SCHE: Emerging Markets Offer Value Amid Geopolitical Tensions

Ivo Kolchev1.62K FollowersFollow5ShareSavePlay(12min)CommentsSummaryThe Schwab Emerging Markets Equity ETF has modestly outperformed the S&P 500 so far in 2026.This comes as cheap valuations and solid long-term GDP growth expectations for emerging markets outweigh near-term energy price uncertainty.SCHE has modest direct Middle East exposure, but key holdings domiciled in China, Taiwan, and India are likely to see temporary earnings pressure amid the war in Iran.Coupled with a low 0.07% expense ratio, this makes SCHE ideally suited for long-term investors willing to look through near-term news headlines.Specific risks stemming from SCHE's sector exposure and emerging markets focus are also discussed. samxmeg/iStock via Getty Images Introduction Against the backdrop of energy price volatility, ETFs focused on emerging markets have largely given up year-to-date gains, albeit still outperforming the S&P 500, which is negative for the year.

The Schwab Emerging Markets Equity ETF (This article was written byIvo Kolchev1.62K FollowersFollowI ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with covered calls and cash secured puts. I approach investing purely from a fundamental long-term point of view.

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