FNDE vs VWO
Schwab Fundamental Emerging Markets Equity ETF vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VWO has a lower expense ratio. FNDE delivered stronger 1-year returns. VWO offers more diversification with 6,334 holdings.
Side-by-Side Comparison
| Metric | FNDE | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.06% | |
| AUM | $10.0B | $122.0B | |
| Dividend Yield | 3.61% | 2.39% | |
| Holdings | 373 | 6,334 | |
| YTD Return | +14.46% | +10.53% | |
| 1Y Return | +25.83% | +19.78% | |
| 3Y Return (annualized) | +21.52% | +17.84% | |
| 5Y Return (annualized) | +10.75% | +6.70% | |
| Volatility (annualized) | 17.6% | 20.1% | |
| Max Drawdown | -45.4% | -68.3% | |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 15, 2013 | Mar 4, 2005 |
FNDE vs VWO Performance
Schwab Fundamental Emerging Markets Equity ETF (FNDE) is a ETF from Charles Schwab Asset Management and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year FNDE returned +25.83% while VWO returned +19.78%. Year to date, FNDE is up 14.46% versus a gain of 10.53% for VWO.
Over three years, FNDE compounded at +21.52% per year against +17.84% for VWO; over five years the annualized figures are +10.75% and +6.70% respectively. Across the full 13-year window we track, FNDE has the edge at +5.94% annualized vs +4.99%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.1% compared with 17.6% for FNDE. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -45.4% for FNDE and -68.3% for VWO. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FNDE charges 0.39% per year while VWO charges 0.06%. On a $10,000 position that is $39 vs $6 annually, a gap of $33 per year that compounds over a long holding period. On income, FNDE currently yields 3.61% against 2.39% for VWO.
Holdings Overlap
FNDE and VWO share 196 holdings out of 4150 unique holdings combined, representing a 29.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FNDE or VWO?
FNDE has an expense ratio of 0.39% while VWO charges 0.06%. VWO is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, FNDE or VWO?
Over the past year FNDE returned +25.83% vs +19.78% for VWO, so FNDE leads on 1-year performance. Over the longest common window we track (13 years), FNDE annualized +5.94% vs +4.99% for VWO. Past performance does not guarantee future results.
Which is riskier, FNDE or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 17.6% for FNDE. Worst drawdown: FNDE -45.4% vs VWO -68.3%.
Should I hold both FNDE and VWO?
FNDE and VWO have a monthly-return correlation of 0.93, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FNDE and VWO?
FNDE and VWO share 196 common holdings with a 29.2% weight overlap. Combined, they hold 4150 unique securities.
Which pays a higher dividend, FNDE or VWO?
FNDE yields 3.61% while VWO yields 2.39%, so FNDE currently pays the higher dividend yield.
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