Is Schwab Fundamental Emerging Markets Equity ETF (FNDE) a Strong ETF Right Now?

Group 1: Core Insights - The Schwab Fundamental Emerging Markets Equity ETF (FNDE) debuted on August 13, 2013, and offers broad exposure to the emerging markets ETF category [1] - FNDE is managed by Charles Schwab and has amassed over $7.34 billion in assets, making it one of the largest ETFs in the emerging markets space [5] - The fund seeks to match the performance of the Russell RAFI Emerging Markets Large Co. Index, focusing on large companies based on fundamental characteristics [5] Group 2: Cost and Performance - FNDE has an annual operating expense ratio of 0.39%, which is competitive within its peer group, and a 12-month trailing dividend yield of 4.01% [6] - Year-to-date, FNDE has increased by approximately 19.18%, and it was up about 18.82% over the last 12 months as of September 3, 2025 [9] - The fund has a beta of 0.62 and a standard deviation of 16.73% over the trailing three-year period, indicating a medium risk profile [10] Group 3: Holdings and Sector Exposure - FNDE's top holdings include Taiwan Semiconductor Manufacturing (4.67% of total assets), China Construction Bank Corp H, and Alibaba Group Holding Ltd, with the top 10 holdings accounting for about 24.37% of total assets [7][8] - The fund holds approximately 409 different stocks, providing effective diversification against company-specific risks [10] Group 4: Alternatives - While FNDE is a viable option for investors looking to outperform the broad emerging markets segment, alternatives such as Vanguard FTSE Emerging Markets ETF (VWO) and iShares Core MSCI Emerging Markets ETF (IEMG) are also available [11][12] - VWO has $96.18 billion in assets and an expense ratio of 0.07%, while IEMG has $101.47 billion in assets with a 0.09% expense ratio [12]