SCHE - SCHE: I See More Downside Than Upside For Emerging Markets (Rating Downgrade)

2024-05-15 09:10:51 ET

Summary

• The article evaluates the Schwab Emerging Markets ETF (SCHE) and I downgrade my outlook to "hold" due to headwinds and under-performance compared to the S&P 500.
• China's dominance in the EM indices is a key reason for SCHE's under-performance.
• Developed markets are performing well, and I see better opportunities and a more attractive risk-reward in these markets.

Main Thesis & Background

The purpose of this article is to evaluate the broader emerging markets equity market, with a specific look at the Schwab Emerging Markets ETF (NYSEARCA: SCHE ). This is a passive ETF for emerging markets ( EM ) exposure, and one I have dabbled with in the past....

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