Schwab's fundamental index ETFs - Research Affiliates Fundamental Index (RAFI) - get a thumbs-up from Morningstar's Samuel Lee. They're cheap - 3-12 basis points less expensive than PowerShares' lineup of FTSE RAFI finds and lower than Schwab's earlier lineup of Russell Fundamental Index Funds - but they're not the cheapest (VLUE charges less, as does WisdomTree's offerings).
Lee, however, likes the Schwab offerings because of their exposure to smaller cap stocks, which historically have generated most of the value alpha. He also prefers RAFI's use of multiple valuation metrics as opposed to WisdomTree's reliance on either dividends or earnings. "Multiple metrics can cancel out some of the idiosyncratic noise attributable to a single metric, thereby producing cleaner exposure to the value factor."