The Schwab Fundamental US Large Company Index ETF (FNDX) is an exchange-traded fund designed to track the performance of large-cap U.S. companies using a fundamentals-based weighting methodology rather than market capitalization. The ETF is managed by Charles Schwab Investment Management and trades under the ticker FNDX on the NYSE Arca.

Classified as an equity ETF, the fund invests in large-cap U.S. companies and seeks to replicate the performance of the Russell RAFI US Large Company Index. Unlike traditional market capitalization-weighted indexes, this benchmark weights companies according to fundamental business measures.

The Russell RAFI US Large Company Index selects and weights companies based on metrics such as sales, cash flow, dividends, and book value, seeking to reduce the influence of short-term market price movements on index composition.

Diversification and sector exposure

FNDX provides exposure primarily associated with:

• Large-cap companies.

• U.S. equities.

• Information technology.

• Financials.

• Healthcare.

• Industrials.

• Consumer discretionary.

• Energy.

The portfolio includes companies from a broad range of sectors across the U.S. economy, using a weighting methodology based on corporate fundamentals rather than market capitalization.

The ETF's performance generally reflects the performance of large-cap U.S. companies while emphasizing businesses with stronger economic fundamentals through its index methodology.

Structure and costs

FNDX shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, helping keep the ETF's market price aligned with its net asset value (NAV).

The fund charges a competitive management fee as outlined in its prospectus and does not apply a performance fee. Dividends received from portfolio holdings may be distributed periodically to shareholders according to the fund's distribution policy.

History and evolution of the ETF

The Schwab Fundamental US Large Company Index ETF was launched in 2013 to provide investors with access to a fundamentals-based investment strategy built around indexes developed by Research Affiliates.

Since inception, the fund has tracked the Russell RAFI US Large Company Index, offering an alternative to traditional market capitalization-weighted benchmarks through a methodology based on companies' economic fundamentals.

Over time, the ETF has navigated multiple U.S. equity market cycles, reflecting both changes in corporate fundamentals and the evolving composition of America's largest publicly traded companies.

Additional Information

Schwab Fundamental US Large Company Index ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $27.65 billion.

Over the past 12 months, Schwab Fundamental US Large Company Index ETF recorded a return of 28.10%, with its price trading between $25.64 and $32.69 during the same period.

The ETF is traded under the ticker FNDX.