FNDA ETF Explained: Returns, Expense Ratio, Holdings and Alternative ETFs
Schwab Fundamental U.S. Small Company ETF (FNDA) is a fundamentally weighted fund that diversifies across U.S. small caps using fundamental metrics such as sales, cash flow and dividends rather than market capitalization. Its low fees and reduced tilt toward overvalued stocks are the main draws, and how it differs from cap-weighted small-cap ETFs is the key selection criterion.
SubscribeWhat Is the Schwab Fundamental U.S. Small Company ETF?
This is a U.S. small-cap ETF that tracks a fundamentally weighted index. It sets holdings weights using fundamental metrics such as sales, cash flow and dividends rather than market capitalization, diversifying across a broad range of small-cap stocks.
It suits long-term and core-satellite investors who want to diversify across U.S. small caps in a way that differs from market-cap weighting.
It is a passively managed (index-tracking) ETF run by Schwab.
How Does the Schwab Fundamental U.S. Small Company ETF Invest?
| Item | Details |
|---|---|
| Tracking Index | Fundamental High Liquidity U.S. Small Company Index |
| Management Style | Passive (index-tracking) |
| Rebalancing Frequency | Annual reconstitution |
| Dividend Frequency | Quarterly |
| Issuer | Schwab |
| Total Expense Ratio | 0.25% |
The fund applies a fundamental weighting approach that sets holdings weights using fundamental metrics such as sales, cash flow and dividends instead of market capitalization. This addresses a weakness of market-cap weighting, where weights can become excessively concentrated in overvalued stocks, while providing diversified exposure to a broad range of U.S. small caps.
- Weights based on fundamentals rather than market cap
- Diversified small-cap exposure at a low expense level
Schwab Fundamental U.S. Small Company ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $9.0B, and the total expense ratio is 0.25% per year.
Because its weighting method differs from that of comparable cap-weighted small-cap ETFs, performance trends can diverge.
Schwab Fundamental U.S. Small Company ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeSmall caps are more sensitive to the economy than large caps, so they tend to be quite volatile depending on interest rates and the economic cycle. Because of its fundamental weighting, there may be periods when performance diverges from cap-weighted indexes.
In the small-cap category, fund flows react sensitively to risk appetite and economic expectations. Depending on market conditions, capital rotation between large caps and small caps can become pronounced.
Schwab Fundamental U.S. Small Company ETF Pros and Cons
Fundamental weighting and low fees are its strengths, while the volatility typical of small caps and tracking divergence from cap weighting are its drawbacks.
💪 Key Strengths
⚠️ Points to Watch
Schwab Fundamental U.S. Small Company ETF Alternatives and Related Products
FNDX, shown in the table, is the large-cap version from the same Schwab fundamental family, and PRF is a large-cap ETF that applies a fundamental weighting method, so its weighting philosophy is similar. If you want a traditional cap-weighted U.S. small-cap core, you can also consider direct substitutes such as IJR and VB, or IWM, which tracks the Russell 2000 directly.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 FNDX | Schwab Fundamental U.S. Large Company ETF | $33.19 | +1.9% | $28.4B | 0.25% | 1.42% | +25.9% |
 PRF | Invesco RAFI US 1000 ETF | $57.03 | +2.0% | $10.1B | 0.34% | 1.3% | +25.9% |
 RECS | Columbia Research Enhanced Core ETF | $45.49 | +1.6% | $6.1B | 0.15% | 0.71% | +12.7% |
 JHMM | John Hancock Multifactor Mid Cap ETF | $74.66 | +0.9% | $6.1B | 0.41% | 0.88% | +16.9% |
 QTUM | Defiance Quantum ETF | $130.55 | -1.2% | $4.9B | 0.40% | 1.08% | +19.0% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 OABI | OmniAb Inc | - | $5.18 | +0.6% | $755.6M | - | - |
| LITE | Lumentum Holdings Inc | 0.02% | $626.75 | -7.8% | $56.8B | - | - |
 COMP | Compass Inc | 0.01% | $10.04 | +7.7% | $7.7B | 188.4 | - |
 VSAT | Viasat Inc | 0.01% | $66.79 | -11.2% | $9.2B | - | - |
Schwab Fundamental U.S. Small Company ETF Investor Checkpoints
Here are the points to review before investing in FNDA. As a fundamentally weighted small-cap ETF, it is wise to thoroughly check its weighting method, the volatility typical of small caps, and its cost structure in advance.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the cumulative cost impact over a long holding period | Low level |
| 📊 Weighting Method | Understand fundamental weighting rather than market-cap weighting | Fundamental weighting applied |
| 📉 Small-Cap Volatility | Check economic sensitivity and price swings | Larger than large caps |
| 💱 Exchange Rate | Impact on returns converted to won | Not currency hedged |
The main risks are the high volatility typical of small caps and tracking divergence from cap-weighted indexes caused by fundamental weighting. In an economic slowdown, small caps can see sharper corrections than large caps.
It is a suitable choice for investors who want to diversify across U.S. small caps in a way that differs from market-cap weighting. If you want a traditional small-cap core, consider cap-weighted products such as IJR, VB and IWM; if you prefer a fundamental weighting approach, you can consider this ETF.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 21, 2026.
Today's 5 AI picks, all free