Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Schwab Fundamental U.S. Large Company ETF (FNDX) is a passively managed exchange traded fund launched on 08/13/2013.

The fund is sponsored by Charles Schwab. It has amassed assets over $18.11 billion, making it one of the largest ETFs attempting to match the Large Cap Value segment of the US equity market.

Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.

Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.

When considering an ETF’s total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

Annual operating expenses for this ETF are 0.25%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 1.78%.

It is important to delve into an ETF’s holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Financials sector–about 17.60% of the portfolio. Information Technology and Healthcare round out the top three.

Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.95% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRK/B).

The top 10 holdings account for about 20.45% of total assets under management.

FNDX seeks to match the performance of the Russell RAFI US Large Co. Index before fees and expenses. The RAFI Fundamental High Liquidity US Large Index measures the performance of large U.S. companies based on their fundamental size and weight.

The ETF has gained about 1.71% so far this year and it’s up approximately 9.42% in the last one year (as of 06/18/2025). In the past 52-week period, it has traded between $20.84 and $25.11.

The ETF has a beta of 0.93 and standard deviation of 15.51% for the trailing three-year period, making it a medium risk choice in the space. With about 746 holdings, it effectively diversifies company-specific risk.