Schwab Fundamental U.S. Large Company ETF

Schwab Fundamental U.S. Large Company ETF (FNDX) tracks the RAFI Fundamental High Liquidity US Large Index, holding 731 large U.S. companies as of August 31, 2026. Instead of stock-market value, it weights companies by sales, cash flow, and dividends plus share repurchases, which may suit investors wary of the most richly priced stocks dominating. Its 0.25% annual fee is below Invesco RAFI US 1000 ETF's 0.33% but above the 0.19% average for similar funds.

• Over the year to Nov 2, 2026, FNDX returned +25.0%, 3rd of 9 among similar funds.
• Its 5-year annualized return was +13.4% and its 10-year +14.9%.
• In the 2020 COVID crash it fell 37.4% and regained its old high 7.6 months after the low.
• Its worst full calendar year was 2018 (-7.3%); its best was 2021 (+31.7%).
• The deepest fall in its price history was 37.7% (Feb 12, 2020 to Mar 23, 2020), recovered by Nov 13, 2020.

As of Aug 31, 2026, the fund held 731 securities; the ten largest made up 20.97% of assets.

By sector

• Over the three months to Aug 31, 2026, investors added a net $928.0M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.77%, +1.99%, +2.11%.

FNDX, run by Charles Schwab Investment Management, tracks the RAFI Fundamental High Liquidity US Large Index. Many index funds weight companies by market capitalization (share price times shares outstanding), giving the most valuable companies the biggest slices. This index instead scores U.S. companies on three measures of business size: adjusted sales, retained operating cash flow, and dividends plus share repurchases. Companies are ranked, and those making up the top 87.5% of total scores are included, each weighted by its share of the scores.

The index sets its members and weights once a year, then phases changes in: it is split into four equal segments, and one segment is rebalanced (reset to target weights) each quarter. That spreads out trading; the prospectus reports 12% portfolio turnover, the share of holdings replaced in a year.

The fund keeps at least 90% of net assets in index stocks and generally matches index weights, though the adviser may deviate for trading, tax or liquidity reasons. Up to 10% can go elsewhere to aid tracking, such as stocks expected to join the index or futures contracts that put spare cash to work. It may also lend securities to help narrow the gap with the index's return. No leverage or options are used; stocks were 99.8% of assets as of August 31, 2026.

• FNDX charges 0.25% a year, versus an average of 0.19% for the similar funds below (6th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $26 in the first year and $318 over 10 years (assuming a 5% annual return).

With 731 large U.S. companies across every major sector as of August 31, 2026, it is broad enough to serve as a main stock holding, though it weights by business size rather than market value.

FNDX could anchor a portfolio's U.S. stocks but offers no shelter in a slump. Launched in 2013, it has no 2008 crisis record. Its deepest drop was 37.7% in the COVID crash, from February 12 to March 23, 2020; it regained its peak about 7.7 months later. In the 2022 bear market it fell 19% and needed 9.4 months to recover. Its worst calendar year, 2018, lost 7.3%, so year-end figures hide deeper dips. Someone forced to raise cash near a low could lock in losses.

Income is modest: dividends over the 12 months to October 29, 2026, equaled 1.43% of the share price, paid quarterly. The 0.25% annual fee comes to $26 in year one and $318 over 10 years on $10,000, in the SEC's standard 5%-return example. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.