What are the fundamental differences in how FNDB and SCHB construct their portfolios?

FNDB uses a fundamental weighting methodology, which aims to reduce concentration in large-cap growth stocks by weighting companies based on financial metrics. In contrast, SCHB tracks the entire U.S. market, typically using market capitalisation weighting. This structural difference means FNDB might hold different proportions of value stocks compared to SCHB's blend approach. Investors should understand that weighting methods directly influence sector exposure and potential tracking differences relative to the broader market indices, impacting risk and return profiles.

How do the categories 'Large Value' and 'Large Blend' differ for beginners?

Schwab Fundamental U.S. Broad Market ETF is classified as Large Value, meaning it focuses on large companies that appear undervalued relative to their fundamentals. U.S Broad Market Schwab is Large Blend, capturing a mix of value and growth characteristics across the broad market. Understanding this helps interpret performance differences. A value-led market may favour FNDB, while growth-led periods could benefit SCHB. Beginners should view these labels as descriptors of underlying stock selection styles rather than guarantees of performance, highlighting the importance of portfolio balance.

What does the inception date imply for comparing these two ETFs?

FNDB launched in August 2013, offering a performance record spanning several years. SCHB started earlier in November 2009, providing a longer history that includes various market cycles. A longer inception date allows investors to observe how a fund behaved during different economic conditions. However, past performance does not predict future results. When comparing these ETFs, the difference in track record length is a factor to consider, though the weighting methodology may matter more than the sheer age of the fund.

How do the expense ratios of FNDB and SCHB compare and impact returns?

FNDB has an expense ratio of 0.25%, while SCHB charges 0.03%. This is a difference of 0.22 percentage points. For every $10,000 invested, FNDB costs $25 annually compared to $3 for SCHB. Over long periods, lower fees can significantly impact net returns. However, investors must weigh this cost against potential benefits from FNDB's fundamental weighting. Always consider the total cost of ownership and whether the strategy's potential outperformance justifies the higher expense ratio relative to the market-tracking alternative.

What are the net asset sizes of these funds and why does scale matter?

FNDB holds net assets of $1.5 billion, which is adequate for stable operations. SCHB is much larger with $44.4 billion in net assets. Larger asset bases generally indicate higher liquidity and tighter bid-ask spreads, making trading costs lower for investors. While FNDB's size is sufficient, SCHB's massive scale suggests deep market interest. Beginners should note that while scale impacts trading efficiency, it does not directly correlate with the fund's ability to beat its benchmark, which depends on the investment strategy and market conditions.

How do the top holdings overlap between FNDB and SCHB?

Both funds share several major companies in their top 10 holdings, including AAPL, MSFT, GOOGL, AMZN and GOOG. Despite FNDB's value focus, large-cap tech stocks remain significant due to their sheer size. However, SCHB has a higher concentration in growth firms like NVDA, which is absent from FNDB's top list. This overlap means that despite different strategies, both ETFs are exposed to similar market leaders. Investors should check current holdings periodically, as weightings change dynamically with market movements and company fundamentals.

What is the dividend yield difference and how does it affect income?

FNDB offers a dividend yield of 1.41%, whereas SCHB provides 1.01%. The 0.40 percentage point difference reflects the value sector's tendency to pay higher dividends than growth-focused companies included in the blend fund. For income-seeking investors, FNDB's slightly higher payout may be attractive. However, yields fluctuate with share prices and corporate decisions. Total return remains the ultimate goal, as dividend income is only one component. Beginners should understand that a higher yield does not always equate to better long-term total return performance.

How does fundamental weighting potentially reduce risk in FNDB compared to market-cap weighting?

FNDB's fundamental weighting aims to mitigate the risk of over-concentration in stocks that may be overvalued by the market. By using metrics like profits and sales, it may allocate less to highly priced growth stocks compared to SCHB, which weights by market cap. This approach can reduce exposure to bubbles but might miss out during strong momentum rallies. It offers a different risk profile, prioritising value fundamentals over market popularity. Investors should assess their tolerance for deviating from standard market-cap indices when considering this strategy.

What sector exposures should investors anticipate given the different categories?

While specific sector weights are not available in the provided data, FNDB's Large Value classification suggests higher exposure to traditionally value-oriented sectors like energy and financials, as seen in top holdings such as XOM and JPM. SCHB, as a Large Blend fund, mirrors the broad market, which currently includes heavy tech concentration. This difference means FNDB may provide a hedge against growth-led market downturns. Beginners should review detailed holdings to understand the precise sector mix, as broad market indices can be heavily skewed towards specific industries.

How might the performance records differ given the funds' inception years?

SCHB's inception in 2009 allowed it to capture a long bull market in tech growth, influencing its Large Blend profile. FNDB, starting in 2013, has operated under different conditions and utilises a strategy that avoids peak valuations. This does not mean one is superior, but rather that they experienced different market phases. When evaluating these ETFs, consider that SCHB's history is longer and might reflect a growth-heavy era, while FNDB's shorter record focuses on value fundamentals, offering distinct risk-return characteristics.

Which fund is typically associated with cost-conscious passive investors?

SCHB, with an expense ratio of 0.03%, is often favoured by investors seeking low-cost, broad market exposure. The minimal fee structure makes it efficient for long-term holding where cost drag is a primary concern. Beginners looking for a simple 'set and forget' broad market portfolio may find SCHB's structure appealing. However, cost is just one factor; investors should also consider how the fund's market-cap weighting aligns with their overall asset allocation strategy and whether they desire the potential diversification benefits of a value tilt.

What key takeaway should beginners understand when comparing these Schwab ETFs?

The core takeaway is that FNDB offers a value-tilted approach with higher fees, aiming for fundamental risk reduction, while SCHB provides low-cost, standard broad market exposure. Beginners should align their choice with their investment philosophy: do you believe value fundamentals outperform over time, or do you prefer capturing the entire market cheaply? This comparison page is for educational purposes only and does not constitute financial advice. Always perform your own due diligence.

FNDB vs SCHB

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

Compare Schwab Fundamental U.S. Broad Market ETF (FNDB) and U.S Broad Market Schwab (SCHB). This page examines expense ratios of 0.25% and 0.03%, net assets of $1.5 billion and $44.4 billion, dividend yields of 1.41% and 1.01%, and key holdings like AAPL, MSFT and GOOGL. We also review how each fund tracks its respective market index to help you understand the differences between these two Schwab ETFs. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

Metric

0.25%

Expense Ratio

0.03%

1.41%

Dividend Yield

1.01%

$1.52B

Net Assets

$44.42B

1,625

Holdings

2,380

Aug 8, 2013

Inception Date

Nov 3, 2009

–

Index Tracked

–

Large Value

Fund Category

Large Blend

SCHB costs about $22.00 less per year for every $10,000 invested.

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Investment Analysis

FNDB

Pros

The fund employs a fundamental weighting methodology, potentially reducing concentration in large-cap growth stocks.
With a dividend yield of 1.41 percent, it offers a slightly higher income payout than typical broad market funds.
A net asset value of 1.5 billion dollars indicates adequate scale for institutional investors and stable operations.

Considerations

Its 0.25 percent expense ratio is relatively high for a broad-market ETF, reducing net returns over time.
Inception in August 2013 means a shorter performance record compared to older, established passive market funds.
Being classified as Large Value may cause tracking error if the broader market is led by growth sectors.

SCHB

Pros

With a 0.03 percent expense ratio, this fund is exceptionally cost-efficient for long-term broad market exposure.
It holds net assets of 44.4 billion dollars, suggesting high liquidity and tight bid-ask spreads for investors.
The fund tracks the entire U.S. market, providing comprehensive diversification across large-cap companies since its 2009 inception.

Considerations

Its dividend yield of 1.01 percent is lower than the income provided by many other equity ETFs.
The top 10 holdings represent a significant concentration, particularly with major tech firms dominating the portfolio.
As a Large Blend fund, it may underperform in periods when the value factor significantly outperforms the market.

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About FNDB and SCHB

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.

SCHB (SCHB)

SCHB (Schwab U.S. Broad Market ETF) offers investors broad exposure to the US equity market by tracking a wide-capitalisation index of US-listed companies. It is structured as an exchange-traded fund from Charles Schwab and aims to capture the performance of the overall US stock market rather than just large-cap names. Investors should know it provides diversified single-ticket access to many sectors, can be used as a core equity holding, and typically has the trading flexibility of an ETF. As with all equity investments, values can rise and fall and past performance is no guarantee of future returns. This information is educational and not personal investment advice; check the fund’s prospectus and current factsheets for up-to-date details on holdings, fees, distributions and risks before making decisions.

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Holding	FNDB	SCHB
AAPLApple Inc.	4.46%	6.72%
MSFTMicrosoft Corporation	2.61%	5.02%
GOOGLAlphabet Inc.	1.71%	2.76%
AMZNAmazon.com, Inc.	1.63%	3.34%
GOOGAlphabet Inc.	1.36%	2.20%

FNDB vs SCHB

Fund Snapshot