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)	$6,439
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	1300
Wgt avg mkt cap (mns)	$82,199
Large cap (>$10bn)	67.3%
Mid cap ($2-10bn)	28.6%
Small cap (<$2bn)	2.7%
Developed mkts	8.3%
Emerging mkts	89.4%

TOP TEN HOLDINGS
Total	22.6 %
ALIBABA GROUP HOLDING LTD. SPONSOR	5.2 %
TAIWAN SEMICONDUCTOR MANUFAC	4.7 %
TENCENT HOLDINGS LTD	4.6 %
CHINA CONSTRUCTION BANK-H	1.5 %
PING AN INSURANCE GROUP CO-H	1.3 %
RELIANCE INDUSTRIES LTD	1.2 %
NASPERS LTD-N SHS	1.2 %
IND & COMM BK OF CHINA - H	1.1 %
HOUSING DEVELOPMENT FINANCE	1.0 %
GAZPROM OAO	0.8 %

TOP COUNTRY EXPOSURE
	CHINA	30.8 %
	TAIWAN	13.1 %
	INDIA	10.5 %
	BRAZIL	8.5 %
	SOUTH AFRICA	5.6 %
	HONG KONG	4.9 %
	THAILAND	3.3 %
	MEXICO	2.9 %
	MALAYSIA	2.6 %
	SAUDI ARABIA	2.2 %

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.
13.2%	14.8%	3.1%	--	3.7%

Market Correlations
versus...	Beta	R-squared
S&P500	0.81	45%
MSCI EAFE	1.08	68%
MSCI Emg. Mkts.	0.99	95%

Technical Indicators
Recent close	$26.62
30d moving avg.	$25.94
Annualized volatility	14.5%
Short interest (ETF)	0.7%
Relative strength (RSI)	67

Liquidity measures
Avg. volume (thou.)	1,047
Turnover	0.4%
Bid/Ask (% of price)	0.04%
ADV underlying (mns)	$30,940

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™:

8.7%

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	78.6	14	-1	9.2	+0.6
EEM	iShares MSCI Emerging Markets	77.4	67	-54	8.5	-0.1
VWO	Vanguard Emerging Markets	75.5	12	1	8.7	+0.0
DBEM	Xtrackers MSCI Emg. Mkts. Hedged	74.1	65	-52	8.4	-0.2
IEMG	iShares Core MSCI Emerging Markets	71.5	14	-1	8.6	-0.1
FLAX	Franklin FTSE Asia Ex Japan	67.0	19	-6	8.6	-0.0
EEMA	iShares MSCI Emg Mkts Asia	63.7	50	-37	8.7	+0.0
AAXJ	iShares MSCI Asia ex-Japan	62.9	67	-54	8.2	-0.5
EEMX	SPDR MSCI Emerging Markets Fossil Fuel Free	61.5	30	-17	8.5	-0.1
JHEM	John Hancock Multifactor Emerging Markets	60.6	55	-42	8.8	+0.1
SPEM	SPDR Portfolio Emerging Markets	59.1	11	2	8.4	-0.2
GEM	Goldman Sachs ActiveBeta Emg Mkts Equity	52.0	45	-32	9.1	+0.5
XSOE	WisdomTree Emg Mkt ex-SOE	51.3	32	-19	6.9	-1.7
PXH	Invesco FTSE-RAFI Emerging Markets	50.9	50	-37	12.4	+3.7
GMF	SPDR S&P Emerging Asia Pacific	50.9	49	-36	8.1	-0.6
BKF	iShares MSCI BRIC	50.6	67	-54	8.7	+0.0
EMSG	Xtrackers MSCI Emerging Markets ESG Leaders Equity	48.7	20	-7	8.2	-0.4
TLTE	FlexShares Mngstr Emerging Markets Factor Tilt	48.0	59	-46	10.5	+1.8
ESGE	iShares MSCI EM ESG Optimized	45.6	25	-12	9.3	+0.6
QEMM	SPDR MSCI Emerging Markets Quality Mix	44.1	30	-17	9.3	+0.6

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	12.9	%
Divided by: Fwd. P/BV	1.5	x
Less: Expense ratio	13	bp
Equals: ALTAR Score	8.7	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.49	CATEGORY AVERAGE	1.49

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.