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)	$3,643
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	912
Wgt avg mkt cap (mns)	$4,262
Large cap (>$10bn)	7.8%
Mid cap ($2-10bn)	59.9%
Small cap (<$2bn)	32.3%
Developed mkts	99.5%
Emerging mkts	0.5%

TOP TEN HOLDINGS
Total	3.0 %
UNIVERSAL FOREST PRODUCTS	0.3 %
GNC HOLDINGS INC-CL A	0.3 %
TERADYNE INC	0.3 %
ASBURY AUTOMOTIVE GROUP	0.3 %
TELEDYNE TECHNOLOGIES INC	0.3 %
MASTEC INC	0.3 %
INSIGHT ENTERPRISES INC	0.3 %
SKECHERS USA INC-CL A	0.3 %
CIRRUS LOGIC INC	0.3 %
KBR INC	0.3 %

TOP COUNTRY EXPOSURE
	UNITED STATES	94.9 %
	BERMUDA	1.0 %
	BRITAIN	0.8 %
	IRELAND	0.7 %
	PUERTO RICO	0.5 %
	NETHERLANDS	0.5 %
	BRAZIL	0.3 %
	CANADA	0.2 %
	MONACO	0.2 %
	LUXEMBOURG	0.2 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru October 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
18.1%	5.7%	7.2%	--	9.4%

Market Correlations
versus...	Beta	R-squared
S&P500	1.18	77%
MSCI EAFE	0.93	40%
MSCI Emg. Mkts.	0.53	22%

Technical Indicators
Recent close	$38.75
30d moving avg.	$38.67
Annualized volatility	16.2%
Short interest (ETF)	0.0%
Short interest (Underlying)	6.0%
Relative strength (RSI)	67

Liquidity measures
Avg. volume (thou.)	209
Turnover	0.2%
Bid/Ask (% of price)	0.07%
ADV underlying (mns)	$26,585

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Schwab Fundamental Small Cap 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™:

6.3%

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	61.2	23	2	6.4	+0.1
PRFZ	Invesco FTSE-RAFI Small-Mid 1500	50.5	39	-14	4.8	-1.5
PBSM	Invesco PureBeta MSCI USA Small Cap	49.1	6	19	5.3	-1.0
SCHA	Schwab U.S. Small-Cap	47.8	4	21	5.2	-1.1
VB	Vanguard Smallcap ETF	47.6	5	20	5.7	-0.6
SPMD	SPDR Portfolio Mid Cap	46.8	5	20	6.4	+0.1
SPSM	SPDR Portfolio Small Cap	46.2	5	20	4.6	-1.6
VBR	Vanguard Small-Cap Value ETF	42.9	7	18	7.9	+1.6
IWM	iShares Russell 2000	41.7	19	6	3.8	-2.5
VXF	Vanguard Extended Market	40.9	7	18	3.4	-2.8
VTWO	Vanguard Russell 2000	40.8	15	10	3.8	-2.5
GSSC	Goldman Sachs Activebeta U.S. Small Cap Equity	40.2	20	5	5.9	-0.4
ESML	iShares MSCI USA Small-Cap ESG Optimized	39.8	17	8	4.9	-1.4
JPSE	JPMorgan Diversified Return U.S. Small Cap Equity	39.6	29	-4	5.1	-1.2
EZM	WisdomTree Midcap Earnings	37.9	38	-13	7.9	+1.6
FSMD	Fidelity Small-Mid Factor ETF	37.4	29	-4	6.6	+0.3
ISMD	Inspire Small/Mid Cap Impact	37.2	61	-36	4.8	-1.5
IWN	iShares Russell 2000 Value	36.0	24	1	6.6	+0.3
EWMC	Invesco S&P Mid Cap 400 Equal Weight	35.7	40	-15	6.8	+0.5
VTWV	Vanguard Russell 2000 Value	35.7	20	5	6.7	+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

	2014	2015	2016	2017	2018	2019E	2020E
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

	2018	2019E	2020E
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 Small Cap
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	10.4	%
Divided by: Fwd. P/BV	1.6	x
Less: Expense ratio	25	bp
Equals: ALTAR Score	6.3	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.61	CATEGORY AVERAGE	1.55

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.