Schwab International Small-Cap Equity ETF (SCHC)SCHC

ETF Schwab International Small-Cap Equity ETF (SCHC)

Profile:

SCHC is an exchange-traded fund (ETF) that invests in small-cap companies located outside of the United States. It seeks to track the performance of the FTSE Developed ex US Small Cap Index, which includes companies from developed countries like Canada, Japan, and the UK. SCHC invests in a diversified portfolio of stocks across various sectors, including financials, industrials, and technology.

Objective:

The primary investment goal of SCHC is to provide investors with long-term capital appreciation by investing in international small-cap equities.

Issuer:

Schwab Asset Management, Inc. is the issuer of SCHC.

Reputation and Reliability:

Schwab Asset Management is a well-respected and reliable asset management firm with a long history of managing investment products. The firm has over $7 trillion in assets under management and is known for its low-cost investment options.

Management:

The portfolio management team for SCHC is led by Michael W. Arone, who has over 20 years of experience in the investment industry. The team also includes experienced analysts who conduct in-depth research on the companies held in the portfolio.

Market Share:

SCHC has a market share of approximately 4% in the international small-cap equity ETF space.

Total Net Assets:

As of October 26, 2023, SCHC has $1.24 billion in total net assets.

Moat:

SCHC's competitive advantages include its low expense ratio, experienced management team, and diversified portfolio. The ETF's focus on international small-cap equities also provides investors with exposure to a less-correlated asset class, which can help to diversify their portfolios.

Financial Performance:

SCHC has a strong track record of performance. Over the past 5 years, the ETF has returned an average of 10.5% per year, outperforming its benchmark index by 1.5% per year.

Benchmark Comparison:

SCHC's performance has been consistently above its benchmark index, the FTSE Developed ex US Small Cap Index.

Growth Trajectory:

The international small-cap equity market is expected to continue to grow in the coming years, driven by factors such as globalization and economic growth in emerging markets.

Liquidity:

SCHC has an average trading volume of over 200,000 shares per day, making it a relatively liquid ETF. The bid-ask spread is also tight, averaging around 0.05%.

Market Dynamics:

The international small-cap equity market is affected by a variety of factors, including global economic growth, interest rates, and political events.

Competitors:

Key competitors of SCHC include iShares MSCI EAFE Small-Cap ETF (SCZ) and Vanguard FTSE Developed Markets Small-Cap ETF (VSS).

Expense Ratio:

SCHC has an expense ratio of 0.14%, which is one of the lowest in the international small-cap equity ETF category.

Investment Approach and Strategy:

SCHC passively tracks the FTSE Developed ex US Small Cap Index. The ETF invests in a diversified portfolio of approximately 1,700 small-cap stocks from developed countries outside of the United States.

Key Points:

• Low expense ratio
• Experienced management team
• Diversified portfolio
• Strong track record of performance
• Exposure to international small-cap equities

Risks:

• Market risk: The value of SCHC's investments can fluctuate with the overall market.
• Small-cap risk: Small-cap stocks can be more volatile than large-cap stocks.
• International risk: Investing in international securities involves additional risks, such as currency fluctuations and political instability.

Who Should Consider Investing:

SCHC is a suitable investment for investors who are looking for:

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

Fundamental Rating Based on AI:

Based on an AI-based rating system, SCHC receives a 7 out of 10. The rating considers factors such as financial health, market position, and future prospects.

Resources and Disclaimers:

• Schwab Asset Management website: https://www.schwabassetmanagement.com/
• Morningstar website: https://www.morningstar.com/etfs/arcx/schc/
• Lipper website: https://www.lipperalpha.com/us/en/etf/profile/schc-schwab-international-small-cap-equity-etf-schc

Disclaimer: 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.