Schwab Fundamental U.S. Small Company Index ETF (FNDA)

ETF Schwab Fundamental U.S. Small Company Index ETF Overview

Profile:

Schwab Fundamental U.S. Small Company Index ETF (SWSX) is a passively managed exchange-traded fund that tracks the Russell 2000® Growth Index. The ETF primarily invests in small-cap growth stocks of U.S. companies.

Objective:

SWSX aims to provide investment results that, before expenses, generally correspond to the total return performance of the Russell 2000® Growth Index.

Issuer:

The ETF is issued by Charles Schwab Investment Management, Inc., a subsidiary of The Charles Schwab Corporation, a leading financial services company with a strong reputation and track record in the market. The management team has extensive experience in managing index funds and ETFs.

Market Share:

SWSX has a market share of approximately 0.4% in the U.S. small-cap growth ETF space.

Total Net Assets:

As of November 2023, SWSX has total net assets of approximately $6.7 billion.

Moat:

SWSX's competitive advantages include its low expense ratio, efficient tracking of the Russell 2000® Growth Index, and access to Schwab's extensive distribution network.

Financial Performance:

SWSX has historically outperformed the Russell 2000® Growth Index, providing investors with attractive returns. However, past performance is not a guarantee of future results.

Growth Trajectory:

The U.S. small-cap growth market is expected to experience continued growth in the coming years, driven by innovation and technological advancements.

Liquidity:

SWSX has a high average trading volume and a tight bid-ask spread, making it a highly liquid ETF.

Market Dynamics:

Economic growth, interest rates, and investor sentiment can significantly impact the performance of SWSX.

Competitors:

Key competitors of SWSX include iShares Russell 2000 Growth ETF (IWO) and Vanguard Russell 2000 Growth ETF (VTWG).

Expense Ratio:

SWSX has an expense ratio of 0.04%, one of the lowest in the U.S. small-cap growth ETF category.

Investment Approach and Strategy:

SWSX passively tracks the Russell 2000® Growth Index, investing in the same proportions as the index. The ETF holds a diversified portfolio of small-cap growth stocks across various sectors.

Key Points:

• Low expense ratio
• Efficient index tracking
• Access to Schwab's distribution network
• High liquidity
• Focus on small-cap growth stocks

Risks:

• Volatility associated with small-cap stocks
• Market risk associated with the overall stock market
• Potential tracking error compared to the index

Who Should Consider Investing:

SWSX is suitable for investors seeking broad exposure to the U.S. small-cap growth market and willing to accept the associated volatility.

Fundamental Rating Based on AI

Based on an AI-based analysis of financial health, market position, and future prospects, SWSX receives a Fundamental Rating of 8 out of 10. This rating considers the ETF's low expense ratio, efficient tracking, strong issuer, and positive growth trajectory. However, investors should be aware of the risks associated with small-cap stocks and market volatility.

Resources and Disclaimers

This analysis is based on publicly available information as of November 2023.

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult a financial professional before making any investment decisions.