FNDE vs. SCMB

Last updated Jul 21, 2026

FNDE (Schwab Fundamental Emerging Markets Equity ETF) and SCMB (Schwab Municipal Bond ETF) are both exchange-traded funds - FNDE is a Emerging Markets Equities fund tracking the RAFI Fundamental High Liquidity Emerging Markets Index (Net), while SCMB is a Municipal Bonds fund tracking the ICE AMT-Free Core U.S. National Municipal Index. Both are passively managed. Over the past 3 years, FNDE returned 19.07%/yr vs 2.84%/yr for SCMB. At a 0.17 correlation, their price movements are largely independent. FNDE charges 0.39%/yr vs 0.03%/yr for SCMB.

Performance

FNDE vs. SCMB - Performance Comparison

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

Returns By Period

In the year-to-date period, FNDE achieves a 12.14% return, which is significantly higher than SCMB's 0.93% return.

FNDE

• 1D: 0.32%
• 1M: -1.23%
• 6M: 7.12%
• YTD: 12.14%
• 1Y: 24.57%
• 3Y*: 19.07%
• 5Y*: 10.23%
• 10Y*: 9.83%
• ALL TIME*: 7.00%

SCMB

• 1D: -0.12%
• 1M: -0.52%
• 6M: 0.00%
• YTD: 0.93%
• 1Y: 6.66%
• 3Y*: 2.84%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 3.81%

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

FNDE vs. SCMB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
FNDE Schwab Fundamental Emerging Markets Equity ETF	12.14%	29.46%	12.10%	14.99%	10.21%
SCMB Schwab Municipal Bond ETF	0.93%	3.78%	0.91%	5.86%	2.88%

Correlation

The correlation between FNDE and SCMB is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.22
Correlation (3Y) Calculated over the trailing 3-year period	0.18
Correlation (All Time) Calculated using the full available price history since Oct 12, 2022	0.17

Return for Risk

FNDE vs. SCMB — Risk / Return Rank

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

FNDE

FNDE Risk / Return Rank: 61
FNDE Sharpe Ratio Rank: 62
FNDE Sortino Ratio Rank: 58
FNDE Omega Ratio Rank: 62
FNDE Calmar Ratio Rank: 65
FNDE Martin Ratio Rank: 60

SCMB

SCMB Risk / Return Rank: 79
SCMB Sharpe Ratio Rank: 90
SCMB Sortino Ratio Rank: 91
SCMB Omega Ratio Rank: 93
SCMB Calmar Ratio Rank: 62
SCMB Martin Ratio Rank: 59

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. SCMB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Fundamental Emerging Markets Equity ETF (FNDE) and Schwab Municipal Bond ETF (SCMB). 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	SCMB	Difference
Sharpe ratio: Return per unit of total volatility	1.54	2.33	-0.79
Sortino ratio: Return per unit of downside risk	2.10	3.41	-1.31
Omega ratio: Gain probability vs. loss probability	1.28	1.50	-0.22
Calmar ratio: Return relative to maximum drawdown	2.41	2.29	+0.12
Martin ratio: Return relative to average drawdown	7.74	7.61	+0.13

FNDE vs. SCMB - Sharpe Ratio Comparison

The current FNDE Sharpe Ratio is 1.54, which is lower than the SCMB Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of FNDE and SCMB, 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. SCMB - Drawdown Comparison

The maximum FNDE drawdown since its inception was -43.55%, which is greater than SCMB's maximum drawdown of -6.13%. Use the drawdown chart below to compare losses from any high point for FNDE and SCMB.

Drawdown Indicators

	FNDE	SCMB	Difference
Max Drawdown Largest peak-to-trough decline	-43.55%	-6.13%	-37.42%
Max Drawdown (1Y) Largest decline over 1 year	-10.23%	-2.92%	-7.31%
Max Drawdown (3Y) Largest decline over 3 years	-18.40%	-5.57%	-12.83%
Max Drawdown (5Y) Largest decline over 5 years	-29.44%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-39.93%	—	—
Current Drawdown Current decline from peak	-4.52%	-1.01%	-3.51%
Average Drawdown Average peak-to-trough decline	-11.64%	-1.30%	-10.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.18%	0.88%	+2.30%

Volatility

FNDE vs. SCMB - Volatility Comparison

Schwab Fundamental Emerging Markets Equity ETF (FNDE) has a higher volatility of 4.79% compared to Schwab Municipal Bond ETF (SCMB) at 0.62%. This indicates that FNDE's price experiences larger fluctuations and is considered to be riskier than SCMB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FNDE	SCMB	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.79%	0.62%	+4.17%
Volatility (6M) Calculated over the trailing 6-month period	13.61%	2.19%	+11.42%
Volatility (1Y) Calculated over the trailing 1-year period	16.06%	2.87%	+13.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.07%	4.11%	+12.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.13%	4.11%	+15.02%

FNDE vs. SCMB - Expense Ratio Comparison

FNDE has a 0.39% expense ratio, which is higher than SCMB's 0.03% expense ratio.

Dividends

FNDE vs. SCMB - Dividend Comparison

FNDE's dividend yield for the trailing twelve months is around 3.69%, more than SCMB's 3.55% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNDE Schwab Fundamental Emerging Markets Equity ETF	3.69%	4.19%	4.82%	4.74%	5.59%	4.32%	2.50%	3.47%	2.98%	2.05%	1.65%	2.02%
SCMB Schwab Municipal Bond ETF	3.55%	3.36%	3.34%	3.10%	0.59%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FNDE and SCMB in my portfolio?

FNDE and SCMB have a correlation of 0.22, 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 SCMB?

FNDE has higher volatility (4.79%) compared to SCMB (0.62%). In terms of maximum drawdown, FNDE dropped -43.55% vs SCMB's -6.13%.

Which ETF is better, FNDE or SCMB?

On 3-year performance, FNDE leads with 19.07% vs 2.84% for SCMB. On fees, SCMB is cheaper at 0.03% per year. On volatility, SCMB has been the lower-risk option at 0.62%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FNDE or SCMB?

Over the 3-year period, FNDE has performed better with a 19.07% return vs 2.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FNDE or SCMB?

SCMB is cheaper with a 0.03% expense ratio, compared with 0.39% for FNDE.

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

FNDE has the higher dividend yield at 3.69%, compared with 3.55% for SCMB.

What is the main difference between FNDE and SCMB?

FNDE is categorized as Emerging Markets Equities, while SCMB is Municipal Bonds. FNDE tracks RAFI Fundamental High Liquidity Emerging Markets Index (Net), while SCMB tracks ICE AMT-Free Core U.S. National Municipal Index. Their fees differ too: 0.39% for FNDE and 0.03% for SCMB.

Which has better risk-adjusted returns?

SCMB currently has the higher Sharpe Ratio (2.33 vs 1.54), 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.