Looking for broad exposure to the Small Cap Value segment of the US equity market? You should consider the Schwab Fundamental U.S. Small Company ETF (FNDA), a passively managed exchange traded fund launched on 08/13/2013.

The fund is sponsored by Charles Schwab. It has amassed assets over $8.14 billion, making it one of the larger ETFs attempting to match the Small Cap Value segment of the US equity market.

Sitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk.

While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

Annual operating expenses for this ETF are 0.25%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 1.53%.

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund’s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Industrials sector–about 19.80% of the portfolio. Financials and Consumer Discretionary round out the top three.

Looking at individual holdings, Verisign Inc (VRSN) accounts for about 0.41% of total assets, followed by Geo Group Inc (GEO) and Gamestop Corp Class A (GME).

The top 10 holdings account for about 3.18% of total assets under management.

FNDA seeks to match the performance of the Russell RAFI US Small Co. Index before fees and expenses. The RAFI Fundamental High Liquidity US Small Index measures the performance of small U.S. companies based on their fundamental size and weight.

The ETF has lost about -5.62% so far this year and was up about 3.74% in the last one year (as of 06/20/2025). In the past 52-week period, it has traded between $23.85 and $32.42.

The ETF has a beta of 1.09 and standard deviation of 21.10% for the trailing three-year period, making it a medium risk choice in the space. With about 993 holdings, it effectively diversifies company-specific risk.