The Schwab Fundamental International Large Company Index ETF (FNDF) is an exchange-traded fund designed to track the performance of large-cap international companies using a fundamentals-based weighting methodology. The ETF is managed by Charles Schwab Investment Management and trades under the ticker FNDF on the NYSE Arca.

Classified as an equity ETF, the fund invests in large-cap companies located outside the United States. Unlike traditional market capitalization-weighted indexes, FNDF uses a fundamental indexing approach that weights companies based on financial measures such as sales, cash flow, dividends, and book value.

The ETF follows a passive management strategy and seeks to replicate the performance of the Russell RAFI Developed ex US Large Company Index, which includes large-cap companies from developed markets outside the United States selected and weighted according to fundamental financial metrics.

Diversification and sector exposure

FNDF provides exposure primarily associated with:

• Large-cap international companies.

• Developed markets outside the United States.

• Financials.

• Industrials.

• Healthcare.

• Consumer sectors.

• Information technology.

• Fundamental indexing strategy.

The portfolio includes companies from multiple developed countries, providing broad geographic and sector diversification through a methodology designed to reduce reliance on market capitalization when determining portfolio weights.

The ETF's performance generally reflects both the performance of international equity markets and the results of companies with strong financial fundamentals according to the index methodology.

Structure and costs

FNDF shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, helping keep the ETF's market price aligned with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. Dividends received from portfolio holdings may be distributed periodically to shareholders according to the fund's distribution policy.

History and evolution of the ETF

The Schwab Fundamental International Large Company Index ETF was launched in 2013 to provide investors with exposure to large-cap companies in developed markets outside the United States through a fundamentals-based investment strategy.

Since inception, the fund has tracked the Russell RAFI Developed ex US Large Company Index, reflecting the performance of companies selected using financial metrics such as sales, cash flow, dividends, and book value.

Over time, the ETF has been influenced by the performance of developed economies, currency movements, international market conditions, and changes in the financial fundamentals of the companies included in its portfolio.

Additional Information

Schwab Fundamental International Large Company Index ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $26.32 billion.

Over the past 12 months, Schwab Fundamental International Large Company Index ETF recorded a return of 35.32%, with its price trading between $42.35 and $56.31 during the same period.

The ETF is traded under the ticker FNDF.