Comparing SCHE, SPEM, and VWO is timely amid renewed investor interest in emerging markets driven by diversification needs beyond U.S. equities and attractive valuations in developing economies. These passive ETFs all target broad emerging markets exposure but via distinct indexes: FTSE for SCHE and VWO, S&P for SPEM. This leads to nuanced differences in country inclusion—such as South Korea's treatment—and market-cap coverage, with VWO extending deepest into small caps. They compete in the same thematic space, offering tiered options for cost, breadth, and index methodology, helping investors align with risk tolerances in a landscape of geopolitical flux and shifting global capital flows.
The Schwab Emerging Markets Equity ETF (SCHE) seeks to track the FTSE Emerging Index (Net), a float-adjusted market-cap-weighted benchmark of large- and mid-cap stocks across over 20 emerging markets. It holds approximately 2,212 securities, providing solid diversification. Top holdings include Taiwan Semiconductor Manufacturing Co. Ltd. (around 16%), Tencent Holdings Ltd. (3-4%), and Alibaba Group Holding Ltd. (2-3%), with sector weights emphasizing technology (31%), financial services (20%), and consumer cyclical (10%). The expense ratio is 0.07%, and portfolio turnover is low at under 6%, indicating a buy-and-hold passive structure. Distinguishing features include its tax efficiency and role as a low-cost core holding for Schwab investors.
The State Street SPDR Portfolio Emerging Markets ETF (SPEM) aims to replicate the S&P Emerging BMI Index, a float-adjusted market-cap-weighted index spanning large-, mid-, and some small-cap stocks in emerging markets. With 2,987 holdings, it balances breadth and focus. Top 10 holdings account for about 25% of assets, led by Taiwan Semiconductor Manufacturing (13.8%), Tencent Holdings (3%), Alibaba (2.6%), MediaTek (1.8%), and Delta Electronics (1.3%). Sectors are tilted toward information technology (30%), financials (20%), and consumer discretionary (10%). Expense ratio stands at 0.07%, positioning it as a cost-effective building block in the SPDR Portfolio suite with strong liquidity.
Vanguard FTSE Emerging Markets ETF (VWO) tracks the FTSE Emerging Markets All Cap China A Inclusion Index, capturing large-, mid-, and small-cap stocks across emerging markets worldwide. It boasts over 5,000 holdings for exceptional diversification. Top holdings mirror peers: Taiwan Semiconductor (13%), Tencent (3-4%), Alibaba (2-3%), with top 10 comprising about 25%. Sector breakdown features technology (26-28%), financial services (20%), and consumer cyclical (10%). At 0.06% expense ratio, it is the lowest-cost option, employing representative sampling in a fully passive structure optimized for long-term holding.
Emerging markets equities face a dynamic environment shaped by robust capital inflows—reaching record levels in early 2026 amid U.S. equity concentration concerns—yet tempered by geopolitical tensions, including U.S.-China frictions and Middle East conflicts. Macro drivers like diverging global growth, potential U.S. rate cuts, and commodity price swings favor resource-rich nations such as Brazil and South Africa. Regulatory shifts in China, earnings growth in Indian financials, and Taiwan's semiconductor dominance bolster key holdings. However, risks persist from heightened geopolitical uncertainty, which dampens portfolio flows to emerging markets (EMs) more than developed ones, prompting flight-to-safety dynamics. Strong inflows into EM ETFs signal optimism, but EMs remain sensitive to U.S. policy and global risk-off episodes.
In recent months, SCHE, SPEM, and VWO have delivered comparable gains, with YTD returns clustering around 12% and one-year advances near 34%, reflecting EM rebound amid global diversification trends. SPEM and VWO have edged ahead over multi-year cycles (annualized ~9.7% vs. SCHE's 9.2% over 10 years), attributable to broader small-cap tilts and index methodologies capturing more upside in Asia. Volatility profiles are similar (4.8-5%), with modest drawdowns in recent corrections under 18%. Differences stem from structural nuances: VWO's all-cap depth aids stability in uptrends, while SCHE's mid-cap focus heightens sensitivity to regional volatility; all show high correlation (~0.98), but SPEM's S&P benchmark offers slight macro resilience.
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Tickeron’s AI favors VWO with moderate conviction (65% probability) for its superior diversification (5,000+ holdings), lowest expense ratio (0.06%), and scale-driven liquidity, enhancing risk-adjusted positioning amid volatile EM cycles. While SCHE and SPEM match on costs and exhibit stable momentum, VWO's all-cap FTSE exposure better mitigates concentration risks in tech-heavy portfolios without sacrificing returns.
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| SCHE | SPEM | VWO | |
| Gain YTD | 8.989 | 10.110 | 9.460 |
| Net Assets | 12.5B | 17.6B | 163B |
| Total Expense Ratio | 0.07 | 0.07 | 0.06 |
| Turnover | 7.00 | 1.00 | 6.00 |
| Yield | 2.58 | 2.48 | 2.43 |
| Fund Existence | 16 years | 19 years | 21 years |
| SCHE | SPEM | VWO | |
|---|---|---|---|
| RSI ODDS (%) | N/A | N/A | N/A |
| Stochastic ODDS (%) | 2 days ago 90% | 2 days ago 90% | 2 days ago 90% |
| Momentum ODDS (%) | 2 days ago 83% | 2 days ago 85% | 2 days ago 84% |
| MACD ODDS (%) | 2 days ago 86% | 2 days ago 84% | 2 days ago 88% |
| TrendWeek ODDS (%) | 2 days ago 79% | 2 days ago 78% | 2 days ago 79% |
| TrendMonth ODDS (%) | 2 days ago 77% | 2 days ago 81% | 2 days ago 78% |
| Advances ODDS (%) | 5 days ago 82% | 5 days ago 82% | 5 days ago 81% |
| Declines ODDS (%) | 2 days ago 82% | 2 days ago 81% | 2 days ago 82% |
| BollingerBands ODDS (%) | N/A | N/A | N/A |
| Aroon ODDS (%) | N/A | 2 days ago 82% | N/A |
A.I.dvisor indicates that over the last year, VWO has been closely correlated with JD. These tickers have moved in lockstep 71% of the time. This A.I.-generated data suggests there is a high statistical probability that if VWO jumps, then JD could also see price increases.
| Ticker / NAME | Correlation To VWO | 1D Price Change % | ||
|---|---|---|---|---|
| VWO | 100% | -0.29% | ||
| JD - VWO | 71% Closely correlated | -1.14% | ||
| BILI - VWO | 71% Closely correlated | -2.24% | ||
| BIDU - VWO | 68% Closely correlated | -3.55% | ||
| BABA - VWO | 67% Closely correlated | -4.74% | ||
| BZ - VWO | 65% Loosely correlated | -3.69% | ||
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