FNDC Profile
The Schwab Fundamental International Small Company Index ETF is designed to invest at least 90% of its net assets in equities that are part of its underlying index. This index tracks the performance of small-cap companies outside the United States, with a focus on fundamental company metrics. Specifically, the ETF targets stocks included in the FTSE Global Total Cap Index, excluding U.S. firms, and evaluates these stocks based on fundamental company scores, which are derived from financial and operational data.
The FTSE Global Total Cap Index, from which the fund selects its universe of stocks, encompasses a comprehensive range of companies across both developed and emerging markets worldwide. By concentrating on the small company segment, the ETF provides investors with exposure to smaller firms that may offer higher growth potential compared to their larger counterparts. The index's fundamental scoring system evaluates companies based on a variety of financial metrics, including earnings, sales, and book value, to determine their overall investment attractiveness.
The Schwab Fundamental International Small Company Index ETF leverages a unique investment approach that prioritizes companies based on fundamental indicators rather than just market capitalization. This approach aims to identify undervalued small-cap stocks with strong underlying financials, potentially offering superior growth prospects and better risk-adjusted returns. The focus on fundamental scores helps to ensure that the ETF is investing in companies that demonstrate robust financial health and operational efficiency.
By investing in this ETF, investors gain targeted exposure to a diversified portfolio of small-cap international companies, reflecting the characteristics of fundamental strength and growth potential. The fund’s strategy aligns with Schwab's commitment to providing cost-effective, transparent investment solutions that aim to deliver long-term value through a systematic, metrics-based selection process. This approach seeks to capitalize on the opportunities presented by international small-cap stocks while managing risk through fundamental analysis.
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