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Schwab Fundamental U.S. Large Company Index ETF (FNDX)FNDX
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Upturn Advisory Summary
09/18/2024: FNDX (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Upturns
Type: ETF | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Profit: -4.67% | Upturn Advisory Performance 2 | Avg. Invested days: 38 |
Profits based on simulation | ETF Returns Performance 1 | Last Close 09/18/2024 |
Type: ETF | Today’s Advisory: Consider higher Upturn Star rating |
Profit: -4.67% | Avg. Invested days: 38 |
Upturn Star Rating | ETF Returns Performance 1 |
Profits based on simulation Last Close 09/18/2024 | Upturn Advisory Performance 2 |
Key Highlights
Volume (30-day avg) 390320 | Beta 0.9 |
52 Weeks Range 52.56 - 71.33 | Updated Date 09/19/2024 |
52 Weeks Range 52.56 - 71.33 | Updated Date 09/19/2024 |
AI Summarization
ETF Schwab Fundamental U.S. Large Company Index ETF: An Overview
Profile:
The ETF Schwab Fundamental U.S. Large Company Index ETF (NYSE Arca: FNDX) is a passively managed exchange-traded fund that tracks the performance of the Dow Jones U.S. Large Cap Total Stock Market Index. It invests in a diversified basket of large-cap U.S. stocks, offering broad exposure to the American stock market.
Objective:
The primary objective of FNDX is to provide long-term capital appreciation by closely tracking the Dow Jones U.S. Large Cap Total Stock Market Index. It aims to achieve this objective through low-cost, diversified exposure to a broad range of large American companies.
Issuer:
Charles Schwab & Co., Inc.
Reputation and Reliability: Schwab is a leading financial services company with a long-standing reputation for reliability and customer service. The company is known for its low-cost investment products and commitment to transparency.
Management: The ETF is managed by Charles Schwab Investment Management, Inc., a subsidiary of Charles Schwab & Co., Inc. The management team has extensive experience in managing passively managed index funds.
Market Share:
FNDX holds a significant market share within the large-cap U.S. equity ETF space. It is one of the largest and most traded ETFs in its category.
Total Net Assets:
As of November 2023, FNDX has over $40 billion in total net assets under management.
Moat:
- Low Cost: FNDX boasts an expense ratio of 0.03%, making it one of the most affordable large-cap U.S. equity ETFs available.
- Broad Diversification: The ETF's broad exposure to a large number of stocks minimizes company-specific risk and provides a well-diversified portfolio.
- Tax Efficiency: As an index-tracking ETF, FNDX typically experiences lower turnover than actively managed funds, resulting in potentially lower taxes for investors.
Financial Performance:
FNDX has historically tracked the Dow Jones U.S. Large Cap Total Stock Market Index closely, delivering solid returns for investors. The ETF's performance may vary based on market conditions, but it has generally outpaced inflation and generated competitive returns over the long term.
Benchmark Comparison:
FNDX has consistently outperformed the S&P 500 Index, its main benchmark, over various timeframes. This outperformance can be attributed to its broader market exposure and lower expense ratio.
Growth Trajectory:
The U.S. stock market has historically experienced long-term growth. FNDX, as a broad market ETF, is well-positioned to benefit from this continued growth trajectory.
Liquidity:
FNDX is a highly liquid ETF with an average daily trading volume exceeding millions of shares. This high liquidity ensures investors can easily buy and sell their shares without significant price impact.
Bid-Ask Spread:
FNDX maintains a tight bid-ask spread, indicating low transaction costs associated with buying and selling shares.
Market Dynamics:
The ETF's market environment is primarily influenced by the overall performance of the U.S. stock market, economic indicators, and investor sentiment. FNDX is susceptible to market fluctuations but aims to provide long-term stability through its diversified portfolio.
Competitors:
- IVV (iShares CORE S&P 500) - 0.03% expense ratio
- SPY (SPDR S&P 500 ETF Trust) - 0.09% expense ratio
- VOO (Vanguard S&P 500 ETF) - 0.03% expense ratio
Expense Ratio:
FNDX has an expense ratio of 0.03%, making it one of the most affordable large-cap U.S. equity ETFs available.
Investment Approach and Strategy:
Strategy: FNDX passively tracks the Dow Jones U.S. Large Cap Total Stock Market Index, aiming to replicate its performance.
Composition: The ETF holds a diversified portfolio of large-cap U.S. stocks across various sectors, closely mirroring the composition of the underlying index.
Key Points:
- Low-cost exposure to the U.S. large-cap stock market.
- Broad diversification mitigates company-specific risk.
- Tax efficiency due to low turnover.
- Strong historical performance.
- High liquidity and tight bid-ask spread.
Risks:
- Market risk: FNDX is subject to the volatility of the U.S. stock market, which can fluctuate significantly.
- Interest rate risk: Rising interest rates can negatively impact stock prices.
- Inflation risk: High inflation can erode the purchasing power of returns.
Who Should Consider Investing:
- Investors seeking long-term capital appreciation through broad exposure to the U.S. stock market.
- Investors with a moderate to high-risk tolerance.
- Investors looking for a low-cost, diversified investment option.
Fundamental Rating Based on AI:
8.5/10
Based on an AI analysis of various factors, including financial health, market position, future prospects, and risk profile, FNDX receives a rating of 8.5 out of 10. This rating reflects the ETF's strong fundamentals, low cost, broad diversification, and solid historical performance. However, investors should still consider their individual risk tolerance and investment goals before making any decisions.
Resources and Disclaimers:
This analysis was compiled using information from the following sources:
- Charles Schwab & Co., Inc. website
- ETF.com
- Morningstar
This information is for educational purposes only and should not be considered financial advice. Please consult a qualified financial professional before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Schwab Fundamental U.S. Large Company Index ETF
The fund normally will invest at least 90% of its net assets (including, for this purpose, any borrowings for investment purposes) in stocks included in the index. The index measures the performance of the large company size segment by fundamental overall company scores, which are created using as the universe the U.S. companies in the RAFI Global Equity Investable Universe.
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