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This Small-Cap Fund Provides Better Exposure to Foreign Economies

Daniel Sotiroff (daniel.sotiroff@morningstar.com)

Unlike large multinational corporations, small-cap firms tend to derive a majority of their revenue from their local economy. SCHC tracks the FTSE Developed Small Cap ex-U.S. Index. It holds small-cap stocks listed in 23 developed markets outside of the United States and weights them by market capitalization.