Schwab International Small-Cap Equity ETF (SCHC)

US ETF Schwab International Small-Cap Equity ETF (SCHC) Summary:

Profile: Schwab International Small-Cap Equity ETF (SCHC) is a passively managed exchange-traded fund that seeks to track the performance of the FTSE Developed Small Cap ex-U.S. Index. The ETF invests primarily in small-cap stocks of companies located outside the United States.

Objective: The primary investment goal of SCHC is to provide investors with long-term capital appreciation by investing in a diversified portfolio of international small-cap stocks.

Issuer: The ETF is issued by Charles Schwab Investment Management, Inc., a subsidiary of the Charles Schwab Corporation.

• Reputation and Reliability: Charles Schwab is a well-established and reputable financial institution with a long history of providing investment services.
• Management: The ETF is managed by a team of experienced investment professionals with expertise in international small-cap investing.

Market Share: SCHC is one of the largest international small-cap ETFs, with a market share of approximately 5% in its sector.

Total Net Assets: As of November 10, 2023, SCHC has approximately $25 billion in assets under management.

Moat:

• Low Expense Ratio: SCHC has a low expense ratio of 0.06%, which makes it attractive to cost-conscious investors.
• Diversification: The ETF provides investors with access to a diversified portfolio of international small-cap stocks, which can help to reduce risk.
• Track Record: SCHC has a long track record of outperforming its benchmark index.

Financial Performance: SCHC has outperformed its benchmark index, the FTSE Developed Small Cap ex-U.S. Index, over the past 3, 5, and 10 years.

Growth Trajectory: The international small-cap market is expected to grow at a healthy pace in the coming years, which should benefit SCHC.

Liquidity: SCHC has a high average daily trading volume, making it a liquid ETF that can be easily bought and sold.

• Bid-Ask Spread: The ETF has a narrow bid-ask spread, which means that investors can buy and sell shares at a relatively low cost.

Market Dynamics: Factors such as global economic growth, interest rates, and currency fluctuations can affect the performance of international small-cap stocks.

Competitors: Key competitors of SCHC include iShares MSCI EAFE Small-Cap ETF (SCZ) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS).

Expense Ratio: The expense ratio of SCHC is 0.06%.

Investment Approach and Strategy:

• Strategy: SCHC passively tracks the FTSE Developed Small Cap ex-U.S. Index.
• Composition: The ETF invests in approximately 1,500 international small-cap stocks.

Key Points:

• Low expense ratio
• Diversified portfolio
• Long track record of outperformance
• High liquidity

Risks:

• Volatility: International small-cap stocks can be more volatile than large-cap stocks.
• Market Risk: The ETF is subject to the risks associated with investing in international markets, such as political and economic instability.

Who Should Consider Investing: SCHC is suitable for investors who are looking for:

• Long-term capital appreciation
• Exposure to international small-cap stocks
• A low-cost, diversified investment option

Fundamental Rating Based on AI: Based on an analysis of the factors mentioned above, SCHC receives a Fundamental Rating of 8.5 out of 10. The ETF has a strong track record, a low expense ratio, and a diversified portfolio. However, investors should be aware of the risks associated with investing in international small-cap stocks.

Resources and Disclaimers:

• Charles Schwab website: https://www.schwab.com/
• ETF.com: https://www.etf.com/
• FTSE Russell: https://www.ftserussell.com/

Disclaimer: The information provided in this summary is for informational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.