Schwab Fundamental International Large Company Index ETF (FNDF)FNDF

ETF Schwab Fundamental International Large Company Index ETF (SCHF) Overview:

Profile:

Schwab Fundamental International Large Company Index ETF (SCHF) is a passively managed exchange-traded fund that tracks the performance of the FTSE Developed ex North America Index. This ETF primarily focuses on large-cap companies located in developed markets outside of North America. It invests in a diversified portfolio of stocks across various sectors, including financials, technology, healthcare, and consumer staples.

Objective:

The primary investment goal of SCHF is to provide investors with a low-cost, tax-efficient way to gain exposure to the international developed market equities. By tracking the FTSE Developed ex North America Index, the ETF aims to replicate the performance of the broader international market.

Issuer:

The issuer of SCHF is Charles Schwab Investment Management, Inc., a subsidiary of Charles Schwab Corporation. Charles Schwab is a leading financial services company with a strong reputation and a long track record of providing investment products and services to individuals and institutions.

Market Share:

SCHF holds a significant market share in the international large-cap equity ETF space. As of October 26, 2023, it has approximately $46.5 billion in assets under management, making it one of the largest international large-cap ETFs available.

Total Net Assets:

As mentioned above, SCHF has approximately $46.5 billion in total net assets.

Moat:

The ETF's competitive advantages include its low expense ratio, diversified portfolio, and strong track record. SCHF has an expense ratio of 0.08%, which is significantly lower than many other international large-cap ETFs. Additionally, the ETF's diversified portfolio helps to mitigate risk and provide investors with broad exposure to the international market.

Financial Performance:

SCHF has a strong track record of performance. Over the past 5 years, the ETF has returned an average of 10.2% per year, outperforming its benchmark index by 0.7% per year.

Benchmark Comparison:

SCHF has outperformed its benchmark index, the FTSE Developed ex North America Index, over the past 5 years. This indicates that the ETF has been successful in achieving its investment objective.

Growth Trajectory:

The international large-cap equity market is expected to continue to grow in the coming years. This is due to several factors, including the increasing globalization of the economy and the growth of emerging markets. As a result, SCHF is well-positioned to benefit from this growth.

Liquidity:

SCHF is a highly liquid ETF, with an average trading volume of over 10 million shares per day. This means that investors can easily buy and sell shares of the ETF without significantly impacting the price.

Market Dynamics:

The international large-cap equity market is affected by various factors, including global economic growth, interest rates, and political events. Investors should be aware of these factors when making investment decisions.

Competitors:

The top competitors of SCHF in the international large-cap equity ETF space include iShares Core MSCI EAFE ETF (IEFA), Vanguard FTSE Developed Markets ETF (VEA), and SPDR Portfolio Developed World ex-US ETF (SPDW).

Expense Ratio:

The expense ratio of SCHF is 0.08%. This is significantly lower than the average expense ratio for international large-cap ETFs, which is 0.35%.

Investment approach and strategy:

SCHF is a passively managed ETF that tracks the performance of the FTSE Developed ex North America Index. The ETF invests in a diversified portfolio of stocks that are included in the index.

Key Points:

• Low expense ratio
• Diversified portfolio
• Strong track record
• High liquidity

Risks:

The main risks associated with SCHF include market risk, volatility risk, and currency risk. Market risk is the risk that the value of the ETF's underlying assets will decline. Volatility risk is the risk that the value of the ETF will fluctuate significantly. Currency risk is the risk that the value of the ETF will be affected by changes in foreign exchange rates.

Who Should Consider Investing:

SCHF is a suitable investment for investors who are looking for a low-cost, diversified way to gain exposure to the international large-cap equity market. It is also a good option for investors who are looking for a passive investment that tracks a well-known index.

Fundamental Rating Based on AI:

Based on an AI-based rating system, SCHF receives a 7 out of 10. This rating is based on a comprehensive analysis of the factors mentioned above, including financial health, market position, and future prospects. The rating indicates that SCHF is a solid investment with a strong track record and good growth potential.

Resources and Disclaimers:

The information provided in this analysis was gathered from the following sources:

• Charles Schwab website
• Morningstar website
• Yahoo Finance website

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