Strategic beta

Strategic beta funds may help alter a portfolio's overall risk, improve the return profile, and diversify exposure to achieve a desired outcome.

What we offer

In 2007, Charles Schwab Investment Management partnered with Research Affiliates to deliver investment options based on the Research Affiliates Fundamental Index strategy. Today we offer 12 ETF and mutual fund products that follow the Fundamental Index methodology, providing investors access to a straightforward, innovative indexing approach that offers a complement to traditional market cap–weighted and actively managed strategies.

Strategic beta

Our approach

Schwab Fundamental Index mutual funds and ETFs utilize a strategy that is non-price-weighted, seeking to deliver excess return versus a traditional market cap–weighted index. The Fundamental Index methodology is a disciplined approach that counters the constantly shifting sentiments of the broader market, while preserving many of the chief benefits of traditional market cap–weighting: investment capacity, liquidity, diversification, and broad market participation. The Schwab Fundamental Index mutual funds and ETFs span the investment spectrum from domestic equities to emerging markets.

Fundamental Index key differentiators

  • Schwab Fundamental Index mutual funds and ETFs provide investors with a broad range of options from domestic to international equities to global real estate, enabling investors to diversify their overall portfolio exposure. 
  • The Research Affiliates Fundamental Index methodology is a systematic, transparent approach that selects and weights securities based on fundamental measures of company size.
  • Schwab Fundamental Index ETFs are offered at an average of 0.30%, while the average multi-factor ETF is priced at 0.46%,1 providing clients with a low-cost, straightforward alternative approach to traditional market cap–weighted investing.

Advisor tools

Use these financial tools to gain more comprehensive insight into investment products.

Advisor tools

Fee impact simulator

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

Fund explorer

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Featured strategic beta products

See our highlighted strategic beta mutual funds and ETFs, or browse all our investment products.

Strategic beta insights

See what our executives and strategists have to say about strategic beta investing.

Investment Insights

An explanation of key distinctions between the Dimensional Fund Advisors strategy and the approach employed by the Schwab Fundamental Index products.
Investment Insights

Fortune explains the difference between cap-weighted and fundamental index strategies.
Schwab Market Update

U.S. equities finished solidly higher in the wake of a spate of losses that has brought about a six-week losing streak for the S&P 500. The moves came despite a flurry of headwinds, notably the Fed's aggressive tightening campaign to combat persistently high inflation, reemphasized by Fed Chair Jerome Powell in a livestreamed interview with the Wall Street Journal. A mostly upbeat economic calendar appeared to aid sentiment, as retail sales, industrial production, capacity utilization, and business inventories all rose, but homebuilder sentiment fell to its lowest level in nearly two years amid rising prices and mortgage rates. In equity news, Dow member Home Depot moved higher after posting strong earnings, while fellow Dow component Walmart lost ground after falling short on estimates, and the ongoing Twitter saga was in focus after Elon Musk said the deal remains on hold. Treasuries were lower, pushing yields higher, and the U.S. dollar cooled somewhat after a recent run-up to 20-year highs. Crude oil prices ended lower in choppy action, while gold was little changed. Europe was higher, and Asia finished in the green following some positive real-time COVID data.