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Is Schwab Fundamental U.S. Large Company ETF (FNDX) a Strong ETF Right Now?
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Launched on 08/13/2013, the Schwab Fundamental U.S. Large Company ETF (FNDX - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Managed by Charles Schwab, FNDX has amassed assets over $23.14 billion, making it one of the largest ETFs in the Style Box - Large Cap Value. FNDX seeks to match the performance of the Russell RAFI US Large Co. Index before fees and expenses.
The RAFI Fundamental High Liquidity US Large Index measures the performance of large U.S. companies based on their fundamental size and weight.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.25%, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.58%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Representing 17% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Financials and Healthcare round out the top three.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.42% of the fund's total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL).
Its top 10 holdings account for approximately 21.05% of FNDX's total assets under management.
Performance and Risk
The ETF return is roughly 3.6% and was up about 15.93% so far this year and in the past one year (as of 01/26/2026), respectively. FNDX has traded between $20.84 and $28.35 during this last 52-week period.
The fund has a beta of 0.89 and standard deviation of 13.30% for the trailing three-year period, which makes FNDX a medium risk choice in this particular space. With about 712 holdings, it effectively diversifies company-specific risk .
Alternatives
Schwab Fundamental U.S. Large Company ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $76.37 billion in assets, Vanguard Value ETF has $162.92 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Schwab Fundamental U.S. Large Company ETF (FNDX) a Strong ETF Right Now?
Launched on 08/13/2013, the Schwab Fundamental U.S. Large Company ETF (FNDX - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Managed by Charles Schwab, FNDX has amassed assets over $23.14 billion, making it one of the largest ETFs in the Style Box - Large Cap Value. FNDX seeks to match the performance of the Russell RAFI US Large Co. Index before fees and expenses.
The RAFI Fundamental High Liquidity US Large Index measures the performance of large U.S. companies based on their fundamental size and weight.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.25%, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.58%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Representing 17% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Financials and Healthcare round out the top three.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.42% of the fund's total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL).
Its top 10 holdings account for approximately 21.05% of FNDX's total assets under management.
Performance and Risk
The ETF return is roughly 3.6% and was up about 15.93% so far this year and in the past one year (as of 01/26/2026), respectively. FNDX has traded between $20.84 and $28.35 during this last 52-week period.
The fund has a beta of 0.89 and standard deviation of 13.30% for the trailing three-year period, which makes FNDX a medium risk choice in this particular space. With about 712 holdings, it effectively diversifies company-specific risk .
Alternatives
Schwab Fundamental U.S. Large Company ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $76.37 billion in assets, Vanguard Value ETF has $162.92 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.