What is the primary difference between FNDB and SCHV in terms of their investment strategies?

Both FNDB and SCHV fall under the Large Value category, yet their underlying methodologies differ. FNDB is a Schwab Fundamental U.S. Broad Market ETF, which implies it may use fundamental data like revenue or earnings to select holdings, tracking a broader market index. SCHV is a Schwab US Large-Cap Value ETF, typically targeting the large-cap value segment using traditional value metrics. The specific indices tracked by each fund are currently not available, preventing a direct comparison of their rule-based selection processes.

How do expense ratios influence the long-term performance of an ETF?

An expense ratio represents the annual fee charged by a fund, expressed as a percentage of your investment. It directly reduces your net return because the fee is deducted from the fund's assets. Over time, a higher expense ratio creates a larger drag on performance compared to a lower one, assuming all other factors remain equal. This compounding effect means even small differences in fees can significantly impact the total value of a portfolio over many years, making cost efficiency a critical factor for passive investors.

What does it mean when sector weighting data is not available for an ETF?

When sector weighting data is not available, investors cannot see exactly how the fund's assets are distributed across industries like technology, finance, or energy. This limits the ability to assess concentration risk or understand how the fund might react to specific industry cycles. Without this transparency, it is difficult to determine if the fund is overly exposed to a single sector or if it maintains a diversified approach across the broader market economy.

How do the expense ratios of FNDB and SCHV compare, and what is the financial impact?

SCHV features a highly efficient expense ratio of 0.04%, while FNDB charges 0.25%. This results in a difference of 0.21 percentage points. For an investor, this means that for every $10,000 invested, FNDB would theoretically cost $25 annually in fees, whereas SCHV would cost only $4, assuming no changes. Over long periods, this compounding cost difference can erode the total return of the higher-fee fund, making SCHV a more cost-efficient option strictly from a fee perspective, though other factors like tracking accuracy also matter.

Which fund offers stronger liquidity and why might this matter for traders?

SCHV has net assets of $16.9 billion, which is substantially larger than FNDB's $1.5 billion. Larger asset bases generally correlate with higher trading volumes and tighter bid-ask spreads, making it easier to buy or sell shares without significantly affecting the price. FNDB's smaller size might lead to lower liquidity, potentially resulting in wider spreads and higher transaction costs for active traders. Therefore, SCHV is typically associated with stronger liquidity conditions, benefiting those who trade frequently.

How do the top holdings of FNDB and SCHV overlap, and what does this imply?

Both funds share five holdings in their top ten lists: XOM, INTC, CVX, JPM, and BRK.B. This overlap suggests a common exposure to major energy, technology, and financial firms. However, the remaining holdings differ significantly. FNDB holds large tech names like AAPL and MSFT, while SCHV holds MU, JNJ, and WMT. This indicates that while both target value, their specific portfolio construction and weighting strategies lead to distinct performance drivers, meaning they are not interchangeable despite the shared top names.

What are the historical track records of FNDB and SCHV?

SCHV was established on Dec 11, 2009, providing a longer historical performance record of over 16 years as of the data date. FNDB was launched later on Aug 8, 2013, offering a track record of approximately 13 years. The longer history of SCHV allows investors to observe its behaviour through more market cycles. However, both funds have sufficient data for analysis, though the specific performance metrics and tracking differences would require examining their respective return histories against their unlisted benchmark indices.

How do the dividend yields of FNDB and SCHV compare, and what should investors consider?

SCHV currently offers a dividend yield of 1.79%, which is higher than FNDB's yield of 1.41%. A higher yield can provide more immediate cash flow, which may appeal to income-focused investors. However, yields fluctuate based on share price and dividend policies. It is essential to consider that yield alone does not guarantee total return. Capital appreciation or depreciation also plays a significant role. Investors should evaluate the stability and growth prospects of the underlying holdings rather than choosing solely on current yield.

What is the significance of the fund category for both FNDB and SCHV?

Both FNDB and SCHV are categorized as Large Value funds. This classification implies that they primarily invest in established companies with market capitalisations typically exceeding $10 billion, which are considered undervalued relative to their fundamentals. Large value stocks often exhibit lower volatility compared to growth stocks and may provide more stable dividends. Understanding this category helps investors align the funds with their risk tolerance and investment horizon, recognising that these assets behave differently from small-cap or growth-oriented ETFs during various market phases.

How do ETF distributions work for funds like FNDB and SCHV?

ETFs like FNDB and SCHV distribute a portion of their earnings to shareholders, typically as dividends or capital gains. These distributions are not automatic or fixed; they depend on the underlying holdings' payment policies and the fund's performance. Investors receive these payments periodically, but the timing and amount can vary. It is crucial to understand that distributions reduce the fund's net asset value. Reinvesting distributions can compound growth, while taking them as cash provides immediate income, impacting the total return calculation differently.

What role do top holdings play in determining an ETF's performance?

Top holdings significantly influence an ETF's performance because they represent the largest weightings in the portfolio. For instance, FNDB's heavy weight in AAPL at 4.46% means its stock movement will notably impact the fund's returns. Similarly, SCHV's 3.52% in MU creates a specific exposure. If these top companies perform well, the ETF benefits disproportionately. Conversely, a decline in these key names can drag down the fund's overall performance. Understanding the concentration in top holdings helps assess the risk profile beyond the broad category label.

Why is it important to verify data sources when comparing ETFs like FNDB and SCHV?

Verifying data sources is critical because metrics like expense ratios, net assets, and yields change over time. The data used here, fetched from Yahoo Finance on 2026-09-22, reflects a specific point in time. 'Not available' fields for indices and sector weights highlight gaps in public information that may affect analysis. Investors must consult the fund provider's official website for the most current prospectus and daily holdings. Relying on outdated or incomplete data can lead to misinformed comparisons regarding risk, cost, and potential returns, underscoring the need for regular updates.

FNDB vs SCHV

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 US Large-Cap Value ETF (SCHV). This page examines fees, holdings, dividends and how each fund tracks its market. FNDB has a 0.25% expense ratio, while SCHV charges 0.04%. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

FNDB

Metric

SCHV

0.25%

Expense Ratio

0.04%

1.41%

Dividend Yield

1.79%

$1.52B

Net Assets

$16.91B

1,625

Holdings

559

Aug 8, 2013

Inception Date

Dec 11, 2009

–

Index Tracked

–

Large Value

Fund Category

Large Value

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

Shared Top Holdings

Holding	FNDB	SCHV
XOMExxonMobil Holdings Corporation	2.25%	2.16%
INTCIntel Corporation	1.62%	1.72%
CVXChevron Corporation	1.53%	1.26%
JPMJPMorgan Chase & Co.	1.51%	2.99%
BRK.BBerkshire Hathaway Inc.	1.50%	2.98%

Discover More Comparisons

FNDB vs VTI

Compare Schwab Fundamental U.S. Broad Market ETF (FNDB) with Vanguard Total Stock Market ETF (VTI) regarding fees, holdings, dividends, and tracking methods.

FNDB vs VOO

Compare FNDB vs VOO: fees, dividends, holdings, and tracking. Schwab fundamental broad market versus Vanguard S&P 500 ETF facts and figures.

FNDB vs SCHD

Compare FNDB vs SCHD. Review expense ratios, dividend yields, and top holdings for these Schwab Large Value ETFs. Data includes costs and composition.

Investment Analysis

FNDB

Pros

FNDB offers moderate exposure via a 0.25% expense ratio with $1.5 billion net assets since 2013.
Its top holdings are heavily weighted towards large-cap technology and industrial firms for value exposure.
The fund provides income with a 1.41% dividend yield, suitable for modest cash flow needs.

Considerations

The 0.25% expense ratio is high compared to passive alternatives in the large value category.
Sector weighting data is not available, limiting transparency on industry exposure for risk assessment.
With $1.5 billion assets, liquidity might be lower than larger Schwab funds like SCHV.

SCHV

Pros

SCHV features a highly efficient 0.04% expense ratio on $16.9 billion net assets.
Its $16.9 billion size ensures strong liquidity and tighter trading spreads for active traders.
Established in 2009, the long track record provides substantial historical performance data for investors.

Considerations

Concentration in specific names like Micron and JPM may limit diversification benefits for some.
Dividend yield of 1.79% might not satisfy investors seeking high-income generating assets.
Exact sector weights are not available, obscuring precise breakdowns of financial versus industrial exposure.

Related Market Insights

Capital Returns: The Shareholder Yield Play

Explore Capital Returns, a Neme focused on companies rewarding shareholders via buybacks & dividends. Invest in robust firms like Schwab with Nemo's thematic baskets.

Aimee Silverwood | Financial Analyst

25 July 2025

Read Insight

Related Market Insights

Capital Returns: The Shareholder Yield Play

Explore Capital Returns, a Neme focused on companies rewarding shareholders via buybacks & dividends. Invest in robust firms like Schwab with Nemo's thematic baskets.

Aimee Silverwood | Financial Analyst

25 July 2025

Read Insight

About FNDB and SCHV

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.

SCHV (SCHV)

SCHV (Schwab US Large‑Cap Value ETF) is an exchange‑traded fund that seeks to track the Dow Jones U.S. Large‑Cap Value Total Stock Market Index, providing diversified exposure to large‑capitalisation U.S. companies classified as value stocks. Managed by Charles Schwab, the ETF is designed for passive, cost‑efficient investing and typically offers regular income through dividends. It can serve as a way to tilt a portfolio toward value characteristics—such as lower valuation multiples or higher dividend yields—rather than growth. Investors should note that ETFs are pooled instruments (so a single market‑cap figure for the ETF itself is not applicable in the same way as for a company), and performance depends on the underlying index and market conditions. Value styles can underperform growth for extended periods and returns are not guaranteed. This summary is educational only and not personalised financial advice; suitability depends on individual objectives and risk tolerance.

Which Baskets Do They Appear In?

Capital Returns: The Shareholder Yield Play

Following Charles Schwab's massive $20 billion stock buyback and dividend increase, this theme focuses on other financially robust companies that are similarly rewarding their investors. The strategy is to invest in firms with strong cash flows and a commitment to returning capital to shareholders.

Published: 25 July 2025

Explore Basket

Which Baskets Do They Appear In?

Capital Returns: The Shareholder Yield Play

Published: 25 July 2025

Explore Basket

Buy FNDB or SCHV in Nemo

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

FNDB vs SCHV

Fund Snapshot