FNDX ETF · Schwab Fundamental U.S. Large Company ETF

The Schwab Fundamental U.S. Large Company Index ETF (FNDX) is an exchange-traded fund incorporated in the United States. It is designed to track the performance of the Russell RAFI US Large Company Index, with constituents being large-cap U.S. enterprises that are publicly listed.

The underlying index uses an approach known as fundamental indexation. This methodology primarily considers financial indicators such as adjusted sales, retained operating cash flow, and dividends plus buybacks in determining the weightage of the constituent companies, as opposed to traditional market-capitalization-based indexes.

The FNDX portfolio primarily comprises securities spanning a broad spectrum of sectors like information technology, healthcare, financials, consumer discretionary, and industrials. This extensive sector diversity makes it a potential vehicle for investors seeking wide exposure to prominent U.S. businesses across varying industries.

As a passively managed ETF, FNDX attempts to replicate the index's performance by investing at least 90% of its net assets in the securities comprising the index. Hence, it offers investors a way to achieve access to a diversified portfolio of large-cap U.S. companies.

Investors should carefully consider the information contained in the prospectus before making investment decisions regarding FNDX. It is essential to understand the strategies, risks, charges and expenses associated with this investment option.

To sum up, the Schwab Fundamental U.S. Large Company Index ETF offers an approach to investing in large-cap companies by utilizing a distinctive, fundamentals-based methodology.