Evaluation and selection

Learn what's important to consider when evaluating Fundamental Index® products, and access tools to help with the product selection process.

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Big picture: Products with familiar features

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Fundamental Index and market cap-weighted products use the same product types and asset classes, making for a familiar selection process.

What is important to consider when evaluating Fundamental Index products?

what to consider

Fundamental Index products, in some ways, resemble their market cap-weighted counterparts. These products use the same product type and asset classes you're familiar with in market capitalization. While expense ratios for Schwab Fundamental Index ETFs and mutual funds tend to be higher than the average market cap-weighted index funds, their average expense ratio is lower than the industry average for strategic beta ETFs and mutual funds.1

Another important consideration is that relative to a market cap-weighted benchmark, strategic beta strategies, such as Fundamental Index, will generally have larger turnover, tracking error, and higher fees.

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What tools are available to help with Fundamental Index product selection?

Fee impact simulator

Use the fee impact simulator to see the long-term effects of pricing on a portfolio.

Fund explorer

Help your clients get the most value from their investments with this fund explorer.