What does 'fundamental' mean in the context of Schwab Fundamental US Large Company ETF (FNDX)?

Fundamental indexing, as used by FNDX, prioritises a company's underlying financial health. This is determined by key metrics such as free cash flow, net income, earnings, debt and assets, rather than the traditional market capitalisation approach. This methodology aims to select companies with stronger financial fundamentals, potentially leading to different portfolio weights compared to funds that strictly follow market-cap based indices.

How does the 'quality' focus of Invesco S&P 500 Quality ETF (SPHQ) differ?

SPHQ employs a rules-based methodology to select companies from the S&P 500 that exhibit high-quality characteristics. These characteristics typically include a high return on equity, stable year-over-year earnings growth, and strong financial health. This focus aims to identify companies with robust fundamentals, potentially leading to a portfolio concentrated in firms with solid earnings and balance sheets.

What are the main differences in the categories of FNDX and SPHQ?

FNDX is categorised as a Large Value fund, meaning it primarily targets large companies that appear to be undervalued based on certain financial metrics. In contrast, SPHQ is classified as a Large Blend fund, which seeks to include a mix of large companies across different styles, specifically focusing on those with high-quality attributes, potentially leading to different sector exposures and performance profiles.

How do the expense ratios of FNDX and SPHQ compare?

FNDX carries an annual expense ratio of 0.25%, while SPHQ has a slightly lower expense ratio of 0.15%. This means that, for every £10,000 invested, you would pay £25 annually in fees for FNDX, compared to £15 for SPHQ. This 0.10 percentage point difference can impact overall returns over extended investment horizons.

What is the net asset value of FNDX and SPHQ?

FNDX holds approximately £28.3 billion in net assets, reflecting its overall size and investor participation. SPHQ manages substantial net assets of £18.6 billion. Higher net assets can sometimes indicate broader investor confidence and potentially contribute to a fund's liquidity, though it is not the sole factor in fund performance.

Do FNDX and SPHQ have any common top holdings?

Yes, Apple (AAPL) is a common top holding in both FNDX and SPHQ. However, the weighting of AAPL within each portfolio differs. It represents 4.76% of FNDX's portfolio, while it makes up a more substantial 5.80% of SPHQ's portfolio, reflecting the distinct selection methodologies and overall portfolio composition of each fund.

What are the dividend yields for FNDX and SPHQ?

FNDX offers a dividend yield of 1.43%, which is generally considered an attractive level for investors seeking income. SPHQ maintains a slightly lower dividend yield of 1.03%. These yields reflect the dividends paid out by the companies within each fund, though ETF distributions can vary based on holdings and market conditions.

How do the inception dates of FNDX and SPHQ differ?

FNDX was established on August 15, 2013, indicating a more recent entry into the market. In contrast, SPHQ boasts a longer history, with an inception date of December 6, 2005. The different inception dates reflect when each fund began its operational life, which can sometimes provide insights into a fund's established track record and the market cycles it has experienced.

What are the top holdings for SPHQ?

SPHQ's top holdings include Mastercard (MA) at 5.81%, Apple (AAPL) at 5.80%, and Visa (V) at 5.75%. Other significant positions encompass Netflix (NFLX) at 3.98% and GE Vernova (GEV) at 3.94%. These holdings highlight the ETF's strategy in focusing on large-cap companies with characteristics of quality.

Which fund might suit investors prioritising lower costs?

SPHQ, with an expense ratio of 0.15%, carries a relatively lower cost compared to FNDX, which incurs a 0.25% annual expense ratio. While cost is a significant factor for many investors, it's essential to consider other aspects such as the fund's investment strategy, holdings, and potential returns, as lower costs don't automatically translate to better performance.

How can investors assess the concentration risk in each ETF?

Investors can evaluate concentration risk by examining the percentage weight of the largest holdings. For example, FNDX has a 4.76% weight in Apple, while SPHQ holds Mastercard at 5.81% and Apple at 5.80%. Higher weights in individual stocks can indicate a more concentrated portfolio, which may be more susceptible to the performance of those specific companies.

What limitations should be noted regarding sector weights for FNDX and SPHQ?

Sector weight data is currently not available for either FNDX or SPHQ. This limits a detailed comparison of how each fund allocates its assets across different industry sectors. Investors often examine sector exposure to understand diversification, and the absence of this data makes it harder to assess this aspect for these specific ETFs without further research.

FNDX vs SPHQ

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

Compare Schwab Fundamental US Large Company ETF and Invesco S&P 500 Quality ETF. This page examines fees, holdings, dividends and how each fund tracks its market, helping you understand their distinct features. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

FNDX

Metric

SPHQ

0.25%

Expense Ratio

0.15%

1.43%

Dividend Yield

1.03%

$28.32B

Net Assets

$18.62B

733

Holdings

102

Aug 15, 2013

Inception Date

Dec 6, 2005

–

Index Tracked

–

Large Value

Fund Category

Large Blend

SPHQ costs about $10.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	FNDX	SPHQ
AAPLApple Inc.	4.76%	5.80%

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Investment Analysis

FNDX

Pros

Incurs an annual expense ratio of 0.25 per cent.
Holds approximately $28.3 billion in net assets.
Offers a dividend yield of 1.43 per cent.

Considerations

Expense ratio exceeds the 0.15 per cent cost of the comparison fund.
Dividend yield is lower than the 1.03 per cent of the comparison fund.
Top holdings include a 4.76 per cent weight in Apple.

SPHQ

Pros

Carries a relatively low expense ratio of 0.15 per cent.
Manages substantial net assets of $18.6 billion.
Maintains a long inception date of December 2005.

Considerations

Dividend yield of 1.03 per cent trails the comparison fund.
Sector weights are not available in the provided data.
Holds a 5.81 per cent concentration in Mastercard.

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About FNDX and SPHQ

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.

SPHQ (SPHQ)

Invesco S&P 500 Quality ETF (SPHQ) is a passively managed exchange-traded fund that seeks exposure to S&P 500 companies exhibiting quality characteristics such as stronger profitability, stable earnings and lower leverage. It provides investors with a rules-based, diversified way to tilt a large-cap US equity allocation towards firms deemed higher quality within the S&P 500. SPHQ trades like a stock on exchanges, offering intraday liquidity and the convenience of an ETF wrapper, but its share price and NAV can diverge slightly during the trading day. Investors should note this is not an actively managed stockpick — performance follows the underlying index and will rise or fall with market conditions. Consideration should be given to how a quality tilt fits within a broader portfolio, fees, tax treatment and the ETF’s liquidity; past performance does not guarantee future returns and values can go down as well as up.

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FNDX vs SPHQ

Fund Snapshot