VEA vs. FNDE

Last updated Jun 9, 2026

VEA (Vanguard FTSE Developed Markets ETF) and FNDE (Schwab Fundamental Emerging Markets Large Company Index ETF) are both exchange-traded funds - VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index, while FNDE is a Emerging Markets Equities fund tracking the Russell Fundamental Emerging Markets Large Company Index. Both are passively managed. Over the past 10 years, VEA returned 10.14%/yr vs 10.89%/yr for FNDE. A 0.78 correlation means they provide meaningful diversification when combined. VEA charges 0.03%/yr vs 0.39%/yr for FNDE.

Performance

VEA vs. FNDE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Developed Markets ETF (VEA) and Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with VEA having a 12.02% return and FNDE slightly lower at 11.54%. Over the past 10 years, VEA has underperformed FNDE with an annualized return of 10.14%, while FNDE has yielded a comparatively higher 10.89% annualized return.

VEA

• 1D: 1.00%
• 1M: -1.37%
• YTD: 12.02%
• 6M: 14.95%
• 1Y: 28.06%
• 3Y*: 18.65%
• 5Y*: 9.09%
• 10Y*: 10.14%

FNDE

• 1D: 0.45%
• 1M: -3.22%
• YTD: 11.54%
• 6M: 12.71%
• 1Y: 30.40%
• 3Y*: 19.28%
• 5Y*: 8.94%
• 10Y*: 10.89%

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

VEA vs. FNDE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEA Vanguard FTSE Developed Markets ETF	12.02%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%
FNDE Schwab Fundamental Emerging Markets Large Company Index ETF	11.54%	29.46%	12.10%	14.99%	-15.58%	14.41%	-2.77%	19.75%	-10.37%	26.77%

Correlation

The correlation between VEA and FNDE is 0.80, 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	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (10Y) Calculated over the trailing 10-year period	0.79
Correlation (All Time) Calculated using the full available price history since Aug 16, 2013	0.78

The correlation between VEA and FNDE has been stable across timeframes, ranging from 0.76 to 0.80 - a consistent structural relationship.

VEA vs. FNDE - Sectors Allocation Comparison

Sectors	VEA	FNDE
Financial Services	23.3%	23.8%
Industrials	19.2%	4.7%
Technology	13.8%	18.7%
Healthcare	8.2%	0.5%
Basic Materials	7.5%	13.6%
Consumer Cyclical	7.5%	9.5%
Consumer Defensive	5.6%	3.1%
Energy	5.4%	15.5%
Communication Services	3.4%	6.6%
Utilities	3.3%	2.5%
Real Estate	2.7%	1.5%

Return for Risk

VEA vs. FNDE — Risk / Return Rank

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

VEA

VEA Risk / Return Rank: 56
VEA Sharpe Ratio Rank: 57
VEA Sortino Ratio Rank: 55
VEA Omega Ratio Rank: 57
VEA Calmar Ratio Rank: 54
VEA Martin Ratio Rank: 58

FNDE

FNDE Risk / Return Rank: 66
FNDE Sharpe Ratio Rank: 67
FNDE Sortino Ratio Rank: 63
FNDE Omega Ratio Rank: 68
FNDE Calmar Ratio Rank: 66
FNDE Martin Ratio Rank: 67

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.

VEA vs. FNDE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed Markets ETF (VEA) 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.

	VEA	FNDE	Difference
Sharpe ratio: Return per unit of total volatility	1.75	1.98	-0.23
Sortino ratio: Return per unit of downside risk	2.39	2.63	-0.24
Omega ratio: Gain probability vs. loss probability	1.32	1.36	-0.04
Calmar ratio: Return relative to maximum drawdown	2.42	2.99	-0.56
Martin ratio: Return relative to average drawdown	9.39	11.12	-1.74
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VEA vs. FNDE - Sharpe Ratio Comparison

The current VEA Sharpe Ratio is 1.75, which is comparable to the FNDE Sharpe Ratio of 1.98. The chart below compares the historical Sharpe Ratios of VEA 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

	VEA	FNDE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.75	1.98	-0.23
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.55	0.53	+0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.59	0.57	+0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	0.36	-0.12

Drawdowns

VEA vs. FNDE - Drawdown Comparison

The maximum VEA drawdown since its inception was -60.68%, which is greater than FNDE's maximum drawdown of -43.55%. Use the drawdown chart below to compare losses from any high point for VEA and FNDE.

Drawdown Indicators

	VEA	FNDE	Difference
Max Drawdown Largest peak-to-trough decline	-60.68%	-43.55%	-17.13%
Max Drawdown (1Y) Largest decline over 1 year	-11.63%	-10.23%	-1.40%
Max Drawdown (3Y) Largest decline over 3 years	-13.45%	-18.40%	+4.95%
Max Drawdown (5Y) Largest decline over 5 years	-29.71%	-29.44%	-0.27%
Max Drawdown (10Y) Largest decline over 10 years	-35.73%	-39.93%	+4.20%
Current Drawdown Current decline from peak	-3.40%	-5.03%	+1.63%
Average Drawdown Average peak-to-trough decline	-13.29%	-11.70%	-1.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.00%	2.74%	+0.26%

Volatility

VEA vs. FNDE - Volatility Comparison

Vanguard FTSE Developed Markets ETF (VEA) and Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE) have volatilities of 6.03% and 5.93%, 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

	VEA	FNDE	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.03%	5.93%	+0.10%
Volatility (6M) Calculated over the trailing 6-month period	13.91%	12.87%	+1.04%
Volatility (1Y) Calculated over the trailing 1-year period	16.15%	15.47%	+0.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.63%	16.98%	-0.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.40%	19.32%	-1.92%

VEA vs. FNDE - Expense Ratio Comparison

VEA has a 0.03% expense ratio, which is lower than FNDE's 0.39% expense ratio.

Dividends

VEA vs. FNDE - Dividend Comparison

VEA's dividend yield for the trailing twelve months is around 2.69%, less than FNDE's 3.75% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNDE Schwab Fundamental Emerging Markets Large Company Index ETF	3.75%	4.19%	4.82%	4.74%	5.59%	4.32%	2.50%	3.47%	2.98%	2.05%	1.65%	2.02%
VEA Vanguard FTSE Developed Markets ETF	2.69%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%

Frequently Asked Questions

Can I hold both VEA and FNDE in my portfolio?

VEA and FNDE 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, VEA or FNDE?

VEA has higher volatility (6.03%) compared to FNDE (5.93%). In terms of maximum drawdown, VEA dropped -60.68% vs FNDE's -43.55%.

Which ETF is better, VEA or FNDE?

On 10-year performance, FNDE leads with 10.89% vs 10.14% for VEA. On fees, VEA is cheaper at 0.03% per year. On volatility, FNDE has been the lower-risk option at 5.93%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VEA or FNDE?

Over the 10-year period, FNDE has performed better with a 10.89% return vs 10.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEA or FNDE?

VEA is cheaper with a 0.03% expense ratio, compared with 0.39% for FNDE.

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

FNDE has the higher dividend yield at 3.75%, compared with 2.69% for VEA.

What is the main difference between VEA and FNDE?

VEA is categorized as Foreign Large Cap Equities, while FNDE is Emerging Markets Equities. VEA tracks FTSE Developed All Cap ex US Index, while FNDE tracks Russell Fundamental Emerging Markets Large Company Index. They also come from different issuers: Vanguard and Charles Schwab. Their fees differ too: 0.03% for VEA and 0.39% for FNDE.

Which has better risk-adjusted returns?

FNDE currently has the higher Sharpe Ratio (1.98 vs 1.75), 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.