ETF Research Center

Schwab Fundamental International 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 Developed ex-U.S. Large Company Index.

FUND BASICS
Category	International Equities
Fund Sponsor	Charles Schwab Investment Mana
Website	www.schwabetfs.com
Inception date	Aug 15, 2013
Assets (mns)	$4,915
Currency	USD
Expense ratio	25 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	951
Wgt avg mkt cap (mns)	$63,495
Large cap (>$10bn)	81.6%
Mid cap ($2-10bn)	17.1%
Small cap (<$2bn)	1.3%
Developed mkts	93.8%
Emerging mkts	6.2%

TOP TEN HOLDINGS
Total	12.3 %
SAMSUNG ELECTRONICS CO LTD	2.0 %
TOYOTA MOTOR CORP	1.5 %
BP PLC	1.4 %
ROYAL DUTCH SHELL PLC-A SHS	1.4 %
TOTAL SA	1.3 %
ROYAL DUTCH SHELL PLC-B SHS	1.1 %
NESTLE SA-REG	1.1 %
HSBC HOLDINGS PLC	0.8 %
BANCO SANTANDER SA	0.8 %
ROCHE HOLDING AG-GENUSSCHEIN	0.8 %

TOP COUNTRY EXPOSURE
	JAPAN	24.4 %
	BRITAIN	15.6 %
	FRANCE	8.8 %
	GERMANY	8.8 %
	CANADA	6.5 %
	SOUTH KOREA	5.9 %
	SWITZERLAND	5.8 %
	AUSTRALIA	5.3 %
	SPAIN	3.0 %
	ITALY	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.
18.4%	18.4%	5.2%	--	5.5%

Market Correlations
versus...	Beta	R-squared
S&P500	0.79	65%
MSCI EAFE	1.06	96%
MSCI Emg. Mkts.	0.72	77%

Technical Indicators
Recent close	$29.03
30d moving avg.	$28.89
Annualized volatility	11.9%
Short interest (ETF)	0.1%
Relative strength (RSI)	57

Liquidity measures
Avg. volume (thou.)	422
Turnover	0.3%
Bid/Ask (% of price)	0.06%
ADV underlying (mns)	$41,495

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 19 potential alternatives to the Schwab Fundamental Intl Large Cap ETF based on the alternatives' overlap in portfolio holdings with FNDF. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

FNDF

Expense:

25 bp

ALTAR Score™:

7.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FNDF
Ticker	Fund Name	Overlap¹ vs FNDF (%)	Expense ratio (bp)	Savings vs FNDF (bp)	ALTAR Score™ (%)	ALTAR vs FNDF (%)
PXF	Invesco FTSE-RAFI Developed ex-US	84.9	45	-20	7.9	+0.5
SCHF	Schwab International Equity	68.8	6	19	7.0	-0.4
PBDM	Invesco PureBeta FTSE Developed ex-North America	66.7	7	18	7.3	-0.1
REFA	Invesco International Revenue ETF	66.7	42	-17	8.5	+1.1
HFXI	IQ 50 Percent Hedged FTSE Int'l	66.6	20	5	7.0	-0.4
EFA	iShares MSCI EAFE	64.4	31	-6	6.7	-0.7
VEA	Vanguard Europe Pacific	64.2	5	20	7.0	-0.4
SPDW	SPDR Portfolio World ex-US	63.4	4	21	6.9	-0.5
DBEF	Xtrackers MSCI EAFE Hedged	63.3	35	-10	6.6	-0.8
ISDX	Invesco Strategic Developed ex-US	62.9	23	2	7.4	-0.0
IDEV	iShares Core MSCI Int'l Developed Markets	62.6	5	20	6.9	-0.5
IQIN	IQ 500 International	61.5	25	0	8.2	+0.8
DDWM	WisdomTree Dynamic Currency Hedged Int'l Equity	61.5	35	-10	7.6	+0.2
DWM	WisdomTree DEFA Fund	61.2	48	-23	7.4	-0.0
IEFA	iShares Core MSCI EAFE	60.7	7	18	6.8	-0.6
JHMD	John Hancock Multifactor Developed International	59.6	45	-20	6.9	-0.5
EFAX	SPDR MSCI EAFE Fossil Fuel Free	58.1	20	5	6.8	-0.6
ACWX	iShares MSCI ACWI ex-US	57.7	31	-6	7.0	-0.4
EFV	iShares MSCI EAFE Value	57.6	38	-13	8.8	+1.4

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 Intl 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	8.6	%
Divided by: Fwd. P/BV	1.1	x
Less: Expense ratio	25	bp
Equals: ALTAR Score	7.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.61	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.