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Schwab's FNDE ETF upgraded to Hold amid strong EM trends but China risk remains high.

Analyst Insights
30 Sep 2026
Seeking Alpha
View Source
Neutral
Schwab's FNDE ETF upgraded to Hold amid strong EM trends but China risk remains high.

The Schwab Fundamental Emerging Markets Equity ETF (FNDE), which uses a fundamental-weighting RAFI strategy, has outperformed its benchmark since inception and trades at a roughly 50% discount to the S&P 500. Despite its attractive valuation and favorable emerging market macro trends, FNDE carries significant geopolitical risk due to its 57% exposure to China and Taiwan. The ETF leads its peers in long-term performance, size, and liquidity, but investors concerned about concentrated country risk should consider alternatives excluding China. The analyst upgraded FNDE to Hold but withheld a Buy rating because of these risks.

The Schwab Fundamental Emerging Markets Equity ETF (FNDE) is noted here with Pluang's market data for context. For readers following US stocks on Pluang, as of Oct 01, 2026 03:41 WIB, 44 of 150 priced stocks rose while 105 fell. Notable movers include Hewlett Packard Enterprise Co (HPE) at USD 64.16 with a 1-day change of +4.33%, Xpeng Inc - ADR (XPEV) at USD 9.53 down -4.22%, and General Motors Company (GM) at USD 77.15 down -4.13%.

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