(FNDB) Schwab Fundamental U.S. - NYSE

The Schwab Fundamental U.S. Broad Market Index ETF (FNDB) tracks the performance of U.S. companies selected and weighted based on fundamental factors rather than market capitalization. The fund allocates at least 90% of its assets to securities within its underlying index, which utilizes the RAFI Global Equity Investable Universe to score companies on metrics such as adjusted sales, retained operating cash flow, and dividends plus share buybacks.

This fundamental weighting strategy aims to reduce exposure to overvalued stocks that may carry inflated prices in traditional cap-weighted indices. By prioritizing business size over share price, the fund captures a broad cross-section of the U.S. economy, often resulting in a value-oriented tilt within the Large Value category. Investors can use ValueRay to further analyze how these fundamental scores impact long-term portfolio volatility.

The fund maintains the flexibility to invest up to 10% of its assets in securities outside the index to manage liquidity or track the benchmark more efficiently. Since its inception in 2013, FNDB has provided exposure to a diversified mix of sectors, balancing mature cash-flow-positive enterprises with smaller constituents that meet the indexs scoring criteria.