Schwab Fundamental U.S. Small Company ETF FNDA is an unconventional, yet solid value strategy. Although it doesn't directly target value stocks, it overweights stocks trading at low valuations and doubles down on both value and growth stocks as they become cheaper relative to their fundamentals. This approach should give the fund an edge when valuations mean-revert. The fund earns a Morningstar Analyst Rating of Silver.
Schwab Fundamental US Small Company ETF FNDA
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Morningstar’s Analysis
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
Will FNDA outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
Process Pillar
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable FNDA’s performance objective and investment process is for both security selection and portfolio construction.
People Pillar
The People Pillar is our evaluation of the FNDA management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
Parent Pillar
The Parent Pillar is our rating of FNDA’s parent organization’s priorities and whether they’re in line with investors’ interests.
This strategy attempts to profit from mean reversion in valuations.
