If you’ve been hearing chatter about the Schwab Fundamental U.S. Broad Market ETF (FNDB) lately, there’s a reason.

This isn’t your average “buy the whole market” kind of fund. It’s what’s called a smart beta ETF, meaning instead of simply buying stocks based on their size (like the S&P 500 does), it picks them based on real-world fundamentals, things like a company’s sales, dividends, and cash flow.

FNDB tracks the Russell RAFI US Index, which focuses on companies with strong financial performance, not just large market capitalisations. Launched in 2013, it’s grown to manage $965 million, pretty impressive for a fund in the All Cap Value category.

What’s Inside the Fund

FNDB is heavily invested in financial stocks (approximately 17.3% of the portfolio), followed by tech and industrials. Its largest holdings include Apple (3.59%), Microsoft, and ExxonMobil. It also holds over 1,660 companies, so no single stock can wreck your investment.

The expense ratio is 0.25%, which is lower than many active funds but not the cheapest ETF out there. Still, for a smart beta strategy, that’s pretty reasonable. You also get a 1.67% dividend yield, which is like a little “thank you” check while your investment works.

Performance Check: Is It Worth It?

So far in 2025, FNDB is up 7.75%, and over the past year, it’s climbed 14.22%. Its beta is 0.94, meaning it moves slightly less than the overall market, and its standard deviation of 15.27% puts it in the “medium risk” bucket. In plain English: it’s not crazy risky, but it’s not boring either.

How’s The Rivals Doing?

If you’re shopping around, competitors include:

• Fidelity High Dividend ETF (FDVV)- It is a bigger fund, with cheaper fees (0.16%), that focuses on dividends.
• iShares Core S&P U.S. Value ETF (IUSV)- This one is even cheaper (0.04%) and huge at $21.6B in assets.

These other ETFs might be better if you want ultra-low costs or a different strategy, but FNDB’s appeal is its unique smart beta approach and broad diversification.

To conclude, FNDB is for investors who like the idea of owning a huge slice of the U.S. market but want it filtered for quality and fundamentals, not just size.

It’s a “set it and let it grow” option, especially if you’re okay with medium risk and want a portfolio that’s got both stability and growth potential.