ETF Research Center

Schwab International Small-Cap Equity ETF is an exchange-traded fund incorporated in the USA. The Fund's objective is to track as closely as possible, before fees and expenses, the total return of the FTSE Developed Small Cap ex-US Liquid Index.

FUND BASICS
Category	International Equities
Fund Sponsor	Charles Schwab Investment Management Inc
Website	www.schwabetfs.com
Inception date	Jan 13, 2010
Assets (mns)	$2,419
Currency	USD
Expense ratio	12 bp
Distributions	Annually

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	State Street Bank & Trust
Weighting	Market Cap
Index replication	Optimized
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	2072
Wgt avg mkt cap (mns)	$2,085
Large cap (>$10bn)	1.3%
Mid cap ($2-10bn)	46.7%
Small cap (<$2bn)	51.9%
Developed mkts	94.9%
Emerging mkts	5.1%

TOP TEN HOLDINGS
Total	4.1 %
OPEN TEXT CORP	0.6 %
EMERA INC	0.5 %
KIRKLAND LAKE GOLD LTD.	0.5 %
CAE INC	0.4 %
GENIVAR INC	0.4 %
ALGONQUIN POWER & UTILITIES	0.4 %
CAN APARTMENT PROP REAL ESTA	0.4 %
CCL INDUSTRIES INC - CL B	0.3 %
FIRST QUANTUM MINERALS LTD	0.3 %
GILDAN ACTIVEWEAR INC	0.3 %

TOP COUNTRY EXPOSURE
	CANADA	17.2 %
	JAPAN	15.0 %
	BRITAIN	12.2 %
	AUSTRALIA	4.7 %
	GERMANY	3.9 %
	SWEDEN	3.7 %
	SOUTH KOREA	3.4 %
	SWITZERLAND	3.3 %
	ITALY	2.2 %
	FRANCE	2.2 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
17.2%	9.7%	5.0%	--	6.5%

Market Correlations
versus...	Beta	R-squared
S&P500	0.86	72%
MSCI EAFE	1.05	90%
MSCI Emg. Mkts.	0.77	76%

Technical Indicators
Recent close	$34.17
30d moving avg.	$33.59
Annualized volatility	12.2%
Short interest (ETF)	0.5%
Relative strength (RSI)	70

Liquidity measures
Avg. volume (thou.)	162
Turnover	0.2%
Bid/Ask (% of price)	0.06%
ADV underlying (mns)	$6,939

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

SCHC

Expense:

12 bp

ALTAR Score™:

6.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH SCHC
Ticker	Fund Name	Overlap¹ vs SCHC (%)	Expense ratio (bp)	Savings vs SCHC (bp)	ALTAR Score™ (%)	ALTAR vs SCHC (%)
VSS	Vanguard FTSE All World ex-US Small Cap	61.4	12	0	6.5	+0.1
SCZ	iShares MSCI EAFE Small Cap	44.4	39	-27	6.0	-0.4
PDN	Invesco FTSE RAFI Developed Mkts ex-US Small-Mid Cap	40.0	49	-37	6.4	+0.0
GWX	SPDR International SmallCap	38.7	40	-28	4.6	-1.8
FNDC	Schwab Fundamental Intl Small Cap	38.4	39	-27	4.5	-1.9
IEUS	iShares MSCI Europe Small Cap	38.1	40	-28	6.0	-0.4
DDLS	WisdomTree Dynamic Currency Hedged Int'l SmallCap	26.1	43	-31	8.3	+1.9
DLS	WisdomTree Int'l SmallCap Dividend	24.0	58	-46	8.1	+1.7
ISDS	Invesco Strategic Developed ex-US Small Company	22.7	35	-23	5.1	-1.3
TLTD	FlexShares Mngstr Developed Mkts ex-US Factor Tilt	19.2	39	-27	8.3	+1.9
ISCF	iShares FactorSelect MSCI Intl Small-Cap	17.0	40	-28	6.9	+0.5
AVDV	Avantis International Small Cap Value	15.4	36	-24	7.0	+0.6
SCJ	iShares MSCI Japan Small Cap	14.6	47	-35	6.1	-0.3
AVDE	Avantis International Equity	13.4	23	-11	7.5	+1.1
DFE	WisdomTree Europe Small Cap Dividend	12.7	58	-46	8.7	+2.4
DFJ	WisdomTree Japan Small Cap Dividend	12.7	58	-46	7.8	+1.4
DXJS	WisdomTree Japan Hedged Small	12.7	58	-46	7.9	+1.5
EWUS	iShares MSCI United Kingdom Small Cap	12.3	59	-47	7.3	+1.0
EUSC	WisdomTree Europe Hedged SmallCap Equity Fund	11.4	58	-46	7.4	+1.0
FDTS	First Trust Dev Mkts ex-US Small Cap Alpha	11.3	80	-68	9.1	+2.7

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

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	8.0	%
Divided by: Fwd. P/BV	1.2	x
Less: Expense ratio	12	bp
Equals: ALTAR Score	6.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.59	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.