FNDX Profile
The Schwab Fundamental U.S. Large Company Index ETF is designed to provide investors with exposure to large-cap U.S. companies by tracking the performance of its underlying index. The fund typically invests at least 90% of its net assets in stocks included in this index, including any borrowings for investment purposes. The index, a subset of the FTSE Global Total Cap Index, measures the performance of large-cap companies based on their fundamental overall company scores. These scores are determined using financial metrics such as adjusted sales, retained operating cash flow, and dividends plus buybacks.
The ETF seeks to replicate the performance of the FTSE USA Large Cap Fundamental Index under normal market conditions. This index employs a methodology that focuses on the largest segment of the U.S. equity market by fundamental size. The approach aims to offer a more stable and representative measure of large-cap company performance compared to traditional market-cap weighted indices by incorporating fundamental financial measures to evaluate and weight the companies.
The Schwab Fundamental U.S. Large Company Index ETF offers a strategic investment opportunity for those looking to gain exposure to the large-cap segment of the U.S. equity market. Large-cap companies typically represent established, financially stable firms with significant market share and influence. By focusing on companies with strong financial health and robust fundamentals, the ETF seeks to provide a balanced risk-reward profile, appealing to investors who prefer stability and steady growth potential over more volatile small-cap investments.
This ETF provides diversification across a wide range of large-cap companies, spanning various sectors and industries, thereby spreading risk and opportunities. Its fundamentally driven selection process aims to capture the long-term growth potential of large-cap stocks while mitigating some of the risks associated with market-cap weighted indices. Suitable for long-term investors, the Schwab Fundamental U.S. Large Company Index ETF enables participants to benefit from the growth and stability of the U.S. large-cap market through a disciplined, fundamentally-based investment strategy.
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