VLU vs. FNDX

Last updated Aug 5, 2026

VLU (SPDR S&P 1500 Value Tilt ETF) and FNDX (Schwab Fundamental U.S. Large Company Index ETF) are both Large Cap Value Equities funds - VLU tracks the S&P 1500 Low Valuation Tilt Index while FNDX tracks the RAFI Fundamental High Liquidity US Large Index. Both are passively managed. Over the past 10 years, VLU returned 14.17%/yr vs 14.36%/yr for FNDX. Their 0.79 correlation means they have sometimes moved together and sometimes differently. VLU charges 0.12%/yr vs 0.25%/yr for FNDX.

Performance

VLU vs. FNDX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P 1500 Value Tilt ETF (VLU) and Schwab Fundamental U.S. Large Company Index ETF (FNDX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with VLU having a 19.00% return and FNDX slightly higher at 19.94%. Both investments have delivered pretty close results over the past 10 years, with VLU having a 14.17% annualized return and FNDX not far ahead at 14.36%.

VLU

• 1D: 1.12%
• 1M: 3.66%
• 6M: 12.67%
• YTD: 19.00%
• 1Y: 31.34%
• 3Y*: 20.17%
• 5Y*: 13.37%
• 10Y*: 14.17%
• ALL TIME*: 13.95%

FNDX

• 1D: 1.22%
• 1M: 3.55%
• 6M: 13.63%
• YTD: 19.94%
• 1Y: 33.60%
• 3Y*: 20.47%
• 5Y*: 14.18%
• 10Y*: 14.36%
• ALL TIME*: 13.28%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FNDX Schwab Fundamental U.S. Large Company Index ETF	$77.59M	$81.33M	$109.47M
VLU SPDR S&P 1500 Value Tilt ETF	$1.43M	$1.32M	$1.58M

VLU vs. FNDX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VLU SPDR S&P 1500 Value Tilt ETF	19.00%	16.70%	17.24%	17.18%	-8.24%	30.95%	9.91%	26.20%	-7.89%	18.16%
FNDX Schwab Fundamental U.S. Large Company Index ETF	19.94%	16.94%	16.77%	18.23%	-6.92%	31.73%	9.12%	28.65%	-7.30%	17.12%

Correlation

The correlation between VLU and FNDX is 0.96 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.96
Correlation (3Y) Balances recent behavior with more history.	0.98
Correlation (5Y) Shows whether the relationship held over a longer period.	0.99
Correlation (10Y) Provides a long-term view across more market conditions.	0.90
Correlation (All Time) Calculated using the full available price history since Aug 15, 2013	0.79

The correlation between VLU and FNDX shifts across timeframes, from 0.79 (all time) to 0.99 (5 years), reflecting how their relationship changes across market environments.

VLU vs. FNDX - Sectors Allocation Comparison

Sectors	VLU	FNDX
Financial Services	19.3%	15.4%
Technology	18.4%	19.1%
Healthcare	12.3%	13.2%
Consumer Cyclical	10.4%	8.9%
Industrials	8.8%	9.0%
Communication Services	8.0%	8.3%
Consumer Defensive	7.1%	7.3%
Energy	6.3%	9.8%
Utilities	3.6%	3.3%
Real Estate	3.5%	1.8%
Basic Materials	2.4%	3.8%

Return for Risk

VLU vs. FNDX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VLU

VLU Risk / Return Rank: 94
VLU Sharpe Ratio Rank: 95
VLU Sortino Ratio Rank: 94
VLU Omega Ratio Rank: 94
VLU Calmar Ratio Rank: 93
VLU Martin Ratio Rank: 95

FNDX

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

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VLU vs. FNDX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P 1500 Value Tilt ETF (VLU) and Schwab Fundamental U.S. Large Company Index ETF (FNDX). 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.

	VLU	FNDX	Difference
Sharpe ratio: Return per unit of total volatility	2.92	3.30	-0.38
Sortino ratio: Return per unit of downside risk	4.03	4.57	-0.53
Omega ratio: Gain probability vs. loss probability	1.55	1.62	-0.07
Calmar ratio: Return relative to maximum drawdown	4.97	5.57	-0.60
Martin ratio: Return relative to average drawdown	20.62	22.25	-1.64

VLU vs. FNDX - Sharpe Ratio Comparison

The current VLU Sharpe Ratio is 2.92, which is comparable to the FNDX Sharpe Ratio of 3.30. The chart below compares the historical Sharpe Ratios of VLU and FNDX, 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

VLU vs. FNDX - Drawdown Comparison

The maximum VLU drawdown since its inception was -37.39%, roughly equal to the maximum FNDX drawdown of -37.72%. Use the drawdown chart below to compare losses from any high point for VLU and FNDX.

Drawdown Indicators

	VLU	FNDX	Difference
Max Drawdown Largest peak-to-trough decline	-37.39%	-37.72%	+0.33%
Max Drawdown (1Y) Largest decline over 1 year	-6.34%	-6.06%	-0.28%
Max Drawdown (3Y) Largest decline over 3 years	-16.22%	-16.30%	+0.08%
Max Drawdown (5Y) Largest decline over 5 years	-19.55%	-19.06%	-0.49%
Max Drawdown (10Y) Largest decline over 10 years	-37.39%	-37.72%	+0.33%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-3.70%	-3.52%	-0.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.52%	1.51%	+0.01%

Volatility

VLU vs. FNDX - Volatility Comparison

SPDR S&P 1500 Value Tilt ETF (VLU) has a higher volatility of 2.92% compared to Schwab Fundamental U.S. Large Company Index ETF (FNDX) at 2.67%. This indicates that VLU's price experiences larger fluctuations and is considered to be riskier than FNDX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VLU	FNDX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.92%	2.67%	+0.25%
Volatility (6M) Calculated over the trailing 6-month period	7.71%	7.42%	+0.29%
Volatility (1Y) Calculated over the trailing 1-year period	10.80%	10.27%	+0.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.30%	15.08%	+0.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.98%	17.45%	+0.53%

VLU vs. FNDX - Expense Ratio Comparison

VLU has a 0.12% expense ratio, which is lower than FNDX's 0.25% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VLU vs. FNDX - Dividend Comparison

VLU's dividend yield for the trailing twelve months is around 1.56%, more than FNDX's 1.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNDX Schwab Fundamental U.S. Large Company Index ETF	1.42%	1.63%	1.76%	1.82%	2.07%	1.64%	2.29%	2.23%	2.40%	1.86%	2.01%	2.01%
VLU SPDR S&P 1500 Value Tilt ETF	1.56%	1.82%	2.00%	2.02%	2.16%	1.86%	1.98%	2.19%	2.57%	1.96%	2.14%	6.37%

Frequently Asked Questions

Can I hold both VLU and FNDX in my portfolio?

With a correlation of 0.96, VLU and FNDX 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, VLU or FNDX?

VLU has higher volatility (2.92%) compared to FNDX (2.67%). In terms of maximum drawdown, VLU dropped -37.39% vs FNDX's -37.72%.

Which ETF is better, VLU or FNDX?

On 10-year performance, FNDX leads with 14.36% vs 14.17% for VLU. On fees, VLU is cheaper at 0.12% per year. On volatility, FNDX has been the lower-risk option at 2.67%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VLU or FNDX?

Over the 10-year period, FNDX has performed better with a 14.36% return vs 14.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VLU or FNDX?

VLU is cheaper with a 0.12% expense ratio, compared with 0.25% for FNDX.

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

VLU has the higher dividend yield at 1.56%, compared with 1.42% for FNDX.

What is the main difference between VLU and FNDX?

VLU tracks S&P 1500 Low Valuation Tilt Index, while FNDX tracks RAFI Fundamental High Liquidity US Large Index. They also come from different issuers: State Street and Charles Schwab. Their fees differ too: 0.12% for VLU and 0.25% for FNDX.

Which has better risk-adjusted returns?

FNDX currently has the higher Sharpe Ratio (3.30 vs 2.92), 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.