SAEF Profile
The Schwab Ariel ESG ETF focuses on investing in equity securities of U.S. companies that meet specific environmental, social, and governance (ESG) criteria. The fund's investment approach emphasizes selecting companies that demonstrate strong performance in these ESG areas, aiming to align investors' portfolios with values-driven investing while seeking competitive financial returns. The fund's investment universe consists primarily of small- and mid-cap companies, typically those within the capitalization range of the Russell 2500 Index at the time of purchase.
This ETF employs a rigorous evaluation process to identify companies that adhere to high ESG standards. By integrating ESG factors into its investment strategy, the fund seeks to support companies that contribute positively to societal and environmental outcomes while managing risks associated with poor ESG performance. The focus on small- and mid-cap stocks allows the fund to capture growth opportunities in companies that are potentially undervalued or have significant room for expansion, reflecting the dynamic nature of emerging and growing businesses.
The Schwab Ariel ESG ETF is actively managed to ensure that its holdings align with the evolving landscape of ESG criteria. This includes ongoing assessments of each company's ESG performance, making adjustments as necessary to reflect changes in ESG practices or market conditions. The fund's management team utilizes a combination of quantitative and qualitative analysis to select securities that not only meet ESG standards but also have the potential to deliver strong financial performance.
While the fund primarily targets small- and mid-cap companies, it retains the flexibility to invest in securities outside this range if they present compelling opportunities. This strategy allows the ETF to adapt to changing market conditions and take advantage of a broader set of investment prospects. As a result, investors benefit from a portfolio that reflects high ESG standards and seeks to capture growth potential across a diverse set of companies.
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