SCHE Profile
The Schwab Emerging Markets Equity ETF seeks to track the performance of the FTSE Emerging Index, a benchmark designed to reflect the performance of large- and mid-capitalization companies in emerging market economies. This index covers a diverse range of companies from countries classified as emerging markets by the index provider, capturing a broad spectrum of sectors and industries within these economies. The index is characterized by its representation of high-growth potential firms across various stages of economic development in emerging markets.
To achieve its investment objective, the fund typically invests at least 90% of its net assets, including any borrowings used for investment purposes, in the stocks that make up the FTSE Emerging Index. This investment approach includes direct equity holdings as well as depositary receipts, such as American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), and European Depositary Receipts (EDRs). These depositary receipts represent underlying securities of companies within the index and provide investors with a convenient way to gain exposure to international equities.
The ETF's focus on emerging markets offers investors access to a segment of the global market characterized by rapid economic growth and potential investment opportunities not typically found in developed markets. Emerging markets are known for their volatility and high growth prospects, driven by factors such as industrialization, demographic trends, and expanding consumer bases. As such, the Schwab Emerging Markets Equity ETF provides a platform for investors to tap into these dynamic economies and benefit from their growth trajectories.
Investors in the Schwab Emerging Markets Equity ETF can expect a diversified exposure to a range of emerging market companies, which may include leading firms in sectors such as technology, financials, consumer goods, and energy. While the potential for high returns exists, investing in emerging markets also involves higher risks, including political instability, currency fluctuations, and economic uncertainty. The fund’s investment strategy is designed to provide a broad representation of emerging market equities, aiming to deliver returns that reflect the overall performance of this growth-oriented market segment.
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