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SCFAX

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1m

Analysis and statistics

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About

SCFAX.US refers to Schwab Fundamental U.S. Small Company Index Fund. This fund is designed to track the total return of the Russell RAFI US Small Company Index, a fundamentally weighted index that measures the performance of small-capitalization U.S. companies selected based on fundamental measures such as sales, cash flow, and dividends. As an index fund, SCFAX typically seeks to replicate the index's holdings and weightings, offering investors exposure to a diversified portfolio of smaller U.S. companies with an emphasis on fundamental characteristics.
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Factors

Economic Conditions: Strong economic growth often leads to higher interest rates, potentially decreasing bond values, while recessions can have the opposite effect, raising bond prices as rates fall.

Interest Rate Changes: As interest rates rise, existing bond values, including those held by SCFAX, tend to decrease. Conversely, falling interest rates generally increase bond values.

Inflation: Higher inflation erodes the purchasing power of fixed income payments, potentially lowering bond values, as investors demand higher yields to compensate for inflation risk.

Credit Risk: Changes in the creditworthiness of bond issuers held by SCFAX can affect the fund's price. Downgrades can lower the price, while upgrades may increase it.

Market Sentiment: Investor confidence and risk appetite can influence bond prices. Increased risk aversion may lead to higher demand for safer bonds, potentially raising prices.

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