What are the expense ratios of FNDA and SCHA and how do they compare?

FNDA has an expense ratio of 0.25%, whereas SCHA's is 0.03%. This means SCHA charges 22 basis points less annually. Over time, this fee difference can impact net returns, as higher fees reduce compounding. For instance, investing £10,000, the annual fee difference is £22. Lower expense ratios can help retain more wealth over extended periods, though other factors also affect performance.

How do FNDA and SCHA track the small-cap market differently?

While specific indices tracked are not available, FNDA uses fundamental analysis for stock selection, focusing on smaller companies based on metrics like book value and earnings. SCHA tracks a more traditional small-cap index, potentially leading to differences in holdings and market exposure. These strategies affect performance, with fundamental approaches possibly diverging from standard index performance.

What does the difference in net assets tell us about liquidity for FNDA and SCHA?

FNDA has net assets of $9.1 billion, while SCHA has $25.5 billion. Larger assets typically mean better liquidity and trading volume. Thus, SCHA might offer deeper trading depth, allowing for easier buying and selling without significantly impacting price. Investors may prefer larger funds for their ability to handle higher trading volumes efficiently.

How do dividend yields compare between FNDA and SCHA?

FNDA offers a dividend yield of 1.16%, slightly higher than SCHA's 1.06%. While both provide modest income, this difference may influence income-focused investors. Remember, yields vary with stock price changes and distributions may differ based on holdings. These yields provide insights into potential passive income but do not guarantee returns.

Why do FNDA and SCHA have different inception dates and what does that mean?

FNDA started on August 15, 2013, while SCHA launched on November 3, 2009. A longer history may demonstrate resilience and familiarity with market conditions. However, both have over a decade of operation. Investors should consider this along with fund strategies when evaluating long-term viability. Longer track records may provide more historical data for assessment.

How do the top holdings of FNDA and SCHA reflect different investing strategies?

FNDA's largest holding is 0.55%, reflecting a diversified strategy. In contrast, SCHA's top holding SNDK comprises 5.18%, indicating higher concentration risk. The presence of LITE in both funds highlights some overlap. Understanding these strategies aids in assessing potential risk and return profiles based on diversification levels.

Which fund suits investors prioritizing lower costs?

SCHA, with an expense ratio of 0.03%, is ideal for investors focusing on minimizing costs. While FNDA provides a lower concentration in its top holdings, its 0.25% fee is higher. Cost-conscious investors often choose funds with lower expenses to maximize net returns, especially in long-term investments.

What are the risks associated with SCHA's concentrated top holding?

SCHA's top holding, SNDK, makes up 5.18% of assets. A concentrated position can increase volatility and single-stock risk. If SNDK performs poorly, it may disproportionately impact the fund's overall performance. This contrasts with FNDA's more diversified approach, where no single holding exceeds 0.55%.

How do sector weights affect FNDA and SCHA despite not being available?

Sector weights aren't available for either fund, but understanding the underlying strategy is crucial. FNDA likely spreads investments across various sectors due to its fundamental approach, while SCHA's larger top holdings suggest possible sector biases. Investors should consider these strategies to infer potential sector exposures and diversification levels.

What should beginners know before investing in FNDA or SCHA?

Beginners should assess their investment goals, risk tolerance, and cost sensitivity. Understand that lower costs and higher liquidity are benefits of larger funds, while fundamental strategies offer unique value. Consider diversification, concentration risks, and the implications of dividend yields. Evaluate these factors for informed decision-making without expecting guaranteed returns.

FNDA vs SCHA

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

Compare FNDA and SCHA. Explore fee differences, holdings and dividends to understand how each fund tracks the market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

FNDA

Metric

SCHA

0.25%

Expense Ratio

0.03%

1.16%

Dividend Yield

1.06%

$9.05B

Net Assets

$25.48B

919

Holdings

1,704

Aug 15, 2013

Inception Date

Nov 3, 2009

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Index Tracked

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Small Blend

Fund Category

Small Blend

SCHA costs about $22.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	FNDA	SCHA
LITELumentum Holdings Inc.	0.55%	1.51%

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Investment Analysis

FNDA

Pros

The fund maintains substantial assets of $9.1 billion, supporting liquidity.
Inception date of August 15, 2013 provides a long operational track record.
Top holdings are highly diversified, with the largest position at only 0.55%.

Considerations

Expense ratio of 0.25% is significantly higher than cap-weighted peers.
Dividend yield of 1.16% offers limited income compared to alternatives.
Fund size is smaller than SCHA, potentially impacting trading depth.

SCHA

Pros

Expense ratio of 0.03% makes it one of the lowest-cost small-cap options.
Net assets of $25.5 billion provide excellent liquidity and trading volume.
Long history since inception on November 3, 2009 demonstrates stability.

Considerations

Top holding SNDK comprises 5.18% of assets, creating concentration risk.
Dividend yield of 1.06% is lower than FNDA's 1.16%.
Reliance on single-holding concentration may increase volatility exposure.

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About FNDA and SCHA

FNDA (FNDA)

The Schwab Fundamental US Small Company ETF offers investors exposure to the smaller end of the US equity market through a rules-based approach. Instead of tracking a traditional market capitalisation index, this fund focuses on fundamental factors such as cash flow, sales, dividends, and book value to determine a company's 'true' size. This strategy aims to identify valuable businesses and may help reduce exposure to stocks that are overvalued or have seen recent speculative buying. With over 900 holdings and a modest expense ratio of 0.25%, it provides a diversified way to access small-cap growth and value opportunities. However, small companies can be more volatile and less liquid than large corporations. As always, remember that asset values can fall as well as rise, and returns are not guaranteed.

SCHA (SCHA)

Schwab US Small‑Cap ETF (SCHA) offers broad exposure to US small-capitalisation companies through a low-cost, market‑weighted fund managed by Charles Schwab. It seeks to track a small‑cap index, providing diversified access to hundreds of smaller US-listed firms across sectors. Investors often use SCHA to complement large‑cap holdings, potentially enhancing long‑term growth and diversification, though small caps can be more volatile and sensitive to economic cycles. As an ETF, SCHA trades like a stock on exchanges, making it easy to buy or sell during market hours. It typically has a low expense ratio, but investors should also consider bid‑ask spreads, tracking error, and tax implications. This is general educational information and not personalised advice; returns are not guaranteed and the value of an investment can fall as well as rise. Suitability will depend on an individual’s goals, risk tolerance and investment horizon.

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FNDA vs SCHA

Fund Snapshot