DEHP vs FNDE

DEHPCDimensional Emerging Markets High Profitability ETF

FNDEBSchwab Fundamental Emerging Markets Large Company Index ETF

In short

DEHP Dimensional's emerging-markets shelf boiled down to one idea: own the profitable companies. No index, about 800 large caps, 0.41% net of a waiver through February 28, 2027.

FNDE Most emerging-markets funds size a position by its market price. FNDE sizes it by the business behind it, weighting large EM companies on fundamental measures instead of market cap. Schwab has run this value-leaning version since 2013.

Stated mandate

DEHP The ETF seeks long-term capital appreciation. It uses an integrated investment approach emphasizing long-term expected-return drivers while diversifying across companies, sectors, and countries.

FNDE The fund seeks to track, before fees and expenses, an index of large companies in emerging-market countries selected and weighted according to fundamental size measures.

Why people hold it

• DEHP Profitability is the whole thesis: the prospectus counts high earnings from operations relative to book value or assets, then overweights those names in the emerging-market universe.sec.gov
• No index to copy. Dimensional sets weights off market cap, relative price and profitability, and can reduce or exclude a holding on shorter-term signals such as price momentum.sec.gov
• 0.41% net of a fee waiver through February 28, 2027 (0.44% gross), near the median for emerging-market factor funds. Below PXH at 0.47%, above FNDE at 0.39%.
• Roughly 800 holdings across emerging-market countries and sectors, so the factor bet doesn't ride on a handful of names. Pays quarterly.

• FNDE Weights by fundamental size, not market cap, so a company's slot reflects its business footprint rather than what the market is currently paying for it. The value tilt is advertised, not accidental.schwabassetmanagement.com
• At 0.39%, the fee sits under the 0.49% typical for emerging-markets ETFs. Rules-based weighting at an index-fund price.
• A multi-billion-dollar fund that trades actively, and it has hugged its RAFI index closely. Two things that often go missing in EM, where thin books and tracking slippage are common.
• Live since 2013, with a full market cycle of history behind the method. Among the strongest implementations in a crowded emerging-markets field.

Worth knowing

• DEHP One factor, one region. When profitable large caps trail cheaper or calmer emerging-market stocks, the tilt works against it; min-vol peers EEMV and EELV play a different game.sec.gov
• Not among the busier tickers in its category, so the spread and a limit order are worth a look at the point of trade.
• Active, with no declared index behind it, so there's no tracking-error yardstick. What you get is Dimensional's weighting process.sec.gov

• FNDE Plain cap-weighted EM exposure costs less: VEXC at 0.07%, BKEM at 0.11%, XCEM at 0.16%. You are paying for the fundamental weighting.
• Large companies only, about 400 of them, screened for liquidity. Narrower than total-market EM funds that reach into small caps.
• A value tilt means results will separate from cap-weighted EM benchmarks in both directions. Distributions land once or twice a year, not monthly.

Full DEHP profile⁠

Full FNDE profile⁠