FEMS vs. FNDF

Last updated Jun 23, 2026

FEMS (First Trust Emerging Markets Small Cap AlphaDEX Fund) and FNDF (Schwab Fundamental International Equity ETF) are both exchange-traded funds - FEMS is a Emerging Markets Equities fund tracking the NASDAQ AlphaDEX EM Small Cap Index, while FNDF is a Foreign Large Cap Equities fund tracking the RAFI Fundamental High Liquidity Developed ex US Large Index (Net). Both are passively managed. Over the past 10 years, FEMS returned 9.75%/yr vs 12.46%/yr for FNDF. A 0.66 correlation means they provide meaningful diversification when combined. FEMS charges 0.80%/yr vs 0.25%/yr for FNDF.

Performance

FEMS vs. FNDF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) and Schwab Fundamental International Equity ETF (FNDF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FEMS achieves a 12.92% return, which is significantly lower than FNDF's 19.55% return. Over the past 10 years, FEMS has underperformed FNDF with an annualized return of 9.75%, while FNDF has yielded a comparatively higher 12.46% annualized return.

FEMS

• 1D: 0.48%
• 1M: 0.93%
• YTD: 12.92%
• 6M: 13.60%
• 1Y: 25.95%
• 3Y*: 14.00%
• 5Y*: 5.02%
• 10Y*: 9.75%

FNDF

• 1D: -0.13%
• 1M: 1.27%
• YTD: 19.55%
• 6M: 20.57%
• 1Y: 43.50%
• 3Y*: 23.53%
• 5Y*: 13.79%
• 10Y*: 12.46%

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

FEMS vs. FNDF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FEMS First Trust Emerging Markets Small Cap AlphaDEX Fund	12.92%	16.48%	1.88%	3.55%	1.85%	3.76%	7.85%	28.88%	-22.63%	49.02%
FNDF Schwab Fundamental International Equity ETF	19.55%	40.99%	2.29%	20.22%	-7.78%	14.97%	3.61%	18.46%	-14.21%	23.98%

Correlation

The correlation between FEMS and FNDF is 0.67, 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	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.64
Correlation (5Y) Calculated over the trailing 5-year period	0.65
Correlation (10Y) Calculated over the trailing 10-year period	0.66
Correlation (All Time) Calculated using the full available price history since Aug 15, 2013	0.66

The correlation between FEMS and FNDF has been stable across timeframes, ranging from 0.64 to 0.67 - a consistent structural relationship.

FEMS vs. FNDF - Sectors Allocation Comparison

Sectors	FEMS	FNDF
Technology	16.4%	14.4%
Industrials	16.2%	15.5%
Consumer Cyclical	14.9%	10.8%
Basic Materials	11.7%	11.3%
Real Estate	7.6%	0.8%
Energy	7.4%	10.9%
Consumer Defensive	6.8%	6.5%
Utilities	6.3%	3.5%
Financial Services	5.3%	16.2%
Communication Services	4.4%	4.9%
Healthcare	3.0%	5.2%

Return for Risk

FEMS vs. FNDF — Risk / Return Rank

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

FEMS

FEMS Risk / Return Rank: 49
FEMS Sharpe Ratio Rank: 47
FEMS Sortino Ratio Rank: 44
FEMS Omega Ratio Rank: 46
FEMS Calmar Ratio Rank: 60
FEMS Martin Ratio Rank: 45

FNDF

FNDF Risk / Return Rank: 84
FNDF Sharpe Ratio Rank: 87
FNDF Sortino Ratio Rank: 83
FNDF Omega Ratio Rank: 85
FNDF Calmar Ratio Rank: 82
FNDF Martin Ratio Rank: 81

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.

FEMS vs. FNDF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) and Schwab Fundamental International Equity ETF (FNDF). 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.

	FEMS	FNDF	Difference
Sharpe ratio: Return per unit of total volatility	1.58	2.75	-1.17
Sortino ratio: Return per unit of downside risk	2.16	3.55	-1.39
Omega ratio: Gain probability vs. loss probability	1.29	1.49	-0.20
Calmar ratio: Return relative to maximum drawdown	2.90	4.13	-1.22
Martin ratio: Return relative to average drawdown	7.35	15.38	-8.04

FEMS vs. FNDF - Sharpe Ratio Comparison

The current FEMS Sharpe Ratio is 1.58, which is lower than the FNDF Sharpe Ratio of 2.75. The chart below compares the historical Sharpe Ratios of FEMS and FNDF, 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

FEMS vs. FNDF - Drawdown Comparison

The maximum FEMS drawdown since its inception was -47.85%, which is greater than FNDF's maximum drawdown of -40.14%. Use the drawdown chart below to compare losses from any high point for FEMS and FNDF.

Drawdown Indicators

	FEMS	FNDF	Difference
Max Drawdown Largest peak-to-trough decline	-47.85%	-40.14%	-7.71%
Max Drawdown (1Y) Largest decline over 1 year	-8.98%	-10.60%	+1.62%
Max Drawdown (3Y) Largest decline over 3 years	-21.09%	-13.89%	-7.20%
Max Drawdown (5Y) Largest decline over 5 years	-26.43%	-25.56%	-0.87%
Max Drawdown (10Y) Largest decline over 10 years	-47.85%	-40.14%	-7.71%
Current Drawdown Current decline from peak	-4.23%	-2.03%	-2.20%
Average Drawdown Average peak-to-trough decline	-17.37%	-7.62%	-9.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.54%	2.84%	+0.70%

Volatility

FEMS vs. FNDF - Volatility Comparison

First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) has a higher volatility of 7.07% compared to Schwab Fundamental International Equity ETF (FNDF) at 6.27%. This indicates that FEMS's price experiences larger fluctuations and is considered to be riskier than FNDF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FEMS	FNDF	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.07%	6.27%	+0.80%
Volatility (6M) Calculated over the trailing 6-month period	14.11%	13.65%	+0.46%
Volatility (1Y) Calculated over the trailing 1-year period	16.55%	15.95%	+0.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.83%	16.32%	+1.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.02%	17.67%	+2.35%

FEMS vs. FNDF - Expense Ratio Comparison

FEMS has a 0.80% expense ratio, which is higher than FNDF's 0.25% expense ratio.

Dividends

FEMS vs. FNDF - Dividend Comparison

FEMS's dividend yield for the trailing twelve months is around 4.25%, more than FNDF's 2.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FEMS First Trust Emerging Markets Small Cap AlphaDEX Fund	4.25%	4.27%	3.97%	4.65%	4.55%	6.25%	2.90%	4.37%	4.68%	3.39%	2.42%	3.28%
FNDF Schwab Fundamental International Equity ETF	2.88%	3.44%	4.01%	3.41%	3.10%	3.54%	2.17%	3.20%	3.47%	2.32%	2.42%	2.08%

Frequently Asked Questions

Can I hold both FEMS and FNDF in my portfolio?

FEMS and FNDF have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FEMS or FNDF?

FEMS has higher volatility (7.07%) compared to FNDF (6.27%). In terms of maximum drawdown, FEMS dropped -47.85% vs FNDF's -40.14%.

Which ETF is better, FEMS or FNDF?

On 10-year performance, FNDF leads with 12.46% vs 9.75% for FEMS. On fees, FNDF is cheaper at 0.25% per year. On volatility, FNDF has been the lower-risk option at 6.27%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FEMS or FNDF?

Over the 10-year period, FNDF has performed better with a 12.46% return vs 9.75%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FEMS or FNDF?

FNDF is cheaper with a 0.25% expense ratio, compared with 0.80% for FEMS.

Which ETF pays a higher dividend yield, FEMS or FNDF?

FEMS has the higher dividend yield at 4.25%, compared with 2.88% for FNDF.

What is the main difference between FEMS and FNDF?

FEMS is categorized as Emerging Markets Equities, while FNDF is Foreign Large Cap Equities. FEMS tracks NASDAQ AlphaDEX EM Small Cap Index, while FNDF tracks RAFI Fundamental High Liquidity Developed ex US Large Index (Net). They also come from different issuers: First Trust and Charles Schwab. Their fees differ too: 0.80% for FEMS and 0.25% for FNDF.

Which has better risk-adjusted returns?

FNDF currently has the higher Sharpe Ratio (2.75 vs 1.58), 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.