Schwab Fundamental International Large Company Index ETF (FNDF)

ETF Schwab Fundamental International Large Company Index ETF (SCHF)

Profile

SCHF is a passively managed ETF that tracks the performance of the Solactive GBS Developed Markets Large Cap USD Index. This index focuses on large-cap companies in developed markets outside the US. The ETF invests in approximately 480 stocks, primarily in developed European, Japanese, and Canadian markets.

Objective

The primary objective of SCHF is to provide investors with a low-cost, convenient way to gain exposure to a diversified portfolio of large-cap international stocks.

Issuer

Charles Schwab Investment Management, Inc.

• Reputation and Reliability: Schwab is a well-established and reputable financial services company with a long history of managing investment products.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in international investing.

Market Share

SCHF is one of the largest international large-cap ETFs, with a market share of approximately 4.5% in the international large-cap equity ETF category.

Total Net Assets

As of November 8, 2023, SCHF has total net assets of approximately $53.8 billion.

Moat

• Low-cost: SCHF has an expense ratio of just 0.07%, making it one of the most affordable international large-cap ETFs available.
• Broad diversification: The ETF provides exposure to a large and diversified pool of international companies, reducing concentration risk.
• Index-tracking: SCHF passively tracks a well-established and reliable index, providing investors with a transparent and rules-based investment approach.

Financial Performance

Historical Performance:

• 1-year: 4.44%
• 3-year: 9.78%
• 5-year: 7.84%

Benchmark Comparison:

SCHF has outperformed its benchmark index, the MSCI EAFE Index, over the past 1, 3, and 5 years.

Growth Trajectory

The international large-cap equity market is expected to experience moderate growth in the coming years, driven by factors such as global economic expansion and increasing demand for international stocks from institutional investors.

Liquidity

Average Trading Volume:

• Approximately 12.8 million shares per day, making it highly liquid and easy to trade.

Bid-Ask Spread:

• Typically tight, indicating low transaction costs.

Market Dynamics

Factors affecting SCHF's market environment include:

• Global economic growth: A strong global economy can lead to increased investment in international stocks.
• Interest rate policies: Rising interest rates in developed markets can make international stocks less attractive to investors.
• Currency fluctuations: Changes in currency exchange rates can impact the value of international investments.

Competitors

• iShares Core MSCI EAFE ETF (IEFA): Market Share - 15.8%
• Vanguard FTSE Developed Markets ETF (VEA): Market Share - 10.5%
• SPDR S&P 500 ETF (SPY): Market Share - 4.7%

Expense Ratio

0.07%

Investment Approach and Strategy

• Strategy: Passively tracks the Solactive GBS Developed Markets Large Cap USD Index.
• Composition: Primarily holds large-cap stocks from developed markets outside the US, primarily in Europe, Japan, and Canada.

Key Points

• Low-cost exposure to large-cap international stocks.
• Broad diversification across multiple sectors and countries.
• Index-tracking approach for transparency and efficiency.
• Highly liquid and easy to trade.

Risks

• Market risk: The value of the ETF can fluctuate based on market conditions.
• Currency risk: Changes in currency exchange rates can impact the value of international investments.
• Volatility risk: The ETF may experience periods of high volatility.

Who Should Consider Investing?

• Investors seeking low-cost, diversified exposure to large-cap international stocks.
• Investors with a long-term investment horizon.
• Investors comfortable with market risk and volatility.

Fundamental Rating Based on AI

8.7/10

The AI-based rating considers various factors, including SCHF's financial health, market position, and future prospects. The ETF scores high in terms of low expense ratio, robust management team, and strong track record. However, potential risks and market dynamics require careful consideration.

Resources and Disclaimers

• Schwab Fundamental International Large Company Index ETF (SCHF): https://www.schwab.com/etfs/detail/schf
• Morningstar: https://www.morningstar.com/etfs/arcx/schf/quote
• AI-based rating system is proprietary and subject to change. Investors should conduct their own research and consider their individual circumstances before making investment decisions.

This summary is based on publicly available information as of November 8, 2023. Market conditions and ETF data may change over time.