ETF Evaluator: Schwab Fundamental U.S. Broad Market ETF (FNDB) Follow This ETF

Schwab Fundamental U.S. Broad Market ETF Overview

Schwab Fundamental U.S. Broad Market ETF (FNDB) is a passively managed U.S. Equity Large Value exchange-traded fund (ETF). Schwab ETFs launched the ETF in 2013.

The investment seeks is to track as closely as possible, before fees and expenses, the total return of the RAFI Fundamental High Liquidity U.S. All Index that measures the performance of U.S. based companies based on their fundamental size and weight. The fund will invest at least 90% of its net assets in stocks included in the index. The index measures the performance of the constituent companies by fundamental overall company scores (scores), which are created using as the universe the U.S. companies in the RAFI Global Equity Investable Universe. It may invest up to 10% of its net assets in securities not included in the index.

About Schwab Fundamental U.S. Broad Market ETF (FNDB)

There are 4 members of the management team with an average tenure of 7.10 years: Christopher Bliss (2017), Ferian Juwono (2017), Jeremy Brown (2019) and Agnes Zau (2023). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and RAFI Fund Hi Liq US All TR USD index with a weighting of 100%. Schwab Fundamental U.S. Broad Market ETF has 1638 securities in its portfolio. The top 10 holdings constitute 19.0% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Schwab Fundamental U.S. Broad Market ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. Schwab Fundamental U.S. Broad Market ETF has 0.7% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.3% There is 0.7% 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 U.S. Broad Market ETF has 0.1% of the portfolio in cash.

Assets Under Management

The fund has $1 billion in total assets, which is below the $5 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.

FNDB 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 U.S. Broad Market ETF expense ratio is below average compared to funds in the Large Value category. Schwab Fundamental U.S. Broad Market ETF has an expense ratio of 0.25%, which is 32% lower than its category average, making the fund expense ratio grade a B. 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 U.S. Broad Market ETF has a portfolio turnover rate of 12%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 41% for the Large Value category.

Recently, in the month of June 2026, Schwab Fundamental U.S. Broad Market ETF returned 1.1%, which earned it a grade of C, as the Large Value category had an average return of 1.1%. 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 ETFs in that category.

Schwab Fundamental U.S. Broad Market ETF has a trailing yield of 1.46%, which is below the 1.74% category average. The fund normally distributes its income quarterly.

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 U.S. Broad Market ETF Grades

Year to date, the ETF has returned 15.6%, 3.7 percentage points better than the category, which translates into a grade of B. The fund has returned 29.1% over the past year (grade of A), 19.3% over the past three years (grade of B) and 13.0% per year over the past five years (grade of A) and 14.0% per year over the past 10 years (grade of A).

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