(FNDC) Schwab Fundamental - Ratings and Ratios

The Schwab Fundamental International Small Company Index ETF (FNDC) is an exchange-traded fund that tracks the performance of small-cap companies in developed markets outside the United States, selected based on fundamental scores derived from the RAFI Global Equity Investable Universe. The funds investment strategy is to allocate at least 90% of its net assets to stocks included in this index, providing investors with exposure to a specific segment of the international equity market.

By focusing on the small company size segment, FNDC offers a unique investment opportunity that is distinct from large-cap or mid-cap international ETFs. The use of fundamental overall company scores to select constituents from the RAFI universe aims to provide a more comprehensive assessment of companies, going beyond traditional market-capitalization-based indices.

Analyzing the current market data and the funds characteristics, we can observe that FNDC has been trending upwards, as indicated by its last price being above its 20-day, 50-day, and 200-day simple moving averages (SMA20, SMA50, SMA200). The Average True Range (ATR) suggests a relatively stable volatility profile. Given the current AUM of $2883.88M USD, the fund has a substantial presence in the market, which can contribute to liquidity and potentially lower trading costs for investors.

Forecasting the future performance of FNDC involves analyzing both its technical and fundamental data. With the 52-week high and low being $41.35 and $32.94, respectively, and the current price being at the 52-week high, there is an indication of strong recent performance. However, the SMA20, SMA50, and SMA200 suggest a positive trend with potential for continued growth, assuming the upward momentum is sustained. The ATR indicates a relatively low volatility, which might appeal to risk-averse investors. Considering the AUM and the investment strategy, a potential forecast could involve a continued upward trend, with potential targets above the current 52-week high, driven by the funds exposure to a potentially undervalued segment of the international small-cap market. However, this forecast is contingent upon the overall market conditions and the performance of the underlying index.

Investors considering FNDC should be aware of the risks associated with international investments, including currency fluctuations and geopolitical risks. Nonetheless, for those seeking diversified exposure to international small-cap companies with a fundamentally driven investment approach, FNDC presents a viable option. Further analysis and due diligence are recommended to ensure alignment with individual investment goals and risk tolerance.