Average Daily Volume
3.35M
Fund Overview
FNDX, the Schwab Fundamental U.S. Large Company Index ETF, is designed to track the performance of the Russell RAFI™ US Large Company Index. This index selects and weights companies based on fundamental measures of size (adjusted sales, retained operating cash flow, and dividends plus buybacks) rather than traditional market capitalization. FNDX provides exposure to large-cap U.S. equities with a focus on companies that demonstrate strong fundamental characteristics, offering a unique alternative to traditional market-cap-weighted ETFs. The fund is passively managed and seeks to deliver long-term capital appreciation by investing in undervalued large-cap stocks with solid financials.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
Yes
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 1.85 %
- Currency Hedged
-
No
- Portfolio Turnover
-
10 %
- Dividend Date
-
Why Invest in the FNDX ETF?
Potential Benefits
- Offers exposure to large-cap U.S. stocks selected based on fundamental factors rather than market capitalization, potentially identifying undervalued companies.
- Lower expense ratio (0.25%) compared to many actively managed funds, making it cost-effective for long-term investors.
- Diversified holdings across sectors, reducing concentration risk compared to thematic or sector-specific ETFs.
- Historically, fundamental indexing has shown resilience during market downturns due to its focus on financially stable companies.
- Passive management reduces turnover and associated trading costs, enhancing tax efficiency.
Potential Risks
- Fundamental indexing may underperform traditional market-cap-weighted indexes during strong bull markets dominated by high-growth stocks.
- Large-cap focus may limit exposure to high-growth small or mid-cap companies that could outperform.
- Sector biases may emerge due to the fundamental weighting methodology, leading to unintended concentrations.
- Dividend-focused criteria may expose the fund to interest rate sensitivity, particularly in rising rate environments.
- Tracking error risk exists if the fund's methodology does not perfectly replicate the index's performance.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+4.3%
|
+2.3%
|
-3.7%
|
+8.0%
|
+3.0%
|
+0.7%
|
+2.1%
|
+2.0%
|
-2.4%
|
+1.7%
|
-
|
-
|
| 2025 |
+4.0%
|
0.0%
|
-3.7%
|
-3.3%
|
+3.7%
|
+4.2%
|
+0.7%
|
+4.2%
|
+2.5%
|
+1.1%
|
+2.5%
|
+0.3%
|
| 2024 |
+0.6%
|
+3.6%
|
+4.8%
|
-4.6%
|
+4.0%
|
+0.7%
|
+3.7%
|
+2.0%
|
+1.7%
|
-1.3%
|
+6.3%
|
-5.3%
|
| 2023 |
+6.0%
|
-3.2%
|
+0.6%
|
+1.4%
|
-2.7%
|
+6.7%
|
+3.8%
|
-2.4%
|
-3.6%
|
-2.6%
|
+8.1%
|
+5.6%
|
| 2022 |
-1.4%
|
-1.4%
|
+3.1%
|
-5.6%
|
+2.4%
|
-9.4%
|
+7.2%
|
-2.7%
|
-9.5%
|
+11.7%
|
+6.1%
|
-5.1%
|
| 2021 |
+2.7%
|
+4.2%
|
+7.0%
|
+3.8%
|
+2.9%
|
-0.5%
|
+0.2%
|
+2.3%
|
-3.4%
|
+5.2%
|
-2.0%
|
+5.9%
|
| 2020 |
-2.3%
|
-9.4%
|
-16.4%
|
+12.3%
|
+4.3%
|
+1.0%
|
+4.1%
|
+5.9%
|
-3.8%
|
-1.4%
|
+14.6%
|
+4.1%
|
| 2019 |
+7.9%
|
+3.1%
|
+0.9%
|
+3.5%
|
-7.2%
|
+7.9%
|
+1.2%
|
-3.0%
|
+3.6%
|
+1.9%
|
+3.7%
|
+2.9%
|
| 2018 |
+4.5%
|
-5.0%
|
-1.8%
|
+1.0%
|
+1.8%
|
+0.5%
|
+3.6%
|
+2.4%
|
+0.8%
|
-6.0%
|
+1.4%
|
-9.6%
|
| 2017 |
+0.8%
|
+3.1%
|
-0.3%
|
+0.1%
|
+0.1%
|
+0.8%
|
+1.7%
|
-0.5%
|
+3.2%
|
+1.4%
|
+3.6%
|
+2.0%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
AAPL
|
APPLE INC |
3.8 % |
|
MSFT
|
MICROSOFT CORP |
2.6 % |
|
BRK-B
|
BERKSHIRE HATHAWAY INC CLASS B |
2.5 % |
|
XOM
|
EXXON MOBIL CORP |
2.2 % |
|
JPM
|
JPMORGAN CHASE & CO |
1.8 % |
|
T
|
AT&T INC |
1.5 % |
|
META
|
META PLATFORMS INC CLASS A |
1.5 % |
|
AMZN
|
AMAZON.COM INC |
1.5 % |
|
CVX
|
CHEVRON CORP |
1.5 % |
|
UNH
|
UNITEDHEALTH GROUP INC |
1.5 % |
Top 10 holdings shown, out of 747 total holdings.
Related ETFs: FNDX vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
FNDX tracks the Russell RAFI™ US Large Company Index, which selects and weights stocks based on fundamental factors rather than market capitalization. The index methodology uses adjusted sales, retained operating cash flow, and dividends plus buybacks to determine company size. This approach aims to reduce overexposure to overvalued stocks and increase weighting in financially stable companies. The fund holds a diversified portfolio of U.S. large-cap equities and is rebalanced annually to maintain alignment with the index's fundamental criteria. Unlike traditional market-cap-weighted funds, FNDX's strategy may lead to higher allocations to value-oriented sectors.
Frequently Asked Questions
What is fundamental indexing, and how does it differ from traditional indexing?
Fundamental indexing selects and weights stocks based on financial metrics like sales, cash flow, and dividends rather than market capitalization. This approach aims to avoid overexposure to overvalued stocks that may dominate cap-weighted indexes.
Does FNDX pay dividends?
Yes, FNDX pays quarterly dividends derived from the underlying stocks in its portfolio. Its fundamental methodology tends to favor companies with strong dividend and buyback profiles.
How often is FNDX rebalanced?
FNDX's underlying index is rebalanced annually to realign with its fundamental weighting criteria, which helps maintain the strategy's focus on financially stable companies.
Is FNDX suitable for growth-oriented investors?
FNDX leans toward value stocks due to its fundamental approach. Growth-oriented investors might prefer market-cap-weighted ETFs or growth-specific funds unless they want a value tilt in their portfolio.
Industry Overview
FNDX provides exposure to the U.S. large-cap equity market through a fundamental indexing approach, distinguishing it from traditional market-cap-weighted ETFs. The Russell RAFI™ methodology emphasizes companies with strong sales, cash flow, and dividend metrics, offering a value-oriented tilt. Large-cap stocks are typically more stable and liquid than small or mid-caps, making them a core holding for many investors. FNDX's strategy appeals to those seeking a systematic value approach without the higher costs of active management. The fund is particularly relevant in environments where fundamental factors like cash flow stability and shareholder returns are prioritized over growth momentum.
Alternative Comparison
Compared to SPY or IVV, which track the S&P 500 using market capitalization weighting, FNDX offers a fundamentally weighted alternative that may reduce exposure to overvalued stocks. Unlike PRF (Invesco FTSE RAFI US 1000 ETF), which also uses fundamental indexing but covers a broader market cap range, FNDX focuses exclusively on large-cap stocks. FNDX's expense ratio (0.25%) is competitive with VTV (Vanguard Value ETF) but slightly higher than some plain-vanilla index ETFs like SCHV (Schwab U.S. Large-Cap Value ETF). Investors choosing FNDX typically seek the systematic value tilt of fundamental indexing without active management fees.
Issuer Overview
FNDX is issued by Charles Schwab Investment Management, a subsidiary of The Charles Schwab Corporation. Schwab is a well-established financial services firm known for its low-cost index funds and ETFs. The issuer has a strong reputation for transparency, investor-friendly pricing, and a commitment to passive investment strategies. Schwab's ETFs are widely used by both individual and institutional investors for their cost efficiency and straightforward tracking of benchmarks.
Conclusion
FNDX offers a compelling option for investors seeking exposure to U.S. large-cap equities through a fundamental indexing lens. Its methodology provides a disciplined, rules-based approach to value investing at a low cost. While it may underperform during growth-dominated markets, its focus on financially robust companies could offer downside resilience. As part of a diversified portfolio, FNDX can serve as a core holding for investors who prefer a systematic value tilt over traditional market-cap weighting.
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