HDUS vs SCHX

HDUSBHartford Disciplined US Equity ETF

SCHXASchwab U.S. Large-Cap ETF

In short

HDUS A core US large-cap holding with a factor engine under the hood: Hartford's own index rules tilt toward value, momentum and quality while leashing how far the portfolio can drift from the cap-weighted market.

SCHX Schwab's no-frills large-cap core: roughly 800 US big names for three basis points, running since 2009. One of the cheapest tickets in a crowded category, and it hugs its index tightly.

Stated mandate

HDUS The fund seeks investment results, before fees and expenses, that correspond to the total return of an index tracking exchange-traded U.S. large-cap equity securities.

SCHX The fund seeks to track, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Total Stock Market Index.

Why people hold it

• HDUS Rules-based multifactor selection across value, momentum and quality, run through an optimizer that targets a lower volatility level and controlled drift from the cap-weighted universe.hartfordfunds.com
• Built in-house: the index methodology comes from Lattice Strategies, a Hartford Funds subsidiary, and the portfolio is reshuffled on a set schedule twice a year rather than at a manager's whim.hartfordfunds.cometfexpress.com
• Spreads the bet across roughly 300 US large caps and pays quarterly, and it does what the prospectus says it does: US large-cap equity, index-tracked, no style wandering.
• Lands in the upper half of a two-dozen-fund US large-cap peer group, which is respectable company for a smart-beta build competing against plain vanilla trackers.

• SCHX 0.03% a year, well under the typical US large-cap fund's fee. That is the kind of cost floor only the biggest fund shops can hold.
• About 800 stocks tracking the Dow Jones U.S. Large-Cap Total Stock Market Index before fees. No themes, no screens, no manager hunches.schwabassetmanagement.com
• Tracking has been among the tightest in its peer group: the fund delivers its index with very little slippage.
• Live since 2009 and now a multi-billion-dollar fund that trades heavily, so spreads stay thin and the lights are unlikely to go out.

Worth knowing

• HDUS 0.19% a year is above the typical fee in its large-cap group and several times the 0.03% charged by plain cap-weighted rivals like SCHX and VV. That is the toll for the factor machinery.
• Small asset base and light trading versus the household-name trackers, so spreads and order size matter more here than with the giants.
• The factor tilts mean it can diverge from a plain cap-weighted large-cap index in either direction, and the live record only dates to its 2022 launch.hartfordfunds.com

• SCHX Large caps only, despite the index name. Mid and small caps live in a separate fund, so this is one slice of the market, not all of it.
• Three basis points is cheap, not free: BKLC in the same peer group runs at zero.
• Dividends land quarterly, not monthly, which matters if you're building an income schedule.

Full HDUS profile⁠

Full SCHX profile⁠