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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

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

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

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

U.S. equities were mixed and ended near the starting line as investors digested the highly anticipated November labor report which showed stronger-than-expected job growth. Nonfarm payrolls, private sector payrolls, and average hourly earnings all rose more than estimates, while the unemployment rate remained at October’s level. The report seemed to temper market expectations for a less aggressive Fed in the near-term, as hopes for such intensified earlier in the week after Fed Chair Powell suggested that the Central Bank could slow the pace of its tightening campaign as early as this month. Treasury yields diverged following the data, and the U.S. dollar dipped, while crude oil prices decreased in choppy trading, and gold pulled back from yesterday's solid rise. Earnings reports continued to trickle in, with Marvell Technology falling short of expectations on both the top and bottom lines and slashing its guidance, while Ulta Beauty trounced the Street's forecasts amid soaring same-store sales growth. The labor report dominated today’s economic calendar, but next week will introduce some notable releases, including December’s Producer Price Index, reads on the services sector, consumer sentiment, and more. Asian stocks finished with broad losses, and European stocks ended mixed, as the global markets searched for some clarity on China's latest moves regarding its COVID-related restrictions.
Trading

Stocks drop following strong employment data.