FNDX 📈 Schwab Fundamental U.S. - Overview

The Schwab Fundamental U.S. Large Company Index ETF, listed on the NYSE ARCA under the ticker FNDX, is designed to track the performance of large-cap companies in the US market, with a focus on fundamental analysis. Typically, the fund allocates at least 90% of its net assets to stocks that are part of its underlying index, which is constructed based on the fundamental overall company scores of US companies within the RAFI Global Equity Investable Universe. This approach allows for a diversified portfolio that reflects the financial health and stability of large companies in the US.

By investing in the FNDX ETF, investors gain exposure to a broad range of large-cap US companies, selected based on their fundamental strengths, such as revenue, dividends, and other financial metrics. The fund's underlying index is part of the RAFI (Research Affiliates Fundamental Index) series, which uses a rules-based approach to select and weight companies based on their fundamental characteristics, rather than market capitalization. This methodology aims to provide a more accurate representation of a company's true economic size and importance, rather than simply its market value.

As a US-domiciled ETF, FNDX is subject to US regulatory requirements and is listed on the NYSE ARCA, providing investors with easy access to the fund. With its ISIN code of US8085247711, the fund is also easily identifiable and accessible to international investors. The Schwab Fundamental U.S. Large Company Index ETF is classified as a large value ETF, indicating its focus on large-cap companies with strong fundamental profiles, which may appeal to investors seeking a value-oriented investment strategy.

In terms of its investment strategy, the FNDX ETF is designed to provide long-term capital appreciation by tracking the performance of its underlying index. The fund's portfolio is regularly rebalanced to ensure that it remains aligned with the index, and to maintain an optimal mix of large-cap US companies. By investing in the FNDX ETF, investors can gain diversified exposure to the US large-cap market, with a focus on companies that have demonstrated strong fundamental performance, which may help to reduce risk and increase potential long-term returns.