Schwab Fundamental International Small Equity Index Fund (SFILX)

The Schwab Fundamental International Small Equity Index Fund is an open-end mutual fund focused on tracking the performance of small-cap companies located in developed markets outside the United States. Utilizing a fundamentally weighted index, the fund selects, ranks, and weights its holdings based on company size metrics such as adjusted sales, retained operating cash flow, and dividends plus buybacks, rather than using traditional market capitalization. This approach provides exposure to value and yield factors and applies a systematic, rules-based methodology that includes regular rebalancing and contrarian investing principles. The fund spans a wide range of sectors and industries, currently holding over 1,700 securities diversified across global markets. With a low expense ratio and no investment minimum, it is designed to serve as a core or complementary holding within diversified portfolios, especially for investors seeking broad international small-cap value exposure within the foreign small/mid-value Morningstar category.