SCHE vs URTH: Low-Cost Emerging-Markets ETF Meets Developed-World Fund

Overview

• Schwab's SCHE charges a 0.06% expense ratio, yields about 2.6% and tracks the FTSE Emerging Index with roughly 2,222 holdings led by Taiwan Semiconductor at about 16.9%.
• iShares' URTH tracks developed markets via an MSCI-based approach, holds about 1,281 stocks, yields about 1.4% and is top-weighted in U.S. tech names such as Nvidia, Apple and Microsoft.
• Both funds allocate roughly 30% to the Technology sector, making tech-driven performance and volatility a shared risk despite different country exposures.
• Index rules and country classification explain much of the divergence, with FTSE and MSCI methodologies producing different country and stock weightings that can boost or reduce concentration risk.
• Investors should weigh the growth-versus-stability choice by comparing fees, trailing yield, single-stock and country concentrations, and overlap with U.S. tech when deciding between the two funds.