SCHC Profile
The Schwab International Small-Cap Equity ETF aims to offer investors exposure to small-cap companies located in developed markets outside the United States. The fund tracks an index that includes small capitalization stocks from developed countries, excluding the U.S. This focus allows investors to gain access to a broad range of smaller companies in mature markets, which are often seen as having high growth potential compared to larger, more established firms.
To achieve its investment objective, the fund commits at least 90% of its net assets to stocks that are included in the index. This includes investing in depositary receipts that represent the securities within the index. These depositary receipts can be American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), or European Depositary Receipts (EDRs), providing a mechanism for investing in foreign stocks while trading in U.S. dollars.
The ETF’s focus on small-cap equities in developed international markets allows for diversified exposure to emerging and growth-oriented companies outside the U.S. market. By investing in smaller companies with potential for significant growth, the fund aims to capture opportunities that may be overlooked in broader indices. This strategy can offer higher growth prospects but may also come with increased volatility compared to large-cap investments.
The Schwab International Small-Cap Equity ETF is designed for investors seeking diversification through international small-cap stocks. By focusing on developed markets outside the U.S., the fund provides a means to tap into the potential growth of smaller companies in those regions, balancing the broader equity market exposure with the targeted growth opportunities present in smaller, high-potential international firms.
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