FNDE vs. DFEM
FNDE (Schwab Fundamental Emerging Markets Equity ETF) and DFEM (Dimensional Emerging Markets Core Equity 2 ETF) are both exchange-traded funds - FNDE is a Emerging Markets Equities fund tracking the RAFI Fundamental High Liquidity Emerging Markets Index (Net), while DFEM is a Emerging Markets Diversified fund actively managed by Dimensional. FNDE is passively managed, while DFEM is actively managed. Over the past 3 years, FNDE returned 19.15%/yr vs 19.24%/yr for DFEM. Their correlation of 0.93 suggests significant overlap in exposure. Both charge a 0.39% expense ratio.
Performance
FNDE vs. DFEM - Performance Comparison
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Returns By Period
In the year-to-date period, FNDE achieves a 13.31% return, which is significantly lower than DFEM's 18.95% 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%
DFEM
- 1D
- -0.18%
- 1M
- -6.03%
- 6M
- 13.46%
- YTD
- 18.95%
- 1Y
- 32.84%
- 3Y*
- 19.24%
- 5Y*
- —
- 10Y*
- —
FNDE vs. DFEM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
FNDE Schwab Fundamental Emerging Markets Equity ETF | 13.31% | 29.46% | 12.10% | 14.99% | -2.96% |
DFEM Dimensional Emerging Markets Core Equity 2 ETF | 18.95% | 29.51% | 7.53% | 13.91% | -9.60% |
Correlation
The correlation between FNDE and DFEM is 0.91, 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 | 0.91 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.93 |
Correlation (All Time) Calculated using the full available price history since Apr 27, 2022 | 0.93 |
The correlation between FNDE and DFEM has been stable across timeframes, ranging from 0.91 to 0.93 - a consistent structural relationship.
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Return for Risk
FNDE vs. DFEM — Risk / Return Rank
FNDE
DFEM
FNDE vs. DFEM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Fundamental Emerging Markets Equity ETF (FNDE) and Dimensional Emerging Markets Core Equity 2 ETF (DFEM). 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 | DFEM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.16 | ||
| Sortino ratioReturn per unit of downside risk | +0.25 | ||
| Omega ratioGain probability vs. loss probability | 1.31 | 1.29 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.63 | 2.72 | -0.09 |
| Martin ratioReturn relative to average drawdown | 8.52 | 9.27 | -0.75 |
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Drawdowns
FNDE vs. DFEM - Drawdown Comparison
The maximum FNDE drawdown since its inception was -43.55%, which is greater than DFEM's maximum drawdown of -20.82%. Use the drawdown chart below to compare losses from any high point for FNDE and DFEM.
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Drawdown Indicators
| FNDE | DFEM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -43.55% | -20.82% | -22.73% |
Max Drawdown (1Y)Largest decline over 1 year | -10.23% | -12.12% | +1.89% |
Max Drawdown (3Y)Largest decline over 3 years | -18.40% | -18.09% | -0.31% |
Max Drawdown (5Y)Largest decline over 5 years | -29.44% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -39.93% | — | — |
Current DrawdownCurrent decline from peak | -3.52% | -7.19% | +3.67% |
Average DrawdownAverage peak-to-trough decline | -11.65% | -5.02% | -6.63% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.14% | 3.55% | -0.41% |
Volatility
FNDE vs. DFEM - Volatility Comparison
The current volatility for Schwab Fundamental Emerging Markets Equity ETF (FNDE) is 5.15%, while Dimensional Emerging Markets Core Equity 2 ETF (DFEM) has a volatility of 9.50%. This indicates that FNDE experiences smaller price fluctuations and is considered to be less risky than DFEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FNDE | DFEM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.15% | 9.50% | -4.35% |
Volatility (6M)Calculated over the trailing 6-month period | 13.60% | 19.91% | -6.31% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.99% | 21.69% | -5.70% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.10% | 18.03% | -0.93% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.13% | 18.03% | +1.10% |
FNDE vs. DFEM - Expense Ratio Comparison
Both FNDE and DFEM have an expense ratio of 0.39%.
Dividends
FNDE vs. DFEM - Dividend Comparison
FNDE's dividend yield for the trailing twelve months is around 3.65%, more than DFEM's 1.90% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DFEM Dimensional Emerging Markets Core Equity 2 ETF | 1.90% | 2.32% | 2.50% | 2.38% | 1.99% | 0.00% | 0.00% | 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
With a correlation of 0.91, FNDE and DFEM 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.
DFEM has higher volatility (9.50%) compared to FNDE (5.15%). In terms of maximum drawdown, FNDE dropped -43.55% vs DFEM's -20.82%.
On 3-year performance, DFEM leads with 19.24% vs 19.15% for FNDE. Both ETFs have the same 0.39% expense ratio. 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.
Over the 3-year period, DFEM has performed better with a 19.24% return vs 19.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FNDE and DFEM have the same expense ratio: 0.39% per year.
FNDE has the higher dividend yield at 3.65%, compared with 1.90% for DFEM.
FNDE is categorized as Emerging Markets Equities, while DFEM is Emerging Markets Diversified. They also come from different issuers: Charles Schwab and Dimensional.
FNDE currently has the higher Sharpe Ratio (1.68 vs 1.52), 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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