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A Value Fund That Goes Beyond Tradition

This bronze-rated fund has benefits that its peers lack, and it should reward investors who can stomach some volatility.


Alex Bryan: Unlike most value index funds, Schwab Fundamental US Large Company Index, weights its holdings based on fundamental measures of size, including operating cash flow, sales, and capital distribution, such as dividends and share repurchases.

This introduces a value tilt because it tends to overweight some of the companies that are trading at low multiples of these metrics and underweights companies that are trading at more expensive multiples.

Alex Bryan does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.