5 Mutual Funds to Buy in 2022

3. Schwab Fundamental US Large Company Index Fund (NASDAQ:SFLNX)

Schwab Fundamental US Large Company Index Fund (NASDAQ:SFLNX) is a San Francisco-based mutual fund that invests at least 80% of net assets in companies on the Russell RAFI US Large Company Index. The index ranks firms according to an overall score based on fundamentals. 

Schwab Fundamental US Large Company Index Fund (NASDAQ:SFLNX) has more than $7 billion in net assets under management with a holdings turnover of 13%. The expense ratio for the fund is 0.25%.

A top holding of Schwab Fundamental US Large Company Index Fund (NASDAQ:SFLNX) is Exxon Mobil Corporation (NYSE:XOM), the Texas-based oil and gas company. At the end of the third quarter of 2021, 64 hedge funds in the database of Insider Monkey held stakes worth $4.6 billion in Exxon Mobil Corporation (NYSE:XOM). 

In its Q1 2021 investor letter, Harding Loevner highlighted a few stocks and Exxon Mobil Corporation (NYSE:XOM) was one of them. Here is what the fund said:

“We felt that our remaining energy holding, Exxon Mobil Corporation (NYSE:XOM), with its stronger balance sheet, was in a better position to ride out the cyclical slump in oil demand and even perhaps take advantage of it by investing counter-cyclically. While Exxon Mobil Corporation (NYSE:XOM) does plan to increase capital expenditure, we’ve been disappointed in its regrettable failure to address ongoing emission trends, which reflects poorly on management’s foresight. As a result, we sold our Exxon Mobil Corporation (NYSE:XOM) holdings.”