Fund info

The Schwab Fundamental International Equity Index Fund is a mutual fund designed to track the performance of the RAFI Fundamental High Liquidity Developed ex US Large Index. Its primary function is to offer investors diversified exposure to large and mid-cap companies from developed markets outside the United States, using a fundamentally weighted indexing approach. Rather than relying solely on market capitalization, this fund selects, ranks, and weights securities based on key company fundamentals, such as adjusted sales, retained operating cash flow, and dividends plus buybacks. This methodology aims to capture value and exploit mean-reverting price tendencies in international equities. The fund holds a broad portfolio—approximately 945 holdings—and features a low expense ratio, making it a cost-efficient option for international equity exposure. Sector allocations are diversified, with significant representation in financials, industrials, consumer goods, and energy companies. Major holdings often include prominent names like Shell, Samsung Electronics, and Toyota Motor Corp. Serving as a core holding for those seeking value-oriented, systematic exposure to developed international markets, the fund plays a key role in global diversification strategies.