Evaluation and selection
Learn what's important to consider when evaluating Fundamental Index® products, and access tools to help with the product selection process.
Big picture: Products with familiar features
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.