Schwab Emerging Markets ETF vs. iShares World ETF: Which International ETF Is the Better Buy for Investors?
Key Points
URTH targets developed markets, while SCHE focuses on emerging economies.
SCHE offers a significantly lower expense ratio and higher yield than URTH.
URTH delivered stronger five-year growth and a milder max drawdown than SCHE.
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The iShares MSCI World ETF (NYSEMKT:URTH) and the Schwab Emerging Markets Equity ETF (NYSEMKT:SCHE) serve as two distinct lenses through which to view international equities.
While one focuses on established corporate titans in developed nations, the other seeks growth in the rapidly evolving landscapes of emerging markets. Choosing between them involves balancing geographic risks and expense structures — here’s how the two stack up.
Snapshot (cost & size)
| Metric | SCHE | URTH |
|---|---|---|
| Issuer | Schwab | iShares |
| Share price | $35.36 (as of July 19, 2026) | $201.90 (as of July 19, 2026) |
| Expense ratio | 0.06% | 0.24% |
| 1-yr return (as of July 19, 2026) | 18.34% | 19.95% |
| Dividend yield | 2.66% | 1.40% |
| Beta (5Y monthly) | 0.87 | 0.96 |
| Assets under management (AUM) | $12.5 billion | $8.1 billion |
Beta 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.
SCHE is considerably more affordable with a 0.06% expense ratio compared to 0.24% for URTH. Income seekers may also find the Schwab fund more attractive, given its significantly higher dividend payout.
Performance & risk comparison
| Metric | SCHE | URTH |
|---|---|---|
| Max drawdown (5 yr) | -35.73% | -26.04% |
| Growth of $1,000 over 5 years (total return) | $1,279 | $1,724 |
What's inside
URTH holds 1,309 stocks from developed global economies, and its largest positions include Nvidia, Apple, and Microsoft. The portfolio focuses on technology at 31% of assets, followed by financial services and industrials. It was launched in 2012, and the fund has paid $2.84 per share in dividends over the trailing 12 months.
SCHE manages 2,221 holdings focused on developing nations. Top holdings include Taiwan Semiconductor Manufacturing, Tencent, and Alibaba Group. Its sector allocation includes technology at 34% of assets, with financial services and consumer cyclical rounding out the top three. This fund has paid $0.95 per share in dividends over the trailing 12 months.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
SCHE and URTH both provide diversified exposure to international stocks, but their unique approaches may appeal to different investors.
SCHE focuses on emerging markets, which can be more volatile but, in some cases, also more lucrative. URTH is concentrated on developed markets, and its heavy tilt toward tech giants has led to significant growth in recent years.
URTH has outperformed SCHE in both one- and five-year total returns, and it also offers a milder max drawdown — suggesting less severe price fluctuations.
However, URTH also charges a significantly higher expense ratio. Its 0.24% fee means investors will pay $24 per year for every $10,000 invested, compared to $6 per year for every $10,000 for SCHE. For those with large account balances, that can add up over time.
SCHE can be a smart buy for those looking to diversify their portfolio with stocks from emerging markets, while URTH can provide international exposure specifically to developed nations. Both ETFs can be part of a well-rounded portfolio, and the right one for you will depend on your goals.
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Katie Brockman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, and Tencent. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.
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