2024-01-25 19:51:26 ET
Summary
- The Schwab Fundamental U.S. Broad market Index ETF is an equities ETF that aims to replicate the Russell RAFIUS Index.
- The fund falls into the Large Cap Value category as rated by Morningstar, and exhibits a value-oriented portfolio with a focus on fundamentals.
- The ETF follows the Russell RAFIUS Index, which employs fundamental factors such as 'Adjusted Sales,' 'Retained Operating Cash Flow,' and 'Dividends plus Buybacks' for stock selection.
- FNDB does include some tech mega-caps like Apple, Microsoft and Meta, but the index methodology ensures diversification and a value tilt.
- We recommend FNDB as a robust choice for retail investors in 2024, anticipating a potential shift from growth-oriented to value-oriented funds with favorable starting valuations.
Thesis
The Schwab Fundamental U.S. Broad Market Index ETF ( FNDB ) is an equities exchange traded fund. The vehicle does not get a lot of attention, although it should. The fund represents a portfolio of U.S. companies which fall in the Large Cap Value category as rated by Morningstar:
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FNDB: A Value Bet On A 2024 Bull Market