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, Schwab Asset Management partnered with Research Affiliates to deliver investment options based on the Research Affiliates Fundamental Index strategy. Today we offer 12 exchange-traded funds (ETFs) and mutual funds that track indexes which 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.
The indexes tracked by Schwab Fundamental Index mutual funds and ETFs utilize a non-price-weighted methodology, 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 ETF in Morningstar's Multi-Factor Strategic Beta Group is priced at 0.46%,1 providing clients with a low-cost, straightforward alternative approach to traditional market cap–weighted investing.
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