Charles Schwab Launches Equity Ratings for International Stocks
New Offer Builds on Schwab’s Successful Domestic Stock Ratings Program
SAN FRANCISCO–(BUSINESS WIRE)–Opening up the next chapter in its stock research offering, Charles Schwab announced today the launch of Schwab Equity Ratings International, an international stock ranking methodology covering approximately 4,000 large and small cap stocks in 28 foreign equity markets.
This stock rating system builds on the success of the domestic Schwab Equity Ratings, which were introduced in 2002 and today cover approximately 3,000 domestic large and small cap stocks and Real Estate Investment Trusts. The domestic Schwab Equity Ratings have seen consistent performance since their 2002 launch. Through October 10, 2011, the average A-rated stock has returned 19.7% while the average F-rated stock has returned just 7.6% on a 52 week buy-and-hold basis.
“Investing in international equities has become an increasingly important tool for investors looking to diversify their portfolios,” said Greg Forsythe, senior vice president for Schwab Equity Ratings at Charles Schwab. “Schwab has a long history of meeting investors’ needs as they evolve, and Schwab Equity Ratings International will help our clients make more informed international investing decisions. With our systematic approach, clients will now have clear buy/hold/sell ratings on more international stocks than with any other major brokerage firm.”
Like the domestic Schwab Equity Ratings, the Schwab Equity Ratings International offer individual investors an objective alternative to the more subjective international stock recommendations that retail investors currently get from many brokerage firms. Schwab Equity Ratings International will evaluate each stock on 14 different factors that have been found to be correlated with stock performance. These factors reflect the stock’s fundamentals, valuation, momentum and risk.
Stocks are rated relative to their country peers based on 12-month relative return prospects, allowing investors to quickly identify highly rated stocks in every country covered. Each stock is assigned a simple grade: A, B, C, D, or F. On average, A-rated stocks are expected to strongly outperform the average stock in the respective country’s stock market over the next 12 months while F-rated stocks are expected to strongly underperform. Unlike other brokerage firms whose ratings are dominated by “buy” recommendations, Schwab assembles an equal number of ratings that indicate “buy consideration” – As and Bs – and “sell consideration” – Ds and Fs.
Schwab Equity Ratings International’s ratings will be updated on a weekly basis, consistent with the current domestic process, and will deliver stock ratings in countries with 20 or more securities with market values exceeding $350 million and where client trading is allowed by Charles Schwab.
For more information on Schwab Equity Ratings International, visit www.schwab.com.
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with more than 300 offices and 8.5 million active brokerage accounts, 1.5 million corporate retirement plan participants, 774,000 banking accounts, and $1.68 trillion in client assets. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and mortgage services and products. More information is available at www.schwab.com and www.aboutschwab.com.