FNDE vs. BKEM

Last updated Jul 16, 2026

FNDE (Schwab Fundamental Emerging Markets Equity ETF) and BKEM (BNY Mellon Emerging Markets Equity ETF) are both Emerging Markets Equities funds - FNDE tracks the RAFI Fundamental High Liquidity Emerging Markets Index (Net) while BKEM tracks the Morningstar Emerging Markets Large Cap Index. Both are passively managed. Over the past 5 years, FNDE returned 10.20%/yr vs 6.81%/yr for BKEM. Their correlation of 0.90 suggests significant overlap in exposure. FNDE charges 0.39%/yr vs 0.11%/yr for BKEM.

Performance

FNDE vs. BKEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Fundamental Emerging Markets Equity ETF (FNDE) and BNY Mellon Emerging Markets Equity ETF (BKEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FNDE achieves a 13.31% return, which is significantly lower than BKEM's 21.78% return.

FNDE

• 1D: 0.57%
• 1M: -1.71%
• 6M: 7.89%
• YTD: 13.31%
• 1Y: 26.74%
• 3Y*: 19.15%
• 5Y*: 10.20%
• 10Y*: 10.04%

BKEM

• 1D: -0.30%
• 1M: -6.42%
• 6M: 15.27%
• YTD: 21.78%
• 1Y: 37.30%
• 3Y*: 19.50%
• 5Y*: 6.81%
• 10Y*: —

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

FNDE vs. BKEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
FNDE Schwab Fundamental Emerging Markets Equity ETF	13.31%	29.46%	12.10%	14.99%	-15.58%	14.41%	36.53%
BKEM BNY Mellon Emerging Markets Equity ETF	21.78%	30.55%	7.53%	8.68%	-19.43%	-3.91%	48.44%

Correlation

The correlation between FNDE and BKEM is 0.87, 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	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (All Time) Calculated using the full available price history since Apr 24, 2020	0.90

The correlation between FNDE and BKEM has been stable across timeframes, ranging from 0.87 to 0.91 - a consistent structural relationship.

FNDE vs. BKEM - Sectors Allocation Comparison

Sectors	FNDE	BKEM
Technology	22.7%	43.0%
Financial Services	22.4%	16.9%
Basic Materials	10.7%	5.7%
Energy	10.5%	3.4%
Consumer Cyclical	8.4%	8.7%
Communication Services	5.5%	5.8%
Industrials	3.7%	8.1%
Consumer Defensive	3.0%	2.6%
Utilities	2.1%	2.0%
Real Estate	1.4%	1.1%
Healthcare	1.1%	2.7%

Return for Risk

FNDE vs. BKEM — Risk / Return Rank

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

FNDE

FNDE Risk / Return Rank: 63
FNDE Sharpe Ratio Rank: 63
FNDE Sortino Ratio Rank: 60
FNDE Omega Ratio Rank: 63
FNDE Calmar Ratio Rank: 65
FNDE Martin Ratio Rank: 61

BKEM

BKEM Risk / Return Rank: 63
BKEM Sharpe Ratio Rank: 60
BKEM Sortino Ratio Rank: 54
BKEM Omega Ratio Rank: 62
BKEM Calmar Ratio Rank: 71
BKEM Martin Ratio Rank: 67

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.

FNDE vs. BKEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Fundamental Emerging Markets Equity ETF (FNDE) and BNY Mellon Emerging Markets Equity ETF (BKEM). 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.

	FNDE	BKEM	Difference
Sharpe ratio: Return per unit of total volatility	1.68	1.63	+0.04
Sortino ratio: Return per unit of downside risk	2.27	2.15	+0.12
Omega ratio: Gain probability vs. loss probability	1.31	1.30	0.00
Calmar ratio: Return relative to maximum drawdown	2.63	2.86	-0.23
Martin ratio: Return relative to average drawdown	8.52	9.62	-1.09

FNDE vs. BKEM - Sharpe Ratio Comparison

The current FNDE Sharpe Ratio is 1.68, which is comparable to the BKEM Sharpe Ratio of 1.63. The chart below compares the historical Sharpe Ratios of FNDE and BKEM, 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

FNDE vs. BKEM - Drawdown Comparison

The maximum FNDE drawdown since its inception was -43.55%, which is greater than BKEM's maximum drawdown of -39.48%. Use the drawdown chart below to compare losses from any high point for FNDE and BKEM.

Drawdown Indicators

	FNDE	BKEM	Difference
Max Drawdown Largest peak-to-trough decline	-43.55%	-39.48%	-4.07%
Max Drawdown (1Y) Largest decline over 1 year	-10.23%	-13.11%	+2.88%
Max Drawdown (3Y) Largest decline over 3 years	-18.40%	-18.38%	-0.02%
Max Drawdown (5Y) Largest decline over 5 years	-29.44%	-33.89%	+4.45%
Max Drawdown (10Y) Largest decline over 10 years	-39.93%	—	—
Current Drawdown Current decline from peak	-3.52%	-7.79%	+4.27%
Average Drawdown Average peak-to-trough decline	-11.65%	-15.80%	+4.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.14%	3.89%	-0.75%

Volatility

FNDE vs. BKEM - Volatility Comparison

The current volatility for Schwab Fundamental Emerging Markets Equity ETF (FNDE) is 5.15%, while BNY Mellon Emerging Markets Equity ETF (BKEM) has a volatility of 10.21%. This indicates that FNDE experiences smaller price fluctuations and is considered to be less risky than BKEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FNDE	BKEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.15%	10.21%	-5.06%
Volatility (6M) Calculated over the trailing 6-month period	13.60%	20.96%	-7.36%
Volatility (1Y) Calculated over the trailing 1-year period	15.99%	22.93%	-6.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.10%	19.51%	-2.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.13%	19.65%	-0.52%

FNDE vs. BKEM - Expense Ratio Comparison

FNDE has a 0.39% expense ratio, which is higher than BKEM's 0.11% expense ratio.

Dividends

FNDE vs. BKEM - Dividend Comparison

FNDE's dividend yield for the trailing twelve months is around 3.65%, more than BKEM's 1.92% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BKEM BNY Mellon Emerging Markets Equity ETF	1.92%	2.25%	2.76%	3.02%	3.15%	2.22%	1.78%	0.00%	0.00%	0.00%	0.00%	0.00%
FNDE Schwab Fundamental Emerging Markets Equity ETF	3.65%	4.19%	4.82%	4.74%	5.59%	4.32%	2.50%	3.47%	2.98%	2.05%	1.65%	2.02%

Frequently Asked Questions

Can I hold both FNDE and BKEM in my portfolio?

FNDE and BKEM have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FNDE or BKEM?

BKEM has higher volatility (10.21%) compared to FNDE (5.15%). In terms of maximum drawdown, FNDE dropped -43.55% vs BKEM's -39.48%.

Which ETF is better, FNDE or BKEM?

On 5-year performance, FNDE leads with 10.20% vs 6.81% for BKEM. On fees, BKEM is cheaper at 0.11% per year. On volatility, FNDE has been the lower-risk option at 5.15%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FNDE or BKEM?

Over the 5-year period, FNDE has performed better with a 10.20% return vs 6.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FNDE or BKEM?

BKEM is cheaper with a 0.11% expense ratio, compared with 0.39% for FNDE.

Which ETF pays a higher dividend yield, FNDE or BKEM?

FNDE has the higher dividend yield at 3.65%, compared with 1.92% for BKEM.

What is the main difference between FNDE and BKEM?

FNDE tracks RAFI Fundamental High Liquidity Emerging Markets Index (Net), while BKEM tracks Morningstar Emerging Markets Large Cap Index. They also come from different issuers: Charles Schwab and BNY Mellon. Their fees differ too: 0.39% for FNDE and 0.11% for BKEM.

Which has better risk-adjusted returns?

FNDE currently has the higher Sharpe Ratio (1.68 vs 1.63), 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.