FNDE vs. LDEM

Last updated Jun 24, 2026

FNDE (Schwab Fundamental Emerging Markets Equity ETF) and LDEM (iShares ESG MSCI EM Leaders ETF) are both Emerging Markets Equities funds - FNDE tracks the RAFI Fundamental High Liquidity Emerging Markets Index (Net) while LDEM tracks the MSCI EM Extended ESG Leaders 5% Issuer Capped Index. Both are passively managed. Over the past 5 years, FNDE returned 9.15%/yr vs 1.55%/yr for LDEM. Their correlation of 0.87 suggests significant overlap in exposure. FNDE charges 0.39%/yr vs 0.16%/yr for LDEM.

Performance

FNDE vs. LDEM - Performance Comparison

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

Returns By Period

In the year-to-date period, FNDE achieves a 11.56% return, which is significantly higher than LDEM's 4.51% return.

FNDE

• 1D: -2.50%
• 1M: -0.84%
• YTD: 11.56%
• 6M: 11.69%
• 1Y: 29.54%
• 3Y*: 19.89%
• 5Y*: 9.15%
• 10Y*: 11.02%

LDEM

• 1D: -3.58%
• 1M: -0.44%
• YTD: 4.51%
• 6M: 3.95%
• 1Y: 18.72%
• 3Y*: 14.15%
• 5Y*: 1.55%
• 10Y*: —

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

FNDE vs. LDEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
FNDE Schwab Fundamental Emerging Markets Equity ETF	11.56%	29.46%	12.10%	14.99%	-15.58%	14.41%	1.90%
LDEM iShares ESG MSCI EM Leaders ETF	4.51%	32.49%	5.87%	6.49%	-22.46%	-2.03%	16.30%

Correlation

The correlation between FNDE and LDEM is 0.92, 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	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (All Time) Calculated using the full available price history since Feb 12, 2020	0.87

The correlation between FNDE and LDEM has been stable across timeframes, ranging from 0.87 to 0.92 - a consistent structural relationship.

FNDE vs. LDEM - Sectors Allocation Comparison

Sectors	FNDE	LDEM
Technology	22.3%	23.4%
Financial Services	16.8%	24.2%
Energy	10.6%	4.2%
Basic Materials	8.0%	6.9%
Consumer Cyclical	7.9%	11.8%
Communication Services	3.6%	10.0%
Industrials	3.5%	7.1%
Utilities	1.9%	2.6%
Real Estate	1.5%	1.5%
Consumer Defensive	1.2%	3.3%
Healthcare	1.1%	3.4%

Return for Risk

FNDE vs. LDEM — Risk / Return Rank

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

FNDE

FNDE Risk / Return Rank: 59
FNDE Sharpe Ratio Rank: 58
FNDE Sortino Ratio Rank: 54
FNDE Omega Ratio Rank: 59
FNDE Calmar Ratio Rank: 61
FNDE Martin Ratio Rank: 61

LDEM

LDEM Risk / Return Rank: 30
LDEM Sharpe Ratio Rank: 29
LDEM Sortino Ratio Rank: 28
LDEM Omega Ratio Rank: 30
LDEM Calmar Ratio Rank: 30
LDEM Martin Ratio Rank: 32

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. LDEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Fundamental Emerging Markets Equity ETF (FNDE) and iShares ESG MSCI EM Leaders ETF (LDEM). 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	LDEM	Difference
Sharpe ratio: Return per unit of total volatility	1.88	1.01	+0.86
Sortino ratio: Return per unit of downside risk	2.51	1.47	+1.04
Omega ratio: Gain probability vs. loss probability	1.35	1.20	+0.15
Calmar ratio: Return relative to maximum drawdown	2.90	1.42	+1.48
Martin ratio: Return relative to average drawdown	10.42	4.47	+5.95

FNDE vs. LDEM - Sharpe Ratio Comparison

The current FNDE Sharpe Ratio is 1.88, which is higher than the LDEM Sharpe Ratio of 1.01. The chart below compares the historical Sharpe Ratios of FNDE and LDEM, 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. LDEM - Drawdown Comparison

The maximum FNDE drawdown since its inception was -43.55%, which is greater than LDEM's maximum drawdown of -40.82%. Use the drawdown chart below to compare losses from any high point for FNDE and LDEM.

Drawdown Indicators

	FNDE	LDEM	Difference
Max Drawdown Largest peak-to-trough decline	-43.55%	-40.82%	-2.73%
Max Drawdown (1Y) Largest decline over 1 year	-10.23%	-13.21%	+2.98%
Max Drawdown (3Y) Largest decline over 3 years	-18.40%	-15.12%	-3.28%
Max Drawdown (5Y) Largest decline over 5 years	-29.44%	-39.17%	+9.73%
Max Drawdown (10Y) Largest decline over 10 years	-39.93%	—	—
Current Drawdown Current decline from peak	-5.01%	-6.09%	+1.08%
Average Drawdown Average peak-to-trough decline	-11.67%	-17.26%	+5.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.84%	4.20%	-1.36%

Volatility

FNDE vs. LDEM - Volatility Comparison

The current volatility for Schwab Fundamental Emerging Markets Equity ETF (FNDE) is 6.66%, while iShares ESG MSCI EM Leaders ETF (LDEM) has a volatility of 9.21%. This indicates that FNDE experiences smaller price fluctuations and is considered to be less risky than LDEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FNDE	LDEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.66%	9.21%	-2.55%
Volatility (6M) Calculated over the trailing 6-month period	13.44%	16.17%	-2.73%
Volatility (1Y) Calculated over the trailing 1-year period	15.83%	18.58%	-2.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.07%	19.42%	-2.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.20%	20.91%	-1.71%

FNDE vs. LDEM - Expense Ratio Comparison

FNDE has a 0.39% expense ratio, which is higher than LDEM's 0.16% expense ratio.

Dividends

FNDE vs. LDEM - Dividend Comparison

FNDE's dividend yield for the trailing twelve months is around 3.75%, more than LDEM's 2.94% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNDE Schwab Fundamental Emerging Markets Equity ETF	3.75%	4.19%	4.82%	4.74%	5.59%	4.32%	2.50%	3.47%	2.98%	2.05%	1.65%	2.02%
LDEM iShares ESG MSCI EM Leaders ETF	2.94%	3.26%	2.64%	3.20%	4.93%	1.82%	1.89%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FNDE and LDEM in my portfolio?

With a correlation of 0.92, FNDE and LDEM 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, FNDE or LDEM?

LDEM has higher volatility (9.21%) compared to FNDE (6.66%). In terms of maximum drawdown, FNDE dropped -43.55% vs LDEM's -40.82%.

Which ETF is better, FNDE or LDEM?

On 5-year performance, FNDE leads with 9.15% vs 1.55% for LDEM. On fees, LDEM is cheaper at 0.16% per year. On volatility, FNDE has been the lower-risk option at 6.66%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FNDE or LDEM?

Over the 5-year period, FNDE has performed better with a 9.15% return vs 1.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FNDE or LDEM?

LDEM is cheaper with a 0.16% expense ratio, compared with 0.39% for FNDE.

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

FNDE has the higher dividend yield at 3.75%, compared with 2.94% for LDEM.

What is the main difference between FNDE and LDEM?

FNDE tracks RAFI Fundamental High Liquidity Emerging Markets Index (Net), while LDEM tracks MSCI EM Extended ESG Leaders 5% Issuer Capped Index. They also come from different issuers: Charles Schwab and iShares. Their fees differ too: 0.39% for FNDE and 0.16% for LDEM.

Which has better risk-adjusted returns?

FNDE currently has the higher Sharpe Ratio (1.88 vs 1.01), 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.