FNDE vs. VNQ
FNDE (Schwab Fundamental Emerging Markets Equity ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - FNDE is a Emerging Markets Equities fund tracking the RAFI Fundamental High Liquidity Emerging Markets Index (Net), 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, FNDE returned 10.87%/yr vs 5.35%/yr for VNQ. At a 0.40 correlation, their price movements are largely independent. FNDE charges 0.39%/yr vs 0.13%/yr for VNQ.
Performance
FNDE vs. VNQ - Performance Comparison
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Returns By Period
In the year-to-date period, FNDE achieves a 10.04% return, which is significantly lower than VNQ's 10.80% return. Over the past 10 years, FNDE has outperformed VNQ with an annualized return of 10.87%, while VNQ has yielded a comparatively lower 5.35% annualized return.
FNDE
- 1D
- -1.37%
- 1M
- -2.19%
- YTD
- 10.04%
- 6M
- 10.13%
- 1Y
- 25.37%
- 3Y*
- 19.34%
- 5Y*
- 8.81%
- 10Y*
- 10.87%
VNQ
- 1D
- -0.87%
- 1M
- 0.25%
- YTD
- 10.80%
- 6M
- 10.46%
- 1Y
- 10.33%
- 3Y*
- 10.98%
- 5Y*
- 2.52%
- 10Y*
- 5.35%
FNDE vs. VNQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FNDE Schwab Fundamental Emerging Markets Equity ETF | 10.04% | 29.46% | 12.10% | 14.99% | -15.58% | 14.41% | -2.77% | 19.75% | -10.37% | 26.77% |
VNQ Vanguard Real Estate ETF | 10.80% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
Correlation
The correlation between FNDE and VNQ is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.31 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.37 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.42 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.40 |
Correlation (All Time) Calculated using the full available price history since Aug 15, 2013 | 0.40 |
The correlation between FNDE and VNQ shifts across timeframes, from 0.31 (1 year) to 0.42 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
FNDE vs. VNQ — Risk / Return Rank
FNDE
VNQ
FNDE vs. VNQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Fundamental Emerging Markets Equity ETF (FNDE) 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.
| FNDE | VNQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.86 | ||
| Sortino ratioReturn per unit of downside risk | +1.08 | ||
| Omega ratioGain probability vs. loss probability | 1.30 | 1.14 | +0.16 |
| Calmar ratioReturn relative to maximum drawdown | 2.49 | 1.24 | +1.25 |
| Martin ratioReturn relative to average drawdown | 8.86 | 3.92 | +4.94 |
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Drawdowns
FNDE vs. VNQ - Drawdown Comparison
The maximum FNDE drawdown since its inception was -43.55%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for FNDE and VNQ.
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Drawdown Indicators
| FNDE | VNQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -43.55% | -73.07% | +29.52% |
Max Drawdown (1Y)Largest decline over 1 year | -10.23% | -8.34% | -1.89% |
Max Drawdown (3Y)Largest decline over 3 years | -18.40% | -17.46% | -0.94% |
Max Drawdown (5Y)Largest decline over 5 years | -29.44% | -34.48% | +5.04% |
Max Drawdown (10Y)Largest decline over 10 years | -39.93% | -42.40% | +2.47% |
Current DrawdownCurrent decline from peak | -6.30% | -1.52% | -4.78% |
Average DrawdownAverage peak-to-trough decline | -11.67% | -13.60% | +1.93% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.87% | 2.66% | +0.21% |
Volatility
FNDE vs. VNQ - Volatility Comparison
Schwab Fundamental Emerging Markets Equity ETF (FNDE) has a higher volatility of 6.78% compared to Vanguard Real Estate ETF (VNQ) at 5.27%. This indicates that FNDE's price experiences larger fluctuations and is considered to be riskier than VNQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FNDE | VNQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.78% | 5.27% | +1.51% |
Volatility (6M)Calculated over the trailing 6-month period | 13.52% | 10.24% | +3.28% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.88% | 13.79% | +2.09% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.08% | 18.87% | -1.79% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.21% | 20.75% | -1.54% |
FNDE vs. VNQ - Expense Ratio Comparison
FNDE has a 0.39% expense ratio, which is higher than VNQ's 0.13% expense ratio.
Dividends
FNDE vs. VNQ - Dividend Comparison
FNDE's dividend yield for the trailing twelve months is around 3.80%, more than VNQ's 3.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FNDE Schwab Fundamental Emerging Markets Equity ETF | 3.80% | 4.19% | 4.82% | 4.74% | 5.59% | 4.32% | 2.50% | 3.47% | 2.98% | 2.05% | 1.65% | 2.02% |
VNQ Vanguard Real Estate ETF | 3.59% | 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
FNDE and VNQ have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FNDE has higher volatility (6.78%) compared to VNQ (5.27%). In terms of maximum drawdown, FNDE dropped -43.55% vs VNQ's -73.07%.
On 10-year performance, FNDE leads with 10.87% vs 5.35% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 5.27%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FNDE has performed better with a 10.87% return vs 5.35%. 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 FNDE.
FNDE has the higher dividend yield at 3.80%, compared with 3.59% for VNQ.
FNDE is categorized as Emerging Markets Equities, while VNQ is REIT. FNDE tracks RAFI Fundamental High Liquidity Emerging Markets Index (Net), 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 FNDE and 0.13% for VNQ.
FNDE currently has the higher Sharpe Ratio (1.61 vs 0.75), 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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