FNDA vs. SMMD

Last updated Jul 17, 2026

FNDA (Schwab Fundamental U.S. Small Company ETF) and SMMD (iShares Russell 2500 ETF) are both exchange-traded funds - FNDA is a Small Cap Blend Equities fund tracking the RAFI Fundamental High Liquidity U.S. Small Index, while SMMD is a Small Cap Growth Equities fund tracking the Russell 2500 Index. Both are passively managed. Over the past 5 years, FNDA returned 9.51%/yr vs 8.99%/yr for SMMD. Their correlation of 0.92 suggests significant overlap in exposure. FNDA charges 0.25%/yr vs 0.15%/yr for SMMD.

Performance

FNDA vs. SMMD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Fundamental U.S. Small Company ETF (FNDA) and iShares Russell 2500 ETF (SMMD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with FNDA having a 20.82% return and SMMD slightly higher at 20.90%.

FNDA

• 1D: 0.91%
• 1M: 2.67%
• 6M: 12.04%
• YTD: 20.82%
• 1Y: 30.96%
• 3Y*: 14.92%
• 5Y*: 9.51%
• 10Y*: 11.01%

SMMD

• 1D: 0.35%
• 1M: 0.58%
• 6M: 12.63%
• YTD: 20.90%
• 1Y: 32.16%
• 3Y*: 16.58%
• 5Y*: 8.99%
• 10Y*: —

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

FNDA vs. SMMD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FNDA Schwab Fundamental U.S. Small Company ETF	20.82%	7.44%	9.00%	20.29%	-14.83%	31.12%	8.44%	24.34%	-12.12%	11.28%
SMMD iShares Russell 2500 ETF	20.90%	11.72%	11.87%	17.71%	-18.53%	18.30%	19.98%	28.01%	-10.58%	11.27%

Correlation

The correlation between FNDA and SMMD is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (All Time) Calculated using the full available price history since Jul 7, 2017	0.92

The correlation between FNDA and SMMD has been stable across timeframes, ranging from 0.92 to 0.97 - a consistent structural relationship.

FNDA vs. SMMD - Sectors Allocation Comparison

Sectors	FNDA	SMMD
Industrials	19.3%	22.7%
Technology	16.2%	15.8%
Financial Services	14.1%	13.7%
Consumer Cyclical	12.2%	9.2%
Real Estate	9.8%	7.9%
Healthcare	7.1%	13.2%
Energy	5.5%	3.7%
Basic Materials	5.2%	4.5%
Communication Services	4.0%	2.5%
Consumer Defensive	3.9%	3.4%
Utilities	2.7%	2.8%

Return for Risk

FNDA vs. SMMD — Risk / Return Rank

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

FNDA

FNDA Risk / Return Rank: 73
FNDA Sharpe Ratio Rank: 71
FNDA Sortino Ratio Rank: 74
FNDA Omega Ratio Rank: 66
FNDA Calmar Ratio Rank: 80
FNDA Martin Ratio Rank: 74

SMMD

SMMD Risk / Return Rank: 74
SMMD Sharpe Ratio Rank: 71
SMMD Sortino Ratio Rank: 73
SMMD Omega Ratio Rank: 66
SMMD Calmar Ratio Rank: 80
SMMD Martin Ratio Rank: 82

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.

FNDA vs. SMMD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Fundamental U.S. Small Company ETF (FNDA) and iShares Russell 2500 ETF (SMMD). 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.

	FNDA	SMMD	Difference
Sharpe ratio: Return per unit of total volatility	1.82	1.83	-0.01
Sortino ratio: Return per unit of downside risk	2.65	2.62	+0.04
Omega ratio: Gain probability vs. loss probability	1.32	1.31	0.00
Calmar ratio: Return relative to maximum drawdown	3.32	3.34	-0.02
Martin ratio: Return relative to average drawdown	10.73	12.59	-1.86

FNDA vs. SMMD - Sharpe Ratio Comparison

The current FNDA Sharpe Ratio is 1.82, which is comparable to the SMMD Sharpe Ratio of 1.83. The chart below compares the historical Sharpe Ratios of FNDA and SMMD, 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

FNDA vs. SMMD - Drawdown Comparison

The maximum FNDA drawdown since its inception was -44.64%, which is greater than SMMD's maximum drawdown of -41.06%. Use the drawdown chart below to compare losses from any high point for FNDA and SMMD.

Drawdown Indicators

	FNDA	SMMD	Difference
Max Drawdown Largest peak-to-trough decline	-44.64%	-41.06%	-3.58%
Max Drawdown (1Y) Largest decline over 1 year	-9.36%	-9.66%	+0.30%
Max Drawdown (3Y) Largest decline over 3 years	-25.92%	-25.50%	-0.42%
Max Drawdown (5Y) Largest decline over 5 years	-25.92%	-28.26%	+2.34%
Max Drawdown (10Y) Largest decline over 10 years	-44.64%	—	—
Current Drawdown Current decline from peak	-0.42%	-1.60%	+1.18%
Average Drawdown Average peak-to-trough decline	-6.64%	-8.28%	+1.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.89%	2.56%	+0.33%

Volatility

FNDA vs. SMMD - Volatility Comparison

Schwab Fundamental U.S. Small Company ETF (FNDA) and iShares Russell 2500 ETF (SMMD) have volatilities of 3.81% and 3.87%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FNDA	SMMD	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.81%	3.87%	-0.06%
Volatility (6M) Calculated over the trailing 6-month period	12.11%	13.28%	-1.17%
Volatility (1Y) Calculated over the trailing 1-year period	17.07%	17.63%	-0.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.81%	20.88%	-0.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.31%	22.31%	0.00%

FNDA vs. SMMD - Expense Ratio Comparison

FNDA has a 0.25% expense ratio, which is higher than SMMD's 0.15% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FNDA vs. SMMD - Dividend Comparison

FNDA's dividend yield for the trailing twelve months is around 1.10%, more than SMMD's 1.06% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNDA Schwab Fundamental U.S. Small Company ETF	1.10%	1.22%	1.53%	1.37%	1.38%	1.15%	1.31%	1.38%	1.64%	1.30%	1.18%	1.33%
SMMD iShares Russell 2500 ETF	1.06%	1.28%	1.27%	1.44%	1.79%	1.12%	1.31%	1.50%	2.45%	0.68%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FNDA and SMMD in my portfolio?

With a correlation of 0.93, FNDA and SMMD move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FNDA or SMMD?

SMMD has higher volatility (3.87%) compared to FNDA (3.81%). In terms of maximum drawdown, FNDA dropped -44.64% vs SMMD's -41.06%.

Which ETF is better, FNDA or SMMD?

On 5-year performance, FNDA leads with 9.51% vs 8.99% for SMMD. On fees, SMMD is cheaper at 0.15% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FNDA or SMMD?

Over the 5-year period, FNDA has performed better with a 9.51% return vs 8.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FNDA or SMMD?

SMMD is cheaper with a 0.15% expense ratio, compared with 0.25% for FNDA.

Which ETF pays a higher dividend yield, FNDA or SMMD?

FNDA has the higher dividend yield at 1.10%, compared with 1.06% for SMMD.

What is the main difference between FNDA and SMMD?

FNDA is categorized as Small Cap Blend Equities, while SMMD is Small Cap Growth Equities. FNDA tracks RAFI Fundamental High Liquidity U.S. Small Index, while SMMD tracks Russell 2500 Index. They also come from different issuers: Charles Schwab and iShares. Their fees differ too: 0.25% for FNDA and 0.15% for SMMD.

Which has better risk-adjusted returns?

SMMD currently has the higher Sharpe Ratio (1.83 vs 1.82), 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.