EEMO vs FNDE

EEMOCInvesco S&P Emerging Markets Momentum ETF

FNDEBSchwab Fundamental Emerging Markets Large Company Index ETF

In short

EEMO A momentum screen pointed at emerging markets. EEMO tracks an S&P index that favors EM large and mid caps with the strongest recent price trends, roughly 300 names, and it has been running that playbook since 2012.

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

EEMO The Fund seeks to track, before fees and expenses, the S&P Momentum Emerging Plus LargeMidCap Index. It generally invests at least 90% of total assets in securities comprising the index, including qualifying depositary receipts.

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

• EEMO The mandate leaves little to interpretation: at least 90% of assets in the S&P Momentum Emerging Plus LargeMidCap Index. You know exactly which screen is picking the names.
• 0.29% a year, below the typical index-tracking fund in its peer cohort. Cheap for a factor strategy operating in emerging markets.
• Launched in 2012, so the momentum rules have been running through more than a decade of EM cycles rather than a single backtest.
• Roughly 300 large and mid cap holdings across emerging markets, so the momentum tilt is expressed broadly instead of through a short list of recent winners.

• 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

• EEMO A small, lightly traded fund. That usually shows up as wider bid-ask spreads, meaning more of your cost lands at the moment you trade rather than in the expense ratio.
• Momentum buys what has already climbed. Layer that on emerging markets and country, sector, and currency swings can get sharp, with turnover each time the index reshuffles.
• Income is a byproduct here, not the design. Distributions land quarterly and depend on whatever the momentum screen happens to hold at the time.

• 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 EEMO profile⁠

Full FNDE profile⁠