Want to Add Emerging Markets To Your Portfolio? EEM Offers a Tech Focus While SCHE Is More Affordable

2 hours ago 1

Matt DiLallo, The Motley Fool

Sun, January 25, 2026 astatine 4:50 PM CST 4 min read

EEM commands a overmuch higher disbursal ratio and has a longer way grounds than SCHE.
SCHE delivers a higher dividend yield, portion EEM has outperformed implicit the past year.
Both ETFs absorption connected emerging-market tech and fiscal stocks, but EEM holds less stocks and tilts much toward technology.
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The Schwab Emerging Markets Equity ETF (NYSEMKT:SCHE) stands retired for its little outgo and higher yield, portion the iShares MSCI Emerging Markets ETF (NYSEMKT:EEM) brings a longer past and somewhat heavier tech vulnerability to the table.

Both SCHE and EEM people wide emerging markets equity exposure, but they spell astir it with antithetic priorities. This examination lays retired however their costs, assemblage weights, performance, and hazard profiles stack up for investors weighing which attack whitethorn acceptable amended successful a diversified portfolio.

Metric

SCHE

EEM

Issuer	Schwab	IShares
Expense ratio	0.07%	0.72%
1-yr instrumentality (as of 2026-01-22)	28.4%	37.9%
Dividend yield	2.9%	2.2%
Beta	0.99	0.74
AUM	$12.0 billion	$25.1 billion

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

SCHE is overmuch much affordable, charging conscionable 0.07% successful absorption fees compared to EEM’s 0.72%, a quality that could compound implicit time. SCHE besides offers a higher caller dividend yield, which whitethorn entreaty to income-focused investors.

Metric

SCHE

EEM

Max drawdown (5 y)	-35.70%	-39.82%
Growth of $1,000 implicit 5 years	$1,036	$1,044

EEM tracks large- and mid-cap companies crossed emerging markets, with a flimsy tilt toward exertion (30%) implicit SCHE (22%). With 1,214 holdings, EEM is little diversified by fig of stocks, but it commands the largest assets nether absorption (AUM) successful the class and boasts astir 23 years connected the marketplace (the fund’s inception day is April 2003). Its apical positions see Taiwan Semiconductor Manufacturing (NYSE:TSM), Tencent Holdings (OTC:TCEHY), and Samsung Electronics (005930.KS), representing a important information of the fund’s assets (21.5% for those apical 3 holdings alone).

SCHE besides leans heavy connected exertion and financials, but holds implicit 2,100 stocks, making it much diversified by institution count. Its apical holdings diagnostic Taiwan Semiconductor Manufacturing, Tencent, and Alibaba Group(NYSE:BABA), and comprise astir 22% of its assets. However, with little vulnerability to tech stocks, the money offers broader manufacture diversification.