Schwab's Smart Beta ETF Sees Mixed Performance in 2025

Schwab's Fundamental U.S. Broad Market ETF (FNDB) highlights the smart beta investment strategy. With an annual loss of -5.51% in 2025, investors need to assess its mixed performance before proceeding.

Date: 11-04-2025

AI Rating: 5

Overview of FNDB's Performance

Schwab's Fundamental U.S. Broad Market ETF (FNDB) aims to represent the Style Box - All Cap Value category, but its performance thus far in 2025 raises concerns. The fund has recorded a loss of -5.51%, which can affect investors' perception and potential inflows.

Earnings and Financial Metrics

While the report does not provide direct financial metrics such as Earnings Per Share (EPS), Revenue Growth, Net Income, or Profit Margins, it does mention the fund's expense ratio of 0.25% and its dividend yield of 1.89%. These figures reflect operational efficiency and cash return to investors, which could be viewed as a positive attribute. However, they are not sufficient to mitigate dissatisfaction over the annual performance.

Sector Exposure and Top Holdings

The ETF has significant allocations in the Financials, Technology, and Healthcare sectors, with notable holdings in Apple Inc (AAPL), Microsoft Corp (MSFT), and Berkshire Hathaway Inc Class B (BRK/B). This diversified exposure may cushion against potential sector downturns but does not guarantee positive returns.

Comparative Analysis

FNDB competes with other ETFs like the Capital Group Dividend Value ETF (CGDV) and the iShares Core S&P U.S. Value ETF (IUSV). The volatility and operational costs associated with FNDB are on par with its peers, making it a viable investment; however, lower performance this year could make lower-cost alternatives more appealing to investors seeking value and growth.

Market Considerations

Investors may weigh this ETF's potential against broader macroeconomic conditions, including interest rates and market volatility. The medium risk profile indicated by its beta of 0.95 suggests it is less volatile than the broader market, which can be appealing during uncertain times.

Stocks: AAPL MSFT BRK.B CGDV IUSV