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Is Schwab Fundamental International Equity ETF (FNDF) a Strong ETF Right Now?
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A smart beta exchange traded fund, the Schwab Fundamental International Equity ETF (FNDF - Free Report) debuted on 08/13/2013, and offers broad exposure to the Foreign Large Value ETF category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Charles Schwab, FNDF has amassed assets over $17.26 billion, making it the largest ETF in the Foreign Large Value ETF. This particular fund seeks to match the performance of the Russell RAFI Developed ex US Large Co. Index (Net) before fees and expenses.
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
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.
Annual operating expenses for FNDF are 0.25%, which makes it one of the cheaper products in the space.
The fund has a 12-month trailing dividend yield of 2.91%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Shell Plc (SHEL) accounts for about 2.28% of total assets, followed by Samsung Electronics Ltd and Totalenergies (TTE).
Its top 10 holdings account for approximately 11.8% of FNDF's total assets under management.
Performance and Risk
The ETF has added about 27.41% so far this year and it's up approximately 18.74% in the last one year (as of 08/22/2025). In the past 52-week period, it has traded between $32.25 and $42.27
The fund has a beta of 0.78 and standard deviation of 15.58% for the trailing three-year period, which makes FNDF a medium risk choice in this particular space. With about 947 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) tracks Dow Jones EPAC Select Dividend Index and the Vanguard International High Dividend Yield ETF (VYMI) tracks FTSE All-World ex US High Dividend Yield Index. iShares International Select Dividend ETF has $5.79 billion in assets, Vanguard International High Dividend Yield ETF has $11.85 billion. IDV has an expense ratio of 0.49% and VYMI changes 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?
A smart beta exchange traded fund, the Schwab Fundamental International Equity ETF (FNDF - Free Report) debuted on 08/13/2013, and offers broad exposure to the Foreign Large Value ETF category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Charles Schwab, FNDF has amassed assets over $17.26 billion, making it the largest ETF in the Foreign Large Value ETF. This particular fund seeks to match the performance of the Russell RAFI Developed ex US Large Co. Index (Net) before fees and expenses.
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
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.
Annual operating expenses for FNDF are 0.25%, which makes it one of the cheaper products in the space.
The fund has a 12-month trailing dividend yield of 2.91%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Shell Plc (SHEL) accounts for about 2.28% of total assets, followed by Samsung Electronics Ltd and Totalenergies (TTE).
Its top 10 holdings account for approximately 11.8% of FNDF's total assets under management.
Performance and Risk
The ETF has added about 27.41% so far this year and it's up approximately 18.74% in the last one year (as of 08/22/2025). In the past 52-week period, it has traded between $32.25 and $42.27
The fund has a beta of 0.78 and standard deviation of 15.58% for the trailing three-year period, which makes FNDF a medium risk choice in this particular space. With about 947 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) tracks Dow Jones EPAC Select Dividend Index and the Vanguard International High Dividend Yield ETF (VYMI) tracks FTSE All-World ex US High Dividend Yield Index. iShares International Select Dividend ETF has $5.79 billion in assets, Vanguard International High Dividend Yield ETF has $11.85 billion. IDV has an expense ratio of 0.49% and VYMI changes 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.