Schwab International Small-Cap Equity ETF (SCHC)

Overview

Schwab International Small-Cap Equity ETF (SCHC) seeks to track the total return of the FTSE Developed ex US Small Cap Index. It focuses on providing exposure to small-capitalization companies in developed markets outside the United States. The ETF employs a passive investment strategy, aiming for asset allocation that mirrors the index's composition.

Reputation and Reliability

Schwab is a well-established and reputable financial services firm with a long track record of providing investment products and services.

Management Expertise

Schwab has extensive experience in managing ETFs and index funds, with a dedicated team of investment professionals overseeing the fund's operations.

Goal

The primary investment goal is to closely track the investment results of the FTSE Developed ex US Small Cap Index.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, aiming to replicate the performance of the FTSE Developed ex US Small Cap Index.

Composition The ETF primarily holds stocks of small-capitalization companies located in developed countries outside of the United States.

Market Share: The market share of SCHC is subject to fluctuation within the international small-cap equity ETF market.

Total Net Assets (AUM): 6900000000

Key Competitors

• Vanguard FTSE All-World ex-US Small-Cap ETF (VSS)
• iShares Core MSCI EAFE ETF (IEFA)
• iShares MSCI EAFE Small-Cap ETF (SCZ)

Competitive Landscape

The international small-cap equity ETF market is competitive, with several major players. SCHC's low expense ratio is a significant advantage. However, VSS offers broader diversification with both developed and emerging market exposure in the small-cap ex-US space. IEFA focuses on a broader market-cap exposure and not only the small-cap stocks as does SCZ. SCHC offers very similar coverage, though, as SCZ, so performance tends to correlate.

Historical Performance: Historical performance data should be sourced from reliable financial data providers. This includes annual returns and standard deviation values.

Benchmark Comparison: To compare the ETF's performance to its benchmark, source data from relevant financial analysis sources to gauge the ETFu2019s effectiveness.

Expense Ratio: 0.11

Average Trading Volume

The average trading volume indicates good liquidity, making it relatively easy for investors to buy or sell shares.

Bid-Ask Spread

The bid-ask spread is tight, indicating efficient trading and lower transaction costs.

Market Environment Factors

Economic indicators, such as GDP growth in developed countries ex-US and currency fluctuations, significantly affect SCHC. Sector growth prospects within these international markets and overall market sentiment also play a crucial role.

Growth Trajectory

SCHC's growth trajectory depends on the performance of international small-cap equities. Changes to the underlying index composition and adjustments to the investment strategy will also influence its future performance.

Competitive Edge

SCHC's competitive edge lies in its low expense ratio, which makes it an attractive option for cost-conscious investors seeking exposure to international small-cap equities. The fund benefits from the established reputation and resources of Schwab, enhancing investor confidence. Its passive indexing approach provides transparency and predictability, aligning with the investment goals of many passive investors. Also, Schwab's brand recognition and extensive distribution network contribute to its competitive positioning.

Volatility

Historical volatility data should be obtained from reliable financial data sources. The volatility indicates the degree of price fluctuations of the ETF.

Market Risk

Specific risks associated with SCHC include currency risk, political risk in various countries, and the inherent volatility of small-cap stocks. Economic downturns in developed markets can significantly impact the performance.

Ideal Investor Profile

The ideal investor is a long-term investor seeking diversified exposure to international small-cap equities. Investors who understand the risks associated with international investing and small-cap stocks are appropriate for investing in SCHC.

Market Risk

SCHC is suitable for long-term investors and passive index followers who want to diversify their portfolios internationally and do not need income generation from their portfolio.

Schwab International Small-Cap Equity ETF (SCHC) provides exposure to international small-cap equities with a low expense ratio, making it attractive for cost-conscious investors. It aims to replicate the performance of the FTSE Developed ex US Small Cap Index. While offering broad diversification, investors should be aware of currency risk and economic volatility in international markets. SCHC is a suitable tool for long-term investors seeking international diversification in their portfolios, and it is best for passive index followers and long-term investors.

Data Sources:

• Schwab official website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Market share data is based on estimated values and may not reflect precise figures. Past performance is not indicative of future results.