International Small-Caps Surge as Fundamental Investing Strategy Gains Momentum

A remarkable shift is occurring across global equity markets, with international small-cap stocks delivering standout returns. Leading this charge is the Schwab Fundamental International Small Company Index ETF (FNDC), which has generated impressive year-to-date gains exceeding 23%. This substantial advance raises important questions about the drivers behind the international small-cap rally and whether this momentum can be sustained.

The numbers tell a compelling story. FNDC has climbed 23.5% since the start of the year, reaching a current trading level of $44.97. The fund’s recent momentum includes a single-day jump of 0.85%, reflecting ongoing investor enthusiasm. With assets under management totaling $3.02 billion, the ETF continues to attract significant capital from investors seeking international small-cap exposure.

Market strategists point to exceptionally optimistic projections for 2025, forecasting earnings... Read more...