The anti-Nvidia ETF: Why contrarians are buying the stocks nobody wants
Complete. Here is the key summaryThe Schwab Fundamental International Equity ETF (FNDF) employs a contrarian, fundamental-weighting strategy that excludes market capitalization, effectively acting as an 'anti-Nvidia' fund by underweighting high-momentum US tech stocks. Instead, it focuses on international developed markets, weighting companies by sales, cash flow, and dividends. Over the past year, FNDF outperformed the S&P 500 and traditional international benchmarks, though it lags over longer periods during tech-led rallies. The fund suits investors seeking diversification away from US mega-cap growth.
Quick ReadFNDF weights stocks by sales, cash flow, and dividends rather than price, so Nvidia-style momentum runs automatically shrink a stock's allocation at rebalance.FNDF's 32% one-year gain doubled SPY and EFA, but SPY's decade-long tech rally still gives cap-weighting the edge over ten years.Currency risk and lumpy semi-annual payouts make FND...