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Invest today in the Schwab Fundamental Index Funds.

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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 Index¹ Funds. 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 RAFI¹ 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.

US Large Company Fund

US Small-Mid Company Fund

International Large Company Fund

International Small-Mid Company Fund

Emerging Mrkets 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 trademark of Charles Schwab & Co., Inc. Fundamental Index, RAFI, Fundamental US Large Company, Fundamental US Small-Mid Company, Fundamental Emerging Markets and Fundamental International are trademarks of Research Affiliates LLC.

2. Schwab and the investment adviser have agreed to limit the fund's "net operating expenses" as stated in the prospectus for each fund, for so long as the investment adviser serves as the adviser to the fund. This agreement may only be amended or terminated with the approval of the fund's Board of Trustees. The limitation excludes interest, taxes, expenses for dividends and interest paid on securities sold short, and certain non-routine expenses, which may result in a fund incurring net operating expenses above the limitation.

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