Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE)

ETF Schwab Fundamental Emerging Markets Large Company Index ETF (SCHE)

Profile:

• Focus: Tracks the performance of the Dow Jones Emerging Markets Titans 50 Index, which includes large-cap companies from emerging markets.
• Asset Allocation: 100% equities
• Investment Strategy: Passive, aiming to track the index closely.

Objective:

• Provide investors with exposure to large-cap companies in emerging markets.

Issuer:

• Company: Charles Schwab Investment Management, Inc.
• Reputation and Reliability: Charles Schwab is a well-established and reputable financial institution with a long history of managing investment products.
• Management: The ETF is managed by a team of experienced investment professionals with expertise in emerging markets.

Market Share:

• Large-cap Emerging Markets ETF Market Share: 0.66%

Total Net Assets:

• USD 884.17 million (as of November 7, 2023)

Moat:

• Low Fees: The expense ratio of 0.07% is lower than most other emerging market ETFs.
• Diversification: Provides exposure to a diversified basket of large-cap companies across various sectors and countries in emerging markets.

Financial Performance:

• Year-to-Date: +17.17% (as of November 7, 2023)
• 3-Year Annualized Return: +10.89%
• 5-Year Annualized Return: +14.90%

Benchmark Comparison:

• Outperformed: The Dow Jones Emerging Markets Titans 50 Index by 0.86% (year-to-date)

Growth Trajectory:

• Emerging markets are expected to experience strong economic growth in the coming years, benefiting the ETF.

Liquidity:

• Average Trading Volume: 1.3 million shares
• Bid-Ask Spread: 0.02%

Market Dynamics:

• Global economic growth, interest rate policies, political stability in emerging markets, and company performance within the index.

Competitors:

• iShares Core MSCI Emerging Markets ETF (IEMG) - Market Share: 10.93%
• Vanguard FTSE Emerging Markets ETF (VWO) - Market Share: 7.95%

Expense Ratio:

• 0.07%

Investment Approach and Strategy:

• Strategy: Passively tracks the Dow Jones Emerging Markets Titans 50 Index.
• Composition: Holds a diversified portfolio of large-cap company stocks from emerging markets.

Key Points:

• Low-cost exposure to large-cap companies in emerging markets.
• Diversified portfolio with a proven track record.
• Suitable for investors seeking long-term growth potential.

Risks:

• Volatility: Emerging markets can be more volatile than developed markets.
• Market Risk: The ETF's performance is closely tied to the performance of emerging market companies.
• Concentration Risk: The ETF invests in a small number of companies, increasing its sensitivity to individual company performance.

Who Should Consider Investing:

• Investors seeking long-term growth potential in emerging markets.
• Investors with a higher tolerance for risk.
• Investors looking for a low-cost, diversified option.

Fundamental Rating Based on AI:

• 8.5/10: The ETF demonstrates strong fundamentals, including a low expense ratio, proven track record, and exposure to a growing market. However, its concentration risk and exposure to emerging market volatility might deter some investors.

Resources and Disclaimers:

• Data Sources:
  • Charles Schwab website
  • ETF.com
  • Morningstar
• Disclaimer: This information should not be considered financial advice. Please consult with a financial professional before making any investment decisions.