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

The Schwab Fundamental International Small Company Index ETF (FNDC) made its debut on 08/13/2013, and is a smart beta exchange traded fund that provides broad exposure to the Foreign Small/Mid 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.Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.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.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 & IndexFNDC is managed by Charles Schwab, and this fund has amassed over $3.04 billion, which makes it one of the larger ETFs in the Foreign Small/Mid Value ETF. This particular fund seeks to match the performance of the Russell RAFI Developed ex-U.S. Small Co. Index (Net) before fees and expenses.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 ExpensesExpense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.Annual operating expenses for FNDC are 0.39%, which makes it on par with most peer products in the space.It's 12-month trailing dividend yield comes in at 2.58%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.Looking at individual holdings, Celestica Inc (CLS) accounts for about 0.35% of total assets, followed by Sino Biopharmaceutical Ltd and Ssr Mining Inc (SSRM).Its top 10 holdings account for approximately 2.26% of FNDC's total assets under management.Performance and RiskYear-to-date, the Schwab Fundamental International Small Company Index ETF has added about 32.32% so far, and was up about 22.36% over the last 12 months (as of 10/07/2025). FNDC has traded between $32.97 $45.21 in this past 52-week period. FNDC has a beta of 0.81 and standard deviation of 14.83% for the trailing three-year period, which makes the fund a low risk choice in the space. With about 1715 holdings, it effectively diversifies company-specific risk .AlternativesSchwab 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 $368.39 million in assets, WisdomTree Dynamic International SmallCap Equity Fund has $430.24 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 ETFBottom 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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>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 ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks