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Is Schwab Fundamental International Small Company Index ETF (FNDC) a Strong ETF Right Now?
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A smart beta exchange traded fund, the Schwab Fundamental International Small Company Index ETF (FNDC - Free Report) debuted on 08/13/2013, and offers broad exposure to the Foreign Small/Mid Value ETF category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $2.91 billion, this makes it one of the larger ETFs in the Foreign Small/Mid Value ETF. FNDC is managed by Charles Schwab. This particular fund, before fees and expenses, seeks to match the performance of the Russell RAFI Developed ex-U.S. Small Co. Index (Net).
The RAFI Fundamental High Liquidity Developed ex US Small Index measures the performance of small non-U.S. developed market companies based on their fundamental size and weight.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
With one of the cheaper products in the space, this ETF has annual operating expenses of 0.39%.
FNDC's 12-month trailing dividend yield is 3.01%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Evolution Mining Ltd (EVN - Free Report) accounts for about 0.21% of the fund's total assets, followed by Israel Corporation Ltd (ILCO) and Ssc Government Mm Gvmxx (GVMXX).
The top 10 holdings account for about 1.34% of total assets under management.
Performance and Risk
So far this year, FNDC has added about 19.16%, and it's up approximately 16.44% in the last one year (as of 06/03/2025). During this past 52-week period, the fund has traded between $32.97 and $40.68.
FNDC has a beta of 0.80 and standard deviation of 16.36% for the trailing three-year period, which makes the fund a low risk choice in the space. With about 1748 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental International Small Company Index ETF is a reasonable option for investors seeking to outperform the Foreign Small/Mid Value ETF segment of the market. However, there are other ETFs in the space which investors could consider.
Dimensional International Small Cap Value ETF (DISV - Free Report) tracks ---------------------------------------- and the Avantis International Small Cap Value ETF (AVDV - Free Report) tracks ----------------------------------------. Dimensional International Small Cap Value ETF has $3.06 billion in assets, Avantis International Small Cap Value ETF has $9.19 billion. DISV has an expense ratio of 0.42% and AVDV charges 0.36%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Small/Mid Value ETF.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Schwab Fundamental International Small Company Index ETF (FNDC) a Strong ETF Right Now?
A smart beta exchange traded fund, the Schwab Fundamental International Small Company Index ETF (FNDC - Free Report) debuted on 08/13/2013, and offers broad exposure to the Foreign Small/Mid Value ETF category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $2.91 billion, this makes it one of the larger ETFs in the Foreign Small/Mid Value ETF. FNDC is managed by Charles Schwab. This particular fund, before fees and expenses, seeks to match the performance of the Russell RAFI Developed ex-U.S. Small Co. Index (Net).
The RAFI Fundamental High Liquidity Developed ex US Small Index measures the performance of small non-U.S. developed market companies based on their fundamental size and weight.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
With one of the cheaper products in the space, this ETF has annual operating expenses of 0.39%.
FNDC's 12-month trailing dividend yield is 3.01%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Evolution Mining Ltd (EVN - Free Report) accounts for about 0.21% of the fund's total assets, followed by Israel Corporation Ltd (ILCO) and Ssc Government Mm Gvmxx (GVMXX).
The top 10 holdings account for about 1.34% of total assets under management.
Performance and Risk
So far this year, FNDC has added about 19.16%, and it's up approximately 16.44% in the last one year (as of 06/03/2025). During this past 52-week period, the fund has traded between $32.97 and $40.68.
FNDC has a beta of 0.80 and standard deviation of 16.36% for the trailing three-year period, which makes the fund a low risk choice in the space. With about 1748 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental International Small Company Index ETF is a reasonable option for investors seeking to outperform the Foreign Small/Mid Value ETF segment of the market. However, there are other ETFs in the space which investors could consider.
Dimensional International Small Cap Value ETF (DISV - Free Report) tracks ---------------------------------------- and the Avantis International Small Cap Value ETF (AVDV - Free Report) tracks ----------------------------------------. Dimensional International Small Cap Value ETF has $3.06 billion in assets, Avantis International Small Cap Value ETF has $9.19 billion. DISV has an expense ratio of 0.42% and AVDV charges 0.36%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Small/Mid Value ETF.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.