What do the expense ratios of these ETFs mean for investors?

The expense ratio is the annual fee charged by the fund manager for managing assets. Both FNDB and FNDX have an expense ratio of 0.25%, which is considered low for factor-based ETFs. Since the fees are identical, the primary cost factor will not differentiate the two funds in this comparison. A lower fee helps to keep more of your return in your pocket, but it does not guarantee better performance.

How do these ETFs approach fundamental analysis?

Both Schwab Fundamental US Large Company ETF (FNDX) and Schwab Fundamental U.S. Broad Market ETF (FNDB) belong to the Schwab Fundamental Series. This strategy aims to identify companies with higher cash flows and lower leverage relative to their peers. By using fundamental data rather than market capitalization, the goal is to reduce exposure to overvalued businesses and potentially improve long-term risk-adjusted returns.

What is the significance of net assets in an ETF?

Net assets reflect the total market value of the fund's holdings, indicating its size. FNDB has net assets of $1.5 billion, while FNDX has $28.3 billion. Generally, a larger asset base may support better liquidity and tighter bid-ask spreads, making it easier to buy and sell shares without affecting the price significantly. Smaller funds can still perform well but may have slightly higher trading costs.

How do the investment approaches of these ETFs differ?

FNDB focuses on the broad US market by including mid- and small-cap stocks, which increases its total-market exposure. In contrast, FNDX exclusively targets US large companies, limiting its market breadth. Investors looking for broader diversification across all company sizes might consider FNDB, whereas those seeking a concentrated large-cap approach might review FNDX. Neither is inherently better; they serve different investment goals.

What does the overlap in top holdings suggest?

The two funds share significant top holdings, including AAPL, MSFT, XOM, GOOGL, AMZN, INTC, CVX, JPM, BRK.B, and GOOG. This overlap indicates that both funds include major US technology and industrial companies. While the underlying strategy is similar, the broader market exposure of FNDB introduces additional holdings outside the large-cap segment, creating a more diversified portfolio structure than the large-cap-only approach.

How do the dividend yields of these funds compare?

FNDB reports a dividend yield of 1.41%, while FNDX shows a yield of 1.43%. These figures represent the annual income generated by the holdings as a percentage of the fund's current price. The yields are very similar, offering modest income. Investors should remember that yields fluctuate based on market prices and company dividends. Sector weight details are not available, but yields suggest similar income profiles.

Which fund is more suitable for a large-cap focus?

FNDX is explicitly designed as a large-cap ETF, meaning it only includes US large companies. The fund has a $28.3 billion asset base and a 1.43% dividend yield. Because it excludes smaller companies, it is typically associated with a focused large-cap strategy. Conversely, FNDB includes mid- and small-cap stocks, which provides broader market exposure rather than just large companies.

How does market breadth affect portfolio exposure?

Market breadth refers to the number of companies included in the fund. FNDB covers the broad US market, incorporating mid- and small-cap stocks. This wider coverage can potentially smooth out volatility during different market cycles. FNDX, on the other hand, has a narrower breadth focusing solely on large companies. The choice between broad and large-cap exposure depends on the desired level of diversification.

What is the significance of the sector weights?

Sector weights provide insights into how the fund's assets are allocated across different industries. Unfortunately, specific sector weights for both FNDB and FNDX are not available in the provided data. However, top holdings such as AAPL, MSFT, and XOM suggest substantial exposure to the technology and energy sectors. Reviewing the fund's annual report may provide a deeper breakdown of sector allocation.

How do inception dates influence fund history?

FNDB was launched on August 8, 2013, while FNDX started on August 15, 2013. Both funds have similar inception dates, indicating they have comparable track records and have operated for the same duration. This long-standing presence suggests their fundamental strategies have undergone various market cycles. A shared history facilitates easier comparison of performance and strategy effectiveness over time.

Are there trading considerations due to fund size?

FNDX has significantly higher net assets ($28.3 billion) compared to FNDB ($1.5 billion). In practice, this means FNDX may offer greater trading liquidity and potentially tighter bid-ask spreads. However, FNDB's smaller size might impact its trading liquidity. Investors should review current trading volume before execution, although the large asset base of FNDX typically supports easier market entry and exit.

What is a factor ETF?

A factor ETF aims to capture returns from specific characteristics or factors that have historically outperformed the market. In this case, both Schwab funds target the 'fundamental' factor, focusing on metrics like cash flow and leverage to identify undervalued companies. Understanding that these funds are based on factors rather than simple market-cap weighting helps explain why their holdings might differ from traditional index funds.

FNDB vs FNDX

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare Schwab Fundamental U.S. Broad Market ETF (FNDB) and Schwab Fundamental US Large Company ETF (FNDX). Review fees, holdings, dividends and how each fund tracks its market. Both are Schwab large value ETFs with a 0.25% expense ratio. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

FNDB

Metric

FNDX

0.25%

Expense Ratio

0.25%

1.41%

Dividend Yield

1.43%

$1.52B

Net Assets

$28.32B

1,625

Holdings

733

Aug 8, 2013

Inception Date

Aug 15, 2013

–

Index Tracked

–

Large Value

Fund Category

Large Value

Both funds charge the same annual fee.

Shared Top Holdings

Holding	FNDB	FNDX
AAPLApple Inc.	4.46%	4.76%
MSFTMicrosoft Corporation	2.61%	2.78%
XOMExxonMobil Holdings Corporation	2.25%	2.46%
GOOGLAlphabet Inc.	1.71%	1.83%
AMZNAmazon.com, Inc.	1.63%	1.75%
INTCIntel Corporation	1.62%	1.73%
CVXChevron Corporation	1.53%	1.66%
JPMJPMorgan Chase & Co.	1.51%	1.61%
BRK.BBerkshire Hathaway Inc.	1.50%	1.63%
GOOGAlphabet Inc.	1.36%	1.45%

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AVLV vs FNDX

Compare AVLV and FNDX on expense ratios (0.15% vs 0.25%), net assets, dividend yields, top holdings, and fundamental tracking methods for informed research.

Investment Analysis

FNDB

Pros

Includes mid- and small-cap stocks for broader market exposure.
Expense ratio remains low at 0.25 percent.
Dividend yield of 1.41 percent offers modest income.

Considerations

Expense ratio is higher than typical total-market index ETFs.
Net assets of $1.5 billion may affect trading liquidity.
Top holdings include INTC, reflecting significant semiconductor exposure.

FNDX

Pros

Large asset base of $28.3 billion supports tight trading spreads.
Expense ratio of 0.25 percent is reasonable for active factor funds.
Dividend yield of 1.43 percent provides steady income.

Considerations

Lacks mid- and small-cap exposure, limiting market breadth.
Concentrated in large-cap technology and energy stocks.
Shares top holdings with FNDB, resulting in significant overlap.

About FNDB and FNDX

FNDB (FNDB)

The Schwab Fundamental U.S. Broad Market ETF (FNDB) offers investors a way to access large-cap U.S. stocks using a fundamental indexing approach. Unlike traditional index funds that weight companies by market capitalisation, this ETF weights holdings based on fundamental measures such as revenue, cash flow, and earnings. This methodology aims to reduce exposure to overvalued stocks and increase exposure to undervalued ones, potentially enhancing long-term returns. With an expense ratio of 0.25% and net assets of USD 1.52 billion, FNDB provides a cost-effective and diversified investment vehicle. It holds 1,625 companies, offering broad market exposure with a value tilt. As with all investments, it is important to remember that the value of shares can fall as well as rise, and returns are not guaranteed.

FNDX (FNDX)

The Schwab Fundamental US Large Company ETF (FNDX) is an exchange-traded fund focused on large-cap U.S. companies with fundamental value characteristics. It aims to track an index designed to reflect the performance of these firms, using metrics like cash flow and dividends to determine weighting. With net assets of USD 28.32 billion, it offers broad exposure to established businesses through its 733 holdings. The fund operates with a 0.25% expense ratio and provides a dividend yield of 1.43%. Inception occurred on August 15, 2013. As with any investment, its value can fluctuate, and returns are not guaranteed.

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FNDB vs FNDX

Fund Snapshot

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AVLV vs FNDX

Investment Analysis

FNDB

Pros

Considerations

FNDX

Pros

Considerations

About FNDB and FNDX

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6% Interest on Cash

Frequently asked questions

What do the expense ratios of these ETFs mean for investors?

How do these ETFs approach fundamental analysis?

What is the significance of net assets in an ETF?

How do the investment approaches of these ETFs differ?

What does the overlap in top holdings suggest?

How do the dividend yields of these funds compare?

Which fund is more suitable for a large-cap focus?

How does market breadth affect portfolio exposure?

What is the significance of the sector weights?

How do inception dates influence fund history?

Are there trading considerations due to fund size?

What is a factor ETF?

Fund Snapshot

About FNDB and FNDX

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AVLV vs FNDX