SCHE Weight |
|---|---|---|
| Taiwan Semiconductor Manufacturing Co., Ltd. | 17.23% | 17.06% |
| MediaTek Inc. | 1.05% | 1.88% |
| DELTA ELECTRONICS, INC. | 0.98% | 1.40% |
| HON HAI PRECISION INDUSTRY CO., LTD. | 1.08% | 1.04% |
| HDFC BANK LIMITED | 1.25% | 0.83% |
| RELIANCE INDUSTRIES LIMITED | 1.05% | 0.88% |
Compares the top 10 reported holdings from each fund's most recent SEC N-PORT-P filing, so it understates total overlap — funds tracking similar indexes overlap far more deeply than the top 10 alone can show. Search any company across all tracked funds with the Stock Overlap tool.
Which One Should You Pick?
Lean EMXC if…
- You care about return per unit of risk — its Sharpe ratio of 1.53 beats 0.64
- You weight recent results heavily — it returned 83.0% over 3 years against 48.8%
Lean SCHE if…
- You want the lower running cost — 0.06% vs 0.25%, about $19 a year less on a $10,000 position
- Current income matters to you — it yields 2.66% against 1.88%
- It has been the calmer ride (17.8% volatility vs 26.9%) with a shallower worst-case fall (-17.1% vs -19.1%)
Whichever you pick, holding both at full weight is usually the wrong answer — see the overlap and correlation sections above.
Frequently Asked Questions
Is EMXC or SCHE better?
On ETFValuer's overall model — which blends return, risk-adjusted performance, cost, drawdown, size and volatility — EMXC scores higher: 78.6 (Grade B+) versus 62.9 for SCHE. That doesn't make SCHE a bad fund; it means EMXC currently edges it out on this specific mix of factors. Read the metric-by-metric breakdown below before deciding which matters more for your own portfolio.
Which has the lower expense ratio, EMXC or SCHE?
SCHE currently has the lower expense ratio (0.06% vs. 0.25%).
Can I hold both EMXC and SCHE?
You can, though the benefit is limited. At a correlation of 0.86, EMXC and SCHE fall together far more often than not, so owning both adds complexity and a second expense ratio without much real diversification. Most investors are better served picking one.
Go deeper on either fund
Full daily-updated metrics, holdings context, and category peers.