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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?
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.
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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $25.23 billion, this makes it the largest ETF in the Foreign Large Value ETF. FNDF is managed by Charles Schwab. This particular fund, before fees and expenses, 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
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
With one of the least expensive products in the space, this ETF has annual operating expenses of 0.25%.
It's 12-month trailing dividend yield comes in at 3.10%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
When you look at individual holdings, Samsung Electronics Ltdaccounts for about 3.21% of the fund's total assets, followed by Shell (SHEL) and Totalenergies (TTE).
FNDF's top 10 holdings account for about 14.63% of its total assets under management.
Performance and Risk
The ETF has gained about 17.36% and is up roughly 24.17% so far this year and in the past one year (as of 11/09/2026), respectively. FNDF has traded between $42.98 and $56.31 during this last 52-week period.
The ETF has a beta of 0.74 and standard deviation of 14.92% for the trailing three-year period, making it a medium risk choice in the space. With about 906 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 Index Fund ETF Shares (VYMI) tracks FTSE All-World ex US High Dividend Yield Index. iShares International Select Dividend ETF has $8.25 billion in assets, Vanguard International High Dividend Yield Index Fund ETF Shares has $21.58 billion. IDV has an expense ratio of 0.50% and VYMI 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 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?
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.
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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $25.23 billion, this makes it the largest ETF in the Foreign Large Value ETF. FNDF is managed by Charles Schwab. This particular fund, before fees and expenses, 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
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
With one of the least expensive products in the space, this ETF has annual operating expenses of 0.25%.
It's 12-month trailing dividend yield comes in at 3.10%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
When you look at individual holdings, Samsung Electronics Ltdaccounts for about 3.21% of the fund's total assets, followed by Shell (SHEL) and Totalenergies (TTE).
FNDF's top 10 holdings account for about 14.63% of its total assets under management.
Performance and Risk
The ETF has gained about 17.36% and is up roughly 24.17% so far this year and in the past one year (as of 11/09/2026), respectively. FNDF has traded between $42.98 and $56.31 during this last 52-week period.
The ETF has a beta of 0.74 and standard deviation of 14.92% for the trailing three-year period, making it a medium risk choice in the space. With about 906 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 Index Fund ETF Shares (VYMI) tracks FTSE All-World ex US High Dividend Yield Index. iShares International Select Dividend ETF has $8.25 billion in assets, Vanguard International High Dividend Yield Index Fund ETF Shares has $21.58 billion. IDV has an expense ratio of 0.50% and VYMI 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 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.