FNDX vs. SMH

Last updated Jun 16, 2026

FNDX (Schwab Fundamental U.S. Large Company Index ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - FNDX is a Large Cap Value Equities fund tracking the RAFI Fundamental High Liquidity US Large Index, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, FNDX returned 14.47%/yr vs 38.18%/yr for SMH. A 0.65 correlation means they provide meaningful diversification when combined. FNDX charges 0.25%/yr vs 0.35%/yr for SMH.

Performance

FNDX vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Fundamental U.S. Large Company Index ETF (FNDX) and VanEck Semiconductor ETF (SMH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FNDX achieves a 15.97% return, which is significantly lower than SMH's 79.69% return. Over the past 10 years, FNDX has underperformed SMH with an annualized return of 14.47%, while SMH has yielded a comparatively higher 38.18% annualized return.

FNDX

• 1D: 0.42%
• 1M: 3.73%
• YTD: 15.97%
• 6M: 15.34%
• 1Y: 33.38%
• 3Y*: 20.12%
• 5Y*: 13.44%
• 10Y*: 14.47%

SMH

• 1D: 4.38%
• 1M: 16.31%
• YTD: 79.69%
• 6M: 83.94%
• 1Y: 152.58%
• 3Y*: 62.32%
• 5Y*: 39.72%
• 10Y*: 38.18%

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

FNDX vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FNDX Schwab Fundamental U.S. Large Company Index ETF	15.97%	16.94%	16.77%	18.23%	-6.92%	31.73%	9.12%	28.65%	-7.30%	17.12%
SMH VanEck Semiconductor ETF	79.69%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%

Correlation

The correlation between FNDX and SMH is 0.57, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.56
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (10Y) Calculated over the trailing 10-year period	0.63
Correlation (All Time) Calculated using the full available price history since Aug 15, 2013	0.65

The correlation between FNDX and SMH has been stable across timeframes, ranging from 0.56 to 0.65 - a consistent structural relationship.

FNDX vs. SMH - Sectors Allocation Comparison

Sectors	FNDX	SMH
Technology	22.1%	100.0%
Financial Services	13.3%	-
Healthcare	11.9%	-
Communication Services	9.9%	-
Energy	9.3%	-
Consumer Cyclical	9.1%	-
Industrials	9.1%	-
Consumer Defensive	7.0%	-
Basic Materials	3.6%	-
Utilities	3.0%	-
Real Estate	1.7%	-

Return for Risk

FNDX vs. SMH — Risk / Return Rank

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

FNDX

FNDX Risk / Return Rank: 93
FNDX Sharpe Ratio Rank: 94
FNDX Sortino Ratio Rank: 94
FNDX Omega Ratio Rank: 94
FNDX Calmar Ratio Rank: 92
FNDX Martin Ratio Rank: 93

SMH

SMH Risk / Return Rank: 96
SMH Sharpe Ratio Rank: 98
SMH Sortino Ratio Rank: 95
SMH Omega Ratio Rank: 95
SMH Calmar Ratio Rank: 97
SMH Martin Ratio Rank: 97

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.

FNDX vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Fundamental U.S. Large Company Index ETF (FNDX) and VanEck Semiconductor ETF (SMH). 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.

	FNDX	SMH	Difference
Sharpe ratio: Return per unit of total volatility	3.22	4.61	-1.38
Sortino ratio: Return per unit of downside risk	4.46	4.60	-0.14
Omega ratio: Gain probability vs. loss probability	1.59	1.65	-0.06
Calmar ratio: Return relative to maximum drawdown	5.53	10.28	-4.75
Martin ratio: Return relative to average drawdown	21.47	37.77	-16.29

FNDX vs. SMH - Sharpe Ratio Comparison

The current FNDX Sharpe Ratio is 3.22, which is comparable to the SMH Sharpe Ratio of 4.61. The chart below compares the historical Sharpe Ratios of FNDX and SMH, 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

FNDX vs. SMH - Drawdown Comparison

The maximum FNDX drawdown since its inception was -37.72%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for FNDX and SMH.

Drawdown Indicators

	FNDX	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-37.72%	-84.96%	+47.24%
Max Drawdown (1Y) Largest decline over 1 year	-6.06%	-14.93%	+8.87%
Max Drawdown (3Y) Largest decline over 3 years	-16.30%	-35.74%	+19.44%
Max Drawdown (5Y) Largest decline over 5 years	-19.06%	-45.30%	+26.24%
Max Drawdown (10Y) Largest decline over 10 years	-37.72%	-45.30%	+7.58%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-3.55%	-41.04%	+37.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.56%	4.06%	-2.50%

Volatility

FNDX vs. SMH - Volatility Comparison

The current volatility for Schwab Fundamental U.S. Large Company Index ETF (FNDX) is 3.19%, while VanEck Semiconductor ETF (SMH) has a volatility of 16.71%. This indicates that FNDX experiences smaller price fluctuations and is considered to be less risky than SMH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FNDX	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.19%	16.71%	-13.52%
Volatility (6M) Calculated over the trailing 6-month period	7.57%	27.97%	-20.40%
Volatility (1Y) Calculated over the trailing 1-year period	10.42%	33.39%	-22.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.22%	35.53%	-20.31%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.52%	32.86%	-15.34%

FNDX vs. SMH - Expense Ratio Comparison

FNDX has a 0.25% expense ratio, which is lower than SMH's 0.35% expense ratio.

Dividends

FNDX vs. SMH - Dividend Comparison

FNDX's dividend yield for the trailing twelve months is around 1.43%, more than SMH's 0.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNDX Schwab Fundamental U.S. Large Company Index ETF	1.43%	1.63%	1.76%	1.82%	2.07%	1.64%	2.29%	2.23%	2.40%	1.86%	2.01%	2.01%
SMH VanEck Semiconductor ETF	0.17%	0.31%	0.44%	0.60%	1.18%	0.51%	0.69%	1.50%	1.88%	1.43%	0.80%	2.14%

Frequently Asked Questions

Can I hold both FNDX and SMH in my portfolio?

FNDX and SMH have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FNDX or SMH?

SMH has higher volatility (16.71%) compared to FNDX (3.19%). In terms of maximum drawdown, FNDX dropped -37.72% vs SMH's -84.96%.

Which ETF is better, FNDX or SMH?

On 10-year performance, SMH leads with 38.18% vs 14.47% for FNDX. On fees, FNDX is cheaper at 0.25% per year. On volatility, FNDX has been the lower-risk option at 3.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FNDX or SMH?

Over the 10-year period, SMH has performed better with a 38.18% return vs 14.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FNDX or SMH?

FNDX is cheaper with a 0.25% expense ratio, compared with 0.35% for SMH.

Which ETF pays a higher dividend yield, FNDX or SMH?

FNDX has the higher dividend yield at 1.43%, compared with 0.17% for SMH.

What is the main difference between FNDX and SMH?

FNDX is categorized as Large Cap Value Equities, while SMH is Semiconductors. FNDX tracks RAFI Fundamental High Liquidity US Large Index, while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: Charles Schwab and VanEck. Their fees differ too: 0.25% for FNDX and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (4.61 vs 3.22), 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.