Schwab Fundamental U.S. Small Company ETF (FNDA)

Overview

The company described focuses on investment strategies that prioritize inclusion of stocks from the small company segment, based on comprehensive fundamental scores. These scores are derived from the RAFI Global Equity Investable Universe, indicating a methodical and data-driven approach to stock selection. By committing at least 90% of its net assets to stocks within the index it follows, the company positions itself strongly within the niche of small-cap investment, aiming to tap into the potential high growth of these small companies. This investment firm’s strategy signifies a targeted approach towards investors looking to diversify their portfolios with small-cap equity, which is often considered to have a higher growth potential compared to large-cap equity, albeit with higher risk.

Products and Services

• Investment in Small-Cap Stocks

This product focuses on investing primarily in small-cap stocks that are part of the index, derived from the RAFI Global Equity Investable Universe. The emphasis on small-cap stocks is due to their potential for high growth, making it an attractive option for investors seeking to diversify their investment portfolios with potentially higher-risk and higher-reward options.

• Index-Based Investment Strategy

The service involves an index-based investment strategy, where at least 90% of net assets are allocated to stocks included in a specifically defined index. This index measures the performance of companies based on fundamental overall company scores, which are determined from a broad universe of U.S. companies. This strategy aims to provide a disciplined approach to investing, reducing the reliance on speculative stock selection and focusing on fundamentally strong companies within the small company size segment.