Welcome to Schwab

Investment Products

Research & Strategies

Advice & Retirement

Banking & Lending

Markets Stocks Mutual Funds ETFs Bonds & Fixed Income Market Insight Portfolio Management

Schwab Funds

Charles Schwab & Co., Inc.

Call us at 866-232-9890

Send us an email

Find Funds OneSource Select List Schwab Funds

Morningstar 4- and 5-Star Funds Active Equity Funds Equity Index Funds Fundamental Index Funds Bond Funds Monthly Income Funds Real Estate Funds Asset Allocation Funds Investor Information International Equity

Laudus Funds Research Tools

Printer-friendly
Type Size: A A A

Invest today in the Schwab Fundamental Index Funds.

Open an account today.

Clients log in to trade.

Call 877-796-6740 to learn more.

Learn about fundamental indexes

Hear Rob Arnott, creator of the methodology, explain fundamental indexing .
Read about the index and funds .

Schwab Fundamental Index Funds

Gain access to an advanced indexing approach with Schwab Fundamental Index® Funds¹. The Funds are designed to offset the risks of traditional index funds while offering the potential for higher investment returns and lower volatility.

Advantages of Schwab Fundamental Index Funds:

Innovative approach—Help potentially avoid overexposure to overvalued companies
Smart investing—Offer low turnover, full market participation, immense investment capacity, and broad diversification
Competitive pricing—Offer low fees, priced significantly lower than their respective Morningstar category averages

The fundamental index approach

Fundamental indexes use fundamental measures of company scale and success—sales, cash flow, book value, and dividends—to construct the indexes. These fundamental factors address the inherent bias of traditional indexes, which are based on market capitalization and can give too much weight to overpriced securities and too little weight to underpriced securities.

Schwab Fundamental Index Funds are passively managed and tracks the FTSE™ RAFI™ Index, which is based on the fundamental index methodology developed by Rob Arnott and Research Affiliates. Schwab is the exclusive equity mutual fund (non-ETF) provider of the FTSE RAFI Index Series in the United States.

U.S. Large Company Fund

U.S. Small-Mid Company Fund

International Large Company Fund

International Small-Mid Company Fund

Emerging Markets Fund

PLEASE READ IMPORTANT DISCLOSURES BELOW

Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges and expenses. You can view, download and print a prospectus by clicking on Prospectuses & Reports. Please read the prospectus carefully before investing. Investment value and return will fluctuate, such that shares when redeemed may be worth more or less than original cost.

Diversification does not eliminate the risk of market losses.

Historically, small capitalization funds typically carry additional risks since smaller companies generally have experienced a greater degree of market volatility than other funds that provide broader diversification. International investing involves special risks such as currency fluctuation and political instability. Investing in emerging markets may accentuate these risks.

1. Schwab is a registered service mark of Charles Schwab & Co., Inc. "Fundamental Index" is a registered service mark of Research Affiliates LLC.
2. Net OER guaranteed through February 27, 2009 (excluding interest, taxes and certain non-routine expenses)

The Fundamental Index, Fundamentals Weighted, and RAFI trade names and patent-pending concept are the exclusive property of Research Affiliates, LLC and are used by Charles Schwab Investment Management under license through FTSE. FTSE, Rob Arnott and Research Affiliates, LLC are not affiliated with Charles Schwab & Co., Inc. and its affiliates, parents and subsidiaries. Indices are unmanaged and cannot be invested in directly.

Mutual funds are not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by the London Stock Exchange Plc (“Exchange”) or by the Financial Times Limited (“FT”) or by Research Affiliates LLC (“RA”), and neither FTSE nor Exchange nor FT nor RA makes any warranty or representation whatsoever, expressly or implicitly, as to the results to be obtained from the use of the FTSE™ RAFI™ Indexes and/or the figure at which the said Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTSE in conjunction with RA; however, neither FTSE nor Exchange nor FT nor RA shall be liable (whether in negligence or otherwise) to any person for any error in the index, and neither FTSE nor the Exchange nor FT nor RA shall be under any obligation to advise any person of any error therein.

(1207-8884)