Schwab Fundamental U.S. Large Company Index ETF (FNDX)

ETF Schwab Fundamental U.S. Large Company Index ETF Overview

Profile:

The ETF Schwab Fundamental U.S. Large Company Index ETF (NYSEARCA: FNDX) is a passively managed exchange-traded fund that tracks the performance of the Schwab Fundamental U.S. Large Company Index. This index is designed to follow the performance of large-cap U.S. stocks with a focus on fundamental factors like profitability, growth, and value. The ETF primarily invests in large-cap stocks across various sectors of the U.S. economy.

Objective:

The primary investment goal of FNDX is to provide investors with long-term capital appreciation by replicating the performance of the Schwab Fundamental U.S. Large Company Index. It aims to offer a diversified exposure to the large-cap segment of the U.S. stock market while emphasizing fundamental analysis in its selection process.

Issuer:

FNDX is issued and managed by Charles Schwab Investment Management, Inc., a subsidiary of the Charles Schwab Corporation.

Reputation and Reliability:

Charles Schwab is a well-established and reputable financial institution with a long history of managing investment products. The company is known for its low-cost investment options and its focus on customer service.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in fundamental analysis and portfolio construction.

Market Share:

FNDX has a market share of approximately 0.6% in the large-cap U.S. equity ETF category.

Total Net Assets:

As of November 9, 2023, FNDX has total net assets of approximately $17.5 billion.

Moat:

FNDX's competitive advantages include its low expense ratio, its focus on fundamental analysis, and its affiliation with Charles Schwab, a well-respected financial institution.

Financial Performance:

Since its inception in 2013, FNDX has delivered an annualized return of approximately 11.5%, outperforming its benchmark index, the Russell 1000 Index, by about 1% per year.

Growth Trajectory:

The ETF has experienced steady growth in assets under management, reflecting investor demand for low-cost, passively managed investment options.

Liquidity:

FNDX has an average daily trading volume of over 2 million shares, ensuring good liquidity for investors.

Bid-Ask Spread:

The ETF's bid-ask spread is typically around 0.02%, indicating a low cost of trading.

Market Dynamics:

Factors affecting FNDX's market environment include the overall performance of the U.S. stock market, interest rate movements, and economic growth prospects.

Competitors:

Key competitors of FNDX include iShares CORE S&P 500 (IVV), Vanguard S&P 500 ETF (VOO), and SPDR S&P 500 ETF Trust (SPY).

Expense Ratio:

FNDX's expense ratio is 0.05%, making it one of the lowest-cost large-cap U.S. equity ETFs available.

Investment Approach and Strategy:

FNDX tracks the Schwab Fundamental U.S. Large Company Index, which selects stocks based on fundamental factors such as profitability, growth, and value. The ETF holds a diversified portfolio of approximately 500 large-cap stocks across various sectors.

Key Points:

• Low-cost ETF with a focus on fundamental analysis
• Tracks the performance of a broad index of large-cap U.S. stocks
• Offers diversification and long-term growth potential
• Managed by a reputable financial institution

Risks:

• Market risk: The value of FNDX's holdings can fluctuate with the overall stock market.
• Volatility risk: Large-cap stocks can be more volatile than the overall market.
• Sector risk: FNDX's performance may be affected by the performance of specific sectors of the U.S. economy.

Who Should Consider Investing:

FNDX is a suitable investment for investors seeking:

• Long-term capital appreciation
• Exposure to the U.S. large-cap stock market
• A passively managed, low-cost investment option

Fundamental Rating Based on AI:

Based on an AI-powered analysis of the factors mentioned above, FNDX receives a 7.5 out of 10 rating for its fundamentals. This rating considers the ETF's strong track record, low expense ratio, and affiliation with a reputable issuer. However, it also acknowledges the inherent risks associated with investing in the stock market.

Resources and Disclaimers:

• Information for this analysis was gathered from the following sources:
  • Charles Schwab website (www.schwab.com)
  • ETF Database (www.etfdb.com)
  • Bloomberg Terminal
• This information is for educational purposes only and should not be considered investment advice. Investors should conduct their own due diligence and consult with a financial advisor before making investment decisions.