SAEF | Schwab Ariel ESG ETF

SAEF ISSUER

The SAEF ETF, serving as the issuer for the Sustainable and High-Performing Equity Fund (SAEF), is an actively managed exchange-traded fund (ETF) that prioritizes investments in U.S. companies meeting stringent environmental, social, and governance (ESG) criteria. Emphasizing small- and mid-cap stocks within the Russell 2500™ Index range, the fund is managed by a subadviser dedicated to identifying firms with robust fundamentals and growth potential. This entails considering factors such as competitive advantage, management quality, and financial stability, alongside valuations relative to earnings and intrinsic worth. Integral to its investment approach is the integration of ESG principles, employing proprietary research to assess each holding's ESG-risk rating based on environmental, social, and governance impacts and practices. Moreover, the fund employs negative screening to exclude companies deriving significant revenue from industries deemed socially or environmentally detrimental. Although the fund does not seek to replicate a specific index, it discloses a daily proxy portfolio on its website to provide transparency, emphasizing its commitment to responsible and informed investing.

SAEF DIVIDEND

The Sustainable and High-Performing Equity Fund (SAEF) aims to provide investors with consistent dividend income while prioritizing sustainable and responsible investment practices. Leveraging its active management approach and rigorous ESG criteria, SAEF selects dividend-paying companies that demonstrate strong financial health, stable earnings, and a commitment to environmental, social, and governance (ESG) principles. By integrating ESG considerations into its investment process, SAEF seeks to invest in companies with resilient business models and sustainable dividend growth potential. This approach not only aims to deliver attractive dividend yields to investors but also aligns with the fund's overarching objective of promoting long-term value creation and positive societal impact.

SAEF TRACKING

As an actively managed, non-transparent exchange-traded fund (ETF), the Sustainable and High-Performing Equity Fund (SAEF) does not seek to replicate the performance of a specific index. Instead, SAEF employs a dynamic investment strategy that aims to outperform traditional benchmarks by carefully selecting companies based on stringent environmental, social, and governance (ESG) criteria. SAEF's portfolio managers and subadvisers utilize their expertise to identify promising investment opportunities, focusing on small- and mid-cap stocks within the Russell 2500™ Index range. While SAEF does not disclose its actual portfolio on a daily basis, it provides investors with a proxy portfolio designed to closely track the fund's performance, ensuring transparency and accountability. Through its active management approach and commitment to responsible investing, SAEF aims to deliver superior returns while promoting sustainable business practices and positive societal impact.

SAEF CORRELATION

The Sustainable and High-Performing Equity Fund (SAEF) exhibits a unique correlation profile due to its active management strategy and emphasis on sustainable investing principles. Unlike passively managed funds that closely track specific market indices, SAEF's dynamic approach allows it to deviate from broader market trends, potentially leading to lower correlation with traditional benchmarks. By selecting companies based on stringent environmental, social, and governance (ESG) criteria and integrating these considerations into its investment process, SAEF may exhibit differing performance patterns compared to conventional equity funds. This can result in reduced correlation with market indices and other investment vehicles, offering investors the opportunity to diversify their portfolios while aligning with their sustainability goals. SAEF's commitment to responsible investing not only aims to deliver attractive returns but also emphasizes the importance of long-term value creation and positive societal impact, further distinguishing its correlation profile in the investment landscape.

SAEF SECTOR

The sector allocation of the Sustainable and High-Performing Equity Fund (SAEF) is shaped by its dual focus on financial performance and environmental, social, and governance (ESG) considerations. SAEF's investment strategy emphasizes diversification across sectors while prioritizing companies that exhibit strong ESG practices and sustainable business models. This approach leads to a sector allocation that reflects a balance between traditional industries and emerging sectors with promising growth potential. While SAEF may hold positions in sectors such as technology, healthcare, consumer discretionary, and industrials, its selection process ensures that companies within these sectors align with its ESG criteria and demonstrate a commitment to responsible business practices. By maintaining a diversified sector allocation and integrating ESG considerations into its investment decisions, SAEF aims to mitigate sector-specific risks while capitalizing on opportunities for long-term value creation and positive societal impact.

SAEF EXPOSURE

The exposure of the Sustainable and High-Performing Equity Fund (SAEF) reflects its commitment to investing in companies that prioritize environmental, social, and governance (ESG) principles while aiming for strong financial performance. SAEF's exposure is multifaceted, encompassing various sectors and market capitalizations, with an emphasis on small- and mid-cap companies within the Russell 2500™ Index range. This diversified exposure allows SAEF to capture opportunities across different segments of the market while mitigating concentration risks. Additionally, SAEF's integration of ESG considerations into its investment process ensures that its exposure aligns with responsible investing practices, focusing on companies with resilient business models, sustainable growth prospects, and positive societal impact. By maintaining a balanced and diversified exposure while prioritizing ESG factors, SAEF seeks to deliver attractive returns to investors while promoting sustainable investing practices.