Schwab Emerging Markets Equity ETF is rated a buy, driven by growth potential in top holdings and compressed valuations. SCHE offers broad diversification, low fees (0.06% expense ratio), and a leading 2.56% dividend yield with steady growth. Concentration in Taiwan Semiconductor, Tencent, and Alibaba positions SCHE for strong returns as emerging markets rebound.
The Schwab Emerging Markets Equity ETF has modestly outperformed the S&P 500 so far in 2026. This comes as cheap valuations and solid long-term GDP growth expectations for emerging markets outweigh near-term energy price uncertainty. SCHE has modest direct Middle East exposure, but key holdings domiciled in China, Taiwan, and India are likely to see temporary earnings pressure amid the war in Iran.
Schwab Emerging Markets Equity ETF (SCHE) offers a compelling 44% P/E discount to the S&P500, with broad exposure to China and Asia's growth engines. SCHE's top holdings include TSMC, Tencent, and Alibaba, providing access to leading tech and consumer platforms in emerging markets. Despite long-term volatility, SCHE and peers have recently outperformed the S&P500, driven by a falling U.S. dollar and global capital rotation.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| TJD Thomas John Drogan PR Inc.IPAL SECURITIES Inc. | 364,570 | $11.71M | $13.2M | $1.5M | 12.77% |
| DI David Izzi Brown, LISLE/CUMMINGS Inc. | 47 | $1,053 | $1,702.34 | $649.34 | 61.67% |
| TMB Timothy M. Bidwell Hazlett, BURT & WATSON Inc. | 460 | $12,772.38 | $16,661.2 | $3,888.82 | 30.45% |
| CE Curtis Ellergodt Rothschild Investment LLC | 658 | $20,402.43 | $23,832.76 | $3,430.33 | 16.81% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 24,199 | $731,053.55 | $872,978.92 | $141,925.37 | 19.41% |
| ARCA Exchange | US Country |
This fund is tailored for investors aiming to participate in the growth potential of emerging markets. It primarily focuses on investing in a range of stocks selected from the FTSE Emerging Index, which aggregates large and mid-cap companies from a variety of emerging countries. As designated by the index provider, these countries are identified based on their market development levels, offering a broad spectrum of investment opportunities. The fund commits to allocating at least 90% of its net assets, which includes any borrowed funds used for investment purposes, directly into the constituents of the index or through depositary receipts that are associated with the securities of the index.
The core offering involves investments in stocks that form part of the FTSE Emerging Index. This includes a diversified portfolio of large and mid-cap companies across various sectors, providing exposure to the dynamic and fast-growing emerging markets. The strategy seeks to mirror the composition and performance of the target index, aiming for growth over the medium to long term.
As part of its investment strategy, the fund also deals in depositary receipts, such as ADRs (American Depositary Receipts), GDRs (Global Depositary Receipts), and EDRs (European Depositary Receipts). These financial instruments allow the fund to hold shares in foreign companies, offering a practical way to invest in and gain exposure to international markets. It encompasses a flexible approach, adapting to various market conditions while targeting returns tied to emerging market equities.