Is Schwab Fundamental U.S. Large Company ETF (FNDX) a Good Investment Now

The Schwab Fundamental U.S. Large Company ETF (FNDX) offers a unique investment approach, but is it the right choice for you?

Is Schwab Fundamental U.S. Large Company ETF (FNDX) a Good Investment Now
Is Schwab Fundamental U.S. Large Company ETF (FNDX) a Good Investment Now

City: The Schwab Fundamental U.S. Large Company ETF, or FNDX, launched back in 2013. It’s designed to give you broad exposure to large-cap value stocks.

So, what’s a smart beta ETF? Well, it’s a type of fund that doesn’t just follow market cap. Instead, it picks stocks based on certain characteristics, hoping to beat the market.

FNDX is backed by Charles Schwab and has over $17 billion in assets. It aims to match the Russell RAFI US Large Co. Index, which focuses on large U.S. companies.

When it comes to costs, FNDX has an expense ratio of 0.25%, which is pretty standard for this type of fund. Plus, it offers a dividend yield of 1.78% over the past year.

Looking at its holdings, FNDX has a big chunk in Financials, around 20%. It also has significant investments in tech and healthcare. Apple, Microsoft, and Berkshire Hathaway are among its top picks.

This year, FNDX has dipped about 0.84%, but it’s up nearly 16% over the last year. It’s considered a medium-risk option with a good number of holdings to spread out risk.

If you’re thinking about alternatives, there are other ETFs like Schwab U.S. Dividend Equity ETF and Vanguard Value ETF that might catch your eye. They have lower expense ratios and a solid track record.

In the end, FNDX could be a solid choice if you’re looking to invest in large-cap value stocks. Just make sure to do your homework and see if it fits your investment goals.

Disclaimer: All images comply with fair use for educational and informational purposes. Sourced from public platforms. Have questions? Contact us.
Fact-Checking Policy: Accurate information is our focus. If errors are found, please let us know, and corrections will be made swiftly.