VWO vs. FNDE

Last updated Jun 24, 2026

VWO (Vanguard FTSE Emerging Markets ETF) and FNDE (Schwab Fundamental Emerging Markets Equity ETF) are both Emerging Markets Equities funds - VWO tracks the FTSE Emerging Index while FNDE tracks the RAFI Fundamental High Liquidity Emerging Markets Index (Net). Both are passively managed. Over the past 10 years, VWO returned 8.97%/yr vs 11.02%/yr for FNDE. Their correlation of 0.93 suggests significant overlap in exposure. VWO charges 0.08%/yr vs 0.39%/yr for FNDE.

Performance

VWO vs. FNDE - Performance Comparison

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

Returns By Period

In the year-to-date period, VWO achieves a 10.55% return, which is significantly lower than FNDE's 11.56% return. Over the past 10 years, VWO has underperformed FNDE with an annualized return of 8.97%, while FNDE has yielded a comparatively higher 11.02% annualized return.

VWO

• 1D: -3.07%
• 1M: 0.76%
• YTD: 10.55%
• 6M: 10.67%
• 1Y: 27.03%
• 3Y*: 17.42%
• 5Y*: 5.09%
• 10Y*: 8.97%

FNDE

• 1D: -2.50%
• 1M: -0.84%
• YTD: 11.56%
• 6M: 11.69%
• 1Y: 29.54%
• 3Y*: 19.89%
• 5Y*: 9.15%
• 10Y*: 11.02%

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

VWO vs. FNDE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VWO Vanguard FTSE Emerging Markets ETF	10.55%	25.60%	10.59%	9.25%	-17.98%	1.26%	15.17%	20.75%	-14.76%	31.49%
FNDE Schwab Fundamental Emerging Markets Equity ETF	11.56%	29.46%	12.10%	14.99%	-15.58%	14.41%	-2.77%	19.75%	-10.37%	26.77%

Correlation

The correlation between VWO and FNDE is 0.93, 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	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.93
Correlation (All Time) Calculated using the full available price history since Aug 15, 2013	0.93

The correlation between VWO and FNDE has been stable across timeframes, ranging from 0.93 to 0.95 - a consistent structural relationship.

VWO vs. FNDE - Sectors Allocation Comparison

Sectors	VWO	FNDE
Technology	31.6%	22.3%
Financial Services	16.8%	16.8%
Consumer Cyclical	8.7%	7.9%
Basic Materials	7.0%	8.0%
Industrials	6.8%	3.5%
Communication Services	5.8%	3.6%
Energy	3.6%	10.6%
Healthcare	3.4%	1.1%
Consumer Defensive	3.1%	1.2%
Utilities	2.4%	1.9%
Real Estate	1.8%	1.5%

Return for Risk

VWO vs. FNDE — Risk / Return Rank

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

VWO

VWO Risk / Return Rank: 49
VWO Sharpe Ratio Rank: 48
VWO Sortino Ratio Rank: 46
VWO Omega Ratio Rank: 49
VWO Calmar Ratio Rank: 51
VWO Martin Ratio Rank: 51

FNDE

FNDE Risk / Return Rank: 59
FNDE Sharpe Ratio Rank: 58
FNDE Sortino Ratio Rank: 54
FNDE Omega Ratio Rank: 59
FNDE Calmar Ratio Rank: 61
FNDE Martin Ratio Rank: 61

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.

VWO vs. FNDE - Risk-Adjusted Trends Comparison

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

	VWO	FNDE	Difference
Sharpe ratio: Return per unit of total volatility	1.60	1.88	-0.27
Sortino ratio: Return per unit of downside risk	2.22	2.51	-0.29
Omega ratio: Gain probability vs. loss probability	1.30	1.35	-0.04
Calmar ratio: Return relative to maximum drawdown	2.43	2.90	-0.47
Martin ratio: Return relative to average drawdown	8.56	10.42	-1.86

VWO vs. FNDE - Sharpe Ratio Comparison

The current VWO Sharpe Ratio is 1.60, which is comparable to the FNDE Sharpe Ratio of 1.88. The chart below compares the historical Sharpe Ratios of VWO 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.

Drawdowns

VWO vs. FNDE - Drawdown Comparison

The maximum VWO drawdown since its inception was -67.68%, which is greater than FNDE's maximum drawdown of -43.55%. Use the drawdown chart below to compare losses from any high point for VWO and FNDE.

Drawdown Indicators

	VWO	FNDE	Difference
Max Drawdown Largest peak-to-trough decline	-67.68%	-43.55%	-24.13%
Max Drawdown (1Y) Largest decline over 1 year	-11.17%	-10.23%	-0.94%
Max Drawdown (3Y) Largest decline over 3 years	-17.37%	-18.40%	+1.03%
Max Drawdown (5Y) Largest decline over 5 years	-32.60%	-29.44%	-3.16%
Max Drawdown (10Y) Largest decline over 10 years	-36.39%	-39.93%	+3.54%
Current Drawdown Current decline from peak	-3.07%	-5.01%	+1.94%
Average Drawdown Average peak-to-trough decline	-15.79%	-11.67%	-4.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.17%	2.84%	+0.33%

Volatility

VWO vs. FNDE - Volatility Comparison

Vanguard FTSE Emerging Markets ETF (VWO) has a higher volatility of 7.37% compared to Schwab Fundamental Emerging Markets Equity ETF (FNDE) at 6.66%. This indicates that VWO'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

	VWO	FNDE	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.37%	6.66%	+0.71%
Volatility (6M) Calculated over the trailing 6-month period	14.62%	13.44%	+1.18%
Volatility (1Y) Calculated over the trailing 1-year period	16.94%	15.83%	+1.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.58%	17.07%	+0.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.18%	19.20%	-0.02%

VWO vs. FNDE - Expense Ratio Comparison

VWO has a 0.08% expense ratio, which is lower than FNDE's 0.39% expense ratio.

Dividends

VWO vs. FNDE - Dividend Comparison

VWO's dividend yield for the trailing twelve months is around 2.33%, 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 Equity 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%
VWO Vanguard FTSE Emerging Markets ETF	2.33%	2.79%	3.20%	3.52%	4.11%	2.63%	1.91%	3.23%	2.88%	2.30%	2.52%	3.26%

Frequently Asked Questions

Can I hold both VWO and FNDE in my portfolio?

With a correlation of 0.93, VWO 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, VWO or FNDE?

VWO has higher volatility (7.37%) compared to FNDE (6.66%). In terms of maximum drawdown, VWO dropped -67.68% vs FNDE's -43.55%.

Which ETF is better, VWO or FNDE?

On 10-year performance, FNDE leads with 11.02% vs 8.97% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, FNDE has been the lower-risk option at 6.66%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VWO or FNDE?

Over the 10-year period, FNDE has performed better with a 11.02% return vs 8.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VWO or FNDE?

VWO is cheaper with a 0.08% expense ratio, compared with 0.39% for FNDE.

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

FNDE has the higher dividend yield at 3.75%, compared with 2.33% for VWO.

What is the main difference between VWO and FNDE?

VWO tracks FTSE Emerging 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: 0.08% for VWO and 0.39% for FNDE.

Which has better risk-adjusted returns?

FNDE currently has the higher Sharpe Ratio (1.88 vs 1.60), 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.