From Nasdaq: 2024-05-31 06:20:06

The Schwab U.S. Small-Cap ETF (SCHA) was launched in 2009 and is managed by Charles Schwab, with over $16.50 billion in assets. This ETF aims to provide broad exposure to the Small Cap Blend segment of the US equity market, with an expense ratio of 0.04% and a 12-month trailing dividend yield of 1.35%.

Small cap companies offer high potential but also higher risk due to market capitalization below $2 billion. The SCHA ETF holds a mix of growth and value stocks, with an allocation of about 18.20% to the Industrials sector. Top holdings include names like Microstrategy Inc, Nutanix Inc, and Elf Beauty Inc.

The Schwab U.S. Small-Cap ETF (SCHA) seeks to track the Dow Jones U.S. Small-Cap Total Stock Market Index and has gained around 1.22% this year and 18.11% in the last year. It is a medium-risk choice with a beta of 1.17 and standard deviation of 22.18% over the past three years, with 1727 holdings for diversification.

Investors seeking exposure to the Small Cap Blend segment may consider alternatives like iShares Russell 2000 ETF (IWM) and iShares Core S&P Small-Cap ETF (IJR) with similar index tracking but different asset sizes and expense ratios. Passively managed ETFs like SCHA are popular for their low costs, transparency, and effectiveness for long-term investing.

Read more at Nasdaq: Should Schwab U.S. Small-Cap ETF (SCHA) Be on Your Investing Radar?