What is the fundamental difference between FNDB and SCHD in terms of investment strategy?

Fund A employs a fundamental index approach aiming to provide broad exposure to the US large-cap value universe. Fund B specifically screens for high-yield, consistently dividend-paying equities. Both are categorised as Large Value funds, but they select companies based on different criteria.

Why are sector weights unavailable for these specific ETFs in the provided data?

The provided dataset states that sector weights are not available for both funds. This is noted in the cons as transparency issues for investors who want to see how the sector breakdown looks. This data may be available via the issuers. Investors may be interested in these metrics to assess risk.

How does the size of a fund affect its operational stability?

Fund A has net assets of $1.5 billion. Fund B has $112.8 billion. Larger funds often enjoy tighter bid-ask spreads and better liquidity. A larger asset base can also mean more flexibility to replicate a diversified portfolio efficiently without needing to make frequent adjustments.

What are the expense ratios for these two funds and how do they differ?

Fund A has an expense ratio of 0.25%. Fund B charges a lower fee of 0.06%. This is a 0.19 percentage point difference. Over long periods, this compounding effect can impact net returns for the investor, making Fund B more cost-effective purely from a fee perspective.

How do the dividend yields compare between Fund A and Fund B?

Fund B offers a dividend yield of 3.11%. In contrast, Fund A has a dividend yield of 1.41%. This is the expected behaviour of income-focused funds versus broad index funds.

Which companies are the largest holdings in each fund?

Fund A's largest holdings are Apple, Microsoft, and ExxonMobil. These are large, global corporations across multiple sectors. Fund B's largest holdings are Merck, Abbott Laboratories, and Amgen. These are prominent healthcare companies. Fund B also has notable energy holdings.

What is the level of portfolio overlap between the two funds?

Despite both falling into the Large Value category, the portfolio overlap between these two funds is minimal. The data shows only one shared holding in their top 10 positions. Investors comparing them should consider whether this minimal overlap aligns with their diversification goals or creates unintended concentration in specific sectors.

What sector concentration risks exist in Fund B?

The provided data for Fund B's cons section notes that its sector weights are not available, but that it may be exposed to specific risks.

When considering these funds as part of a broader portfolio, what should an investor look for?

Investors should look for complementary assets.

Are these ETFs actively managed or index-tracking funds?

Both are index-tracking ETFs, meaning they are designed to match a specific index or factor rather than a manager's decisions. However, the index tracked is not available in the provided data. Investors interested in understanding the methodology behind each fund will need to consult the official index provider for each fund.

FNDB vs SCHD

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

Compare the Schwab Fundamental U.S. Broad Market ETF (FNDB) and US Dividend Equity ETF (SCHD). This page outlines their expense ratios, top holdings, dividend yields and how each fund tracks the market. FNDB charges 0.25% while SCHD charges 0.06%. Both are in the Large Value category. Understand the differences in composition and cost to see how each fund operates. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

FNDB

Metric

SCHD

0.25%

Expense Ratio

0.06%

1.41%

Dividend Yield

3.11%

$1.52B

Net Assets

$112.77B

1,625

Holdings

102

Aug 8, 2013

Inception Date

Oct 20, 2011

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Index Tracked

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Large Value

Fund Category

Large Value

SCHD costs about $19.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	FNDB	SCHD
CVXChevron Corporation	1.53%	4.25%

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Investment Analysis

FNDB

Pros

Schwab Fundamental U.S. Broad Market ETF offers access to large-cap value equities with a moderate expense ratio of 0.25%.
With $1.5 billion in net assets, the fund has existed since 2013, providing a reasonable track record for investors.
The fund provides diversified exposure to technology, energy, and industrial sectors, reducing reliance on any single industry.

Considerations

The fund has a high expense ratio of 0.25% compared to many similar passive equity funds.
Dividend yield is notably low at 1.41%, which may not appeal to investors seeking regular income.
The fund's sector weights are not available, creating transparency issues for investors wanting to assess industry exposure.

SCHD

Pros

Schwab US Dividend Equity ETF has a very low expense ratio of 0.06%, enhancing long-term net returns for investors.
It provides a high dividend yield of 3.11%, which makes it attractive for income-focused investors.
With $112.8 billion in assets and a long track record since 2011, it is a widely-used and stable fund.

Considerations

Although diversified, its high sector weighting in consumer staples, energy and health care can expose investors to sector-specific risks.
Its concentration in large dividend-paying companies may lead to performance issues in growth-driven markets.
The fund's sector weights are not available, reducing transparency for investors seeking detailed industry-level data.

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About FNDB and SCHD

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.

SCHD (SCHD)

SCHD (Schwab US Dividend Equity ETF) is an exchange‑traded fund that aims to provide exposure to high-quality U.S. companies that have a history of paying dividends. Managed by Charles Schwab, the ETF screens for firms with stable earnings, reasonable payout ratios and consistent dividend records, concentrating on large‑cap names across a range of sectors. Investors often use SCHD for income and as a core holding to capture dividend yield with the diversification and liquidity of an ETF. It is designed to be a low‑cost, transparent vehicle, though dividends and share prices can fall and past performance is not a guarantee of future results. Suitable for investors seeking income and long‑term total return, it may not fit those focused solely on capital growth or who require guarantees. As with any investment, consider costs, tax treatment and how it fits your wider portfolio before investing.

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FNDB vs SCHD

Fund Snapshot