FNDX vs. SPY

Last updated Jun 23, 2026

FNDX (Schwab Fundamental U.S. Large Company Index ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - FNDX is a Large Cap Value Equities fund tracking the RAFI Fundamental High Liquidity US Large Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, FNDX returned 14.53%/yr vs 15.70%/yr for SPY. Their correlation of 0.91 suggests significant overlap in exposure. FNDX charges 0.25%/yr vs 0.09%/yr for SPY.

Performance

FNDX vs. SPY - 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 State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FNDX achieves a 14.79% return, which is significantly higher than SPY's 9.74% return. Over the past 10 years, FNDX has underperformed SPY with an annualized return of 14.53%, while SPY has yielded a comparatively higher 15.70% annualized return.

FNDX

• 1D: 0.19%
• 1M: 0.94%
• YTD: 14.79%
• 6M: 14.33%
• 1Y: 31.80%
• 3Y*: 20.50%
• 5Y*: 13.48%
• 10Y*: 14.53%

SPY

• 1D: -0.31%
• 1M: 0.09%
• YTD: 9.74%
• 6M: 9.27%
• 1Y: 26.65%
• 3Y*: 21.27%
• 5Y*: 13.51%
• 10Y*: 15.70%

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

FNDX vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FNDX Schwab Fundamental U.S. Large Company Index ETF	14.79%	16.94%	16.77%	18.23%	-6.92%	31.73%	9.12%	28.65%	-7.30%	17.12%
SPY State Street SPDR S&P 500 ETF	9.74%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between FNDX and SPY is 0.80, 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	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (10Y) Calculated over the trailing 10-year period	0.90
Correlation (All Time) Calculated using the full available price history since Aug 15, 2013	0.91

The correlation between FNDX and SPY shifts across timeframes, from 0.80 (1 year) to 0.91 (all time), reflecting how their relationship changes across market environments.

FNDX vs. SPY - Sectors Allocation Comparison

Sectors	FNDX	SPY
Technology	22.1%	39.0%
Financial Services	13.3%	11.1%
Healthcare	11.9%	8.3%
Communication Services	9.9%	10.6%
Energy	9.3%	3.1%
Consumer Cyclical	9.1%	9.9%
Industrials	9.1%	7.8%
Consumer Defensive	7.0%	4.5%
Basic Materials	3.6%	1.7%
Utilities	3.0%	2.1%
Real Estate	1.7%	1.8%

Return for Risk

FNDX vs. SPY — Risk / Return Rank

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

FNDX

FNDX Risk / Return Rank: 91
FNDX Sharpe Ratio Rank: 92
FNDX Sortino Ratio Rank: 92
FNDX Omega Ratio Rank: 90
FNDX Calmar Ratio Rank: 90
FNDX Martin Ratio Rank: 91

SPY

SPY Risk / Return Rank: 68
SPY Sharpe Ratio Rank: 69
SPY Sortino Ratio Rank: 66
SPY Omega Ratio Rank: 68
SPY Calmar Ratio Rank: 63
SPY Martin Ratio Rank: 74

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. SPY - 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 State Street SPDR S&P 500 ETF (SPY). 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	SPY	Difference
Sharpe ratio: Return per unit of total volatility	3.06	2.16	+0.90
Sortino ratio: Return per unit of downside risk	4.22	2.91	+1.31
Omega ratio: Gain probability vs. loss probability	1.56	1.39	+0.17
Calmar ratio: Return relative to maximum drawdown	5.27	3.01	+2.26
Martin ratio: Return relative to average drawdown	20.40	13.54	+6.86

FNDX vs. SPY - Sharpe Ratio Comparison

The current FNDX Sharpe Ratio is 3.06, which is higher than the SPY Sharpe Ratio of 2.16. The chart below compares the historical Sharpe Ratios of FNDX and SPY, 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. SPY - Drawdown Comparison

The maximum FNDX drawdown since its inception was -37.72%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for FNDX and SPY.

Drawdown Indicators

	FNDX	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-37.72%	-55.19%	+17.47%
Max Drawdown (1Y) Largest decline over 1 year	-6.06%	-8.88%	+2.82%
Max Drawdown (3Y) Largest decline over 3 years	-16.30%	-18.76%	+2.46%
Max Drawdown (5Y) Largest decline over 5 years	-19.06%	-24.50%	+5.44%
Max Drawdown (10Y) Largest decline over 10 years	-37.72%	-33.72%	-4.00%
Current Drawdown Current decline from peak	-1.02%	-1.75%	+0.73%
Average Drawdown Average peak-to-trough decline	-3.55%	-9.04%	+5.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.56%	1.97%	-0.41%

Volatility

FNDX vs. SPY - Volatility Comparison

The current volatility for Schwab Fundamental U.S. Large Company Index ETF (FNDX) is 3.29%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 4.64%. This indicates that FNDX experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FNDX	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.29%	4.64%	-1.35%
Volatility (6M) Calculated over the trailing 6-month period	7.61%	9.75%	-2.14%
Volatility (1Y) Calculated over the trailing 1-year period	10.47%	12.43%	-1.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.18%	17.14%	-1.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.52%	17.99%	-0.47%

FNDX vs. SPY - Expense Ratio Comparison

FNDX has a 0.25% expense ratio, which is higher than SPY's 0.09% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FNDX vs. SPY - Dividend Comparison

FNDX's dividend yield for the trailing twelve months is around 1.45%, more than SPY's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNDX Schwab Fundamental U.S. Large Company Index ETF	1.45%	1.63%	1.76%	1.82%	2.07%	1.64%	2.29%	2.23%	2.40%	1.86%	2.01%	2.01%
SPY State Street SPDR S&P 500 ETF	1.01%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both FNDX and SPY in my portfolio?

FNDX and SPY have a correlation of 0.80, 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 SPY?

SPY has higher volatility (4.64%) compared to FNDX (3.29%). In terms of maximum drawdown, FNDX dropped -37.72% vs SPY's -55.19%.

Which ETF is better, FNDX or SPY?

On 10-year performance, SPY leads with 15.70% vs 14.53% for FNDX. On fees, SPY is cheaper at 0.09% per year. On volatility, FNDX has been the lower-risk option at 3.29%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FNDX or SPY?

Over the 10-year period, SPY has performed better with a 15.70% return vs 14.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FNDX or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.25% for FNDX.

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

FNDX has the higher dividend yield at 1.45%, compared with 1.01% for SPY.

What is the main difference between FNDX and SPY?

FNDX is categorized as Large Cap Value Equities, while SPY is S&P 500. FNDX tracks RAFI Fundamental High Liquidity US Large Index, while SPY tracks S&P 500 Index. They also come from different issuers: Charles Schwab and State Street. Their fees differ too: 0.25% for FNDX and 0.09% for SPY.

Which has better risk-adjusted returns?

FNDX currently has the higher Sharpe Ratio (3.06 vs 2.16), 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.