ETF Research Center

Schwab Fundamental International Small Cap 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 Developed ex-U.S. Small Company Index.

FUND BASICS
Category	International Equities
Fund Sponsor	Charles Schwab Investment Mana
Website	www.schwabetfs.com
Inception date	Aug 15, 2013
Assets (mns)	$2,165
Currency	USD
Expense ratio	39 bp
Distributions	Annually

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	1644
Wgt avg mkt cap (mns)	$3,357
Large cap (>$10bn)	6.4%
Mid cap ($2-10bn)	47.9%
Small cap (<$2bn)	45.7%
Developed mkts	92.6%
Emerging mkts	7.4%

TOP TEN HOLDINGS
Total	1.8 %
BOVIS HOMES GROUP PLC	0.2 %
HITACHI CHEMICAL CO LTD	0.2 %
HITACHI HIGH-TECHNOLOGIES CO	0.2 %
AAC TECHNOLOGIES HOLDINGS INC.	0.2 %
SEMICONDUCTOR MANUFACTURING INTERN	0.2 %
TAIYO YUDEN CO LTD	0.2 %
GETINGE AB-B SHS	0.2 %
LG INNOTEK CO LTD	0.2 %
CREDIT SAISON CO LTD	0.2 %
NEXANS SA	0.2 %

TOP COUNTRY EXPOSURE
	JAPAN	32.1 %
	BRITAIN	9.5 %
	CANADA	7.4 %
	SOUTH KOREA	5.2 %
	AUSTRALIA	5.1 %
	FRANCE	3.6 %
	GERMANY	3.5 %
	SWITZERLAND	3.4 %
	HONG KONG	2.9 %
	SWEDEN	2.8 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
20.5%	20.5%	7.5%	--	7.4%

Market Correlations
versus...	Beta	R-squared
S&P500	0.85	71%
MSCI EAFE	1.06	92%
MSCI Emg. Mkts.	0.75	79%

Technical Indicators
Recent close	$32.81
30d moving avg.	$33.04
Annualized volatility	12.1%
Short interest (ETF)	0.2%
Relative strength (RSI)	47

Liquidity measures
Avg. volume (thou.)	185
Turnover	0.3%
Bid/Ask (% of price)	0.13%
ADV underlying (mns)	$10,125

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FNDC

Expense:

39 bp

ALTAR Score™:

4.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FNDC
Ticker	Fund Name	Overlap¹ vs FNDC (%)	Expense ratio (bp)	Savings vs FNDC (bp)	ALTAR Score™ (%)	ALTAR vs FNDC (%)
PDN	Invesco FTSE RAFI Developed Mkts ex-US Small-Mid Cap	66.8	49	-10	6.3	+1.9
ISDS	Invesco Strategic Developed ex-US Small Company	42.1	35	4	5.1	+0.7
SCZ	iShares MSCI EAFE Small Cap	40.3	39	0	6.1	+1.7
SCHC	Schwab Intl Small-Cap Equity	37.9	12	27	6.3	+1.9
GWX	SPDR International SmallCap	32.4	40	-1	4.5	+0.1
VSS	Vanguard FTSE All World ex-US Small Cap	32.4	12	27	6.2	+1.8
DDLS	WisdomTree Dynamic Currency Hedged Int'l SmallCap	27.8	43	-4	8.1	+3.7
IEUS	iShares MSCI Europe Small Cap	26.1	40	-1	6.2	+1.8
DLS	WisdomTree Int'l SmallCap Dividend	25.0	58	-19	8.0	+3.6
TLTD	FlexShares Mngstr Developed Mkts ex-US Factor Tilt	23.7	39	0	8.2	+3.8
SCJ	iShares MSCI Japan Small Cap	23.1	47	-8	6.1	+1.7
IDLB	Invesco FTSE Int'l Low Beta Equal Weight	23.0	45	-6	6.8	+2.4
DXJS	WisdomTree Japan Hedged Small	21.8	58	-19	7.7	+3.3
DFJ	WisdomTree Japan Small Cap Dividend	21.7	58	-19	7.8	+3.4
AVDV	Avantis International Small Cap Value	19.9	36	3	7.1	+2.7
AVDE	Avantis International Equity	19.1	23	16	7.3	+2.9
MFDX	PIMCO RAFI Dynamic Multi-Factor International Equity	17.2	39	0	6.1	+1.7
DIM	WisdomTree Intl M/C Dividend	17.1	58	-19	7.3	+2.8
DEEF	Xtrackers FTSE Dev ex-US Comprehensive Factor	16.7	24	15	6.8	+2.4
VPL	Vanguard Pacific ETF	16.4	9	30	7.5	+3.1

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 Intl Small Cap
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	5.2	%
Divided by: Fwd. P/BV	1.1	x
Less: Expense ratio	39	bp
Equals: ALTAR Score	4.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.64	CATEGORY AVERAGE	1.63

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.