ETF Research Center

Schwab US Mid-Cap ETF seeks to track the performance of the Dow Jones US Mid-Cap Total Stock Market Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Charles Schwab Investment Mana
Website	www.schwabetfs.com
Inception date	Jan 13, 2011
Assets (mns)	$7,077
Currency	USD
Expense ratio	4 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	505
Wgt avg mkt cap (mns)	$8,443
Large cap (>$10bn)	28.0%
Mid cap ($2-10bn)	71.9%
Small cap (<$2bn)	0.1%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	4.2 %
BURLINGTON STORES INC	0.4 %
WABTEC CORP	0.4 %
RINGCENTRAL, INC. CLASS A	0.4 %
GARTNER INC	0.4 %
INTL FLAVORS & FRAGRANCES	0.4 %
SUN COMMUNITIES INC	0.4 %
SS&C TECHNOLOGIES HOLDINGS	0.4 %
SAIC INC	0.4 %
TELEDYNE TECHNOLOGIES INC	0.4 %
ALLIANT ENERGY CORP	0.4 %

TOP COUNTRY EXPOSURE
	UNITED STATES	95.1 %
	IRELAND	1.6 %
	BERMUDA	1.4 %
	BRITAIN	1.3 %
	PUERTO RICO	0.2 %
	CAYMAN ISLANDS	0.1 %

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.
27.5%	27.5%	9.8%	--	11.0%

Market Correlations
versus...	Beta	R-squared
S&P500	1.10	91%
MSCI EAFE	0.98	59%
MSCI Emg. Mkts.	0.63	43%

Technical Indicators
Recent close	$61.62
30d moving avg.	$59.91
Annualized volatility	13.9%
Short interest (ETF)	0.1%
Short interest (Underlying)	5.2%
Relative strength (RSI)	78

Liquidity measures
Avg. volume (thou.)	301
Turnover	0.3%
Bid/Ask (% of price)	0.04%
ADV underlying (mns)	$28,231

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

SCHM

Expense:

4 bp

ALTAR Score™:

6.0%

ALTERNATIVE ETFs BASED ON OVERLAP WITH SCHM
Ticker	Fund Name	Overlap¹ vs SCHM (%)	Expense ratio (bp)	Savings vs SCHM (bp)	ALTAR Score™ (%)	ALTAR vs SCHM (%)
OSIZ	Invesco Russell 1000 Size Factor ETF	70.0	19	-15	5.9	-0.1
SFYX	SoFi Next 500	68.1	0	4	5.4	-0.6
VB	Vanguard Smallcap ETF	55.1	5	-1	5.3	-0.7
JHMM	John Hancock Multifactor Mid Cap	53.8	44	-40	5.5	-0.4
SMMD	iShares Russell 2500	50.4	15	-11	5.3	-0.6
DON	WisdomTree Midcap Dividend	49.5	38	-34	7.0	+1.1
FSMD	Fidelity Small-Mid Factor ETF	46.8	29	-25	6.1	+0.2
FNX	First Trust Mid Cap Core Alpadex	44.9	62	-58	6.3	+0.3
RNMC	First Trust Mid Cap US Equity Select	44.1	60	-56	6.3	+0.4
VXF	Vanguard Extended Market	43.3	7	-3	3.2	-2.8
USEQ	Invesco Russell 1000 Enhanced Equal Weight	43.3	29	-25	6.3	+0.3
PSM	Principal U.S. Small-MidCap Multi-Factor Core Index	42.9	20	-16	6.5	+0.6
OMFL	Oppenheimer Russell 1000 Dynamic Multifactor	41.9	29	-25	8.9	+2.9
PBSM	Invesco PureBeta MSCI USA Small Cap	41.8	6	-2	5.1	-0.9
IVOO	Vanguard S&P Mid-Cap 400	41.1	15	-11	5.9	-0.1
EZM	WisdomTree Midcap Earnings	40.6	38	-34	8.2	+2.3
IJH	iShares Core S&P MidCap	40.5	7	-3	6.1	+0.1
SPMD	SPDR Portfolio Mid Cap	40.5	5	-1	6.0	+0.1
MDY	S&P MidCap 400 SPDR	40.5	24	-20	5.9	-0.1
IWS	iShares Russell Midcap Value	40.5	24	-20	6.5	+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 US Mid Cap
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	13.8	%
Divided by: Fwd. P/BV	2.3	x
Less: Expense ratio	4	bp
Equals: ALTAR Score	6.0	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.58	CATEGORY AVERAGE	1.55

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.