Schwab Fundamental International Small Company Index ETF

The Schwab Fundamental International Small Company Index ETF is an exchange-traded fund designed to provide exposure to small-cap companies located outside the United States. This ETF employs a fundamental index methodology, which selects and weights securities based on financial measures such as adjusted sales, cash flow, and dividends plus buybacks, rather than market capitalization. Its primary purpose is to offer investors a diversified investment in international small-cap stocks, potentially enhancing portfolio diversification and tapping into growth opportunities in emerging and developed markets alike. This ETF specifically caters to sectors often underrepresented in traditional large-cap-focused portfolios, such as consumer goods, industrials, and technology companies, among others. By focusing on smaller companies, it plays a significant role in providing capital to emerging firms with growth potential while also reflecting global economic dynamics. The Schwab Fundamental International Small Company Index ETF is useful for investors looking to complement larger holdings within a broader international strategy, capturing distinct market segments often overlooked in worldwide investing strategies.