VNQ vs. FNDE
VNQ (Vanguard Real Estate ETF) and FNDE (Schwab Fundamental Emerging Markets Equity ETF) are both exchange-traded funds - VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index, while FNDE is a Emerging Markets Equities fund tracking the RAFI Fundamental High Liquidity Emerging Markets Index (Net). Both are passively managed. Over the past 10 years, VNQ returned 5.35%/yr vs 10.87%/yr for FNDE. At a 0.40 correlation, their price movements are largely independent. VNQ charges 0.13%/yr vs 0.39%/yr for FNDE.
Performance
VNQ vs. FNDE - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VNQ achieves a 10.80% return, which is significantly higher than FNDE's 10.04% return. Over the past 10 years, VNQ has underperformed FNDE with an annualized return of 5.35%, while FNDE has yielded a comparatively higher 10.87% annualized return.
VNQ
- 1D
- -0.87%
- 1M
- 0.25%
- YTD
- 10.80%
- 6M
- 10.46%
- 1Y
- 10.33%
- 3Y*
- 10.98%
- 5Y*
- 2.52%
- 10Y*
- 5.35%
FNDE
- 1D
- -1.37%
- 1M
- -2.19%
- YTD
- 10.04%
- 6M
- 10.13%
- 1Y
- 25.37%
- 3Y*
- 19.34%
- 5Y*
- 8.81%
- 10Y*
- 10.87%
VNQ vs. FNDE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VNQ Vanguard Real Estate ETF | 10.80% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
FNDE Schwab Fundamental Emerging Markets Equity ETF | 10.04% | 29.46% | 12.10% | 14.99% | -15.58% | 14.41% | -2.77% | 19.75% | -10.37% | 26.77% |
Correlation
The correlation between VNQ and FNDE is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.31 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.37 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.42 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.40 |
Correlation (All Time) Calculated using the full available price history since Aug 15, 2013 | 0.40 |
The correlation between VNQ and FNDE shifts across timeframes, from 0.31 (1 year) to 0.42 (5 years), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VNQ vs. FNDE — Risk / Return Rank
VNQ
FNDE
VNQ vs. FNDE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and Schwab Fundamental Emerging Markets Equity 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.
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.
| VNQ | FNDE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.86 | ||
| Sortino ratioReturn per unit of downside risk | -1.08 | ||
| Omega ratioGain probability vs. loss probability | 1.14 | 1.30 | -0.16 |
| Calmar ratioReturn relative to maximum drawdown | 1.24 | 2.49 | -1.25 |
| Martin ratioReturn relative to average drawdown | 3.92 | 8.86 | -4.94 |
Loading charts...
Drawdowns
VNQ vs. FNDE - Drawdown Comparison
The maximum VNQ drawdown since its inception was -73.07%, which is greater than FNDE's maximum drawdown of -43.55%. Use the drawdown chart below to compare losses from any high point for VNQ and FNDE.
Loading charts...
Drawdown Indicators
| VNQ | FNDE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.07% | -43.55% | -29.52% |
Max Drawdown (1Y)Largest decline over 1 year | -8.34% | -10.23% | +1.89% |
Max Drawdown (3Y)Largest decline over 3 years | -17.46% | -18.40% | +0.94% |
Max Drawdown (5Y)Largest decline over 5 years | -34.48% | -29.44% | -5.04% |
Max Drawdown (10Y)Largest decline over 10 years | -42.40% | -39.93% | -2.47% |
Current DrawdownCurrent decline from peak | -1.52% | -6.30% | +4.78% |
Average DrawdownAverage peak-to-trough decline | -13.60% | -11.67% | -1.93% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.66% | 2.87% | -0.21% |
Volatility
VNQ vs. FNDE - Volatility Comparison
The current volatility for Vanguard Real Estate ETF (VNQ) is 5.27%, while Schwab Fundamental Emerging Markets Equity ETF (FNDE) has a volatility of 6.78%. This indicates that VNQ experiences smaller price fluctuations and is considered to be less risky than FNDE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| VNQ | FNDE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.27% | 6.78% | -1.51% |
Volatility (6M)Calculated over the trailing 6-month period | 10.24% | 13.52% | -3.28% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.79% | 15.88% | -2.09% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.87% | 17.08% | +1.79% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.75% | 19.21% | +1.54% |
VNQ vs. FNDE - Expense Ratio Comparison
VNQ has a 0.13% expense ratio, which is lower than FNDE's 0.39% expense ratio.
Dividends
VNQ vs. FNDE - Dividend Comparison
VNQ's dividend yield for the trailing twelve months is around 3.59%, less than FNDE's 3.80% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FNDE Schwab Fundamental Emerging Markets Equity ETF | 3.80% | 4.19% | 4.82% | 4.74% | 5.59% | 4.32% | 2.50% | 3.47% | 2.98% | 2.05% | 1.65% | 2.02% |
VNQ Vanguard Real Estate ETF | 3.59% | 3.92% | 3.85% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% |
Frequently Asked Questions
VNQ and FNDE have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FNDE has higher volatility (6.78%) compared to VNQ (5.27%). In terms of maximum drawdown, VNQ dropped -73.07% vs FNDE's -43.55%.
On 10-year performance, FNDE leads with 10.87% vs 5.35% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 5.27%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FNDE has performed better with a 10.87% return vs 5.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VNQ is cheaper with a 0.13% expense ratio, compared with 0.39% for FNDE.
FNDE has the higher dividend yield at 3.80%, compared with 3.59% for VNQ.
VNQ is categorized as REIT, while FNDE is Emerging Markets Equities. VNQ tracks MSCI US Investable Market Real Estate 25/50 Index, while FNDE tracks RAFI Fundamental High Liquidity Emerging Markets Index (Net). They also come from different issuers: Vanguard and Charles Schwab. Their fees differ too: 0.13% for VNQ and 0.39% for FNDE.
FNDE currently has the higher Sharpe Ratio (1.61 vs 0.75), 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.
Find the right allocation for VNQ and FNDE
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer