Schwab Fundamental U.S. Large Company Index ETF [FNDX] Stock Forecast

Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the Schwab Fundamental U.S. Large Company Index ETF (FNDX), a passively managed exchange traded fund launched on 08/13/2013.

Making its debut on 08/13/2013, smart beta exchange traded fund Schwab Fundamental U.S. Large Company Index ETF (FNDX) provides investors broad exposure to the Style Box - Large Cap Value category of the market.

Style Box ETF report for FNDX

FNDX holds 700+ U.S. large-cap stocks weighted by leverage-adjusted sales, retained operating cash flow, and shareholder yield. Its expense ratio is 0.25% and the ETF has $10 billion in assets. I prefer forward-looking metrics, but FNDX trades at 17.79x forward earnings and is well-diversified across sectors and industries. Still, its 16.6% exposure to Technology stocks is too high.

Smart Beta ETF report for FNDX

Style Box ETF report for FNDX

There's an ongoing debate about cap-weighted and smart-beta indexes, which look past crowd opinion to weight operating metrics like P/E, PB, P/S, and dividends. Rob Arnott challenged cap-weighted indexes as precipitating bubbles and created the RAFI index used by Schwab's FNDX and Invesco's PRF which have outperformed ordinary cap-weighted Value like VTV.

Smart Beta ETF report for FNDX

Style Box ETF report for FNDX

Smart Beta ETF report for FNDX