Is Schwab Fundamental International Small Company Index ETF (FNDC) a Strong ETF Right Now?

Launched on 08/13/2013, the Schwab Fundamental International Small Company Index ETF (FNDC) is a smart beta exchange traded fund offering 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.Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.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.These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.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 & IndexFNDC is managed by Charles Schwab, and this fund has amassed over $3.10 billion, which makes it one of the larger ETFs in the Broad Developed World ETFs. This particular fund, before fees and expenses, 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 ExpensesWhen 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.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 3.47%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.Looking at individual holdings, Korean Won (KRW) accounts for about 0.61% of total assets, followed by Krw999999 and Celestica Inc (CLS).FNDC's top 10 holdings account for about 2.86% of its total assets under management.Performance and RiskYear-to-date, the Schwab Fundamental International Small Company Index ETF has gained about 3.43% so far, and is up roughly 7.33% over the last 12 months (as of 01/31/2025). FNDC has traded between $33.34 and $38.50 in this past 52-week period.The ETF has a beta of 0.92 and standard deviation of 16.46% for the trailing three-year period, making it a low risk choice in the space. With about 2007 holdings, it effectively diversifies company-specific risk.AlternativesSchwab Fundamental International Small Company Index 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 $78.09 billion in assets, Vanguard FTSE Developed Markets ETF has $140.10 billion. VXUS has an expense ratio of 0.08% and VEA charges 0.06%.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 Small Company Index ETF (FNDC): ETF Research Reports Celestica, Inc. (CLS): Free Stock Analysis Report Vanguard FTSE Developed Markets ETF (VEA): ETF Research Reports Vanguard Total International Stock ETF (VXUS): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks