What is the main difference in investment strategy between FNDX and SCHX?

FNDX is categorised as a Large Value fund, which means it focuses on companies that appear undervalued based on fundamental metrics. In contrast, SCHX is a Large Blend fund, aiming to replicate the overall performance of the US large-cap market by holding a mix of growth and value stocks. This distinction drives differences in their holdings, sector exposures, and potential return profiles. Value strategies often seek lower valuations and stable cash flows, while blend strategies reflect broader market composition without tilting specifically toward growth or value.

How do the expense ratios of FNDX and SCHX impact long-term investment returns?

FNDX has an expense ratio of 0.25%, while SCHX charges 0.03%. This 0.22 percentage point annual difference means that, all else equal, an investor in FNDX incurs slightly higher costs. Over time, these fees compound, reducing net returns more significantly for FNDX than for SCHX. For example, on a $10,000 investment, FNDX costs $25 annually versus $3 for SCHX. While both are reasonable, SCHX's lower cost structure may be more advantageous for buy-and-hold investors focused on minimising expenses.

How do dividend yields work for ETFs and what do they signify?

The dividend yield indicates the annual dividends paid by the ETF's holdings as a percentage of its current price. FNDX has a dividend yield of 1.43%, while SCHX offers 0.99%. These yields reflect the income component of each fund but should not be viewed in isolation. Dividend payments vary and can impact total returns. Higher yield may suggest value-oriented holdings, while lower yield could indicate growth focus. Distributions occur periodically, typically quarterly, based on underlying stocks' dividends.

Do the two ETFs hold the same top 10 stocks?

FNDX and SCHX share five stocks in their top-ten holdings: AAPL, MSFT, GOOGL, AMZN, and GOOG. This indicates some degree of overlap between the two ETFs, despite their different investment styles. However, their overall top-ten compositions differ significantly, particularly for stocks like NVDA, AVGO, META, MU, and TSLA, which appear only in SCHX's top holdings. This suggests that while there is partial overlap, each fund maintains distinct portfolio characteristics tailored to their respective strategy.

How does the fund size and liquidity compare?

SCHX has significantly larger assets under management, totaling $73.9 billion, compared to FNDX's $28.3 billion. This larger size may translate to higher trading volume and tighter bid-ask spreads. Larger funds often offer better liquidity, reducing trading costs and improving access for investors. This can be particularly relevant for frequent traders or those with large positions. However, both funds exhibit strong liquidity profiles typical of major ETFs issued by Schwab.

What are the underlying indices tracked by these ETFs?

The specific indices that FNDX and SCHX track are not disclosed in the provided data. Without knowing the precise indices, it's challenging to fully understand the composition and methodology each fund follows. Knowing the tracked index is crucial for comprehending a fund's strategy and its market benchmark. It's generally advisable to consult each ETF's prospectus or official provider page for detailed information on the index it tracks.

What is the risk associated with the holdings of SCHX?

SCHX exhibits high concentration in its top tech stocks like NVDA (7.69%), AAPL (7.16%), and MSFT (5.35%). This concentration can increase portfolio volatility, especially in tech-heavy markets. If these stocks underperform due to market downturns or regulatory issues, the entire fund could experience significant losses. Investors should consider this risk, particularly if they already hold other tech-heavy investments. Diversifying beyond such concentrated holdings might mitigate this risk effectively.

What are the advantages and disadvantages of the dividend yields for each fund?

FNDX offers a dividend yield of 1.43%, potentially providing a more reliable income stream, which may appeal to income-focused investors. On the other hand, SCHX's dividend yield of 0.99% may limit income generation, making it less attractive for those specifically seeking income. However, FNDX's higher yield could come with greater sector concentration risks, while SCHX's lower yield may be offset by its lower expense ratio and broader market exposure.

How can sector weights of FNDX and SCHX be used to assess portfolio fit?

The sector weights of FNDX and SCHX are not available in the provided data. Without this information, it's hard to evaluate how well these funds complement each other or fit into a diversified portfolio. Knowing the sector weights would help investors understand each fund's diversification level, particularly if they already have exposure to certain sectors. For a comprehensive analysis, consult each fund's website or prospectus for detailed sector allocations.

How can I determine which ETF is better suited for my investment goals?

To determine which ETF suits your goals, consider factors such as investment style, fees, dividend yields, and portfolio overlap. FNDX, with its value tilt and higher dividend yield, may appeal to income-focused investors or those seeking a different approach. SCHX, with its low cost and broad market exposure, might be preferable for buy-and-hold investors. Assessing these aspects against your personal objectives and existing portfolio will guide your choice.

What does inception date reveal about fund performance history?

FNDX was launched in August 2013, while SCHX started in November 2009. This means SCHX has a longer track record, potentially providing more historical data for performance analysis. A longer track record allows investors to observe fund performance through different market cycles and conditions. However, past performance is not indicative of future results. Both funds' track records should be considered alongside current holdings, costs, and market conditions for a comprehensive evaluation.

How do fund size and assets under management affect liquidity?

FNDX has net assets of $28.3 billion, while SCHX manages $73.9 billion, indicating SCHX's greater scale. Larger funds often offer better liquidity, meaning easier buying and selling with tighter bid-ask spreads. FNDX's significant assets also ensure robust trading, but SCHX's larger size may provide marginally better liquidity and trading costs. For most investors, both funds are sufficiently large to maintain good liquidity, reducing concerns about fund size impacting trade execution.

FNDX vs SCHX

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

Compare Schwab Fundamental US Large Company ETF (FNDX) and US Large-Cap ETF Schwab (SCHX). This page reviews fees, holdings, dividends and how each fund tracks its market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

FNDX

Metric

SCHX

0.25%

Expense Ratio

0.03%

1.43%

Dividend Yield

0.99%

$28.32B

Net Assets

$73.93B

733

Holdings

750

Aug 15, 2013

Inception Date

Nov 3, 2009

–

Index Tracked

–

Large Value

Fund Category

Large Blend

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

Shared Top Holdings

Holding	FNDX	SCHX
AAPLApple Inc.	4.76%	7.16%
MSFTMicrosoft Corporation	2.78%	5.35%
GOOGLAlphabet Inc.	1.83%	2.95%
AMZNAmazon.com, Inc.	1.75%	3.56%
GOOGAlphabet Inc.	1.45%	2.35%

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Investment Analysis

FNDX

Pros

FNDX offers a value tilt with a dividend yield of 1.43%.
Assets under management total $28.3 billion, indicating significant scale.
Investments span over a decade, with an inception date of 2013.

Considerations

The expense ratio of 0.25% is significantly higher than index alternatives.
Index tracking methodology and sector weights are currently unavailable.
Larger mega-cap tech exposure may dilute distinct value positioning.

SCHX

Pros

Extremely low expense ratio of 0.03% enhances net returns.
Net assets of $73.9 billion ensure deep liquidity and scale.
Established track record since 2009 provides long-term data availability.

Considerations

Low dividend yield of 0.99% may limit income generation.
Index tracking methodology and sector weights are currently unavailable.
High concentration in top tech stocks increases portfolio risk.

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About FNDX and SCHX

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.

SCHX (SCHX)

Schwab US Large‑Cap ETF (SCHX) offers broad exposure to the largest US companies through a single, passively managed fund. It aims to replicate the performance of a large‑cap US equity index, providing diversified access to established names across multiple sectors. SCHX is positioned as a low‑cost core equity holding for investors seeking market‑capitalisation‑weighted large‑cap returns, and it trades on exchanges like a stock. Advantages include simplicity, intraday liquidity and typically lower fees than many active managers. However, like all equity ETFs, its value fluctuates with the market and past performance does not predict future results. SCHX may suit investors looking for long‑term US large‑cap exposure within a diversified portfolio, but it is general information only and not personalised investment advice—suitability depends on individual goals, time horizon and risk tolerance.

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FNDX vs SCHX

Fund Snapshot