What are the main differences between FNDX and VTI?

FNDX tracks a fundamentally weighted index focusing on large-cap US value stocks, while VTI provides broad exposure to the entire US equity market. Key differences include FNDX's higher expense ratio of 0.25% versus VTI's 0.03%, and VTI's larger net assets of $692.2 billion compared to FNDX's $28.3 billion. Their top holdings also differ significantly.

How do the expense ratios of FNDX and VTI compare?

FNDX has an expense ratio of 0.25%, while VTI has an expense ratio of 0.03%, resulting in a difference of 0.22 percentage points. Over time, higher fees can impact net returns, especially in long-term investments where costs compound. However, the specific performance outcomes depend on various market factors and individual investment strategies.

Why are the top holdings different between the two ETFs?

FNDX uses a fundamentally weighted methodology, which may result in different allocation to its holdings compared to VTI, which tracks a market-cap weighted index. VTI's top holdings include mega-cap technology stocks like NVDA and AAPL, with higher weights. Conversely, FNDX maintains lower concentration in such tech holdings, potentially offering more diversified exposure within large-cap stocks.

What does the dividend yield difference indicate?

FNDX has a dividend yield of 1.43%, higher than VTI's 1.02%. This can reflect FNDX's focus on value stocks, which often pay higher dividends. Investors seeking income might consider this yield difference important, but it should be evaluated alongside other factors such as total return potential and expense ratios.

What is a fundamentally weighted index, and how is it different from a market-cap weighted index?

A fundamentally weighted index, like the one FNDX tracks, uses company fundamentals like earnings and book value to determine weights, whereas a market-cap weighted index, like the one VTI follows, assigns weights based on companies' market capitalization. This can lead to different exposures, potentially reducing concentration in the largest tech stocks.

What role do shared top holdings play in ETF comparisons?

Shared top holdings among FNDX and VTI, such as AAPL, MSFT, GOOGL, AMZN, and GOOG, indicate some commonality in their investment portfolios. Despite differing methodologies, exposure to these major companies can influence ETF performance similarly. The proportion of shared holdings and the weighting approach are key factors to compare.

What does it mean for FNDX to be in the Large Value category?

FNDX's Large Value category indicates that it focuses on large-cap stocks deemed undervalued, potentially offering higher dividend yields and benefiting from value factors during mean-reversion periods. This differentiates it from VTI, which is a Large Blend ETF providing broader, more diversified exposure across the market.

How do the net assets of FNDX and VTI affect investment decisions?

VTI's significantly higher net assets of $692.2 billion compared to FNDX's $28.3 billion can contribute to greater liquidity and trading efficiency. Larger asset bases might indicate more stable fund operations and potentially tighter bid-ask spreads. However, net assets should be considered alongside other factors like fees and investment objectives.

What is mean reversion, and how does it relate to FNDX?

Mean reversion refers to the tendency of stock prices to move towards their average value over time. FNDX's fundamentally weighted approach may potentially capture value premiums during mean-reversion periods by overweighting undervalued companies relative to market-cap weighted alternatives like VTI.

Why are sector weights important, and what's the status of this data for FNDX and VTI?

Sector weights provide insight into the industry diversification of an ETF. While they are crucial for assessing exposure, the provided data indicates that sector weights are not available for both FNDX and VTI. This lack of data limits a comprehensive assessment of their industry diversification.

How does the inception date of these ETFs impact their track records?

FNDX was launched on August 15, 2013, while VTI has a much longer history, starting on May 24, 2001. The inception date affects the available historical performance data, with VTI having a longer track record that can be used for backtesting and assessing long-term performance consistency.

What considerations should be made when comparing the dividend distributions of ETFs?

When comparing FNDX's 1.43% yield and VTI's 1.02% yield, investors should consider that distributions are made from income and capital gains. It's essential to understand the frequency of distributions and any tax implications, in addition to yield, for comprehensive dividend comparison.

FNDX vs VTI

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

Compare Schwab Fundamental US Large Company ETF (FNDX) and Vanguard Total Stock Market ETF (VTI). Review expense ratios, net assets, dividend yields, top holdings and how each fund tracks its market for clear, neutral insights. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

FNDX

Metric

VTI

0.25%

Expense Ratio

0.03%

1.43%

Dividend Yield

1.02%

$28.32B

Net Assets

$692.20B

733

Holdings

3,514

Aug 15, 2013

Inception Date

May 24, 2001

–

Index Tracked

–

Large Value

Fund Category

Large Blend

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

Shared Top Holdings

Holding	FNDX	VTI
AAPLApple Inc.	4.76%	6.30%
MSFTMicrosoft Corporation	2.78%	5.10%
GOOGLAlphabet Inc.	1.83%	2.70%
AMZNAmazon.com, Inc.	1.75%	3.41%
GOOGAlphabet Inc.	1.45%	2.12%

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Investment Analysis

FNDX

Pros

Schwab Fundamental US Large Company ETF tracks a fundamentally weighted index, offering distinct value-focused large-cap exposure.
It maintains a lower concentration in top tech holdings compared to its market-cap weighted competitor.
Fundamentally weighted indices may benefit from value factor premiums during periods of mean reversion.

Considerations

The expense ratio of 0.25% is significantly higher than the total market option.
Index methodology is not specified in the provided data, limiting transparency on constituent selection.
Tracked sector weights are not available, preventing assessment of industry diversification.

VTI

Pros

Vanguard Total Stock Market ETF provides broad exposure to the entire U.S. equity universe.
It offers a very low expense ratio of 0.03%, reducing long-term cost drag.
The fund's large net assets of $692.2 billion enhance liquidity and trading efficiency.

Considerations

Concentration in top holdings is high, with significant exposure to mega-cap technology stocks.
The dividend yield of 1.02% is lower than the value-focused large-cap alternative.
Index methodology is not specified in the provided data, despite the fund's clear market-cap basis.

About FNDX and VTI

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.

VTI (VTI)

This ETF offers broad exposure to the US equity market by tracking a comprehensive index of publicly traded companies. Designed as a large blend fund, it holds thousands of individual stocks, ranging from massive multinational corporations to smaller domestic firms. With an ultra-low expense ratio of 0.03%, it aims to provide cost-efficient long-term growth potential. The fund has a dividend yield of approximately 1.02%, reflecting the aggregate distributions from its holdings. Investors often consider this vehicle for core portfolio diversification, though it is essential to remember that stock market investments carry inherent risks, and values can fluctuate. Past performance is not indicative of future results, and returns are not guaranteed.

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FNDX vs VTI

Fund Snapshot