US-listed · NYSE Arca · FIF-eligible (above NZ$50K)
Schwab SCHE Schwab Emerging Markets Equity ETF
Tracks the FTSE Emerging Index — large + mid-cap stocks across 20+ emerging markets.
Updated Reviewed quarterly
About this fund
What is SCHE?
SCHE is the US-listed ticker for Schwab Emerging Markets Equity ETF, issued by Schwab. Tracks the FTSE Emerging Index — large + mid-cap stocks across 20+ emerging markets. TER is 0.11% per year, with a trailing 12-month distribution yield of approximately 3.0%. Distributions are paid quarterly.
How to buy
Where can I buy SCHE from New Zealand?
Hatch NZ-built. US$3 flat per trade, ~0.5% FX.
Stake Commission-free US shares; ~0.7% FX.
Sharesies NZ + AU + US in one account; tiered subscription pricing.
Interactive Brokers Tiered commissions; FX margin ~0.002% (lowest published of platforms reviewed).
See the full platform comparison for fees, minimums, and supported markets across all 11 NZ-accessible brokers.
NZ tax
How is SCHE taxed for NZ investors?
SCHE is US-listed, so it sits in the Foreign Investment Fund (FIF) regime once your overseas-share holdings exceed NZ$50,000 cost basis. Below that threshold, the FIF regime does not apply and you pay tax on dividends only.
Above NZ$50K cost basis, most NZ retail investors use the Fair Dividend Rate (FDR) method — deemed income = 5% × opening market value × your marginal tax rate. FDR vs CV method →
US dividends carry 15% US withholding tax under the NZ–US tax treaty (file a W-8BEN with your broker; without it, the rate is 30%). The 15% can be claimed as a foreign tax credit on your IR3.
Tax outcomes depend on your portfolio size, marginal rate, and FDR-vs-CV election. See PIE vs FIF for the full comparison and consult a registered NZ tax adviser for personalised guidance.
FAQ
Common questions about SCHE
What is the SCHE ETF? ⌄
SCHE is the Schwab Emerging Markets Equity ETF — it tracks the FTSE Emerging Index, holding ~1,500 large- and mid-cap stocks across 20+ emerging markets (India, Taiwan, China A-shares, Brazil, South Africa, etc). TER is 0.11%, distributions paid quarterly. Yield ~3.0%.
SCHE vs VWO — what's the difference? ⌄
Both track FTSE emerging-market indices. SCHE (Schwab) charges 0.11% TER vs VWO (Vanguard) at 0.07%. SCHE has slightly lower trading volume but tighter NZ-investor pricing on some platforms. For buy-and-hold investors the small TER difference compounds over decades; both are reasonable choices.
Can NZ residents buy SCHE? ⌄
Yes. SCHE is available via Hatch, Stake, Sharesies (US market), and Interactive Brokers. Above NZ$50K cost basis FIF rules apply — most NZ investors use the FDR method. File a W-8BEN to apply the 15% NZ–US treaty withholding rate to distributions.
Why include emerging markets in an NZ portfolio? ⌄
Emerging markets historically have lower correlation to NZ + US equities and higher long-term return potential, with materially higher volatility. They give exposure to China, India, Brazil, Indonesia and other economies underweighted in S&P 500 / NZX-50 indices. Typical portfolio allocations are 5-15% of equities; suitable share depends on time horizon and risk tolerance.