What is the main difference between FNDB and SCHG?

FNDB is a large value ETF aiming for undervalued firms, while SCHG focuses on large growth stocks expected to expand rapidly. FNDB's methodology tilts towards value characteristics, often including more traditional sectors, whereas SCHG targets companies with high earnings growth potential. Both funds are from Schwab but serve different investment styles. Investors should understand this core distinction: value versus growth strategies operate under different market conditions and offer varying risk-return profiles.

How do expense ratios affect my returns?

Expense ratios reduce your investment returns annually. SCHG has a lower 0.04% fee compared to FNDB's 0.25%. Over long periods, this difference compounds. For example, on $10,000, SCHG costs $4 per year versus $25 for FNDB, assuming unchanged returns. Lower fees generally benefit long-term holders as they preserve more capital for growth. However, investors must consider that a slightly higher fee might be justified if the fund's strategy meets specific investment goals.

What does net assets mean for these ETFs?

Net assets indicate the fund's size and influence its liquidity. SCHG, with $65.9 billion, is significantly larger than FNDB's $1.5 billion. Larger funds typically offer better liquidity, meaning tighter bid-ask spreads and easier trading. This is beneficial for investors executing large transactions. Smaller funds may have wider spreads, increasing transaction costs. While size doesn't guarantee performance, it affects how efficiently you can buy or sell shares in the market.

Which fund offers higher dividend yields?

FNDB provides a significantly higher dividend yield of 1.41%, compared to SCHG's minimal 0.36%. For income-seeking investors, FNDB's yield is more attractive as it generates more regular cash flow. Higher yields often correlate with companies in stable sectors that pay consistent dividends. In contrast, SCHG reinvests profits for growth rather than distributing them. Investors must consider their need for income versus capital appreciation when evaluating yields.

How do the funds' inception dates compare?

SCHG launched in December 2009, offering a longer historical track record compared to FNDB's August 2013 inception. SCHG's earlier start allows investors to analyse performance through more market cycles, providing a broader view of how it behaves during various conditions. FNDB, while newer, focuses on a fundamental value approach. The difference in inception dates means SCHG has more comprehensive historical data available for analysis, while FNDB offers a more recent perspective.

What sectors do these ETFs typically focus on?

Exact sector weights for both funds are not available. However, SCHG is known to concentrate in technology and growth sectors, while FNDB tilts towards value stocks across diverse industries. Value ETFs often include sectors like financials and energy, whereas growth ETFs emphasise high-performing tech and consumer companies. Investors should understand the general sector characteristics: growth ETFs pursue emerging opportunities, while value ETFs seek undervalued stocks in established markets.

What are the top holdings of both funds?

FNDB and SCHG share several top holdings, including AAPL and MSFT. SCHG has higher concentrations in growth stocks like NVDA and META, reflecting its growth focus. FNDB includes more traditional value stocks alongside its tech holdings. The overlap in top positions highlights how both funds can include tech leaders, though SCHG's heavier weighting in these stocks indicates its growth orientation. Investors should be aware that overlapping holdings may affect diversification.

Which fund is more susceptible to market swings?

SCHG, being growth-focused with concentration in high-beta stocks like NVDA and AAPL, may experience greater volatility during market downturns. Its emphasis on future earnings potential means valuations can be sensitive to economic changes. FNDB, with its value tilt, includes stocks that are often more established and less volatile. Investors should note that growth funds can offer higher returns but carry additional risk, while value funds may provide stability in market fluctuations.

What is the impact of top holding concentration?

SCHG has significant concentration with NVDA and AAPL making up 20.61% of the portfolio. This means its performance is heavily influenced by these two companies. If these stocks decline, the fund's value could decrease substantially. Conversely, FNDB's top holding, AAPL, accounts for only 4.46%. This lower concentration implies a more balanced portfolio where the performance of individual companies has a lesser impact on the overall fund, which can be beneficial for investors seeking diversification within a portfolio.

How to choose between a value and growth ETF?

Investors should align ETF choice with their goals. Choose a value ETF like FNDB if seeking higher income and a focus on established companies with potential undervalued assets. Opt for a growth ETF like SCHG if prioritising long-term capital appreciation and willing to accept higher volatility. Consider diversification, risk tolerance, investment horizon, and how these funds fit your current portfolio. Neither fund is inherently superior; suitability depends on personal investment strategy.

What is the impact of fees on long-term investment?

Even small differences in expense ratios affect long-term returns. SCHG's 0.04% and FNDB's 0.25% fees illustrate a significant relative cost difference. Over decades, these fees reduce compound growth. A lower fee fund allows for more capital to remain invested and grow. While fees are crucial, they should be evaluated alongside the fund's performance and strategy. Investors often prefer lower-cost options for similar risk levels, as higher fees require stronger returns to break even.

What does the lack of sector transparency mean?

For both FNDB and SCHG, specific sector weights are not available in the data provided. This lack of transparency makes it difficult for investors to precisely assess how much exposure each fund has to particular sectors. Without knowing sector allocations, investors may not fully understand risk. It requires more cautious analysis. Investors might need to look beyond the headline numbers and seek additional research to ensure the fund's sector makeup aligns with their investment strategy.

FNDB vs SCHG

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

Compare Schwab Fundamental U.S. Broad Market ETF (FNDB) and Schwab US Large-Cap Growth ETF (SCHG). This page reviews fees, holdings, dividends and how each fund tracks its market. FNDB carries a 0.25% expense ratio with a 1.41% dividend yield, while SCHG has a 0.04% expense ratio and 0.36% yield. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

FNDB

Metric

SCHG

0.25%

Expense Ratio

0.04%

1.41%

Dividend Yield

0.36%

$1.52B

Net Assets

$65.89B

1,625

Holdings

196

Aug 8, 2013

Inception Date

Dec 11, 2009

–

Index Tracked

–

Large Value

Fund Category

Large Growth

SCHG costs about $21.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	FNDB	SCHG
AAPLApple Inc.	4.46%	9.94%
MSFTMicrosoft Corporation	2.61%	7.42%
GOOGLAlphabet Inc.	1.71%	4.09%
AMZNAmazon.com, Inc.	1.63%	4.93%
GOOGAlphabet Inc.	1.36%	3.26%

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Investment Analysis

FNDB

Pros

FNDB tracks a broad U.S. market index with a value tilt, providing exposure to a diverse range of large-cap stocks beyond typical growth leaders.
The fund's dividend yield of 1.41% is significantly higher than SCHG's, offering more immediate income generation for investors seeking cash flow.
Investors benefit from Schwab's reputation for reliable fund management, despite the 0.25% expense ratio being higher than SCHG's, it remains within reasonable limits for an indexed value strategy.

Considerations

FNDB carries a 0.25% expense ratio, substantially higher than SCHG's 0.04%, which reduces net returns over long holding periods.
With net assets of $1.5 billion, the fund is considerably smaller than SCHG's $65.9 billion, potentially resulting in lower liquidity and wider bid-ask spreads.
The fund lacks transparency on sector weights and its specific index tracking methodology is not available, making it difficult to assess its precise risk profile and alignment with investor goals.

SCHG

Pros

SCHG boasts a 0.04% expense ratio, one of the lowest in the equity ETF universe, which significantly minimises cost drag for long-term investors.
With $65.9 billion in net assets, the fund offers excellent liquidity, resulting in tighter bid-ask spreads and efficient trading for large transactions.
Investors gain exposure to high-growth sectors like technology through a well-diversified portfolio of large-cap stocks, reflecting the performance of market leaders.

Considerations

The fund's dividend yield is extremely low at 0.36%, providing minimal income for investors prioritising regular cash distributions over capital appreciation.
SCHG exhibits significant concentration, with top holdings like NVDA and AAPL accounting for 20.61% of the portfolio, amplifying idiosyncratic risks.
The fund's inception date in December 2009 means its track record does not span a full market cycle, limiting historical performance comparison against broader benchmarks.

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About FNDB and SCHG

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.

SCHG (SCHG)

SCHG (Schwab US Large‑Cap Growth ETF) is an exchange‑traded fund that offers investors low‑cost exposure to US large‑capitalisation companies exhibiting growth characteristics. It tracks a large‑cap growth index and typically holds companies with higher expected earnings growth, often leading to heavier weights in technology and other growth‑oriented sectors. As an ETF, SCHG provides intraday liquidity, diversification across dozens to hundreds of stocks and a transparent holdings profile. Costs are generally lower than many active funds, but investors should note that growth‑style funds can be more volatile than broad‑market or value strategies and that past performance is not a guide to future returns. SCHG can serve as a growth sleeve within a broader portfolio but may not suit investors seeking high income or very low volatility. This information is educational and not personalised advice; consider your risk tolerance, investment horizon and the role of style and geographic diversification before investing.

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FNDB vs SCHG

Fund Snapshot