ETF Research Center

Schwab Fundamental U.S. Small Company Index ETF is an exchange-traded fund incorporated in the USA. The ETF seeks to track as closely as possible, before fees and expenses, the total return of the Russell Fundamental U.S. Small Company Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Charles Schwab Investment Mana
Website	www.schwabetfs.com
Inception date	Aug 15, 2013
Assets (mns)	$3,847
Currency	USD
Expense ratio	25 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	State Street Bank & Trust Co
Weighting	Fundamental
Index replication	Full
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	897
Wgt avg mkt cap (mns)	$4,771
Large cap (>$10bn)	9.2%
Mid cap ($2-10bn)	59.7%
Small cap (<$2bn)	31.2%
Developed mkts	99.4%
Emerging mkts	0.6%

TOP TEN HOLDINGS
Total	3.1 %
COMMUNITY HEALTH SYSTEMS INC	0.5 %
TAYLOR MORRISON HOME CORP-A	0.3 %
UNIVERSAL FOREST PRODUCTS	0.3 %
BROWN & BROWN INC	0.3 %
DARLING INTERNATIONAL INC	0.3 %
TELEDYNE TECHNOLOGIES INC	0.3 %
COSAN LTD-CLASS A SHARES	0.3 %
COLFAX CORP	0.3 %
CIRRUS LOGIC INC	0.3 %
SYNAPTICS INC	0.3 %

TOP COUNTRY EXPOSURE
	UNITED STATES	94.7 %
	BERMUDA	1.1 %
	BRITAIN	1.0 %
	IRELAND	0.8 %
	PUERTO RICO	0.4 %
	NETHERLANDS	0.4 %
	BRAZIL	0.3 %
	CANADA	0.3 %
	LUXEMBOURG	0.2 %
	CAYMAN ISLANDS	0.2 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
-4.2%	7.1%	7.4%	--	9.2%

Market Correlations
versus...	Beta	R-squared
S&P500	1.14	80%
MSCI EAFE	1.05	56%
MSCI Emg. Mkts.	0.65	38%

Technical Indicators
Recent close	$38.70
30d moving avg.	$39.88
Annualized volatility	15.5%
Short interest (ETF)	0.2%
Short interest (Underlying)	6.0%
Relative strength (RSI)	50

Liquidity measures
Avg. volume (thou.)	253
Turnover	0.3%
Bid/Ask (% of price)	0.07%
ADV underlying (mns)	$38,884

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Schwab Fundamental U.S. Small Co. Index ETF ETF based on the alternatives' overlap in portfolio holdings with FNDA. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

FNDA

Expense:

25 bp

ALTAR Score™:

6.2%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FNDA
Ticker	Fund Name	Overlap¹ vs FNDA (%)	Expense ratio (bp)	Savings vs FNDA (bp)	ALTAR Score™ (%)	ALTAR vs FNDA (%)
IUSS	Invesco Strategic US Small Company ETF	61.3	23	2	6.1	-0.1
PRFZ	Invesco FTSE RAFI US 1500 Small-Mid ETF	50.1	39	-14	4.8	-1.4
VB	Vanguard Small-Cap ETF	47.8	5	20	5.4	-0.8
PBSM	Invesco PureBeta MSCI USA Small Cap ETF	47.8	6	19	5.1	-1.1
SCHA	Schwab U.S. Small-Cap ETF	47.3	4	21	5.0	-1.2
VBR	Vanguard Small Cap Value Index Fund	42.8	7	18	7.9	+1.7
VXF	Vanguard Extended Market Index Fund	41.3	7	18	3.6	-2.6
IWM	iShares Russell 2000 ETF	41.1	19	6	3.7	-2.5
VTWO	Vanguard Russell 2000 Index Fund	40.9	10	15	3.7	-2.4
GSSC	Goldman Sachs Activebeta U.S. Small Cap Equity ETF	40.1	20	5	5.7	-0.5
ESML	iShares MSCI USA Small-Cap ESG Optimized ETF	39.4	17	8	4.7	-1.5
JPSE	JPMorgan Diversified Return U.S. Small Cap Equity ETF	38.9	29	-4	4.2	-2.0
FSMD	Fidelity Small-Mid Factor ETF	37.5	29	-4	6.5	+0.4
ISMD	Inspire Small/Mid Cap Impact ETF	36.8	61	-36	5.3	-0.9
EWMC	Invesco S&P MidCap 400 Equal Weight ETF	36.6	40	-15	6.5	+0.3
EZM	WisdomTree U.S. MidCap Earnings Fund	35.6	38	-13	8.8	+2.7
VTWV	Vanguard Russell 2000 Value Index Fund	35.1	15	10	6.4	+0.2
IWN	iShares Russell 2000 Value ETF	35.1	24	1	6.3	+0.2
SPMD	SPDR Portfolio Mid Cap ETF	33.8	5	20	5.9	-0.2
MDY	SPDR S&P Midcap 400 ETF Trust	33.8	23	2	5.8	-0.4

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2015	2016	2017	2018	2019	2020E	2021E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2019	2020E	2021E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Schwab Fundamental U.S. Small Co. Index ETF
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	10.0	%
Divided by: Fwd. P/BV	1.6	x
Less: Expense ratio	25	bp
Equals: ALTAR Score	6.2	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.61	CATEGORY AVERAGE	1.56

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.