TOP 3 Markets:

1. China: approx. 35%
2. India: approx. 20%
3. Brazil: approx. 10%

Sector Distribution:

• Financial Services: approx. 25%
• Information Technology: approx. 20%
• Consumer Goods: approx. 15%
• Commodities: approx. 10%
• Healthcare: approx. 10%

The Schwab Emerging Markets Equity ETF mainly invests in emerging markets, with China, India, and Brazil representing the largest market shares. These markets offer significant growth opportunities due to their expanding economies and populations.

The sector distribution shows a strong presence in financial services and information technology, which is typical for emerging markets in the phase of economic development. Consumer goods and commodities also play an important role as they benefit from the increasing demand in these regions.

Production: Not applicable

The Schwab Strategic Trust - Schwab Emerging Markets Equity ETF (ARCA:SCHE) is an exchange-traded fund (ETF) and does not produce physical products. Instead, it invests in stocks of companies from emerging markets. The fund aims to replicate the performance of the FTSE Emerging Index. Therefore, the question of production locations is not applicable.

Current Net Asset Value (NAV): $28.75 (2025, estimated)
Annual Growth Rate: 7.5% (2024)

The Schwab Strategic Trust - Schwab Emerging Markets Equity ETF (ARCA:SCHE) pursues a strategy that aims to invest in high-growth companies in emerging markets. This strategy is based on the assumption that emerging markets offer higher long-term growth potential than developed markets.

A key component of the strategy is diversification across different sectors and countries to spread risk and benefit from various economic developments. The focus is on companies that can benefit from increasing consumer spending, urbanization, and technological advancements.

In addition, the ETF employs a cost-effective structure to provide investors with an attractive return after costs. This is achieved through low management fees and a passive investment strategy that tracks the MSCI Emerging Markets Index.

Commodities/Materials: Schwab Strategic Trust - Schwab Emerging Markets Equity ETF invests in stocks of companies in emerging markets and not directly in commodities or materials.

Countries: The ETF includes companies from various emerging markets, including China, India, Brazil, and South Africa.

The Schwab Emerging Markets Equity ETF (SCHE) invests in a variety of companies in emerging markets operating in different sectors. These companies may import commodities and materials necessary for their production, such as metals, oil, gas, or agricultural products. The specific commodities and their countries of origin depend heavily on the industries and companies in which the ETF invests.

Since the ETF itself does not import commodities but invests in stocks of companies, it is important to analyze the industries and companies in the portfolio to obtain accurate information about imported commodities.

Total Assets: 9.8 billion USD (2023)
Expense Ratio: 0.11% (2023)
5-Year Return: 5.2% p.a. (estimated based on historical data until 2023)

The Schwab Strategic Trust - Schwab Emerging Markets Equity ETF (SCHE) offers a significant competitive advantage through its low expense ratio of 0.11%, which is very competitive compared to many other ETFs in the emerging markets space. These low costs enable investors to achieve a higher net return, making the ETF particularly attractive.

In addition, SCHE benefits from broad diversification across various emerging markets, reducing risk for investors while providing potential for growth in emerging markets. The solid performance in recent years, with an estimated annual return of 5.2% over five years, underscores the ETF's ability to remain stable in a volatile market environment.

SCHE's competitive advantage is further supported by the strong Charles Schwab brand, known for reliability and customer satisfaction. This attracts both institutional and retail investors seeking cost-effective and diversified investment opportunities in emerging markets.

Institutional Investor Share: 70% (estimated, 2025)

Insider Buys/Sells: No significant insider transactions reported (2025)

The Schwab Emerging Markets Equity ETF (SCHE) has a high institutional investor share, which is typical for ETFs as they are often used by large institutional investors such as pension funds and investment companies to achieve diversified exposures in emerging markets.

Insider transactions are less relevant for ETFs, as these funds do not own individual company shares but track a basket of stocks. Therefore, there are usually no insider buys or sells that would need to be reported.

Market share of SCHE: Approximately 3.5% (2025)

Top competitors and their market shares:

1. iShares MSCI Emerging Markets ETF (EEM): 8.2%
2. Vanguard FTSE Emerging Markets ETF (VWO): 7.9%
3. iShares Core MSCI Emerging Markets ETF (IEMG): 6.5%
4. SPDR Portfolio Emerging Markets ETF (SPEM): 4.1%
5. Invesco RAFI Strategic Emerging Markets ETF (ISEM): 3.7%
6. Schwab Emerging Markets Equity ETF (SCHE): 3.5%
7. Xtrackers MSCI Emerging Markets Hedged Equity ETF (DBEM): 2.9%
8. Franklin FTSE Emerging Markets ETF (FLEM): 2.6%
9. iShares MSCI Emerging Markets ex China ETF (EMXC): 2.3%
10. Columbia Emerging Markets Consumer ETF (ECON): 1.8%

Economic moat of SCHE:

The economic moat of SCHE is relatively limited compared to its larger competitors. SCHE offers low costs and broad diversification, which is attractive to cost-conscious investors. However, larger ETFs like EEM and VWO have the advantage of greater liquidity and longer market presence, giving them a stronger economic moat in the form of brand recognition and trust among institutional investors.

Competitors often have more extensive resources and a stronger global presence, allowing them to react more efficiently to market changes and handle larger capital flows. SCHE could strengthen its economic moat by further expanding its cost advantages and developing innovative investment strategies to differentiate itself from competitors.

Assets under Management (AUM): $10.5 billion (2025)

Annual Expense Ratio: 0.11%

Top Country Allocation: China, India, Taiwan

Top Sector Allocation: Information Technology, Financial Services, Consumer Goods

The Schwab Emerging Markets Equity ETF (SCHE) offers investors a cost-effective way to invest in emerging markets. With a low expense ratio of 0.11%, the ETF is attractive to long-term investors looking to benefit from growth opportunities in developing countries.

The allocation to countries like China, India, and Taiwan provides access to some of the fastest-growing economies in the world. These markets offer potential for above-average growth, especially in the Information Technology and Financial Services sectors, which are well-represented in the ETF.

However, investors should consider the risks in emerging markets, such as political uncertainties and currency fluctuations. Overall, SCHE could be a good addition to a diversified portfolio focused on long-term growth.

Dividend Yield: 2.5% (estimated for 2025)

The Schwab Strategic Trust - Schwab Emerging Markets Equity ETF (ARCA:SCHE) regularly pays a dividend. The dividend yield is estimated to be around 2.5% for 2025, based on historical payouts and current market conditions.

The reliability of dividend payments is generally high, as the ETF invests in a broad range of stocks from emerging markets, which are often stable dividend payers. However, fluctuations in dividend payments can occur depending on the economic situation in emerging markets and the specific company earnings of the firms included in the ETF.