Schwab Fundamental U.S. Small Company Index Fund (SFSNX)

Overview

The fund is focused on investing in stocks included in the RAFI Fundamental High Liquidity US Small Index, a distinctive approach that differentiates itself by the way it selects, ranks, and weights securities. Unlike traditional methods that primarily use market capitalization for such analyses, this fund uses fundamental measures of company size. This includes adjusted sales, retained operating cash flow, and dividends plus buybacks. This strategy aims to identify companies that, based on these fundamental metrics, may offer better long-term potential compared to their market cap-ranked counterparts.

Products and Services

The fund mainly offers investment opportunities based on the RAFI Fundamental High Liquidity US Small Index. Below are the key aspects of the products and services it provides:

• Investment in Stocks - The primary service offered involves investing in stocks that are a part of the RAFI Fundamental High Liquidity US Small Index. This allows investors access to a basket of small-cap stocks selected based on their fundamental performance rather than their market capitalization.
• Use of Fundamental Measures for Selection - Stocks are selected, ranked, and weighted based on adjusted sales, retained operating cash flow, and dividends plus buybacks. This methodology aims at identifying companies with strong fundamentals that could lead to better performance over the long term.
• Diversification Across Small-Cap Stocks - Through investment in this fund, clients can achieve diversification across various small-cap stocks, potentially mitigating risk while seeking to capitalize on the growth opportunities presented by these smaller companies.