Investing Port

This ETF offers broad-based emerging markets exposure, and as such may be a core holding in many long-term portfolios. SCHE is generally similar to popular EM ETFs such as VWO and EEM, including hundreds of individual securities across more than a dozen different economies. Like most EM ETFs, SCHE has a heavy tilt towards the energy and financial sectors, and is dominated by large cap stocks. There are a few noteworthy items about SCHE for those seeking emerging markets exposure. Relative to VWO and EEM, this ETF makes considerably smaller allocations to quasi-developed countries such as Taiwan and South Korea--potentially making it more appealing to those seeking BRIC-heavy EM exposure. Like all Schwab ETFs, this fund may be eligible for commission-free trading in Schwab accounts, further reducing the overall cost and certainly appealing to those with a more active approach to asset allocation and portfolio management. Finally, SCHE offers a very competitive expense ratio (though slightly higher than VWO).