Is Schwab Fundamental International Equity ETF (FNDF) a Strong ETF Right Now?

The Schwab Fundamental International Equity ETF (FNDF) made its debut on 08/13/2013, and is a smart beta exchange traded fund that provides broad exposure to the Broad Developed World ETFs category of the market.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.If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.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.While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.Fund Sponsor & IndexManaged by Charles Schwab, FNDF has amassed assets over $13.79 billion, making it one of the largest ETFs in the Broad Developed World ETFs. FNDF 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 ExpensesSince 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 3.83%.Sector Exposure and Top HoldingsWhile 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.Taking into account individual holdings, Shell Plc (SHEL) accounts for about 2.24% of the fund's total assets, followed by Samsung Electronics Ltd and Toyota Motor Corp.The top 10 holdings account for about 10.66% of total assets under management.Performance and RiskThe ETF return is roughly 4.64% and is up about 8.19% so far this year and in the past one year (as of 02/10/2025), respectively. FNDF has traded between $32.90 and $37.71 during this last 52-week period.The fund has a beta of 0.86 and standard deviation of 16.17% for the trailing three-year period, which makes FNDF a medium risk choice in this particular space. With about 985 holdings, it effectively diversifies company-specific risk.AlternativesSchwab Fundamental International Equity ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.Vanguard Total International Stock ETF (VXUS) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $78.25 billion in assets, Vanguard FTSE Developed Markets ETF has $140.41 billion. VXUS has an expense ratio of 0.05% and VEA charges 0.03%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Developed World ETFs.Bottom LineTo 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.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Schwab Fundamental International Equity ETF (FNDF): ETF Research Reports Vanguard FTSE Developed Markets ETF (VEA): ETF Research Reports Vanguard Total International Stock ETF (VXUS): ETF Research Reports Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks