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.
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.
- Almost every Schwab Fundamental Index mutual fund and ETF has a track record that exceeds 5 years. Many mutual funds have nearly 10 years of performance history versus the average 4.8 years for multi-factor funds available today.1
- 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 0.54%,1 providing clients with a low-cost, straightforward alternative approach to traditional market cap–weighted investing.
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Featured strategic beta products
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Strategic beta insights
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