Fundamental Index Funds at Schwab
While Vanguard is generally my preferred vendor for people to use when managing investments on their own, Schwab‘s latest offering is a real plus for those who want to be on the Schwab platform.
Fundamental indexes use a combination of company attributes (e.g., sales, cash flow, dividends, book value) to determine their weight in the portfolio rather than the traditional market cap weighting. This has the advantage of nicely tilting the portfolio towards small and large companies without having to use a lot of different funds. The main disadvantages are I would expect these funds to be less tax efficient and they have a higher expense ratio. But for investing a rollover IRA, neither of those are show stoppers.
This entry was posted by David on April 2, 2007 at 11:37 am, and is filed under Investing. Follow any responses to this post through RSS 2.0.Responses are currently closed, but you can trackback from your own site.