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)	$11,319
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)	$132,002
Large cap (>$10bn)	94.9%
Mid cap ($2-10bn)	4.8%
Small cap (<$2bn)	0.3%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	42.4 %
INTEL CORP	4.7 %
PROCTER & GAMBLE CO/THE	4.4 %
PFIZER INC	4.4 %
VERIZON COMMUNICATIONS INC	4.4 %
PEPSICO INC	4.4 %
COCA-COLA CO/THE	4.3 %
EXXON MOBIL CORP	4.2 %
HOME DEPOT INC	4.0 %
INTL BUSINESS MACHINES CORP	3.8 %
TEXAS INSTRUMENTS INC	3.7 %

TOP COUNTRY EXPOSURE
	UNITED STATES	97.9 %
	IRELAND	1.3 %
	SWITZERLAND	0.4 %
	BRITAIN	0.1 %

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.
24.4%	14.4%	10.3%	--	13.7%

Market Correlations
versus...	Beta	R-squared
S&P500	0.96	92%
MSCI EAFE	0.88	64%
MSCI Emg. Mkts.	0.61	48%

Technical Indicators
Recent close	$57.34
30d moving avg.	$56.49
Annualized volatility	12.1%
Short interest (ETF)	0.0%
Short interest (Underlying)	2.1%
Relative strength (RSI)	63

Liquidity measures
Avg. volume (thou.)	703
Turnover	0.4%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$19,684

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Schwab US Dividend Equity 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™:

7.3%

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 (%)
HDV	iShares High Dividend	42.4	8	-2	6.6	-0.7
OUSA	O'Shares FTSE U.S. Quality Dividend	38.9	48	-42	5.9	-1.4
DHS	WisdomTree Equity Income	38.2	38	-32	7.2	-0.2
DGRW	WisdomTree US Dividend Growth	37.3	28	-22	6.7	-0.6
DURA	VanEck Vectors Morningstar Durable Dividend	37.0	29	-23	6.7	-0.6
OYLD	Invesco Russell 1000 Yield Factor ETF	35.6	19	-13	7.0	-0.3
VYM	Vanguard High Dividend Yield ETF	34.5	6	0	7.2	-0.1
USDY	Pacific Global US Equity Income	34.0	29	-23	7.4	+0.1
ACIO	Aptus Collared Income Opportunity	33.3	79	-73	6.8	-0.6
NULV	NuShares ESG Large-Cap Value	33.1	35	-29	6.7	-0.6
JKF	iShares Morningstar Large Value	32.9	25	-19	7.7	+0.4
QDIV	Global X S&P 500 Quality Dividend	32.5	20	-14	7.0	-0.3
DJD	Invesco Dow Jones Industrial Average Dividend	32.3	7	-1	7.3	-0.0
RNDV	US Equity Dividend Select	31.1	50	-44	7.7	+0.4
DTN	WisdomTree Dividend Ex-Financials	29.8	38	-32	7.8	+0.5
EDOW	First Trust Dow 30 Equal Weight	28.8	50	-44	6.2	-1.2
FMK	First Trust Mega Cap AlphaDEX	28.8	70	-64	5.6	-1.7
FDL	First Trust Morningstar Dividend Leaders	28.4	45	-39	8.5	+1.2
PFM	Invesco Dividend Achievers	27.8	54	-48	5.4	-1.9
FLQL	Franklin LibertyQ U.S. Equity	27.5	15	-9	6.8	-0.5

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 US Dividend Equity
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	24.9	%
Divided by: Fwd. P/BV	3.4	x
Less: Expense ratio	6	bp
Equals: ALTAR Score	7.3	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.69	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.