Charles Schwab & Co. has introduced a small-cap equity fund that will use its in-house equity ratings. The Schwab Small-Cap Equity Fund is designed for a broad range of investors interested in long-term capital growth of small companies through a single investment.

The fund will invest a minumum of 80% of its assets in small cap U.S. stocks with a market capitalization range of $100 million to $1.5 billion. The in-house Schwab Equity Model Development ratings system will play a major role to the porfolio manager in what stocks are to be bought and sold. The system assigns a letter grade to over 3,000 U.S. Stocks. Stocks in the S&P SmallCap index will also fall under the umbrella of companies for potential selection.

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