AVEM vs. FNDX

Last updated Jun 12, 2026

AVEM (Avantis Emerging Markets Equity ETF) and FNDX (Schwab Fundamental U.S. Large Company Index ETF) are both exchange-traded funds - AVEM is a Emerging Markets Equities fund actively managed by Avantis, while FNDX is a Large Cap Value Equities fund tracking the RAFI Fundamental High Liquidity US Large Index. AVEM is actively managed, while FNDX is passively managed. Over the past 5 years, AVEM returned 9.57%/yr vs 12.91%/yr for FNDX. A 0.64 correlation means they provide meaningful diversification when combined. AVEM charges 0.33%/yr vs 0.25%/yr for FNDX.

Performance

AVEM vs. FNDX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Avantis Emerging Markets Equity ETF (AVEM) and Schwab Fundamental U.S. Large Company Index ETF (FNDX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AVEM achieves a 24.56% return, which is significantly higher than FNDX's 14.46% return.

AVEM

• 1D: 4.59%
• 1M: 2.95%
• YTD: 24.56%
• 6M: 25.81%
• 1Y: 45.40%
• 3Y*: 24.22%
• 5Y*: 9.57%
• 10Y*: —

FNDX

• 1D: 1.47%
• 1M: 1.97%
• YTD: 14.46%
• 6M: 13.13%
• 1Y: 30.72%
• 3Y*: 20.21%
• 5Y*: 12.91%
• 10Y*: 14.32%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AVEM vs. FNDX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
AVEM Avantis Emerging Markets Equity ETF	24.56%	34.48%	7.49%	15.30%	-18.15%	5.16%	14.39%	10.40%
FNDX Schwab Fundamental U.S. Large Company Index ETF	14.46%	16.94%	16.77%	18.23%	-6.92%	31.73%	9.12%	7.95%

Correlation

The correlation between AVEM and FNDX is 0.61, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.61
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (All Time) Calculated using the full available price history since Sep 19, 2019	0.64

The correlation between AVEM and FNDX has been stable across timeframes, ranging from 0.60 to 0.64 - a consistent structural relationship.

AVEM vs. FNDX - Sectors Allocation Comparison

Sectors	AVEM	FNDX
Technology	32.3%	19.1%
Financial Services	20.7%	14.1%
Consumer Cyclical	9.2%	9.2%
Industrials	9.2%	9.3%
Basic Materials	8.1%	3.7%
Communication Services	5.4%	10.1%
Energy	5.1%	10.3%
Consumer Defensive	3.1%	7.4%
Healthcare	2.8%	12.0%
Utilities	2.6%	3.2%
Real Estate	1.6%	1.8%

Return for Risk

AVEM vs. FNDX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AVEM

AVEM Risk / Return Rank: 80
AVEM Sharpe Ratio Rank: 81
AVEM Sortino Ratio Rank: 76
AVEM Omega Ratio Rank: 82
AVEM Calmar Ratio Rank: 80
AVEM Martin Ratio Rank: 81

FNDX

FNDX Risk / Return Rank: 93
FNDX Sharpe Ratio Rank: 94
FNDX Sortino Ratio Rank: 93
FNDX Omega Ratio Rank: 92
FNDX Calmar Ratio Rank: 92
FNDX Martin Ratio Rank: 92

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AVEM vs. FNDX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Avantis Emerging Markets Equity ETF (AVEM) and Schwab Fundamental U.S. Large Company Index ETF (FNDX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AVEM	FNDX	Difference
Sharpe ratio: Return per unit of total volatility	2.15	2.96	-0.81
Sortino ratio: Return per unit of downside risk	2.79	4.11	-1.32
Omega ratio: Gain probability vs. loss probability	1.40	1.54	-0.14
Calmar ratio: Return relative to maximum drawdown	3.47	5.09	-1.61
Martin ratio: Return relative to average drawdown	13.23	19.73	-6.50

AVEM vs. FNDX - Sharpe Ratio Comparison

The current AVEM Sharpe Ratio is 2.15, which is comparable to the FNDX Sharpe Ratio of 2.96. The chart below compares the historical Sharpe Ratios of AVEM and FNDX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AVEM vs. FNDX - Drawdown Comparison

The maximum AVEM drawdown since its inception was -36.05%, roughly equal to the maximum FNDX drawdown of -37.72%. Use the drawdown chart below to compare losses from any high point for AVEM and FNDX.

Drawdown Indicators

	AVEM	FNDX	Difference
Max Drawdown Largest peak-to-trough decline	-36.05%	-37.72%	+1.67%
Max Drawdown (1Y) Largest decline over 1 year	-13.13%	-6.06%	-7.07%
Max Drawdown (3Y) Largest decline over 3 years	-18.02%	-16.30%	-1.72%
Max Drawdown (5Y) Largest decline over 5 years	-33.88%	-19.06%	-14.82%
Max Drawdown (10Y) Largest decline over 10 years	—	-37.72%	—
Current Drawdown Current decline from peak	-3.73%	-0.77%	-2.96%
Average Drawdown Average peak-to-trough decline	-10.08%	-3.55%	-6.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.44%	1.56%	+1.88%

Volatility

AVEM vs. FNDX - Volatility Comparison

Avantis Emerging Markets Equity ETF (AVEM) has a higher volatility of 11.06% compared to Schwab Fundamental U.S. Large Company Index ETF (FNDX) at 3.07%. This indicates that AVEM's price experiences larger fluctuations and is considered to be riskier than FNDX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AVEM	FNDX	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.06%	3.07%	+7.99%
Volatility (6M) Calculated over the trailing 6-month period	18.80%	7.63%	+11.17%
Volatility (1Y) Calculated over the trailing 1-year period	21.17%	10.42%	+10.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.71%	15.22%	+3.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.77%	17.51%	+3.26%

AVEM vs. FNDX - Expense Ratio Comparison

AVEM has a 0.33% expense ratio, which is higher than FNDX's 0.25% expense ratio.

Dividends

AVEM vs. FNDX - Dividend Comparison

AVEM's dividend yield for the trailing twelve months is around 2.60%, more than FNDX's 1.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVEM Avantis Emerging Markets Equity ETF	2.60%	2.45%	3.17%	3.06%	2.77%	2.61%	1.60%	0.35%	0.00%	0.00%	0.00%	0.00%
FNDX Schwab Fundamental U.S. Large Company Index ETF	1.45%	1.63%	1.76%	1.82%	2.07%	1.64%	2.29%	2.23%	2.40%	1.86%	2.01%	2.01%

Frequently Asked Questions

Can I hold both AVEM and FNDX in my portfolio?

AVEM and FNDX have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AVEM or FNDX?

AVEM has higher volatility (11.06%) compared to FNDX (3.07%). In terms of maximum drawdown, AVEM dropped -36.05% vs FNDX's -37.72%.

Which ETF is better, AVEM or FNDX?

On 5-year performance, FNDX leads with 12.91% vs 9.57% for AVEM. On fees, FNDX is cheaper at 0.25% per year. On volatility, FNDX has been the lower-risk option at 3.07%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AVEM or FNDX?

Over the 5-year period, FNDX has performed better with a 12.91% return vs 9.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AVEM or FNDX?

FNDX is cheaper with a 0.25% expense ratio, compared with 0.33% for AVEM.

Which ETF pays a higher dividend yield, AVEM or FNDX?

AVEM has the higher dividend yield at 2.60%, compared with 1.45% for FNDX.

What is the main difference between AVEM and FNDX?

AVEM is categorized as Emerging Markets Equities, while FNDX is Large Cap Value Equities. They also come from different issuers: Avantis and Charles Schwab. Their fees differ too: 0.33% for AVEM and 0.25% for FNDX.

Which has better risk-adjusted returns?

FNDX currently has the higher Sharpe Ratio (2.96 vs 2.15), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.