It comes from a combination of the German words for harm/damage (Schaden) and joy (Freude), and is often used as a loanword in English. Technically, schadenfreude should be capitalised like all German nouns, but when used in English it’s usually written in the lower case. As is the rule with most (but not all) loanwords in English,
Schadenfreude sure does sound like some sort of window dressing doesn't it but yes I have felt that emotion
when my 'could never do anything wrong sister' actually did something wrong and was caught in the act
My husband was walking home from work one day, and a smarty-pants kid on a bike rode past him and said something derogatory to hubby. Unphased, hubby carried on and a block later hubby happened upon the same smarty-pants kid sprawled out on the roadway.
Said kid had taken a good spill on his bike and hubby enjoyed a little schadenfreude.