From Seekingalpha · Ivan Gaddari · · 50s
FNDF: Cheap International Stocks Face Three Central Banks
Schwab's international ETF FNDF offers cheap global stocks at 14.07 P/E but risks dollar strength and central bank moves.
In brief
Schwab's international ETF FNDF offers cheap global stocks at 14.07 P/E but risks dollar strength and central bank moves. Schwab's FNDF ETF provides low-priced international stock exposure with 14.07 P/E but faces dollar strength and central bank decisions. Originally reported by Seekingalpha.
FNDF ETF Overview
Schwab Fundamental International Equity ETF offers diversified exposure to international large caps at a 14.07 P/E, significantly below EFA and S&P 500 multiples.
FNDF Benefits
FNDF benefits from robust European earnings growth and a 3.03% annual yield but is sensitive to energy sector performance and currency movements.
Risk Factors
The fund’s risk profile is shaped by a strong dollar, central bank decisions, and reliance on energy and materials sectors.
Investment Rating
I rate FNDF a 'buy' for its valuation, diversification, and yield, but would reconsider if it closes below its 200-day moving average.
The key point
Schwab's FNDF ETF provides low-priced international stock exposure with 14.07 P/E but faces dollar strength and central bank decisions.
