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Schwab's FNDF ETF bucks market cap trends by weighting stocks on fundamentals, outperforming S&P 500 recently.

Market News
24 Jul 2026
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Bullish
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The Schwab Fundamental International Equity ETF (FNDF) ignores stock prices and market cap, instead weighting holdings by sales, cash flow, and dividends. This contrarian approach favors undervalued international stocks, especially in developed markets outside the U.S., focusing on sectors like finance and energy rather than tech. FNDF has outperformed the S&P 500 and other international ETFs over the past year and year-to-date, though it lags during long tech rallies. It suits investors seeking a value-based, rules-driven international portfolio as a counterbalance to U.S. growth stocks, but carries currency risk and uneven distributions.

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