AMS:SES 4 June 2025 - 8 September 2025

March 21, 2026, 9:09 AM EDT. Emerging markets equities surged in 2025, with the MSCI Emerging Markets index doubling the S&P 500's returns. This momentum continued in 2026, with emerging markets up 7.4% year to date compared to a 1.64% drop in the S&P 500. The Schwab Fundamental Emerging Markets Equity ETF (FNDE) offers investors broad exposure to developing economies. Uniquely, it follows a ROE-based fundamental index focused on cash flow, sales, and shareholder returns rather than market capitalization. FNDE outperformed peers over five years and actively rebalances quarterly to adjust valuations. The fund has a commodities-heavy sector allocation (energy and materials at nearly 30%) but still includes a sizable 17% in technology stocks. With 379 holdings spanning key emerging markets like Brazil, China, India, and South Korea, this ETF provides a differentiated approach to capture emerging market growth.