Core Insights - The Schwab Fundamental U.S. Large Company ETF (FNDX) is a passively managed ETF launched on August 13, 2013, with assets exceeding $19.39 billion, targeting the Large Cap Value segment of the U.S. equity market [1] - Large cap companies typically have market capitalizations above $10 billion, offering stability and lower risk compared to mid and small cap companies [2] - Value stocks are characterized by lower price-to-earnings and price-to-book ratios, but they also exhibit lower sales and earnings growth rates [3] Costs - The ETF has an annual operating expense ratio of 0.25%, which is competitive within its peer group, and a 12-month trailing dividend yield of 1.7% [4] Sector Exposure and Top Holdings - The ETF's largest sector allocation is to Financials at approximately 17.4%, followed by Information Technology and Healthcare [5] - Apple Inc. constitutes about 3.86% of total assets, with the top 10 holdings representing around 20.25% of total assets under management [6] Performance and Risk - FNDX aims to replicate the performance of the Russell RAFI US Large Co. Index, with a year-to-date return of approximately 7.87% and a one-year return of about 12.26% as of August 18, 2025 [7] - The ETF has a beta of 0.93 and a standard deviation of 15.15% over the trailing three-year period, indicating a medium risk profile [8] Alternatives - The Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard Value ETF (VTV) are comparable options, with SCHD having $71.11 billion in assets and an expense ratio of 0.06%, while VTV has $141.73 billion in assets and charges 0.04% [11] Bottom-Line - Passively managed ETFs are gaining popularity among both institutional and retail investors due to their low cost, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [12]

Core Viewpoint - The Schwab Fundamental U.S. Large Company ETF (FNDX) is a smart beta ETF designed to provide broad exposure to the Large Cap Value category, with a focus on fundamental characteristics to enhance risk-return performance [1][3][5]. Fund Overview - FNDX was launched on August 13, 2013, and has accumulated over $18.97 billion in assets, making it one of the largest ETFs in its category [1][5]. - The fund is managed by Charles Schwab and aims to match the performance of the Russell RAFI US Large Co. Index [5]. Cost Structure - The ETF has an annual operating expense ratio of 0.25%, which is competitive within its peer group [6]. - It offers a 12-month trailing dividend yield of 1.72% [6]. Sector Exposure and Holdings - The fund has a significant allocation to the Financials sector, representing 17.4% of the portfolio, followed by Information Technology and Healthcare [7]. - Apple Inc (AAPL) constitutes approximately 3.86% of the fund's total assets, with the top 10 holdings accounting for about 20.25% of total assets under management [8]. Performance Metrics - As of July 23, 2025, FNDX has increased by approximately 6.39% year-to-date and 10.67% over the past year [10]. - The ETF has a beta of 0.93 and a standard deviation of 15.23% over the trailing three-year period, indicating a medium risk profile [10]. Alternatives - Other ETFs in the Large Cap Value space include Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard Value ETF (VTV), which have larger asset bases and lower expense ratios [12].