ETF Research Center

Schwab Emerging Market ETF is an exchange-traded fund incorporated in the USA. The Fund's goal is to track as closely as possible, before fees and expenses, the total return of the FTSE All-Emerging Index.

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	Charles Schwab Investment Management Inc
Website	www.schwabetfs.com
Inception date	Jan 13, 2010
Assets (mns)	$7,008
Currency	USD
Expense ratio	13 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	1312
Wgt avg mkt cap (mns)	$107,315
Large cap (>$10bn)	69.3%
Mid cap ($2-10bn)	27.1%
Small cap (<$2bn)	2.2%
Developed mkts	8.1%
Emerging mkts	89.6%

TOP TEN HOLDINGS
Total	24.8 %
ALIBABA GROUP HOLDING LTD. SPONSOR	6.9 %
TENCENT HOLDINGS LTD	5.1 %
TAIWAN SEMICONDUCTOR MANUFAC	4.7 %
CHINA CONSTRUCTION BANK-H	1.4 %
NASPERS LTD-N SHS	1.3 %
PING AN INSURANCE GROUP CO-H	1.2 %
RELIANCE INDUSTRIES LTD	1.2 %
HOUSING DEVELOPMENT FINANCE	1.0 %
IND & COMM BK OF CHINA - H	1.0 %
MEITUAN DIANPING	0.9 %

TOP COUNTRY EXPOSURE
	CHINA	32.8 %
	TAIWAN	12.7 %
	INDIA	10.1 %
	BRAZIL	8.5 %
	SOUTH AFRICA	5.3 %
	HONG KONG	4.7 %
	THAILAND	3.0 %
	MEXICO	2.8 %
	MALAYSIA	2.4 %
	SAUDI ARABIA	2.1 %

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.
20.2%	20.2%	5.4%	--	4.2%

Market Correlations
versus...	Beta	R-squared
S&P500	0.85	50%
MSCI EAFE	1.11	70%
MSCI Emg. Mkts.	0.99	95%

Technical Indicators
Recent close	$28.19
30d moving avg.	$27.28
Annualized volatility	14.7%
Short interest (ETF)	0.7%
Relative strength (RSI)	69

Liquidity measures
Avg. volume (thou.)	994
Turnover	0.4%
Bid/Ask (% of price)	0.04%
ADV underlying (mns)	$41,620

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

SCHE

Expense:

13 bp

ALTAR Score™:

7.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH SCHE
Ticker	Fund Name	Overlap¹ vs SCHE (%)	Expense ratio (bp)	Savings vs SCHE (bp)	ALTAR Score™ (%)	ALTAR vs SCHE (%)
PBEE	Invesco PureBeta FTSE Emerging Markets	79.5	14	-1	8.4	+0.5
VWO	Vanguard Emerging Markets	77.6	12	1	7.9	+0.0
EEM	iShares MSCI Emerging Markets	76.9	67	-54	7.7	-0.2
DBEM	Xtrackers MSCI Emg. Mkts. Hedged	73.9	65	-52	7.7	-0.2
IEMG	iShares Core MSCI Emerging Markets	71.1	14	-1	8.0	+0.1
FLAX	Franklin FTSE Asia Ex Japan	67.2	19	-6	7.8	-0.1
EEMA	iShares MSCI Emg Mkts Asia	64.5	50	-37	7.9	+0.1
AAXJ	iShares MSCI Asia ex-Japan	63.7	67	-54	7.4	-0.5
EEMX	SPDR MSCI Emerging Markets Fossil Fuel Free	61.4	30	-17	7.9	-0.0
JHEM	John Hancock Multifactor Emerging Markets	60.8	55	-42	8.1	+0.2
SPEM	SPDR Portfolio Emerging Markets	59.4	11	2	7.8	-0.1
GEM	Goldman Sachs ActiveBeta Emg Mkts Equity	53.3	45	-32	8.3	+0.5
GMF	SPDR S&P Emerging Asia Pacific	53.3	49	-36	7.4	-0.5
BKF	iShares MSCI BRIC	53.2	67	-54	7.7	-0.2
XSOE	WisdomTree Emg Mkt ex-SOE	52.9	32	-19	6.3	-1.6
PXH	Invesco FTSE-RAFI Emerging Markets	50.5	50	-37	11.4	+3.5
EMSG	Xtrackers MSCI Emerging Markets ESG Leaders Equity	49.4	20	-7	7.5	-0.4
TLTE	FlexShares Mngstr Emerging Markets Factor Tilt	47.6	59	-46	12.0	+4.1
ESGE	iShares MSCI EM ESG Optimized	46.1	25	-12	8.5	+0.6
QEMM	SPDR MSCI Emerging Markets Quality Mix	43.1	30	-17	8.6	+0.7

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 Emerging Markets Equity
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	13.0	%
Divided by: Fwd. P/BV	1.6	x
Less: Expense ratio	13	bp
Equals: ALTAR Score	7.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.47	CATEGORY AVERAGE	1.48

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.