FNDX’s dividend yield is just 1.55%, or about 80 basis point below where 10-year Treasury yields closed on Thursday. However, that does not diminish FNDX’s credibility as a legitimate dividend growth ETF. Of FNDX’s top-10 holdings, a group that combines for nearly 20% of the ETF’s weight, five stocks are members of the S&P Dividend Aristocrats Index. That index mandates 25 consecutive years of dividend increases for inclusion. [A Fundamentally Sound ETF]
Several of FNDX’s other top-10 holdings, including Microsoft (NasdaqGS: MSFT), have built solid dividend increase streaks in recent years.
FNDX’s approach is working as the ETF is up 23.5% since inception. Investors like the story. FNDX has nearly $214 million in assets under management, $161.4 million of which have come into the ETF this year.
FNDX charges 0.32% per year, which is low among fundamentally weighted ETFs. Additionally, portfolio turnover of just 6% helps keep costs low and Schwab clients gain even more savings because FNDX, like all Schwab ETFs, are available on a commission-free basis. [Popular Commission-Free ETFs on Schwab OneSource]
Schwab Fundamental U.S. Large Company Index ETF
