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Is Schwab Fundamental International Small Company Index ETF (FNDC) a Strong ETF Right Now?
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Designed to provide broad exposure to the Foreign Small/Mid Value ETF category of the market, the Schwab Fundamental International Small Company Index ETF (FNDC - Free Report) is a smart beta exchange traded fund launched on 08/13/2013.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
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.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
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
The fund is managed by Charles Schwab. FNDC has been able to amass assets over $3.01 billion, making it one of the larger ETFs in the Foreign Small/Mid Value ETF. Before fees and expenses, FNDC 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
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.
Operating expenses on an annual basis are 0.39% for FNDC, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 2.57%.
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, Celestica Inc (CLS) accounts for about 0.36% of total assets, followed by Ibiden Ltd and Canadian Solar Inc (CSIQ).
FNDC's top 10 holdings account for about 2.08% of its total assets under management.
Performance and Risk
So far this year, FNDC has added roughly 32.85%, and is up roughly 27.43% in the last one year (as of 12/09/2025). During this past 52-week period, the fund has traded between $32.97 and $45.33.
The fund has a beta of 0.76 and standard deviation of 13.92% for the trailing three-year period, which makes FNDC a low risk choice in this particular space. With about 1711 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.
Invesco RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) tracks FTSE RAFI Developed Markets ex-U.S. Mid-Small 1500 Index and the WisdomTree Dynamic International SmallCap Equity Fund (DDLS) tracks WisdomTree Dynamic Currency Hedged International SmallCap Equity Index. Invesco RAFI Developed Markets ex-U.S. Small-Mid ETF has $369.84 million in assets, WisdomTree Dynamic International SmallCap Equity Fund has $423.65 million. PDN has an expense ratio of 0.47% and DDLS changes 0.48%.
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?
Designed to provide broad exposure to the Foreign Small/Mid Value ETF category of the market, the Schwab Fundamental International Small Company Index ETF (FNDC - Free Report) is a smart beta exchange traded fund launched on 08/13/2013.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
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.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
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
The fund is managed by Charles Schwab. FNDC has been able to amass assets over $3.01 billion, making it one of the larger ETFs in the Foreign Small/Mid Value ETF. Before fees and expenses, FNDC 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
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.
Operating expenses on an annual basis are 0.39% for FNDC, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 2.57%.
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, Celestica Inc (CLS) accounts for about 0.36% of total assets, followed by Ibiden Ltd and Canadian Solar Inc (CSIQ).
FNDC's top 10 holdings account for about 2.08% of its total assets under management.
Performance and Risk
So far this year, FNDC has added roughly 32.85%, and is up roughly 27.43% in the last one year (as of 12/09/2025). During this past 52-week period, the fund has traded between $32.97 and $45.33.
The fund has a beta of 0.76 and standard deviation of 13.92% for the trailing three-year period, which makes FNDC a low risk choice in this particular space. With about 1711 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.
Invesco RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) tracks FTSE RAFI Developed Markets ex-U.S. Mid-Small 1500 Index and the WisdomTree Dynamic International SmallCap Equity Fund (DDLS) tracks WisdomTree Dynamic Currency Hedged International SmallCap Equity Index. Invesco RAFI Developed Markets ex-U.S. Small-Mid ETF has $369.84 million in assets, WisdomTree Dynamic International SmallCap Equity Fund has $423.65 million. PDN has an expense ratio of 0.47% and DDLS changes 0.48%.
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.