SCHF Profile
The Schwab International Equity ETF aims to provide investors with exposure to large and mid-capitalization companies based in developed markets outside the United States. The fund tracks an index designed to represent the performance of the top 90% of eligible companies in these international markets. This index captures a broad spectrum of equities, providing a comprehensive view of the global economy excluding U.S. firms.
To achieve its investment objective, the fund allocates at least 90% of its net assets to stocks that are included in the index. This allocation also encompasses depositary receipts, which are securities representing shares of foreign companies. These depositary receipts can be in the form of American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), or European Depositary Receipts (EDRs), facilitating investment in international companies while trading in U.S. or global markets.
The fund is managed by Charles Schwab Investment Management, which focuses on maintaining a portfolio that mirrors the index’s composition and performance. The management strategy involves regular rebalancing and careful selection of securities to ensure alignment with the index's criteria, thus offering investors a diversified approach to international equity investing.
By concentrating on large and mid-cap companies, the Schwab International Equity ETF targets a segment of the global market that typically exhibits higher liquidity and stability compared to smaller-cap stocks. This focus helps mitigate some of the risks associated with international investing while still providing growth potential from leading companies in developed markets. The fund’s broad diversification across different countries and sectors helps reduce exposure to any single market or economic event, aiming to deliver consistent returns aligned with global economic trends.
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