Is Schwab Fundamental U.S. Small Company ETF (FNDA) a Strong ETF Right Now?

Core Viewpoint - The Schwab Fundamental U.S. Small Company ETF (FNDA) is a smart beta ETF designed to provide broad exposure to the Small Cap Value category, with a focus on fundamental characteristics for stock selection [1][3]. Fund Overview - FNDA was launched on August 13, 2013, and is managed by Charles Schwab, accumulating over $8.49 billion in assets, making it one of the larger ETFs in its category [1][5]. - The fund aims to match the performance of the Russell RAFI US Small Co. Index, which evaluates small U.S. companies based on fundamental size and weight [5]. Cost Structure - FNDA has an annual operating expense ratio of 0.25%, positioning it as a cost-effective option in the ETF market [6]. - The fund's 12-month trailing dividend yield is 1.35% [6]. Sector Exposure and Holdings - The ETF has a significant allocation in the Industrials sector, comprising approximately 20.2% of the portfolio, followed by Financials and Consumer Discretionary [7]. - The top holdings include Verisign Inc (0.39% of total assets), Urban Outfitters Inc, and Woodward Inc, with the top 10 holdings accounting for about 3.31% of total assets [8]. Performance Metrics - Year-to-date, FNDA has experienced a loss of approximately -0.42%, while it has gained about 2.37% over the last 12 months as of July 21, 2025 [10]. - The fund has traded between $23.85 and $32.42 in the past 52 weeks, with a beta of 1.09 and a standard deviation of 21.00% over the trailing three-year period, indicating medium risk [10]. Alternatives - Other ETFs in the Small Cap Value space include iShares Russell 2000 Value ETF (IWN) and Vanguard Small-Cap Value ETF (VBR), with IWN having $10.95 billion in assets and VBR at $30.17 billion [12]. - IWN has an expense ratio of 0.24%, while VBR has a lower expense ratio of 0.07%, suggesting options for investors seeking lower-cost alternatives [12].