FNDC vs. SCZ

Last updated Aug 4, 2026

FNDC (Schwab Fundamental International Small Equity ETF) and SCZ (iShares MSCI EAFE Small-Cap ETF) are both Foreign Small & Mid Cap Equities funds - FNDC tracks the RAFI Fundamental High Liquidity Developed ex US Small Index (Net) while SCZ tracks the MSCI EAFE Small Cap Index. Both are passively managed. Over the past 10 years, FNDC returned 8.65%/yr vs 8.26%/yr for SCZ. Their 0.96 correlation means they have historically moved very closely together. FNDC charges 0.39%/yr vs 0.40%/yr for SCZ.

Performance

FNDC vs. SCZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Fundamental International Small Equity ETF (FNDC) and iShares MSCI EAFE Small-Cap ETF (SCZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FNDC achieves a 11.89% return, which is significantly higher than SCZ's 10.30% return. Both investments have delivered pretty close results over the past 10 years, with FNDC having a 8.65% annualized return and SCZ not far behind at 8.26%.

FNDC

• 1D: 0.69%
• 1M: 1.39%
• 6M: 5.12%
• YTD: 11.89%
• 1Y: 22.97%
• 3Y*: 17.45%
• 5Y*: 7.83%
• 10Y*: 8.65%
• ALL TIME*: 7.87%

SCZ

• 1D: 0.52%
• 1M: 1.03%
• 6M: 4.50%
• YTD: 10.30%
• 1Y: 19.96%
• 3Y*: 15.74%
• 5Y*: 5.25%
• 10Y*: 8.26%
• ALL TIME*: 5.55%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FNDC Schwab Fundamental International Small Equity ETF	$3.68M	$3.93M	$9.60M
SCZ iShares MSCI EAFE Small-Cap ETF	$128.65M	$132.73M	$128.86M

FNDC vs. SCZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FNDC Schwab Fundamental International Small Equity ETF	11.89%	35.65%	1.38%	14.92%	-14.71%	10.26%	6.58%	20.58%	-19.10%	29.22%
SCZ iShares MSCI EAFE Small-Cap ETF	10.30%	32.08%	1.52%	12.98%	-21.27%	10.12%	11.71%	24.68%	-17.64%	32.72%

Correlation

The correlation between FNDC and SCZ is 0.95, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.95
Correlation (3Y) Balances recent behavior with more history.	0.97
Correlation (5Y) Shows whether the relationship held over a longer period.	0.97
Correlation (10Y) Provides a long-term view across more market conditions.	0.96
Correlation (All Time) Calculated using the full available price history since Aug 15, 2013	0.96

The correlation between FNDC and SCZ has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

FNDC vs. SCZ - Sectors Allocation Comparison

Sectors	FNDC	SCZ
Industrials	24.6%	24.2%
Consumer Cyclical	13.4%	12.5%
Financial Services	11.9%	12.7%
Basic Materials	10.2%	9.7%
Technology	9.7%	11.0%
Real Estate	7.2%	9.9%
Consumer Defensive	6.1%	4.8%
Healthcare	5.5%	6.1%
Communication Services	4.9%	3.6%
Energy	3.9%	3.3%
Utilities	2.6%	2.1%

Return for Risk

FNDC vs. SCZ — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FNDC

FNDC Risk / Return Rank: 61
FNDC Sharpe Ratio Rank: 64
FNDC Sortino Ratio Rank: 65
FNDC Omega Ratio Rank: 64
FNDC Calmar Ratio Rank: 56
FNDC Martin Ratio Rank: 58

SCZ

SCZ Risk / Return Rank: 52
SCZ Sharpe Ratio Rank: 52
SCZ Sortino Ratio Rank: 53
SCZ Omega Ratio Rank: 52
SCZ Calmar Ratio Rank: 47
SCZ Martin Ratio Rank: 53

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FNDC vs. SCZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Fundamental International Small Equity ETF (FNDC) and iShares MSCI EAFE Small-Cap ETF (SCZ). 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.

	FNDC	SCZ	Difference
Sharpe ratio: Return per unit of total volatility	1.53	1.32	+0.21
Sortino ratio: Return per unit of downside risk	2.20	1.92	+0.28
Omega ratio: Gain probability vs. loss probability	1.28	1.24	+0.04
Calmar ratio: Return relative to maximum drawdown	2.06	1.75	+0.31
Martin ratio: Return relative to average drawdown	7.14	6.37	+0.77

FNDC vs. SCZ - Sharpe Ratio Comparison

The current FNDC Sharpe Ratio is 1.53, which is comparable to the SCZ Sharpe Ratio of 1.32. The chart below compares the historical Sharpe Ratios of FNDC and SCZ, 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

FNDC vs. SCZ - Drawdown Comparison

The maximum FNDC drawdown since its inception was -43.22%, smaller than the maximum SCZ drawdown of -61.86%. Use the drawdown chart below to compare losses from any high point for FNDC and SCZ.

Drawdown Indicators

	FNDC	SCZ	Difference
Max Drawdown Largest peak-to-trough decline	-43.22%	-61.86%	+18.64%
Max Drawdown (1Y) Largest decline over 1 year	-11.20%	-11.43%	+0.23%
Max Drawdown (3Y) Largest decline over 3 years	-12.00%	-14.52%	+2.52%
Max Drawdown (5Y) Largest decline over 5 years	-32.13%	-36.87%	+4.74%
Max Drawdown (10Y) Largest decline over 10 years	-43.22%	-41.07%	-2.15%
Current Drawdown Current decline from peak	-1.63%	-1.13%	-0.50%
Average Drawdown Average peak-to-trough decline	-8.38%	-12.97%	+4.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.23%	3.14%	+0.09%

Volatility

FNDC vs. SCZ - Volatility Comparison

The current volatility for Schwab Fundamental International Small Equity ETF (FNDC) is 4.23%, while iShares MSCI EAFE Small-Cap ETF (SCZ) has a volatility of 4.70%. This indicates that FNDC experiences smaller price fluctuations and is considered to be less risky than SCZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FNDC	SCZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.23%	4.70%	-0.47%
Volatility (6M) Calculated over the trailing 6-month period	12.98%	12.98%	0.00%
Volatility (1Y) Calculated over the trailing 1-year period	15.07%	15.21%	-0.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.07%	16.83%	-0.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.68%	17.17%	-0.49%

FNDC vs. SCZ - Expense Ratio Comparison

FNDC has a 0.39% expense ratio, which is lower than SCZ's 0.40% expense ratio.

Dividends

FNDC vs. SCZ - Dividend Comparison

FNDC's dividend yield for the trailing twelve months is around 3.64%, more than SCZ's 3.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNDC Schwab Fundamental International Small Equity ETF	3.64%	3.86%	3.59%	2.86%	1.98%	2.58%	1.77%	2.71%	2.68%	1.94%	1.95%	1.30%
SCZ iShares MSCI EAFE Small-Cap ETF	3.16%	3.30%	3.50%	2.96%	1.99%	2.96%	1.52%	3.52%	2.79%	2.38%	2.82%	2.06%

Frequently Asked Questions

Can I hold both FNDC and SCZ in my portfolio?

With a correlation of 0.95, FNDC and SCZ 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, FNDC or SCZ?

SCZ has higher volatility (4.70%) compared to FNDC (4.23%). In terms of maximum drawdown, FNDC dropped -43.22% vs SCZ's -61.86%.

Which ETF is better, FNDC or SCZ?

On 10-year performance, FNDC leads with 8.65% vs 8.26% for SCZ. On fees, FNDC is cheaper at 0.39% per year. On volatility, FNDC has been the lower-risk option at 4.23%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FNDC or SCZ?

Over the 10-year period, FNDC has performed better with a 8.65% return vs 8.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FNDC or SCZ?

FNDC is cheaper with a 0.39% expense ratio, compared with 0.40% for SCZ.

Which ETF pays a higher dividend yield, FNDC or SCZ?

FNDC has the higher dividend yield at 3.64%, compared with 3.16% for SCZ.

What is the main difference between FNDC and SCZ?

FNDC tracks RAFI Fundamental High Liquidity Developed ex US Small Index (Net), while SCZ tracks MSCI EAFE Small Cap Index. They also come from different issuers: Charles Schwab and iShares. Their fees differ too: 0.39% for FNDC and 0.40% for SCZ.

Which has better risk-adjusted returns?

FNDC currently has the higher Sharpe Ratio (1.53 vs 1.32), 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.