FNDC uses various fundamental screens to capture the developed ex-US small-cap space. The fund tracks an index that selects the bottom 12.5% and weights them by 5-year averages of cash flow, adjusted sales, and dividends plus buybacks. The resulting portfolio looks broadly market-like with a slight midcap tilt. The index is rebalanced on a quarterly basis. Note: FNDC's underlying index changed its name from Russell Fundamental Developed ex-U.S. Small Company Index to Russell RAFI Developed ex-U.S. Small Company Index on December 1, 2016. There are no changes in index methodology and the resulting exposure. Effective June 21, 2024, the index changed to RAFI Fundamental High Liquidity Developed ex US Small Index. Prior to this date, the fund was called Schwab Fundamental International Small Company Index ETF.