FNDE
Schwab Fundamental Emerging Markets Large Company Index ETF
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>is the common advice still to just blindly pile into the S&P 500? it depends on who you ask. Rob Arnott is a big name in the investing world, and 2 years ago he was recommending international value stocks. https://www.youtube.com/watch?v=YzZuwe0IPEE for 2025, Arnott's FNDE was up 25%; VEA was up 42%; IVLU was up 46%; FIVLX and AVDV were up 45%; DODFX was up 38%; and TRTIX was up 44% ... to pick a few international value funds. >than it has for the decades of American stock market over performance decades? an international developed markets index outperformed the S&P 500 every year from 2002 to 2007, 1983 to 1989, and occasional other years here and there. https://www.blackrock.com/us/financial-professionals/literature/investor-education/why-bother-with-international-stocks.pdf and outperformed almost 50% of rolling 10-year periods back to 1970. https://www.tweedyfunds.com/wp-content/uploads/sites/10/2022/09/Dichotomy-Btwn-US-and-Non-US-Sept2025-Fund.pdf >Personally I think it's incredibly risky to not have a significant international portion of anyone's portfolio at this point. I have rebalanced to ~60/40 International/US in my equities given what I'm seeing happening in my country as an American. it would have been best to rebalace a few years ago when international was beaten down and unloved. but better late than never, assuming you're willing to ride it out the next time international slumps. virtually all professional investors recommend global diversification. it's mostly younger people on reddit who say the magic S&P 500 is the only thing you ever need in the portfolio.
I dramatically increased my international equity back in April 2025 and the returns have been excellent. I think the real trick though is don’t blindly pick a boring all-market fund like VXUS, get something with some strategy, methodology, finesse. My favorites include FNDF & FIVA for developed market, and FNDE for emerging market. Schwab’s FNDF and FNDE use fundamental method to evaluate company health when selecting stocks. FNDF consistently beats VXUS, and FNDE has high yield dividends that help a lot when reinvested. Fidelity’s FIVA use value factor method, looking for potentially undervalued stocks. The dividends are really high every quarter, and the performance over the past year has been a jaw dropping 44.65% gain. I have a crush on this ETF. AVDV is another one to check out. I don’t own it, but it’s a small cap international value, meaning it can be volatile but also impressive.
I recommend S&P 500, paired with a foreign equity funds like FENI, FIVA, or IDMO; and FNDE for emerging market. Foreign equity has done well this year, and if you select the right fund it’s worth having, I do not subscribe to the notion of an all world or all foreign equity fund like VXUS, it lacks strategy. Foreign equity needs some process, methodology, and thought behind it.
ICOP for Copper Mining. IDMO, FIVA, FENI, FNDE for foreign equity. FBTC for Bitcoin. I’d mention my US holdings too but it’s pretty standard stuff. Never stop buying.
Try to invest in two separate funds; one for developed ex-US, and one for foreign emerging markets. VXUS is fine, but I think there’s much more value in separating developed and emerging. Emerging is a riskier investment, so having the two smushed together is not ideal. I use SCHF and FNDE, though I wouldn’t necessarily recommend them given I don’t know your situation/investment goals etc. FNDE is a fundamentals based (cash flow, price to book, dividends/buybacks etc) ETF for intl emerging, if you’re not a very active investor I would suggest a market cap weighted index instead.
Late to the party here but I agree. I have SCHF for developed international, and FNDE for foreign emerging markets. There are definitely times you’ll want to rebalance between the two, also having an investment in each allows you more flexibility. Plus SCHF has a nice dividend yield.
the S&P 500 is far from perfect. and it's been mythologized by some as the perfect ultimate investment, when that's far from accurate. there are long periods of time smaller US companies like the S&P 600 will beat the S&P 500, international stocks, bonds, or commodities will give much better returns. Rob Arnott and colleagues wrote a paper on how index funds tend to basically sell low and buy high when they make changes. https://www.researchaffiliates.com/publications/articles/674-buy-high-and-sell-low-with-index-funds but the point is not that the S&P 500 is perfect, but that (a) it's rarely a terrible choice long-term and is a decent proxy for the overall market; and (b) the transaction/expense costs are low in most cases with a mutual fund or ETF tracking the S&P 500. fees are one of the few variables individual investors can control. if you compare S&P 500 performance with with the Russell 1000, which is based entirely on market capitalization, the long-term results are very close. https://media.ycharts.com/charts/b8cb8a529298112db88f111952bd986e.png I can't find the links at the moment, but there's data showing any large pool of stocks (30-50+) selected at random from the Russell 1000 or Russell 3000 will tend to perform about as well as the overall market, when looking at the long-term. there are 'fundamental indexes' that rank stocks by earnings, revenue, dividends, etc. Schwab has a bunch (FNDX, FNDB, FNDE) and Wisdom Tree has ESP and similar.
You are comparing an ETF to a mutual fund. What you want is SCHF. You may also consider SCHY for intl dividends. I would use a separate ETF for emerging markets which is a different type of risk. I bought some FNDE.
If you are thinking by no end date around a decade $200k taxable with potentially no end date. I'd say a high cash value life insurance policy (this means a heavy term blend) at $50k / yr. You'll be even by year 5 and be getting positive arbitrage on the mortgage for life. Very powerful tool If you are thinking more like 3 years... VCSH. If you are thinking more like.5 years... 70% VCSH, 15% FNDE, 15% FNDA.
I'm not sure what the money is for. It sounds like you are about 15% stock. At those levels increasing your stock allocation **decreases** your risk inflation adjusted. Going from about 15% to 25% is pretty much a free lunch. But that's nowhere near enough return for long term accumulation. If you can stomach: * 15% USA small cap value (ex FNDA) * 15% EM value (ex FNDE) * 70% USA short-term corporates (similar risk to savings and CDs) (ex VCSH) you'll be in a portfolio that will underperform a normal 80/20 by about 1-1.5% but with far far less volatility. I can suggest other portfolios like this designed to underperform stocks by a little in exchange for a lot more safety. But you are going to need to go up from where you are. In investing you get paid to hold other people's risk. Over the long term a refusal to take on risk turns the possibility of loss via risk into the certainty of more loss via decrease in expected return. You are way way under where you need to be. Sorry but that's the honest truth. If you were wealthier than you sound like I'd suggest insurance products. But those really make sense relative to expenses only if you have tax problems you don't have.
If you want a small and value tilt: FNDA, FNDB, FNDC, FNDD, FNDE, FNDF equal as a core. Non-taxable add SFREX (not available as an ETF). If you want a bit less value: long term investment: 13.33% in each of FNDA, FNDB,FNDC, FNDE, FNDF, VTI, VXUS. Rest (6.66%) VWO
I'm a big fan of the 'fundamental index' ETFs from Schwab: FNDE, FNDA, FNDF and a few others. the idea is they weight stocks by things like revenue and dividends, rather than simply by stock price which is how most indexes rank stocks. the data is pretty strong that the fundamental indexes offer superior long-term results and they're still pretty cheap at ~25 basis points. I think they're great as a core position, or as a 'satellite' position to hedge against the flaws of indexes like VOO. >Based upon a data set that comprises the largest 1,000 US stocks for each year in our sample, our results show that between 1968 and 2011 the fundamental index alternatives that we consider have outperformed a comparable index constructed on the basis of the market capitalisation of the index constituents in risk-adjusted terms. Our Monte Carlo experiments show that this superior risk-adjusted performance cannot be attributed easily to luck. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2242034 >I probably have 4% of my money in Roth IRA, 47% in brokerage accounts, 31% in 401k, 18% in savings account. I'd like to see a greater percentage of assets in tax-sheltered retirement, rather than in the brokerage account.
Rob Arnott of Research Affiliates said somewhere how they haven't recommended selling any of the Russian stocks held in their funds or ETFs. FNDE at Schwab uses Arnott's strategies and had large positions in Gazprom and Lukoil. Arnott said despite the reprehensible actions of Russia during the invasion, he had a fiduciary obligation to manage investor funds responsibly. were Russian stocks basically frozen internationally? Yes. were they worth less than before the invasion? yes. were they worth $0? no. thus, if the Russian stocks had any value he was obligated to hold on to them until they were capable of at least selling them for pennies on the dollar.
If I couldn't touch it I'd prefer actively managed global funds. But if we are talking ETFs well I did this exercise recently for someone (this is probably simpler than I would do for myself but): 13.33% in each of FNDA, FNDB,FNDC, FNDE, FNDF, VTI, VXUS. Rest (6.66%) VWO
5 years I'd go 30/70. Vanguard Wellesley for simplicity. Since you don't care much about tax efficiency go with the mutual fund if you get free sells and only have to pay for buy. * 15% FNDE * 15% FNDA * 70% BND Will work about the same.
There is no advantage of QQQ or VUG. You already are heavy USA large cap growth with VOO and VTI. In terms of what you are missing: small, value, international (Schwab funds: FNDA, FNDB, FNDC, FNDE, FNDF would fill most gaps). In terms of hands off consider M1 as a broker.
Well I still have 2000 shares of ERUS.ERC so if the sanctions get lifted.... Not sure what is still in the fund. I also know some of my larger holdings like FNDE had a lot of Russian stock they might still hold. Mostly though I don't think we know what President Prigozhin's policies will be. I think the short term a lot of the Putin allied countries might break free so new opportunities in EMs that didn't exist before. I also think there is a lot of potential volatility in energy. We could see a sharp increase in supply as Russia can now sell to Europe post Ukraine or a sharp decrease because oil production is damaged by civil war. India I'd also expect will be volatile as Modi sided with Russia.
For an EM I don't think Turkey is all that cheap. Turkish people are worried about inflation more than interest rates and have hidden out (correctly) in stocks. Their stock market is rather high in local currency terms. Last year you could get 25% on Turkish bonds, that was an attractive way to play Turkey if you had confidence. Those people made out as those same bonds are at 10.5%. I don't like the bonds at today's prices either. I like where your head is out jumping into crisis and buying cheap. You might want to consider FNDE, DGS and take a broadly diversified collection of these opportunities.
You are not diversified but NVDA is just an example not really the core of the problem. SPY is USA large cap with a growth tilt. QQQ is USA large cap with a technology tilt. SMH is a large cap growth tilted industry fund in the technology sector. Way too much technology, way too much USA, way too much growth, way too much large cap. You need: small, value, international, emerging markets as immediate fixes. A good sample of funds to add would be FNDA, FNDB, FNDC, FNDE and FNDF which would fix most of those gaps.
Actually I was saying all of them. FNDA, FNDB, FNDC, FNDE, FNDF all diversify a cap weighted holding. VBR can be used in place of FNDA if you prefer. I think you are getting a better fund for the money but that's a fund picking not an asset allocation discussion.
As others have said for mainstream choices choice of broker doesn’t influence choice of etf. In terms of EM simplicity (2-fund) and maximizing diversification conflict. I’d pick moving towards more diversification and add the EMs but it is a real choice. FWIW Schwab’s FNDE is a very good core ETF.
Howdy, can I plz get someone w a bigger brain than me to review? 40% QQQ, 35% VIG, 15% PAVE, 5% FNDF, 5% FNDE. Long term maximize growth goal.
40% QQQ, 35% VIG, 15% PAVE, 5% FNDF, 5% FNDE. Long term maximize growth goal. My mistake on prior comment. Thank you :)
Gazrprom is just insanely undervalued. it's a top holding in the Schwab emerging markets fundamental ETF, FNDE. they're one of the largest companies worldwide by revenue, top 50 or 100. at a $9 share price and $2 EPS, with P/E of 4. this is for OGZPY. it's a screaming bargain with a massive moat and outstanding fundamentals. IMO the border stuff is mostly saber-rattling, I doubt anything major will come of it, certainly not a full-scale invasion. the main motivation is that Putin wants Ukraine in his orbit of influence and not NATO's.
The notion of emerging market + value feels paradoxical for some reason. But Schwab's FNDE might be what you are seeking. Large companies in emerging markets. And only 0.39% expense ratio.
I have the Schwab intelligent portfolio that owns the global market, it's been frustrating see the international funds like FNDE go flat all year while S&P 500 has been ripping.
If I were to hold EM it would be a value tilted fund (FNDE, EYLD, maybe AVEM) but I don’t. I hold 35% ex-US and see no reason to overweight EM so that would be an 8% holding which doesn’t move the needle. I’m plenty diversified and uncorrelated now with all the developed ex-US in small/deep-value (FNDC & IVAL). If either of those funds included EM I wouldn’t balk, but for now I sleep great at night and don’t think a token holding would move the needle. 5% is a waste of mental energy.
I’ve come to the conclusion as well that at least right now I want active management in EM. Keep in mind if you’re buying VWO you’re putting about a quarter of your money into Chinese internet companies (Tencent, BABA, JD, etc). This isn’t necessarily a bad thing, just buyer beware. I picked Cambria’s EYLD which has an amazing track record, PE of like 12, forward PE of 10, good ROE, and good commodity exposure. Most importantly to me they pick companies that aren’t highly levered. Then I picked and chose the Chinese large caps I wanted separately on the NYSE/Nasdaq. There’s a lot of garbage in EM and overvaluation in India that I wanted to avoid and EYLD will do this for you. EYLD for me was superior to VWO, EEM, DGS, DEM, FNDE, and AVEM by a long shot. Actually sold all my DGS and VWO to move into it. Regardless, EM Value has the best valuations on the planet right now and it isn’t even close. GMO and Research Affiliates are spot on with this.
This is the way. The Cambria EYLD is far superior to any EM fund I’ve come across (VWO, EEM, FNDE, AVEM, DGS, DEM) and I’ve researched this heavily. About half my investments are in EYLD. The poor liquidity is maddening but this is a buy and hold for the decade. If you want exposure to the Chinese large caps you can pick and choose them on the NYSE/Nasdaq which is what I did. Curious to the response above - how did you come across Cambria, they’re fairly obscure and I had to do a lot of work to find them.
Can only speak well to emerging markets - note that Shwab also has a multi-factor fund (FNDE) which takes a smaller slice of the universe and may be with checking out. Cambria has an emerging market fund which I hold close to half my investments in (EYLD), this has a fantastic track record and great fundamentals - I liked them much more than the other multifactor EMs. The fee is nearly twice what you would pay at Avantis but it was worth it to me. Only 100 stocks so you get some divergence from IEMG/VWO. I’ve held Avantis in the past and am a fan, did not do due diligence on DFA.
They’re better valued than US stocks just going off of CAPE. Also better by forward PE. If you’re going to go China you may want to do emerging market value instead (FNDE). Also, I see you bought wisdom trees fund for China. They have my favorite ETF Ive come across right now (DGS) which I think is a much better buy. CXSE is like playing with fire just because it is ex-state owned. They had an amazing year but just know the risk you’re getting into decoupling from the government. I think it’s a better bet in India. As for the drop in the Chinese market - nothing major, the gov pulled some funds right before Chinese which sent stocks in a tailspin. Some of their factory orders have come in a little weak. You’re heavily weighted in the internet stocks (tencent, baba, etc) so your beta is going to follow the global market a little more.
It depends on your thesis. Myself and OP think a major crash is coming so want to be ready for it with more value-based stocks. SPEM currently sits at a PE of 22.19 if you don’t exclude negative companies. The forward PE is 16.39. The current PE is the highest it has ever been at least since 2006 which is the furthest I can go back, EVEN in the 2007 bubble when it hit 20.10. The forward PE is also the highest it has ever been. Usually you’d expect it to be between 9-15. Return on equity and return on sales is the lowest it has ever been (granted Covid probably messes with that a little). Even though SPEM valuations aren’t as a egregious as SPY, I want something a little more value-oriented and defensive. If you believe in reversion to the mean, DGS could be argued as even slightly undervalued right now if compared to historicals. I don’t like AVEM as much as FNDE just because of the recent shoot up on PE on AVEM. Keep in mind SPEM has outperformed these recently so if you took this advice a few years ago you would have lost money. Personally the tea leaves are telling me to get very very defensive in my holdings.
This is very similar to how I’m tilting my portfolio - utilities, midstream oil transport, and tobacco. Lots of cash in multiple currencies too. I think DGS is the best ETF of any in the world right now and am heavy in it. I looked at AVEM and while I like it better than EEM, I still think it is pretty exposed in a blow up. I got a tip today for FNDE which I like a lot better than AVEM (and trades similar to DGS). I plan to pair it with DGS. I also bought some ATCO Group (ACLLF) which is primarily a utility but they have some other interesting infrastructure operations which have promise, there was a good article on seeking alpha on it recently.