FNDE vs. VSS

Last updated Jul 21, 2026

FNDE (Schwab Fundamental Emerging Markets Equity ETF) and VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) are both exchange-traded funds - FNDE is a Emerging Markets Equities fund tracking the RAFI Fundamental High Liquidity Emerging Markets Index (Net), while VSS is a Foreign Small & Mid Cap Equities fund tracking the FTSE Global Small Cap ex US Index. Both are passively managed. Over the past 10 years, FNDE returned 9.83%/yr vs 7.62%/yr for VSS. Their correlation of 0.81 suggests significant overlap in exposure. FNDE charges 0.39%/yr vs 0.07%/yr for VSS.

Performance

FNDE vs. VSS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Fundamental Emerging Markets Equity ETF (FNDE) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). 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 VSS's 4.76% return. Over the past 10 years, FNDE has outperformed VSS with an annualized return of 9.83%, while VSS has yielded a comparatively lower 7.62% annualized 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%

VSS

• 1D: -0.93%
• 1M: -5.21%
• 6M: 0.59%
• YTD: 4.76%
• 1Y: 14.08%
• 3Y*: 12.89%
• 5Y*: 5.01%
• 10Y*: 7.62%
• ALL TIME*: 9.58%

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

FNDE vs. VSS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FNDE Schwab Fundamental Emerging Markets Equity ETF	12.14%	29.46%	12.10%	14.99%	-15.58%	14.41%	-2.77%	19.75%	-10.37%	26.77%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	4.76%	29.61%	2.94%	15.52%	-21.48%	13.05%	11.81%	21.36%	-18.48%	30.61%

Correlation

The correlation between FNDE and VSS is 0.83, 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	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.79
Correlation (5Y) Calculated over the trailing 5-year period	0.81
Correlation (10Y) Calculated over the trailing 10-year period	0.82
Correlation (All Time) Calculated using the full available price history since Aug 15, 2013	0.81

The correlation between FNDE and VSS has been stable across timeframes, ranging from 0.79 to 0.83 - a consistent structural relationship.

FNDE vs. VSS - Sectors Allocation Comparison

Sectors	FNDE	VSS
Financial Services	25.0%	10.5%
Technology	22.3%	14.9%
Energy	13.2%	4.0%
Basic Materials	12.0%	11.6%
Consumer Cyclical	8.9%	9.1%
Communication Services	6.6%	2.1%
Industrials	4.6%	19.5%
Consumer Defensive	3.3%	3.6%
Utilities	2.4%	2.3%
Real Estate	1.4%	7.0%
Healthcare	0.4%	5.9%

Return for Risk

FNDE vs. VSS — 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

VSS

VSS Risk / Return Rank: 32
VSS Sharpe Ratio Rank: 32
VSS Sortino Ratio Rank: 30
VSS Omega Ratio Rank: 31
VSS Calmar Ratio Rank: 32
VSS Martin Ratio Rank: 36

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. VSS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Fundamental Emerging Markets Equity ETF (FNDE) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). 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	VSS	Difference
Sharpe ratio: Return per unit of total volatility	1.54	0.88	+0.66
Sortino ratio: Return per unit of downside risk	2.10	1.28	+0.82
Omega ratio: Gain probability vs. loss probability	1.28	1.17	+0.11
Calmar ratio: Return relative to maximum drawdown	2.41	1.22	+1.20
Martin ratio: Return relative to average drawdown	7.74	4.12	+3.62

FNDE vs. VSS - Sharpe Ratio Comparison

The current FNDE Sharpe Ratio is 1.54, which is higher than the VSS Sharpe Ratio of 0.88. The chart below compares the historical Sharpe Ratios of FNDE and VSS, 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. VSS - Drawdown Comparison

The maximum FNDE drawdown since its inception was -43.55%, roughly equal to the maximum VSS drawdown of -43.51%. Use the drawdown chart below to compare losses from any high point for FNDE and VSS.

Drawdown Indicators

	FNDE	VSS	Difference
Max Drawdown Largest peak-to-trough decline	-43.55%	-43.51%	-0.04%
Max Drawdown (1Y) Largest decline over 1 year	-10.23%	-11.62%	+1.39%
Max Drawdown (3Y) Largest decline over 3 years	-18.40%	-15.73%	-2.67%
Max Drawdown (5Y) Largest decline over 5 years	-29.44%	-33.93%	+4.49%
Max Drawdown (10Y) Largest decline over 10 years	-39.93%	-43.51%	+3.58%
Current Drawdown Current decline from peak	-4.52%	-7.70%	+3.18%
Average Drawdown Average peak-to-trough decline	-11.64%	-9.60%	-2.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.18%	3.43%	-0.25%

Volatility

FNDE vs. VSS - Volatility Comparison

Schwab Fundamental Emerging Markets Equity ETF (FNDE) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) have volatilities of 4.79% and 4.76%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FNDE	VSS	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.79%	4.76%	+0.03%
Volatility (6M) Calculated over the trailing 6-month period	13.61%	14.24%	-0.63%
Volatility (1Y) Calculated over the trailing 1-year period	16.06%	16.08%	-0.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.07%	16.65%	+0.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.13%	17.12%	+2.01%

FNDE vs. VSS - Expense Ratio Comparison

FNDE has a 0.39% expense ratio, which is higher than VSS's 0.07% expense ratio.

Dividends

FNDE vs. VSS - Dividend Comparison

FNDE's dividend yield for the trailing twelve months is around 3.69%, more than VSS's 3.33% 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%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	3.33%	3.39%	3.44%	3.14%	2.30%	2.74%	1.90%	3.25%	2.80%	2.83%	2.93%	2.66%

Frequently Asked Questions

Can I hold both FNDE and VSS in my portfolio?

FNDE and VSS have a correlation of 0.83, 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 VSS?

FNDE has higher volatility (4.79%) compared to VSS (4.76%). In terms of maximum drawdown, FNDE dropped -43.55% vs VSS's -43.51%.

Which ETF is better, FNDE or VSS?

On 10-year performance, FNDE leads with 9.83% vs 7.62% for VSS. On fees, VSS is cheaper at 0.07% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FNDE or VSS?

Over the 10-year period, FNDE has performed better with a 9.83% return vs 7.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FNDE or VSS?

VSS is cheaper with a 0.07% expense ratio, compared with 0.39% for FNDE.

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

FNDE has the higher dividend yield at 3.69%, compared with 3.33% for VSS.

What is the main difference between FNDE and VSS?

FNDE is categorized as Emerging Markets Equities, while VSS is Foreign Small & Mid Cap Equities. FNDE tracks RAFI Fundamental High Liquidity Emerging Markets Index (Net), while VSS tracks FTSE Global Small Cap ex US Index. They also come from different issuers: Charles Schwab and Vanguard. Their fees differ too: 0.39% for FNDE and 0.07% for VSS.

Which has better risk-adjusted returns?

FNDE currently has the higher Sharpe Ratio (1.54 vs 0.88), 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.