Schwab U.S. Large-Cap ETF: A Solid Choice for Investors

The Schwab U.S. Large-Cap ETF SCHX offers a low-cost investment option with robust diversification and a strong focus on large-cap stocks. Stability, particularly in the technology sector, makes it a favorable choice for investors looking for resilience in their portfolios.

Date: 04-04-2025

AI Rating: 7

The content outlines the Schwab U.S. Large-Cap ETF (SCHX), focusing on its structure, costs, and performance metrics, which are relevant for professional investors. The ETF aims to replicate the performance of the Dow Jones U.S. Large-Cap Total Stock Market Index and offers stable exposure to large-cap U.S. stocks, known for predictable cash flows.

Performance and Cost Structure
Significant factors affecting investment decisions include the ETF's low expense ratio of 0.03% and a 1.27% trailing dividend yield, indicating an attractive value proposition for cost-sensitive investors. Although the ETF has seen a minor decline of -3.42% YTD, the one-year return is notably positive at 10.19%. This year-to-date performance may suggest short-term volatility, yet the solid annual return demonstrates resilience.

Beta values at 1.01 and a standard deviation of 17.11% suggest moderate risk compared to the market, making this ETF suitable for risk-averse investors. Moreover, the ETF's heavy allocation to the Information Technology sector (29.30%), featuring major corporations like Apple Inc (AAPL), Microsoft Corp (MSFT), and Nvidia Corp (NVDA), positions it well for capitalizing on tech-sector growth.

As the ETF holds about 754 stocks, risk diversification is effectively enhanced, thereby reducing company-specific risks. Investors may also appreciate its Zacks ETF Rank of 2 (Buy), indicating favorable expected asset class return and positive momentum.

Stocks: AAPL MSFT NVDA SCHX IVV VOO