ETF Research Center

Schwab Fundamental Emerging Markets Large 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 Emerging Markets Large Company Index.

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	Charles Schwab Investment Mana
Website	www.schwabetfs.com
Inception date	Aug 15, 2013
Assets (mns)	$2,787
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	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	267
Wgt avg mkt cap (mns)	$53,776
Large cap (>$10bn)	70.8%
Mid cap ($2-10bn)	25.7%
Small cap (<$2bn)	1.9%
Developed mkts	8.5%
Emerging mkts	91.5%

TOP TEN HOLDINGS
Total	22.8 %
TAIWAN SEMICONDUCTOR MANUFAC	3.9 %
HON HAI PRECISION INDUSTRY	3.6 %
CHINA CONSTRUCTION BANK-H	3.4 %
IND & COMM BK OF CHINA - H	2.4 %
CHINA MOBILE LIMITED	2.0 %
CHINA PETROLEUM & CHEMICAL-H	1.8 %
BANK OF CHINA LTD - H	1.6 %
ITAU UNIBANCO HOLDING SA	1.4 %
VALE SA	1.4 %
AMERICA MOVIL SAB DE CV CLASS L	1.4 %

TOP COUNTRY EXPOSURE
	CHINA	19.6 %
	TAIWAN	18.1 %
	BRAZIL	10.8 %
	INDIA	7.0 %
	HONG KONG	5.7 %
	SOUTH AFRICA	5.6 %
	MEXICO	4.3 %
	THAILAND	3.1 %
	MALAYSIA	1.8 %
	TURKEY	1.7 %

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.
11.8%	10.8%	4.3%	--	4.4%

Market Correlations
versus...	Beta	R-squared
S&P500	0.75	39%
MSCI EAFE	1.05	65%
MSCI Emg. Mkts.	0.93	85%

Technical Indicators
Recent close	$29.24
30d moving avg.	$28.37
Annualized volatility	14.5%
Short interest (ETF)	0.4%
Relative strength (RSI)	67

Liquidity measures
Avg. volume (thou.)	307
Turnover	0.3%
Bid/Ask (% of price)	0.05%
ADV underlying (mns)	$9,997

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FNDE

Expense:

39 bp

ALTAR Score™:

11.1%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FNDE
Ticker	Fund Name	Overlap¹ vs FNDE (%)	Expense ratio (bp)	Savings vs FNDE (bp)	ALTAR Score™ (%)	ALTAR vs FNDE (%)
PXH	Invesco FTSE-RAFI Emerging Markets	65.9	50	-11	12.4	+1.3
JHEM	John Hancock Multifactor Emerging Markets	44.8	55	-16	8.8	-2.3
SCHE	Schwab Emerging Markets Equity	41.4	13	26	8.7	-2.4
DVEM	WisdomTree Emerging Markets Dividend	40.6	32	7	11.2	+0.1
PBEE	Invesco PureBeta FTSE Emerging Markets	40.1	14	25	9.2	-1.8
REEM	Invesco Emerging Markets Revenue ETF	39.1	46	-7	11.6	+0.6
EEM	iShares MSCI Emerging Markets	38.5	67	-28	8.5	-2.5
DBEM	Xtrackers MSCI Emg. Mkts. Hedged	38.4	65	-26	8.4	-2.6
EEMX	SPDR MSCI Emerging Markets Fossil Fuel Free	38.4	30	9	8.5	-2.5
IEMG	iShares Core MSCI Emerging Markets	35.5	14	25	8.6	-2.5
GEM	Goldman Sachs ActiveBeta Emg Mkts Equity	35.2	45	-6	9.1	-1.9
ISEM	Invesco Strategic Emerging Markets	34.7	35	4	9.9	-1.2
VWO	Vanguard Emerging Markets	34.7	12	27	8.7	-2.4
KEMX	KraneShares MSCI Emerging Markets EX China Index	34.0	49	-10	8.7	-2.4
JPEM	JPMorgan Diversified Rtn Emg Mkt Equity	34.0	45	-6	8.7	-2.3
SPEM	SPDR Portfolio Emerging Markets	33.8	11	28	8.4	-2.6
EEMA	iShares MSCI Emg Mkts Asia	33.6	50	-11	8.7	-2.4
EMXC	iShares MSCI Emerging Markets ex China	31.9	49	-10	8.7	-2.4
DEM	WisdomTree Emerg Mkts High Yield Equity	31.7	63	-24	12.4	+1.3
BKF	iShares MSCI BRIC	31.4	67	-28	8.7	-2.4

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 Emg Mkt Large Cap
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	9.5	%
Divided by: Fwd. P/BV	0.8	x
Less: Expense ratio	39	bp
Equals: ALTAR Score	11.1	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.53	CATEGORY AVERAGE	1.49

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.