ETF Research Center

Schwab Fundamental U.S. Large Company Index ETF is an exchange-traded fund incorporated in the USA. The Fund seeks to track the total return of the Russell Fundamental U.S. Large Company Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Charles Schwab Investment Mana
Website	www.schwabetfs.com
Inception date	Aug 15, 2013
Assets (mns)	$5,837
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	702
Wgt avg mkt cap (mns)	$204,005
Large cap (>$10bn)	89.5%
Mid cap ($2-10bn)	9.6%
Small cap (<$2bn)	1.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	20.1 %
APPLE INC	5.0 %
EXXON MOBIL CORP	2.5 %
AT&T INC	2.1 %
MICROSOFT CORP	2.0 %
CHEVRON CORP	1.6 %
JPMORGAN CHASE & CO	1.5 %
WAL-MART STORES INC	1.4 %
GENERAL ELECTRIC CO	1.4 %
VERIZON COMMUNICATIONS INC	1.3 %
BERKSHIRE HATHAWAY INC-CL B	1.3 %

TOP COUNTRY EXPOSURE
	UNITED STATES	95.7 %
	IRELAND	1.8 %
	BRITAIN	1.3 %
	SWITZERLAND	0.4 %
	BERMUDA	0.3 %
	NETHERLANDS	0.1 %
	SINGAPORE	0.1 %
	CHINA	0.1 %

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.
20.6%	10.5%	8.7%	--	11.0%

Market Correlations
versus...	Beta	R-squared
S&P500	1.02	94%
MSCI EAFE	0.88	59%
MSCI Emg. Mkts.	0.56	40%

Technical Indicators
Recent close	$41.44
30d moving avg.	$39.89
Annualized volatility	12.7%
Short interest (ETF)	0.2%
Short interest (Underlying)	2.7%
Relative strength (RSI)	63

Liquidity measures
Avg. volume (thou.)	387
Turnover	0.3%
Bid/Ask (% of price)	0.04%
ADV underlying (mns)	$140,528

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FNDX

Expense:

25 bp

ALTAR Score™:

6.7%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FNDX
Ticker	Fund Name	Overlap¹ vs FNDX (%)	Expense ratio (bp)	Savings vs FNDX (bp)	ALTAR Score™ (%)	ALTAR vs FNDX (%)
FNDB	Schwab Fundamental Broad Mkt	92.2	25	0	6.6	-0.0
PRF	Invesco FTSE-RAFI U.S. 1000	85.1	39	-14	6.7	+0.1
IUS	Invesco Strategic US	75.7	19	6	6.7	+0.1
VLU	SPDR S&P 1500 Value Tilt	75.7	12	13	7.5	+0.8
PBP	Invesco S&P 500 Buy/Write	71.7	49	-24	5.6	-1.1
HSPX	Global X S&P 500 Covered Call	70.7	65	-40	5.4	-1.2
PBUS	Invesco PureBeta MSCI USA	70.7	4	21	6.1	-0.6
SPY	S&P 500 SPDR	70.5	9	16	6.0	-0.7
IVV	iShares Core S&P 500	70.4	4	21	6.0	-0.7
VOO	Vanguard S&P 500 ETF	70.3	3	22	6.0	-0.6
BBUS	JP Morgan Betabuilders U.S. Equity	70.0	2	23	5.9	-0.7
SCHX	Schwab U.S. Large-Cap	70.0	3	22	5.9	-0.8
RWL	Invesco S&P 500 Revenue ETF	70.0	39	-14	7.5	+0.9
IWB	iShares Russell 1000	69.9	15	10	5.8	-0.9
SCHK	Schwab 1000 Index	69.7	5	20	5.9	-0.7
VONE	Vanguard Russell 1000	69.6	12	13	5.8	-0.8
EPS	WisdomTree Earnings 500	69.6	8	17	7.0	+0.3
VV	Vanguard Large-Cap ETF	69.5	4	21	5.9	-0.8
DTD	WisdomTree Total Dividend	69.1	28	-3	6.6	-0.0
IYY	iShares DJ US Total Market	69.1	20	5	5.7	-0.9

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 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	14.1	%
Divided by: Fwd. P/BV	2.0	x
Less: Expense ratio	25	bp
Equals: ALTAR Score	6.7	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.56	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.