2024-05-13 23:12:06 ET
Summary
- Schwab Fundamental U.S. Large Company Index ETF has performed well year-to-date.
- The Funds's portfolio is constructed based on fundamental measures and excludes many fast-growing technology stocks.
- While FNDX's valuation is fair, the risk of an economic recession outweighs the upside potential.
ETF Overview
Schwab Fundamental U.S. Large Company ETF ( FNDX ) owns a portfolio of U.S. large-cap stocks with high sales, excessive operating cash flow generation, and substantial dividend and share buyback plans. The fund has delivered solid return since the beginning of the year. Its valuation is also fair relative to the historical average. However, a recession may not be too far away due to persistent inflation, and the Federal Reserve's policy. Therefore, we do not think this is the best time to own FNDX now....
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For further details see:
FNDX: Downside Risk Outweighs Upside Potential