Fund Evaluator:

Schwab Fundamental Intl Sm Eq Idx Overview

Schwab Fundamental Intl Sm Eq Idx (SFILX) is a passively managed International Equity Foreign Small/Mid Value fund. Schwab Funds launched the fund in 2008.

The investment seeks to track as closely as possible, before fees and expenses, the total return of RAFI Fundamental High Liquidity Developed ex US Small Index†. To pursue its goal, the fund generally invests in stocks that are included in the RAFI Fundamental High Liquidity Developed ex US Small Index†. The index selects, ranks, and weights securities by fundamental measures of company size – adjusted sales, retained operating cash flow, and dividends plus buybacks – rather than market capitalization.

About Schwab Fundamental Intl Sm Eq Idx (SFILX)

There are 4 members of the management team with an average tenure of 5.85 years: Christopher Bliss (2017), David Rios (2017), Joselle Duncan (2024), Mariela Jobson (2024). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: MSCI EAFE NR USD index with a weighting of 100% and RAFI Fund Hi Liq Dev ex US Small NR USD index with a weighting of 100%. Schwab Fundamental Intl Sm Eq Idx has 1588 securities in its portfolio. The top 10 holdings constitute 2.4% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Schwab Fundamental Intl Sm Eq Idx is part of the Equity global asset class and is within the International Equity fund group. Schwab Fundamental Intl Sm Eq Idx has 97.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 2.6%. There is 97.1% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Schwab Fundamental Intl Sm Eq Idx has 0.2% of the portfolio in cash.

Assets Under Management

The fund has $739 million in total assets, which is below the $845 million average for the Foreign Small/Mid Value category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

SFILX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Schwab Fundamental Intl Sm Eq Idx expense ratio is below average compared to funds in the Foreign Small/Mid Value category. Schwab Fundamental Intl Sm Eq Idx has an expense ratio of 0.39%, which is 60% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Schwab Fundamental Intl Sm Eq Idx has a portfolio turnover rate of 27%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 42% for the Foreign Small/Mid Value category.

Recently, in the month of August 2026, Schwab Fundamental Intl Sm Eq Idx returned 4.2%, which earned it a grade of C, as the Foreign Small/Mid Value category had an average return of 4.6%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Schwab Fundamental Intl Sm Eq Idx has a trailing yield of 3.18%, which is above the 2.74% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Schwab Fundamental Intl Sm Eq Idx Grades

Year to date, the fund has returned 15.4%, 0.2 percentage points better than the category, which translates into a grade of C. The fund has returned 21.5% over the past year (grade of C), 19.1% over the past three years (grade of C) and 8.3% per year over the past five years (grade of D) and 8.9% per year over the past 10 years (grade of D).

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