ETF Research Center

Schwab US Dividend Equity ETF is an exchange-traded fund incorporated in the USA. The Fund seeks to track the performance of the Dow Jones Dividend 100 Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Charles Schwab Investment Mana
Website	www.schwabetfs.com
Inception date	Oct 20, 2011
Assets (mns)	$11,680
Currency	USD
Expense ratio	6 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	100
Wgt avg mkt cap (mns)	$138,686
Large cap (>$10bn)	95.0%
Mid cap ($2-10bn)	4.7%
Small cap (<$2bn)	0.4%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	45.0 %
HOME DEPOT INC	5.1 %
INTEL CORP	5.0 %
COCA-COLA CO/THE	4.9 %
PEPSICO INC	4.7 %
BRISTOL-MYERS SQUIBB CO	4.6 %
PROCTER & GAMBLE CO/THE	4.5 %
VERIZON COMMUNICATIONS INC	4.2 %
PFIZER INC	4.1 %
INTL BUSINESS MACHINES CORP	4.1 %
EXXON MOBIL CORP	3.8 %

TOP COUNTRY EXPOSURE
	UNITED STATES	97.8 %
	IRELAND	1.4 %
	SWITZERLAND	0.4 %
	BRITAIN	0.1 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
-1.8%	17.9%	11.3%	--	13.4%

Market Correlations
versus...	Beta	R-squared
S&P500	0.97	92%
MSCI EAFE	0.90	67%
MSCI Emg. Mkts.	0.61	52%

Technical Indicators
Recent close	$56.40
30d moving avg.	$58.49
Annualized volatility	12.2%
Short interest (ETF)	0.1%
Short interest (Underlying)	2.1%
Relative strength (RSI)	52

Liquidity measures
Avg. volume (thou.)	1,059
Turnover	0.5%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$20,833

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

SCHD

Expense:

6 bp

ALTAR Score™:

7.5%

ALTERNATIVE ETFs BASED ON OVERLAP WITH SCHD
Ticker	Fund Name	Overlap¹ vs SCHD (%)	Expense ratio (bp)	Savings vs SCHD (bp)	ALTAR Score™ (%)	ALTAR vs SCHD (%)
OUSA	O'Shares FTSE US Quality Dividend ETF	39.0	48	-42	6.1	-1.4
OYLD	Invesco Russell 1000 Yield Factor ETF	37.1	19	-13	7.4	-0.2
DURA	VanEck Vectors Morningstar Durable Dividend ETF	36.9	29	-23	6.9	-0.6
HDV	iShares Core High Dividend ETF	36.6	8	-2	7.2	-0.3
VYM	Vanguard High Dividend Yield Index ETF	34.6	6	0	7.4	-0.2
USDY	Pacific Global US Equity Income ETF	34.1	29	-23	7.7	+0.2
DHS	WisdomTree U.S. High Dividend Fund	34.1	38	-32	7.9	+0.4
NULV	Nuveen ESG Large-Cap Value ETF	33.5	35	-29	6.9	-0.6
DJD	Invesco Dow Jones Industrial Average Dividend ETF	32.5	7	-1	7.6	+0.1
DGRW	WisdomTree U.S. Quality Dividend Growth Fund	31.9	28	-22	7.4	-0.2
JKF	iShares Morningstar Large Cap Value ETF	30.0	25	-19	7.9	+0.3
EDOW	First Trust Dow 30 Equal Weight ETF	29.8	50	-44	6.4	-1.1
RAFE	PIMCO RAFI ESG U.S. ETF	29.6	29	-23	8.2	+0.6
QDIV	Global X S&P 500 Quality Dividend ETF	28.4	20	-14	7.9	+0.3
RNDV	US Equity Dividend Select ETF	27.6	50	-44	8.0	+0.5
FLQL	Franklin LibertyQ U.S. Equity ETF	27.5	15	-9	6.8	-0.8
FDL	First Trust Morningstar Dividend Leaders Index Fund	27.1	45	-39	8.7	+1.2
PFM	Invesco Dividend Achievers ETF	26.9	54	-48	5.3	-2.2
ESGL	Invesco ESG Revenue ETF	26.7	40	-34	8.4	+0.9
DVY	iShares Select Dividend ETF	26.6	39	-33	7.8	+0.3

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

	2015	2016	2017	2018	2019	2020E	2021E
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

	2019	2020E	2021E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Schwab U.S. Dividend Equity ETF
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	25.2	%
Divided by: Fwd. P/BV	3.3	x
Less: Expense ratio	6	bp
Equals: ALTAR Score	7.5	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.67	CATEGORY AVERAGE	1.56

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.