Schwab Asset Management®, the asset management arm of The Charles Schwab Corporation, today announced index and fund name changes for the Schwab Fundamental Index* ETF and mutual fund suite, effective on or about June 21, 2024. Shareholders in the ETFs and mutual funds do not need to take any action. The changes are part of Schwab Asset Management’s continual review of its product set to refine and enhance its product line-up.
A total of 12 Schwab Fundamental Index ETFs and mutual funds will be changing indexes and 11 of them will have new fund names:
Ticker |
Current Fund Name |
New Fund Name |
Current Index |
New Index |
||||
FNDX |
Schwab Fundamental U.S. Large Company Index ETF |
Schwab Fundamental U.S. Large Company ETF |
Russell RAFI US Large Company Index |
RAFI Fundamental High Liquidity US Large Index |
||||
SFLNX |
Schwab Fundamental US Large Company Index Fund |
Schwab Fundamental U.S. Large Company Index Fund |
||||||
FNDA |
Schwab Fundamental U.S. Small Company Index ETF |
Schwab Fundamental U.S. Small Company ETF |
Russell RAFI US Small Company Index |
RAFI Fundamental High Liquidity US Small Index |
||||
SFSNX |
Schwab Fundamental US Small Company Index Fund |
Schwab Fundamental U.S. Small Company Index Fund |
||||||
FNDF |
Schwab Fundamental International Large Company Index ETF |
Schwab Fundamental International Equity ETF |
Russell RAFI Developed ex US Large Company Index |
RAFI Fundamental High Liquidity Developed ex US Large Index |
||||
SFNNX |
Schwab Fundamental International Large Company Index Fund |
Schwab Fundamental International Equity Index Fund |
||||||
FNDC |
Schwab Fundamental International Small Company Index ETF |
Schwab Fundamental International Small Equity ETF |
Russell RAFI Developed ex US Small Company Index |
RAFI Fundamental High Liquidity Developed ex US Small Index |
||||
SFILX |
Schwab Fundamental International Small Company Index Fund |
Schwab Fundamental International Small Equity Index Fund |
||||||
FNDE |
Schwab Fundamental Emerging Markets Large Company Index ETF |
Schwab Fundamental Emerging Markets Equity ETF |
Russell RAFI Emerging Markets Large Company Index |
RAFI Fundamental High Liquidity Emerging Markets Index |
||||
SFENX |
Schwab Fundamental Emerging Markets Large Company Index Fund |
Schwab Fundamental Emerging Markets Equity Index Fund |
||||||
FNDB |
Schwab Fundamental U.S. Broad Market Index ETF |
Schwab Fundamental U.S. Broad Market ETF |
Russell RAFI US Index |
RAFI Fundamental High Liquidity US All Index |
||||
SFREX |
Schwab Fundamental Global Real Estate Index Fund |
No change |
Russell RAFI Global Select Real Estate Index |
RAFI Fundamental High Liquidity Global Real Estate Index |
While the current indexes use the FTSE Global Total Cap Index as their starting universe, the new indexes will use the RAFI Global Equity Investable Universe (GEIU) as their starting universe. The same fundamental index methodology is still applied to screen companies based on three fundamental variables:
1) adjusted sales
2) retained operating cash flow
3) dividends plus buybacks
The index methodology for the RAFI index suite can be found here
About Schwab Asset Management
One of the industry’s largest and most experienced asset managers, Schwab Asset Management offers a focused lineup of competitively priced ETFs, mutual funds and separately managed account strategies designed to serve the central needs of most investors. By operating through clients’ eyes, and putting them at the center of our decisions, we aim to deliver exceptional experiences to investors and the financial professionals who serve them. As of December 31, 2023, Schwab Asset Management managed approximately $1.0 trillion on a discretionary basis and $33.5 billion on a non-discretionary basis. More information is available at www.schwabassetmanagement.com.
About Charles Schwab
At Charles Schwab we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.
More information is available at www.aboutschwab.com. Follow us on Twitter, Facebook, YouTube and LinkedIn.
Disclosures:
Investors should consider carefully information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses. You can download a prospectus by visiting https://www.schwabassetmanagement.com/prospectus. Please read it carefully before investing.
Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF. Shares of an ETF are bought and sold at market price, which may be higher or lower than the net asset value (NAV).
* SCHWAB is a registered trademark of Charles Schwab & Co., Inc. FUNDAMENTAL INDEX is a registered trademark of Research Affiliates LLC.
The Schwab Fundamental Index Funds are not in any way sponsored, endorsed, sold or promoted by Frank Russell Company (Russell), by the London Stock Exchange Group companies (LSEG), or by Research Affiliates LLC (RA) (collectively the Licensor Parties), and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell RAFI Index Series (the Indexes) or otherwise. The Indexes are compiled and calculated by Russell in conjunction with RA. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Indexes and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. “Russell®” is a trademark of Russell. The trade names “Research Affiliates®”, “Fundamental Index®” and “RAFI®” are registered trademarks of RA. Charles Schwab Investment Management, Inc. has obtained full license from Russell to use the Indexes. For full disclaimer please see the funds’ statements of additional information.
Each RAFI Fundamental High Liquidity Index (each an Index) is a service mark of RAFI Indices, LLC or its affiliates (collectively, RAFI) and has been licensed for use by Charles Schwab Investment Management, Inc. The intellectual and other property rights to each Index are owned by or licensed to RAFI. The Schwab Fundamental Index Funds are not sponsored, endorsed, sold or promoted by RAFI, its agents or service providers (collectively, the RAFI Parties). The RAFI Parties: (i) make no representation or warranty as to the results to be obtained from the use of an Index or otherwise; and (ii) shall not be liable (whether in negligence or otherwise) to any person for any error in an Index. For full disclaimer, please see the funds’ statements of additional information.
Schwab Asset Management® is the dba name for Charles Schwab Investment Management, Inc., the investment adviser for Schwab Funds, Schwab ETFs, and separately managed account strategies. Schwab Funds are distributed by Charles Schwab & Co., Inc. (Schwab), Member SIPC. Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). Schwab Asset Management and Schwab are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation, and are not affiliated with SIDCO.
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Contacts
Christine Underhill
Charles Schwab
415-961-3790
