Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTDave Kovaleski, The Motley FoolThu, July 16, 2026 at 10:46 PM GMT+2 4 min readThe Schwab Emerging Markets Equity ETF (NYSEMKT:SCHE) offers a significantly lower expense ratio and higher yield, while the iShares MSCI Emerging Markets ETF (NYSEMKT:EEM) has delivered stronger recent performance with higher historical volatility.Investors seeking exposure to developing economies often start with these two heavyweights. While Schwab Emerging Markets Equity ETF tracks the FTSE Emerging Index, iShares MSCI Emerging Markets ETF follows the MSCI Emerging Markets Index. The primary choice for many comes down to the trade-off between EEM liquidity and SCHE ultra-low cost structure.Snapshot (cost & size)MetricEEMSCHEIssueriSharesSchwabShare price$65.57 (as of 2026-07-15)$36.34 (as of 2026-07-15)Expense ratio0.72%0.06%1-yr return (as of 2026-07-15)37.30%22.70%Dividend yield1.70%2.60%Beta0.730.59AUM$29.0 billion$12.6 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.With an expense ratio of 0.06%, the Schwab fund is considerably more affordable than the iShares fund's 0.72% fee. This cost advantage allows investors to keep more of their total return. Additionally, SCHE provides a higher payout with a yield gap of 0.89 percentage points over its competitor.Performance & risk comparisonMetricEEMSCHEMax drawdown (5 yr)(35.20%)(31.40%)Growth of $1,000 over 5 years (total return)$1,377$1,314What's insideThe Schwab Emerging Markets Equity ETF tracks a broad index of 2,226 holdings. Its sector weights include Technology at 34%, Financial Services at 21%, and Consumer Cyclical at 9%. Its largest positions include Taiwan Semiconductor Manufacturing (2330.TW) at 17.23%, Tencent Holdings (0700.HK) at 3.43%, and Alibaba Group Holding (9988.HK) at 2.43%. It was launched in 2010. Schwab Emerging Markets Equity ETF has paid $0.95 per share over the trailing 12 months, which on its recent ~$36.34 share price works out to a 2.60% yield.The iShares MSCI Emerging Markets ETF provides more concentrated exposure with 1,223 holdings. Its sector weightings lean toward Technology at 46%, Financial Services at 18%, and Consumer Cyclical at 7%. Top holdings include Taiwan Semiconductor Manufacturing (2330.TW) at 15.57%, Samsung Electronics (005930.KS) at 6.92%, and SK Hynix (000660.KS) at 5.95%. It was launched in 2003. iShares MSCI Emerging Markets ETF has paid $1.11 per share over the trailing 12 months, which on its recent ~$65.57 share price works out to a 1.70% yield.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info