LDEM vs. FNDE

Last updated Jun 4, 2026

LDEM (iShares ESG MSCI EM Leaders ETF) and FNDE (Schwab Fundamental Emerging Markets Large Company Index ETF) are both Emerging Markets Equities funds - LDEM tracks the MSCI EM Extended ESG Leaders 5% Issuer Capped Index while FNDE tracks the Russell Fundamental Emerging Markets Large Company Index. Both are passively managed. Over the past 5 years, LDEM returned 1.89%/yr vs 9.57%/yr for FNDE. Their correlation of 0.87 suggests significant overlap in exposure. LDEM charges 0.16%/yr vs 0.39%/yr for FNDE.

Performance

LDEM vs. FNDE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares ESG MSCI EM Leaders ETF (LDEM) and Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LDEM achieves a 6.92% return, which is significantly lower than FNDE's 15.56% return.

LDEM

• 1D: -1.61%
• 1M: 0.72%
• YTD: 6.92%
• 6M: 7.76%
• 1Y: 25.33%
• 3Y*: 15.06%
• 5Y*: 1.89%
• 10Y*: —

FNDE

• 1D: -1.61%
• 1M: 3.09%
• YTD: 15.56%
• 6M: 16.15%
• 1Y: 36.88%
• 3Y*: 21.61%
• 5Y*: 9.57%
• 10Y*: 11.28%

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

LDEM vs. FNDE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
LDEM iShares ESG MSCI EM Leaders ETF	6.92%	32.49%	5.87%	6.49%	-22.46%	-2.03%	15.59%
FNDE Schwab Fundamental Emerging Markets Large Company Index ETF	15.56%	29.46%	12.10%	14.99%	-15.58%	14.41%	0.60%

Correlation

The correlation between LDEM and FNDE is 0.91, 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	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (All Time) Calculated using the full available price history since Feb 13, 2020	0.87

The correlation between LDEM and FNDE has been stable across timeframes, ranging from 0.87 to 0.91 - a consistent structural relationship.

LDEM vs. FNDE - Sectors Allocation Comparison

Sectors	LDEM	FNDE
Financial Services	28.2%	23.8%
Consumer Cyclical	14.0%	9.5%
Technology	13.0%	18.7%
Communication Services	11.2%	6.6%
Industrials	8.0%	4.7%
Basic Materials	7.8%	13.6%
Energy	5.3%	15.5%
Healthcare	4.3%	0.5%
Consumer Defensive	3.6%	3.1%
Utilities	2.9%	2.5%
Real Estate	1.7%	1.5%

Return for Risk

LDEM vs. FNDE — Risk / Return Rank

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

LDEM

LDEM Risk / Return Rank: 40
LDEM Sharpe Ratio Rank: 40
LDEM Sortino Ratio Rank: 39
LDEM Omega Ratio Rank: 42
LDEM Calmar Ratio Rank: 39
LDEM Martin Ratio Rank: 40

FNDE

FNDE Risk / Return Rank: 72
FNDE Sharpe Ratio Rank: 74
FNDE Sortino Ratio Rank: 71
FNDE Omega Ratio Rank: 74
FNDE Calmar Ratio Rank: 72
FNDE Martin Ratio Rank: 72

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.

LDEM vs. FNDE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG MSCI EM Leaders ETF (LDEM) and Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE). 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.

	LDEM	FNDE	Difference
Sharpe ratio Return per unit of total volatility	1.44	2.47	-1.03
Sortino ratio Return per unit of downside risk	2.03	3.28	-1.25
Omega ratio Gain probability vs. loss probability	1.27	1.45	-0.18
Calmar ratio Return relative to maximum drawdown	1.93	3.62	-1.70
Martin ratio Return relative to average drawdown	6.33	13.71	-7.38
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LDEM vs. FNDE - Sharpe Ratio Comparison

The current LDEM Sharpe Ratio is 1.44, which is lower than the FNDE Sharpe Ratio of 2.47. The chart below compares the historical Sharpe Ratios of LDEM and FNDE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	LDEM	FNDE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.44	2.47	-1.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.10	0.57	-0.47
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.59	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.27	0.38	-0.11

Drawdowns

LDEM vs. FNDE - Drawdown Comparison

The maximum LDEM drawdown since its inception was -40.82%, smaller than the maximum FNDE drawdown of -43.55%. Use the drawdown chart below to compare losses from any high point for LDEM and FNDE.

Drawdown Indicators

	LDEM	FNDE	Difference
Max Drawdown Largest peak-to-trough decline	-40.82%	-43.55%	+2.73%
Max Drawdown (1Y) Largest decline over 1 year	-13.21%	-10.23%	-2.98%
Max Drawdown (3Y) Largest decline over 3 years	-15.12%	-18.40%	+3.28%
Max Drawdown (5Y) Largest decline over 5 years	-39.17%	-29.44%	-9.73%
Max Drawdown (10Y) Largest decline over 10 years	—	-39.93%	—
Current Drawdown Current decline from peak	-3.92%	-1.61%	-2.31%
Average Drawdown Average peak-to-trough decline	-17.36%	-11.71%	-5.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.01%	2.70%	+1.31%

Volatility

LDEM vs. FNDE - Volatility Comparison

iShares ESG MSCI EM Leaders ETF (LDEM) has a higher volatility of 6.08% compared to Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE) at 5.34%. This indicates that LDEM's price experiences larger fluctuations and is considered to be riskier than FNDE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LDEM	FNDE	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.08%	5.34%	+0.74%
Volatility (6M) Calculated over the trailing 6-month period	13.90%	12.30%	+1.60%
Volatility (1Y) Calculated over the trailing 1-year period	17.68%	15.00%	+2.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.09%	16.91%	+2.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.73%	19.30%	+1.43%

LDEM vs. FNDE - Expense Ratio Comparison

LDEM has a 0.16% expense ratio, which is lower than FNDE's 0.39% expense ratio.

Dividends

LDEM vs. FNDE - Dividend Comparison

LDEM's dividend yield for the trailing twelve months is around 3.04%, less than FNDE's 3.62% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNDE Schwab Fundamental Emerging Markets Large Company Index ETF	3.62%	4.19%	4.82%	4.74%	5.59%	4.32%	2.50%	3.47%	2.98%	2.05%	1.65%	2.02%
LDEM iShares ESG MSCI EM Leaders ETF	3.04%	3.26%	2.64%	3.20%	4.93%	1.82%	1.89%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both LDEM and FNDE in my portfolio?

With a correlation of 0.91, LDEM and FNDE move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, LDEM or FNDE?

LDEM has higher volatility (6.08%) compared to FNDE (5.34%). In terms of maximum drawdown, LDEM dropped -40.82% vs FNDE's -43.55%.

Which ETF is better, LDEM or FNDE?

On 5-year performance, FNDE leads with 9.57% vs 1.89% for LDEM. On fees, LDEM is cheaper at 0.16% per year. On volatility, FNDE has been the lower-risk option at 5.34%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LDEM or FNDE?

Over the 5-year period, FNDE has performed better with a 9.57% return vs 1.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LDEM or FNDE?

LDEM is cheaper with a 0.16% expense ratio, compared with 0.39% for FNDE.

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

FNDE has the higher dividend yield at 3.62%, compared with 3.04% for LDEM.

What is the main difference between LDEM and FNDE?

LDEM tracks MSCI EM Extended ESG Leaders 5% Issuer Capped Index, while FNDE tracks Russell Fundamental Emerging Markets Large Company Index. They also come from different issuers: iShares and Charles Schwab. Their fees differ too: 0.16% for LDEM and 0.39% for FNDE.

Which has better risk-adjusted returns?

FNDE currently has the higher Sharpe Ratio (2.47 vs 1.44), 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.