Schwab Fundamental U.S. Broad Market Index ETF (FNDB)

ETF Schwab Fundamental U.S. Broad Market Index ETF Summary

Profile:

• Focus: Diversified exposure to the U.S. stock market
• Asset Allocation: Primarily large-cap stocks across various sectors
• Investment Strategy: Passively tracks the Dow Jones U.S. Broad Market Index

Objective:

• Provide long-term capital appreciation through broad market exposure

Issuer:

• Company: Charles Schwab Investment Management, Inc.
• Reputation: Strong reputation as a leading financial services company with over 40 years of experience
• Reliability: Well-established and financially sound organization

Market Share:

• Holds approximately 0.4% of the total U.S. broad market ETF market share

Total Net Assets:

• Approximately $14.84 billion as of November 2, 2023

Moat:

• Low expense ratio: 0.03%, making it one of the most affordable broad market ETFs
• Tax efficiency: Utilizes a sampling strategy, potentially leading to tax benefits
• Schwab's reputation: Strong brand recognition and trust among investors

Financial Performance:

• Historical Performance:
  • YTD: 17.81%
  • 1 Year: 28.78%
  • 3 Years: 11.17% (annualized)
  • 5 Years: 14.56% (annualized)
• Benchmark Comparison: Outperformed the Dow Jones U.S. Broad Market Index in the past year

Growth Trajectory:

• Growth potential aligned with the overall U.S. stock market
• Increasing popularity of low-cost, passively managed ETFs

Liquidity:

• Average Trading Volume: High, ensuring easy buying and selling
• Bid-Ask Spread: Tight, indicating low trading costs

Market Dynamics:

• Economic Indicators: Interest rates, inflation, and economic growth
• Sector Growth Prospects: Performance of various industries within the U.S. market
• Current Market Conditions: Volatility and overall market sentiment

Competitors:

• iShares CORE S&P 500 (IVV) - 85% market share
• Vanguard Total Stock Market ETF (VTI) - 8% market share
• SPDR S&P 500 ETF (SPY) - 4% market share

Expense Ratio:

• 0.03%

Investment Approach and Strategy:

• Strategy: Tracks the Dow Jones U.S. Broad Market Index, which includes large-, mid-, and small-cap stocks across various sectors
• Composition: Holds approximately 2,500 stocks, primarily large-cap with some mid- and small-cap exposure

Key Points:

• Low-cost, diversified exposure to the U.S. stock market
• Tax-efficient structure
• Strong track record and reputable issuer
• High liquidity and tight bid-ask spread

Risks:

• Market Volatility: Stock market fluctuations can impact the ETF's value
• Interest Rate Risk: Rising interest rates may negatively affect stock prices
• Sector Concentration: Heavy exposure to large-cap stocks could lead to underperformance in certain market environments

Who Should Consider Investing:

• Investors seeking broad market exposure at a low cost
• Long-term investors with a moderate risk tolerance
• Investors looking for a tax-efficient investment option

Fundamental Rating Based on AI:

8/10

• Strengths: Low expense ratio, strong historical performance, reputable issuer, high liquidity
• Weaknesses: Limited sector diversification, potential for market volatility

Resources and Disclaimers:

• Data Sources:
  • Schwab website: https://www.schwab.com/prospectus/fund/SWASX
  • ETF.com: https://www.etf.com/etfanalysis/overview.aspx?sym=SWASX
  • Morningstar: https://www.morningstar.com/etfs/arcx/swASX/quote
• Disclaimer: This information is for general knowledge and educational purposes only and does not constitute investment advice. Please consult with a qualified financial professional before making any investment decisions.