Key Points
Vanguard Total International Stock ETF provides broad exposure to both developed and emerging markets, while Schwab Emerging Markets Equity ETF focuses exclusively on developing economies.
Schwab Emerging Markets Equity ETF carries a higher concentration in the technology sector and exhibits greater price volatility.
Vanguard Total International Stock ETF maintains a slightly lower expense ratio and significantly larger assets under management.
The Schwab Emerging Markets Equity ETF (NYSEMKT:SCHE) offers targeted exposure to high-growth developing economies, while Vanguard Total International Stock ETF (NASDAQ:VXUS) provides broader access to nearly all non-U.S. equity markets worldwide.
Investors choosing between these two funds must decide between comprehensive international diversification or a concentrated bet on emerging territories. While the Vanguard fund includes stable developed markets like Japan and the U.K., the Schwab fund hones in on countries that may offer higher growth potential alongside increased risk.
Snapshot (cost & size)
| Metric | VXUS | SCHE |
|---|---|---|
| Issuer | Vanguard | Schwab |
| Share price | $87.03 (as of 2026-08-20) | $36.71 (as of 2026-08-20) |
| Expense ratio | 0.05% | 0.06% |
| 1-yr return (as of Aug. 20, 2026) | 25.3% | 20.3% |
| Dividend yield | 2.5% | 2.6% |
| Beta | 0.77 | 0.59 |
| AUM | $646.2 billion | $12.7 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the close of trading on Aug. 20, 2026.
The Vanguard fund is slightly more affordable with an expense ratio of 0.05%, compared to 0.06% for the Schwab fund. For those prioritizing income, the Schwab fund offers a marginally higher trailing dividend payout.
Performance & risk comparison
| Metric | VXUS | SCHE |
|---|---|---|
| Max drawdown (5 yr) | (29.4%) | (31.4%) |
| Growth of $1,000 over 5 years (total return) | $1,590 | $1,426 |
What's inside
Schwab Emerging Markets Equity ETF concentrates on rapidly evolving economies, with sector weights led by technology at 30%, financial services at 22%, and consumer cyclical at 10%. The fund holds 2,181 positions, and its largest holdings include Taiwan Semiconductor Manufacturing at 15.9%, Tencent Holdings at 3.6%, and Alibaba Group Holding at 2.5%. 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 ~$36.7 share price works out to a 2.6% yield.
Vanguard Total International Stock ETF offers much wider diversification with 8,721 holdings, spanning financial services at 23%, technology at 19%, and industrials at 15%. Top positions include Taiwan Semiconductor Manufacturing Co. at 4%, Samsung Electronics Co. at 1.8%, and ASML Holding NV at 1.4%. It was launched in 2011. Vanguard Total International Stock ETF has paid $2.19 per share over the trailing 12 months, which on its recent ~$87.0 share price works out to a 2.5% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy?
There is one primary similarity between these ETFs: they both provide exposure outside the U.S. stock markets. But when you dig deeper, they have key differentiators investors should consider.
The Schwab Emerging Markets Equity ETF -- SCHE -- is 85% in large-cap stocks and is quite concentrated in Asia, with three-quarters of its portfolio in Taiwan (33%), mainland China (26%), and India (16%). Its top 10 holdings reflect that concentration, with almost 30% of its assets divvied among its top 10 holdings. That's not as concentrated as many ETFs
The Vanguard Total International Stock ETF -- VXUS -- is 82% in developed-world stocks. Its top country-level holdings are Japan (15%), Taiwan (8%), and the United Kingdom (also 8%). The fund's balance is almost entirely in emerging market stocks. About 13% of its assets are dedicated to its top ten.
While the emerging markets-focused portfolio suggests that SCHE should outperform VXUS in the long run, the performance statistics show otherwise.
VXUS beats SCHE in every time period, with 16.9%, 8.9%, and 9.4% over the 3-, 5-, and 10-year time frames. Year-to-date, the story is much the same; VXUS is up 12.9% to 10% for SCHE. In the 3-, 5-, and 10-year periods, SCHE has returned an annualized 14.9%, 6.4%, and 8%, respectively.
Based on performance throughout the last decade, the decision is easy. Long-term investors looking for the best exposure outside the U.S. should go with the Vanguard VXUS ETF.
Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.