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Is Schwab Fundamental U.S. Small Company ETF (FNDA) a Strong ETF Right Now?
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The Schwab Fundamental U.S. Small Company ETF (FNDA - Free Report) was launched on 08/13/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Small Cap Value 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.
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.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Managed by Charles Schwab, FNDA has amassed assets over $9.3 billion, making it one of the larger ETFs in the Style Box - Small Cap Value. FNDA, before fees and expenses, seeks to match the performance of the Russell RAFI US Small Co. Index.
The RAFI Fundamental High Liquidity US Small Index measures the performance of small U.S. companies based on their fundamental size and weight.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for FNDA are 0.25%, which makes it one of the cheaper products in the space.
The fund has a 12-month trailing dividend yield of 1.26%.
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.
Representing 19.7% of the portfolio, the fund has heaviest allocation to the Industrials sector; Financials and Consumer Discretionary round out the top three.
When you look at individual holdings, Opendoor Technologies Inc Class A (OPEN) accounts for about 0.49% of the fund's total assets, followed by Viasat Inc (VSAT) and Mr Cooper Group Inc (COOP).
Its top 10 holdings account for approximately 3.78% of FNDA's total assets under management.
Performance and Risk
So far this year, FNDA has added about 6.24%, and is up about 7% in the last one year (as of 09/24/2025). During this past 52-week period, the fund has traded between $23.85 and $32.42.
FNDA has a beta of 1.11 and standard deviation of 20.64% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 978 holdings, it effectively diversifies company-specific risk .
Alternatives
Schwab Fundamental U.S. Small Company ETF is an excellent option for investors seeking to outperform the Style Box - Small Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
iShares Russell 2000 Value ETF (IWN) tracks Russell 2000 Value Index and the Vanguard Small-Cap Value ETF (VBR) tracks CRSP U.S. Small Cap Value Index. iShares Russell 2000 Value ETF has $12.04 billion in assets, Vanguard Small-Cap Value ETF has $31.65 billion. IWN has an expense ratio of 0.24% and VBR changes 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Small Cap Value
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 U.S. Small Company ETF (FNDA) a Strong ETF Right Now?
The Schwab Fundamental U.S. Small Company ETF (FNDA - Free Report) was launched on 08/13/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Small Cap Value 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.
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.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Managed by Charles Schwab, FNDA has amassed assets over $9.3 billion, making it one of the larger ETFs in the Style Box - Small Cap Value. FNDA, before fees and expenses, seeks to match the performance of the Russell RAFI US Small Co. Index.
The RAFI Fundamental High Liquidity US Small Index measures the performance of small U.S. companies based on their fundamental size and weight.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for FNDA are 0.25%, which makes it one of the cheaper products in the space.
The fund has a 12-month trailing dividend yield of 1.26%.
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.
Representing 19.7% of the portfolio, the fund has heaviest allocation to the Industrials sector; Financials and Consumer Discretionary round out the top three.
When you look at individual holdings, Opendoor Technologies Inc Class A (OPEN) accounts for about 0.49% of the fund's total assets, followed by Viasat Inc (VSAT) and Mr Cooper Group Inc (COOP).
Its top 10 holdings account for approximately 3.78% of FNDA's total assets under management.
Performance and Risk
So far this year, FNDA has added about 6.24%, and is up about 7% in the last one year (as of 09/24/2025). During this past 52-week period, the fund has traded between $23.85 and $32.42.
FNDA has a beta of 1.11 and standard deviation of 20.64% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 978 holdings, it effectively diversifies company-specific risk .
Alternatives
Schwab Fundamental U.S. Small Company ETF is an excellent option for investors seeking to outperform the Style Box - Small Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
iShares Russell 2000 Value ETF (IWN) tracks Russell 2000 Value Index and the Vanguard Small-Cap Value ETF (VBR) tracks CRSP U.S. Small Cap Value Index. iShares Russell 2000 Value ETF has $12.04 billion in assets, Vanguard Small-Cap Value ETF has $31.65 billion. IWN has an expense ratio of 0.24% and VBR changes 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Small Cap Value
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.