(FNDE) Schwab Fundamental Emerging - Overview

The Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE) commits at least 80% of its net assets to equities that are constituents of the RAFI-based index, using depositary receipts (ADRs, GDRs, EDRs) to capture large-cap emerging-market firms selected by fundamental scores rather than market capitalization.

As of February 2026, FNDE carries a 0.35% expense ratio, holds roughly $1.2 billion in assets under management, and its top five holdings are Tencent Holdings, Samsung Electronics, Alibaba Group, Taiwan Semiconductor Manufacturing, and Reliance Industries, together representing about 22% of the portfolio. The fund’s sector exposure is weighted toward technology (≈38%), consumer discretionary (≈22%) and financials (≈15%). Year-to-date performance stands at +6.4%, outpacing the MSCI Emerging Markets Index’s +4.9% gain.

Key drivers for FNDE’s performance include the sustained 5-year average real GDP growth of 4.8% across its underlying markets, robust demand for semiconductors and digital services, and the recent easing of U.S. Treasury yields which has lowered financing costs for emerging-market corporates.

For deeper insights, consider reviewing ValueRay’s analysis of FNDE.