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Is Schwab Fundamental International Equity ETF (FNDF) a Strong ETF Right Now?
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The Schwab Fundamental International Equity ETF (FNDF - Free Report) was launched on 08/13/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the Foreign Large 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.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by Charles Schwab, and has been able to amass over $16.10 billion, which makes it the largest ETF in the Foreign Large Value ETF. Before fees and expenses, FNDF seeks to match the performance of the Russell RAFI Developed ex US Large Co. Index (Net).
The RAFI Fundamental High Liquidity Developed ex US Large Index measures the performance of large non-U.S. developed market companies based on their fundamental size and weight.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.25% for this ETF, which makes it one of the cheaper products in the space.
FNDF's 12-month trailing dividend yield is 3.37%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Shell Plc (SHEL - Free Report) accounts for about 2.13% of total assets, followed by Samsung Electronics Ltd and Totalenergies (TTE - Free Report) .
FNDF's top 10 holdings account for about 10.6% of its total assets under management.
Performance and Risk
So far this year, FNDF has added roughly 19.15%, and is up about 16% in the last one year (as of 06/16/2025). During this past 52-week period, the fund has traded between $32.25 and $39.95.
The fund has a beta of 0.78 and standard deviation of 15.98% for the trailing three-year period, which makes FNDF a medium risk choice in this particular space. With about 955 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental International Equity ETF is a reasonable option for investors seeking to outperform the Foreign Large Value ETF segment of the market. However, there are other ETFs in the space which investors could consider.
IShares International Select Dividend ETF (IDV - Free Report) tracks Dow Jones EPAC Select Dividend Index and the Vanguard International High Dividend Yield ETF (VYMI - Free Report) tracks FTSE All-World ex US High Dividend Yield Index. IShares International Select Dividend ETF has $5.18 billion in assets, Vanguard International High Dividend Yield ETF has $10.50 billion. IDV has an expense ratio of 0.49% and VYMI charges 0.17%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large 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 Equity ETF (FNDF) a Strong ETF Right Now?
The Schwab Fundamental International Equity ETF (FNDF - Free Report) was launched on 08/13/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the Foreign Large 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.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by Charles Schwab, and has been able to amass over $16.10 billion, which makes it the largest ETF in the Foreign Large Value ETF. Before fees and expenses, FNDF seeks to match the performance of the Russell RAFI Developed ex US Large Co. Index (Net).
The RAFI Fundamental High Liquidity Developed ex US Large Index measures the performance of large non-U.S. developed market companies based on their fundamental size and weight.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.25% for this ETF, which makes it one of the cheaper products in the space.
FNDF's 12-month trailing dividend yield is 3.37%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Shell Plc (SHEL - Free Report) accounts for about 2.13% of total assets, followed by Samsung Electronics Ltd and Totalenergies (TTE - Free Report) .
FNDF's top 10 holdings account for about 10.6% of its total assets under management.
Performance and Risk
So far this year, FNDF has added roughly 19.15%, and is up about 16% in the last one year (as of 06/16/2025). During this past 52-week period, the fund has traded between $32.25 and $39.95.
The fund has a beta of 0.78 and standard deviation of 15.98% for the trailing three-year period, which makes FNDF a medium risk choice in this particular space. With about 955 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental International Equity ETF is a reasonable option for investors seeking to outperform the Foreign Large Value ETF segment of the market. However, there are other ETFs in the space which investors could consider.
IShares International Select Dividend ETF (IDV - Free Report) tracks Dow Jones EPAC Select Dividend Index and the Vanguard International High Dividend Yield ETF (VYMI - Free Report) tracks FTSE All-World ex US High Dividend Yield Index. IShares International Select Dividend ETF has $5.18 billion in assets, Vanguard International High Dividend Yield ETF has $10.50 billion. IDV has an expense ratio of 0.49% and VYMI charges 0.17%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large 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.