What Is FNDX? Schwab Fundamental U.S. Large Company ETF
Last updated September 2026
Short answer
FNDX is Schwab Fundamental U.S. Large Company ETF, an ETF that tracks an index that weights US large companies by fundamentals rather than market value at a 0.25% expense ratio. FNDX rejects the premise that a company's weight in an index should be set by its share price. Instead it weights by fundamental measures: adjusted sales, retained operating cash flow and dividends plus buybacks. The effect is systematic: whenever a company's price runs ahead of its fundamentals it gets trimmed, and when it falls behind it gets added to. Apple at 4.1% here against roughly 7% in a cap-weighted fund is that mechanism in a single number.
FNDX is issued by Schwab Asset Management and tracks an index that weights US large companies by fundamentals rather than market value. It charges a 0.25% expense ratio, holds approximately $25.9B in assets under management, yields about 1.48%, and launched in 2013.
What fundamental weighting actually does
In a cap-weighted index, a company's weight rises simply because its price rose. That is the design, and it means the index automatically holds more of whatever has already become expensive.
Fundamental indexing severs that link. Weights come from business size measured in sales, cash flow and cash returned to shareholders, so a company's index weight only grows when the business grows. At each rebalance the fund sells what has become expensive relative to its fundamentals and buys what has become cheap. It is a contrarian rule executed mechanically.
The result looks like a value tilt without any explicit value screen: Apple at 4.1%, Intel at 2.2%, Microsoft at 2.1%, Exxon Mobil at 2.1%, Alphabet at 1.9% and Amazon at 1.7%. Technology at 20% against near 40% in a cap-weighted fund.
The cost and the trade-off
FNDX charges 0.25% against 0.03% for a plain large-cap index fund. That is roughly eight times the cost, and the rebalancing that drives the strategy also creates more turnover, which can matter in a taxable account.
The honest framing: you are paying for a systematic contrarian discipline. In periods when the largest companies keep getting larger, this fund will lag, and it did so through much of the mega-cap technology run. Its case rests on periods when prices mean-revert toward fundamentals.
FNDX holdings: top 10
Approximate weights as of August 2026. Each ticker links to its individual stock guide in Walnut.
How do I invest in FNDX?
There are three common ways to get FNDX exposure. Buy shares (or fractional shares) of FNDX directly at any major broker that lists it. Hold it as a core position and layer more concentrated ideas on top. Or build it into a thematic portfolio in Walnut, so FNDX sits alongside other holdings that express the same thesis, with target weights you can rebalance toward. FNDX trades like a stock during market hours, so you buy it the same way you would any listed share.
New to buying funds? See how to buy an ETF, step by step.
Is FNDX a good buy?
Whether FNDX is a good buy depends less on any single call and more on your time horizon and what you already hold: it tracks an index that weights US large companies by fundamentals rather than market value, so the real question is whether you want that exposure in your mix and at what weight. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is FNDX a buy?
The bottom line on FNDX
FNDX gives you an index that weights US large companies by fundamentals rather than market value exposure in one ticker at a 0.25% expense ratio. Most investors use it as a core holding and layer more concentrated thematic portfolios on top.
More on FNDX
Whether FNDX is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is FNDX a buy?
FNDX yields 1.48% as of August 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see FNDX dividend: yield and schedule.
New to funds like FNDX? Start with what an ETF is, then how to buy an ETF, or browse the full guide to ETF investing.
Wondering how FNDX fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in FNDX with AI
Connect the broker you already use and ask Walnut's AI how FNDX fits what you actually hold: what it overlaps with, what it leaves you exposed to, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is FNDX?
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FNDX is the Schwab Fundamental U.S. Large Company ETF. It weights large US companies by fundamental measures, adjusted sales, retained operating cash flow and dividends plus buybacks, rather than by market value. It charges 0.25%, holds about $25.9B, and launched in 2013.
What is fundamental indexing?
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Weighting companies by the size of the business rather than the size of its market value. In a cap-weighted index a company's weight rises simply because its price rose. Fundamental weighting breaks that link, so at each rebalance the fund trims what has grown expensive relative to its fundamentals and adds to what has grown cheap.
Why is Apple only 4.1% of FNDX?
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Because its weight is set by sales, cash flow and shareholder distributions rather than by its market capitalisation. In a cap-weighted fund Apple is closer to 7%. The gap between those two numbers is the entire strategy expressed in one holding.
Is FNDX a value fund?
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Not explicitly, but it behaves like one. It applies no value screen; the contrarian rebalancing produces a value-like tilt as a by-product. Technology is 20% here against near 40% in a cap-weighted fund, which is the practical result.
Is 0.25% too expensive?
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It is roughly eight times a plain index fund at 0.03%. Whether it is worth paying depends on whether the systematic rebalancing adds more than about 0.22 percentage points a year over a full cycle. The strategy also creates more turnover, which is worth considering in a taxable account.
When does FNDX underperform?
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When the largest companies keep getting larger, because the rebalancing rule keeps trimming them. It lagged through much of the mega-cap technology run for exactly that reason. Its case rests on periods when prices revert toward fundamentals.
What does FNDX hold?
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Apple at 4.1%, Intel at 2.2%, Microsoft at 2.1%, Exxon Mobil at 2.1%, Alphabet at 1.9% and Amazon at 1.7%. By sector: technology 20%, financials 15%, healthcare 13% and industrials 10%. The weights are notably flatter than a cap-weighted fund.
Does FNDX pay a dividend?
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About 1.48%, above a cap-weighted large-cap fund. Weighting partly by dividends and buybacks naturally tilts the portfolio toward companies that return cash to shareholders.
What is FNDX's expense ratio?
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FNDX has an expense ratio of 0.25% per year as of August 2026, charged by Schwab Asset Management and deducted from the fund's value rather than billed to you separately. On a $10,000 position that is roughly $25 a year. Fees compound over time, so on a long-term holding the expense ratio is one of the few return drivers you control. It is worth comparing against other funds that track an index that weights US large companies by fundamentals rather than market value before you choose.
How do I compare FNDX to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. FNDX's figures are above; the full method is in Walnut's guide on how to compare ETFs.
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Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to August 2026; verify current figures against Schwab Asset Management's fund page or your broker before investing.