FNDC vs. VNQ
FNDC (Schwab Fundamental International Small Co. Index ETF) and VNQ (Vanguard Real Estate 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 VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index. Both are passively managed. Over the past 10 years, FNDC returned 9.07%/yr vs 5.20%/yr for VNQ. A 0.51 correlation means they provide meaningful diversification when combined. FNDC charges 0.39%/yr vs 0.13%/yr for VNQ.
Performance
FNDC vs. VNQ - Performance Comparison
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Returns By Period
In the year-to-date period, FNDC achieves a 11.54% return, which is significantly higher than VNQ's 9.20% return. Over the past 10 years, FNDC has outperformed VNQ with an annualized return of 9.07%, while VNQ has yielded a comparatively lower 5.20% annualized return.
FNDC
- 1D
- -1.21%
- 1M
- 0.42%
- YTD
- 11.54%
- 6M
- 13.40%
- 1Y
- 26.82%
- 3Y*
- 17.42%
- 5Y*
- 8.09%
- 10Y*
- 9.07%
VNQ
- 1D
- -2.50%
- 1M
- 0.63%
- YTD
- 9.20%
- 6M
- 9.07%
- 1Y
- 10.97%
- 3Y*
- 8.75%
- 5Y*
- 2.59%
- 10Y*
- 5.20%
FNDC vs. VNQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FNDC Schwab Fundamental International Small Co. Index ETF | 11.54% | 35.65% | 1.38% | 14.92% | -14.71% | 10.26% | 6.58% | 20.58% | -19.10% | 29.22% |
VNQ Vanguard Real Estate ETF | 9.20% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
Correlation
The correlation between FNDC and VNQ is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.46 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.55 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.58 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.52 |
Correlation (All Time) Calculated using the full available price history since Aug 15, 2013 | 0.51 |
The correlation between FNDC and VNQ shifts across timeframes, from 0.46 (1 year) to 0.58 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
FNDC vs. VNQ — Risk / Return Rank
FNDC
VNQ
FNDC vs. VNQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Fundamental International Small Co. Index ETF (FNDC) and Vanguard Real Estate ETF (VNQ). 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 | VNQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.02 | ||
| Sortino ratioReturn per unit of downside risk | +1.39 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.15 | +0.18 |
| Calmar ratioReturn relative to maximum drawdown | 2.41 | 1.32 | +1.08 |
| Martin ratioReturn relative to average drawdown | 8.85 | 4.15 | +4.70 |
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Drawdowns
FNDC vs. VNQ - Drawdown Comparison
The maximum FNDC drawdown since its inception was -43.22%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for FNDC and VNQ.
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Drawdown Indicators
| FNDC | VNQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -43.22% | -73.07% | +29.85% |
Max Drawdown (1Y)Largest decline over 1 year | -11.20% | -8.34% | -2.86% |
Max Drawdown (3Y)Largest decline over 3 years | -12.98% | -17.46% | +4.48% |
Max Drawdown (5Y)Largest decline over 5 years | -32.13% | -34.48% | +2.35% |
Max Drawdown (10Y)Largest decline over 10 years | -43.22% | -42.40% | -0.82% |
Current DrawdownCurrent decline from peak | -1.93% | -2.94% | +1.01% |
Average DrawdownAverage peak-to-trough decline | -8.43% | -13.60% | +5.17% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.04% | 2.65% | +0.39% |
Volatility
FNDC vs. VNQ - Volatility Comparison
Schwab Fundamental International Small Co. Index ETF (FNDC) and Vanguard Real Estate ETF (VNQ) have volatilities of 5.27% and 5.08%, 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.
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Volatility by Period
| FNDC | VNQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.27% | 5.08% | +0.19% |
Volatility (6M)Calculated over the trailing 6-month period | 12.54% | 10.13% | +2.41% |
Volatility (1Y)Calculated over the trailing 1-year period | 14.82% | 13.75% | +1.07% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.09% | 18.88% | -2.79% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 16.83% | 20.74% | -3.91% |
FNDC vs. VNQ - Expense Ratio Comparison
FNDC has a 0.39% expense ratio, which is higher than VNQ's 0.13% expense ratio.
Dividends
FNDC vs. VNQ - Dividend Comparison
FNDC's dividend yield for the trailing twelve months is around 3.46%, less than VNQ's 3.65% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FNDC Schwab Fundamental International Small Co. Index ETF | 3.46% | 3.86% | 3.59% | 2.86% | 1.98% | 2.58% | 1.77% | 2.71% | 2.68% | 1.94% | 1.95% | 1.30% |
VNQ Vanguard Real Estate ETF | 3.65% | 3.92% | 3.85% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% |
Frequently Asked Questions
FNDC and VNQ have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FNDC has higher volatility (5.27%) compared to VNQ (5.08%). In terms of maximum drawdown, FNDC dropped -43.22% vs VNQ's -73.07%.
On 10-year performance, FNDC leads with 9.07% vs 5.20% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 5.08%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FNDC has performed better with a 9.07% return vs 5.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VNQ is cheaper with a 0.13% expense ratio, compared with 0.39% for FNDC.
VNQ has the higher dividend yield at 3.65%, compared with 3.46% for FNDC.
FNDC is categorized as Foreign Small & Mid Cap Equities, while VNQ is REIT. FNDC tracks Russell RAFI Small Company Developed x US, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. They also come from different issuers: Charles Schwab and Vanguard. Their fees differ too: 0.39% for FNDC and 0.13% for VNQ.
FNDC currently has the higher Sharpe Ratio (1.82 vs 0.80), 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.
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