Fund Evaluator:

Schwab Fundamental US Large Company Idx Overview

Schwab Fundamental US Large Company Idx (SFLNX) is a passively managed U.S. Equity Large Value fund. Schwab Funds launched the fund in 2007.

The investment seeks to track as closely as possible, before fees and expenses, the total return of RAFI Fundamental High Liquidity US Large Index†. To pursue its goal, the fund generally invests in stocks that are included in the RAFI Fundamental High Liquidity US Large Index†. The index selects, ranks, and weights securities by fundamental measures of company size – adjusted sales, retained operating cash flow, and dividends plus buybacks – rather than market capitalization.

About Schwab Fundamental US Large Company Idx (SFLNX)

There are 4 members of the management team with an average tenure of 8.30 years: Christopher Bliss (2017), Ferian Juwono (2013), Jeremy Brown (2019), Agnes Zau (2023). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Russell 1000 TR USD index with a weighting of 100% and RAFI Fund Hi Liq US Large TR USD index with a weighting of 100%. Schwab Fundamental US Large Company Idx has 737 securities in its portfolio. The top 10 holdings constitute 22.3% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Schwab Fundamental US Large Company Idx is part of the Equity global asset class and is within the U.S. Equity fund group. Schwab Fundamental US Large Company Idx has 0.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.2%. There is 0.6% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Schwab Fundamental US Large Company Idx has 0.2% of the portfolio in cash.

Assets Under Management

The fund has $12 billion in total assets, which is above the $1 billion average for the Large Value category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

SFLNX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Schwab Fundamental US Large Company Idx expense ratio is below average compared to funds in the Large Value category. Schwab Fundamental US Large Company Idx has an expense ratio of 0.25%, which is 73% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Schwab Fundamental US Large Company Idx has a portfolio turnover rate of 10%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 62% for the Large Value category.

Recently, in the month of June 2026, Schwab Fundamental US Large Company Idx returned 0.8%, which earned it a grade of D, as the Large Value category had an average return of 1.6%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Schwab Fundamental US Large Company Idx has a trailing yield of 1.46%, which is above the 1.25% category average. The fund normally distributes its income annually and its capital gains semi-annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Schwab Fundamental US Large Company Idx Grades

Year to date, the fund has returned 15.2%, 4.1 percentage points better than the category, which translates into a grade of B. The fund has returned 28.7% over the past year (grade of A), 19.6% over the past three years (grade of A) and 13.4% per year over the past five years (grade of A) and 14.2% per year over the past 10 years (grade of A).

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