FNDC vs. USRT

Last updated Jun 9, 2026

FNDC (Schwab Fundamental International Small Co. Index ETF) and USRT (iShares Core U.S. REIT ETF) are both exchange-traded funds - FNDC is a Foreign Small & Mid Cap Equities fund tracking the Russell RAFI Small Company Developed x US, while USRT is a REIT fund tracking the FTSE NAREIT Equity REITs Index. Both are passively managed. Over the past 10 years, FNDC returned 8.59%/yr vs 6.28%/yr for USRT. At a 0.50 correlation, their price movements are largely independent. FNDC charges 0.39%/yr vs 0.08%/yr for USRT.

Performance

FNDC vs. USRT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Fundamental International Small Co. Index ETF (FNDC) and iShares Core U.S. REIT ETF (USRT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FNDC achieves a 9.07% return, which is significantly lower than USRT's 13.82% return. Over the past 10 years, FNDC has outperformed USRT with an annualized return of 8.59%, while USRT has yielded a comparatively lower 6.28% annualized return.

FNDC

• 1D: 0.43%
• 1M: -4.11%
• YTD: 9.07%
• 6M: 11.32%
• 1Y: 23.62%
• 3Y*: 17.11%
• 5Y*: 6.80%
• 10Y*: 8.59%

USRT

• 1D: -1.12%
• 1M: -0.77%
• YTD: 13.82%
• 6M: 14.38%
• 1Y: 15.69%
• 3Y*: 11.52%
• 5Y*: 4.45%
• 10Y*: 6.28%

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

FNDC vs. USRT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FNDC Schwab Fundamental International Small Co. Index ETF	9.07%	35.65%	1.38%	14.92%	-14.71%	10.26%	6.58%	20.58%	-19.10%	29.22%
USRT iShares Core U.S. REIT ETF	13.82%	2.44%	8.58%	13.64%	-24.43%	43.26%	-8.06%	25.98%	-4.67%	5.27%

Correlation

The correlation between FNDC and USRT is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.44
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (5Y) Calculated over the trailing 5-year period	0.57
Correlation (10Y) Calculated over the trailing 10-year period	0.50
Correlation (All Time) Calculated using the full available price history since Aug 16, 2013	0.50

The correlation between FNDC and USRT shifts across timeframes, from 0.44 (1 year) to 0.57 (5 years), reflecting how their relationship changes across market environments.

FNDC vs. USRT - Sectors Allocation Comparison

Sectors	FNDC	USRT
Industrials	25.8%	-
Consumer Cyclical	12.8%	-
Financial Services	11.5%	0.1%
Basic Materials	11.0%	-
Technology	8.7%	-
Real Estate	6.9%	99.4%
Consumer Defensive	6.3%	-
Healthcare	4.9%	-
Communication Services	4.8%	-
Energy	4.6%	-
Utilities	2.8%	-

Return for Risk

FNDC vs. USRT — Risk / Return Rank

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

FNDC

FNDC Risk / Return Rank: 51
FNDC Sharpe Ratio Rank: 53
FNDC Sortino Ratio Rank: 53
FNDC Omega Ratio Rank: 53
FNDC Calmar Ratio Rank: 47
FNDC Martin Ratio Rank: 51

USRT

USRT Risk / Return Rank: 38
USRT Sharpe Ratio Rank: 36
USRT Sortino Ratio Rank: 34
USRT Omega Ratio Rank: 34
USRT Calmar Ratio Rank: 43
USRT Martin Ratio Rank: 43

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.

FNDC vs. USRT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Fundamental International Small Co. Index ETF (FNDC) and iShares Core U.S. REIT ETF (USRT). 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.

	FNDC	USRT	Difference
Sharpe ratio: Return per unit of total volatility	1.63	1.18	+0.46
Sortino ratio: Return per unit of downside risk	2.30	1.66	+0.64
Omega ratio: Gain probability vs. loss probability	1.30	1.21	+0.09
Calmar ratio: Return relative to maximum drawdown	2.12	1.96	+0.16
Martin ratio: Return relative to average drawdown	7.87	6.30	+1.57
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FNDC vs. USRT - Sharpe Ratio Comparison

The current FNDC Sharpe Ratio is 1.63, which is higher than the USRT Sharpe Ratio of 1.18. The chart below compares the historical Sharpe Ratios of FNDC and USRT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FNDC	USRT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.63	1.18	+0.46
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.43	0.24	+0.19
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.51	0.30	+0.22
Sharpe Ratio (All Time) Calculated using the full available price history	0.48	0.18	+0.30

Drawdowns

FNDC vs. USRT - Drawdown Comparison

The maximum FNDC drawdown since its inception was -43.22%, smaller than the maximum USRT drawdown of -69.91%. Use the drawdown chart below to compare losses from any high point for FNDC and USRT.

Drawdown Indicators

	FNDC	USRT	Difference
Max Drawdown Largest peak-to-trough decline	-43.22%	-69.91%	+26.69%
Max Drawdown (1Y) Largest decline over 1 year	-11.20%	-8.04%	-3.16%
Max Drawdown (3Y) Largest decline over 3 years	-12.98%	-18.70%	+5.72%
Max Drawdown (5Y) Largest decline over 5 years	-32.13%	-31.03%	-1.10%
Max Drawdown (10Y) Largest decline over 10 years	-43.22%	-44.38%	+1.16%
Current Drawdown Current decline from peak	-4.11%	-1.94%	-2.17%
Average Drawdown Average peak-to-trough decline	-8.44%	-12.96%	+4.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.01%	2.49%	+0.52%

Volatility

FNDC vs. USRT - Volatility Comparison

Schwab Fundamental International Small Co. Index ETF (FNDC) has a higher volatility of 4.98% compared to iShares Core U.S. REIT ETF (USRT) at 4.08%. This indicates that FNDC's price experiences larger fluctuations and is considered to be riskier than USRT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FNDC	USRT	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.98%	4.08%	+0.90%
Volatility (6M) Calculated over the trailing 6-month period	12.15%	9.43%	+2.72%
Volatility (1Y) Calculated over the trailing 1-year period	14.55%	13.40%	+1.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.03%	18.90%	-2.87%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.83%	21.29%	-4.46%

FNDC vs. USRT - Expense Ratio Comparison

FNDC has a 0.39% expense ratio, which is higher than USRT's 0.08% expense ratio.

Dividends

FNDC vs. USRT - Dividend Comparison

FNDC's dividend yield for the trailing twelve months is around 3.54%, more than USRT's 2.65% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNDC Schwab Fundamental International Small Co. Index ETF	3.54%	3.86%	3.59%	2.86%	1.98%	2.58%	1.77%	2.71%	2.68%	1.94%	1.95%	1.30%
USRT iShares Core U.S. REIT ETF	2.65%	3.07%	2.85%	3.18%	3.46%	2.27%	3.12%	3.34%	5.66%	3.44%	3.98%	3.59%

Frequently Asked Questions

Can I hold both FNDC and USRT in my portfolio?

FNDC and USRT have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FNDC or USRT?

FNDC has higher volatility (4.98%) compared to USRT (4.08%). In terms of maximum drawdown, FNDC dropped -43.22% vs USRT's -69.91%.

Which ETF is better, FNDC or USRT?

On 10-year performance, FNDC leads with 8.59% vs 6.28% for USRT. On fees, USRT is cheaper at 0.08% per year. On volatility, USRT has been the lower-risk option at 4.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FNDC or USRT?

Over the 10-year period, FNDC has performed better with a 8.59% return vs 6.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FNDC or USRT?

USRT is cheaper with a 0.08% expense ratio, compared with 0.39% for FNDC.

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

FNDC has the higher dividend yield at 3.54%, compared with 2.65% for USRT.

What is the main difference between FNDC and USRT?

FNDC is categorized as Foreign Small & Mid Cap Equities, while USRT is REIT. FNDC tracks Russell RAFI Small Company Developed x US, while USRT tracks FTSE NAREIT Equity REITs Index. They also come from different issuers: Charles Schwab and iShares. Their fees differ too: 0.39% for FNDC and 0.08% for USRT.

Which has better risk-adjusted returns?

FNDC currently has the higher Sharpe Ratio (1.63 vs 1.18), 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.