VYM vs. FNDF

Last updated Jun 14, 2026

VYM (Vanguard High Dividend Yield ETF) and FNDF (Schwab Fundamental International Equity ETF) are both exchange-traded funds - VYM is a Dividend fund tracking the FTSE High Dividend Yield Index, while FNDF is a Foreign Large Cap Equities fund tracking the RAFI Fundamental High Liquidity Developed ex US Large Index (Net). Both are passively managed. Over the past 10 years, VYM returned 11.95%/yr vs 12.34%/yr for FNDF. A 0.77 correlation means they provide meaningful diversification when combined. VYM charges 0.04%/yr vs 0.25%/yr for FNDF.

Performance

VYM vs. FNDF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard High Dividend Yield ETF (VYM) and Schwab Fundamental International Equity ETF (FNDF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VYM achieves a 12.37% return, which is significantly lower than FNDF's 19.66% return. Both investments have delivered pretty close results over the past 10 years, with VYM having a 11.95% annualized return and FNDF not far ahead at 12.34%.

VYM

• 1D: 0.80%
• 1M: 2.93%
• YTD: 12.37%
• 6M: 11.19%
• 1Y: 25.94%
• 3Y*: 18.06%
• 5Y*: 11.59%
• 10Y*: 11.95%

FNDF

• 1D: 0.39%
• 1M: 2.91%
• YTD: 19.66%
• 6M: 21.60%
• 1Y: 41.60%
• 3Y*: 22.69%
• 5Y*: 13.11%
• 10Y*: 12.34%

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

VYM vs. FNDF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VYM Vanguard High Dividend Yield ETF	12.37%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.92%	16.42%
FNDF Schwab Fundamental International Equity ETF	19.66%	40.99%	2.29%	20.22%	-7.78%	14.97%	3.61%	18.46%	-14.21%	23.98%

Correlation

The correlation between VYM and FNDF is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.74
Correlation (10Y) Calculated over the trailing 10-year period	0.75
Correlation (All Time) Calculated using the full available price history since Aug 15, 2013	0.77

The correlation between VYM and FNDF has been stable across timeframes, ranging from 0.68 to 0.77 - a consistent structural relationship.

VYM vs. FNDF - Sectors Allocation Comparison

Sectors	VYM	FNDF
Financial Services	20.5%	16.2%
Technology	17.7%	14.4%
Healthcare	12.2%	5.2%
Industrials	12.1%	15.5%
Energy	9.8%	10.9%
Consumer Defensive	8.1%	6.5%
Consumer Cyclical	6.7%	10.8%
Utilities	5.7%	3.5%
Communication Services	3.5%	4.9%
Basic Materials	3.5%	11.3%
Real Estate	0.0%	0.8%

Return for Risk

VYM vs. FNDF — Risk / Return Rank

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

VYM

VYM Risk / Return Rank: 83
VYM Sharpe Ratio Rank: 85
VYM Sortino Ratio Rank: 86
VYM Omega Ratio Rank: 83
VYM Calmar Ratio Rank: 81
VYM Martin Ratio Rank: 81

FNDF

FNDF Risk / Return Rank: 85
FNDF Sharpe Ratio Rank: 88
FNDF Sortino Ratio Rank: 85
FNDF Omega Ratio Rank: 86
FNDF Calmar Ratio Rank: 82
FNDF Martin Ratio Rank: 82

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.

VYM vs. FNDF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard High Dividend Yield ETF (VYM) and Schwab Fundamental International Equity ETF (FNDF). 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.

	VYM	FNDF	Difference
Sharpe ratio: Return per unit of total volatility	2.37	2.53	-0.16
Sortino ratio: Return per unit of downside risk	3.37	3.30	+0.06
Omega ratio: Gain probability vs. loss probability	1.42	1.45	-0.03
Calmar ratio: Return relative to maximum drawdown	3.70	3.82	-0.11
Martin ratio: Return relative to average drawdown	13.81	14.27	-0.46

VYM vs. FNDF - Sharpe Ratio Comparison

The current VYM Sharpe Ratio is 2.37, which is comparable to the FNDF Sharpe Ratio of 2.53. The chart below compares the historical Sharpe Ratios of VYM and FNDF, 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

VYM vs. FNDF - Drawdown Comparison

The maximum VYM drawdown since its inception was -56.98%, which is greater than FNDF's maximum drawdown of -40.14%. Use the drawdown chart below to compare losses from any high point for VYM and FNDF.

Drawdown Indicators

	VYM	FNDF	Difference
Max Drawdown Largest peak-to-trough decline	-56.98%	-40.14%	-16.84%
Max Drawdown (1Y) Largest decline over 1 year	-6.69%	-10.60%	+3.91%
Max Drawdown (3Y) Largest decline over 3 years	-14.46%	-13.89%	-0.57%
Max Drawdown (5Y) Largest decline over 5 years	-15.84%	-25.56%	+9.72%
Max Drawdown (10Y) Largest decline over 10 years	-35.21%	-40.14%	+4.93%
Current Drawdown Current decline from peak	-0.52%	-1.94%	+1.42%
Average Drawdown Average peak-to-trough decline	-7.18%	-7.63%	+0.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.80%	2.84%	-1.04%

Volatility

VYM vs. FNDF - Volatility Comparison

The current volatility for Vanguard High Dividend Yield ETF (VYM) is 3.31%, while Schwab Fundamental International Equity ETF (FNDF) has a volatility of 6.65%. This indicates that VYM experiences smaller price fluctuations and is considered to be less risky than FNDF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VYM	FNDF	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.31%	6.65%	-3.34%
Volatility (6M) Calculated over the trailing 6-month period	7.81%	13.64%	-5.83%
Volatility (1Y) Calculated over the trailing 1-year period	10.47%	16.00%	-5.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.99%	16.35%	-2.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.35%	17.71%	-1.36%

VYM vs. FNDF - Expense Ratio Comparison

VYM has a 0.04% expense ratio, which is lower than FNDF'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

VYM vs. FNDF - Dividend Comparison

VYM's dividend yield for the trailing twelve months is around 2.19%, less than FNDF's 2.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNDF Schwab Fundamental International Equity ETF	2.87%	3.44%	4.01%	3.41%	3.10%	3.54%	2.17%	3.20%	3.47%	2.32%	2.42%	2.08%
VYM Vanguard High Dividend Yield ETF	2.19%	2.44%	2.74%	3.12%	3.01%	2.76%	3.18%	3.03%	3.40%	2.80%	2.91%	3.22%

Frequently Asked Questions

Can I hold both VYM and FNDF in my portfolio?

VYM and FNDF have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VYM or FNDF?

FNDF has higher volatility (6.65%) compared to VYM (3.31%). In terms of maximum drawdown, VYM dropped -56.98% vs FNDF's -40.14%.

Which ETF is better, VYM or FNDF?

On 10-year performance, FNDF leads with 12.34% vs 11.95% for VYM. On fees, VYM is cheaper at 0.04% per year. On volatility, VYM has been the lower-risk option at 3.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VYM or FNDF?

Over the 10-year period, FNDF has performed better with a 12.34% return vs 11.95%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VYM or FNDF?

VYM is cheaper with a 0.04% expense ratio, compared with 0.25% for FNDF.

Which ETF pays a higher dividend yield, VYM or FNDF?

FNDF has the higher dividend yield at 2.87%, compared with 2.19% for VYM.

What is the main difference between VYM and FNDF?

VYM is categorized as Dividend, while FNDF is Foreign Large Cap Equities. VYM tracks FTSE High Dividend Yield Index, while FNDF tracks RAFI Fundamental High Liquidity Developed ex US Large Index (Net). They also come from different issuers: Vanguard and Charles Schwab. Their fees differ too: 0.04% for VYM and 0.25% for FNDF.

Which has better risk-adjusted returns?

FNDF currently has the higher Sharpe Ratio (2.53 vs 2.37), 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.