Charles Schwab will introduce three fundamental index mutual funds on April 2, the Schwab Fundamental U.S. Large Company, U.S. Small-Mid Company and International index funds, confirmed spokeswoman Sondra Harris. In contrast to traditional indexes, which look at market capitalization, fundamental indexing looks at dividends, profits, book value and other data to construct a portfolio.
The funds will offer three share classes, the highest being an institutional share class requiring a $500,000 minimum investment, a first for the firm, said Ms. Harris.
Schwab is the exclusive provider of the FTSE RAFi index series in the U.S.
