SCHC - SCHC: Disappointing Returns But Not Time To Sell
2024-03-13 13:26:42 ET
Summary
- SCHC offers broad, low-cost exposure to international small-caps, an area currently trading at attractive valuations that could benefit from global supply chain diversification and a weaker U.S. dollar.
- However, the fund's passive, index-hugging approach has drawbacks, including the risk of holding unprofitable companies and over-diversification that may impair returns.
- Despite lackluster returns, we maintain a Hold rating on SCHC, recognizing the attractive valuations and potential long-term tailwinds for international small-caps.
When it comes to investing in international small-cap stocks, investors have a choice between passive index-tracking strategies and actively managed funds. The Schwab International Small-Cap Equity ETF ( SCHC ) is an option for those seeking broad, low-cost exposure to the asset class....
SCHC: Disappointing Returns, But Not Time To Sell