The Schwab U.S. Large-Cap ETF (SCHX) is designed to track the performance of the Dow Jones U.S. Large-Cap Total Stock Market Index, which is composed of large-cap U.S. stocks. It offers investors a low-cost way to gain exposure to the largest and most well-established companies in the U.S. stock market.
Fund Overview:
- Ticker Symbol: SCH
- Fund Type: Exchange-Traded Fund (ETF)
- Issuer: Charles Schwab Investment Management
- Inception Date: November 3, 2009
- Expense Ratio: 0.03% (one of the lowest among large-cap ETFs)
- Dividend Yield (12-month trailing): Around 1.5% (as of the most recent data)
- Net Assets: Over $20 billion (as of recent data)
Investment Objective:
SCHX seeks to track the total return performance of the Dow Jones U.S. Large-Cap Total Stock Market Index, which includes large-cap companies across various sectors of the economy. The ETF aims to replicate the performance of this index as closely as possible by holding the same stocks in approximately the same proportions as the index.
Top Holdings:
SCHX primarily invests in large-cap U.S. companies. Some of its top holdings typically include well-known names such as:
- Apple Inc. (AAPL)
- Microsoft Corp. (MSFT)
- Alphabet Inc. (GOOGL)
- Amazon.com Inc. (AMZN)
- Tesla Inc. (TSLA)
The ETF is weighted according to the market capitalization of its holdings, with larger companies making up a higher percentage of the fund.
Sector Breakdown (Approximate):
- Information Technology: ~25% (dominates due to major tech companies like Apple, Microsoft)
- Health Care: ~13% (includes companies like Johnson & Johnson, UnitedHealth)
- Consumer Discretionary: ~12% (includes companies like Amazon, Tesla)
- Financials: ~12% (including major banks like JPMorgan Chase, Bank of America)
- Communication Services: ~10% (including companies like Alphabet and Meta Platforms)
- Industrials: ~8% (including companies like Boeing, Honeywell)
Performance:
- SCHX has shown strong historical performance, reflecting the overall strength of the U.S. large-cap stock market. Its performance is closely tied to the performance of the U.S. economy and the largest public companies in the country.
- The performance varies based on market conditions, but because of its low cost and focus on large-cap stocks, it has historically provided steady returns over the long term.
Benefits:
- Low Expense Ratio: With an expense ratio of just 0.03%, SCHX is one of the cheapest large-cap ETFs available, meaning more of your investment stays working for you.
- Broad Diversification: While focusing on large-cap stocks, SCHX gives investors exposure to a broad swath of sectors, providing a level of diversification within the U.S. equity market.
- Liquidity: SCHX is a highly liquid ETF, with strong daily trading volumes, making it easy to buy and sell.
- Tax Efficiency: Like most ETFs, SCHX is tax-efficient, as it generally has lower capital gains distributions than mutual funds.
Drawbacks:
- Exposure to Large-Cap U.S. Stocks: The ETF is concentrated in large-cap stocks, so it lacks exposure to smaller, potentially faster-growing companies.
- Limited Global Exposure: SCHX focuses only on U.S. companies, so it does not provide direct exposure to international markets. Investors seeking global diversification might need other international or emerging markets ETFs.
Who Should Invest in SCHX?
- Long-term investors: SCHX is ideal for those looking for a low-cost, broad-based large-cap U.S. equity exposure. It’s suitable for investors with a long-term investment horizon.
- Passive investors: Those seeking a “set and forget” investment that tracks the performance of large U.S. companies in a diversified manner.
- Cost-conscious investors: Given its very low expense ratio, SCHX is a strong choice for those prioritizing cost efficiency.
- U.S. equity-focused investors: Those interested in investing primarily in large, stable companies within the U.S. stock market.
How to Invest:
SCHX can be purchased through any brokerage account that allows for the buying and selling of ETFs. It is also available for tax-advantaged accounts such as IRAs and 401(k)s.
Summary:
The Schwab U.S. Large-Cap ETF (SCHX) is a highly cost-effective way for investors to gain exposure to large-cap U.S. stocks. It provides broad diversification across key sectors of the U.S. economy, making it a solid choice for long-term growth and stability. With its ultra-low expense ratio and strong historical performance, SCHX is ideal for investors seeking broad market exposure to the U.S. stock market.
Is SCHX A Good ETF?
Yes, SCHX (Schwab U.S. Large-Cap ETF) is generally considered a good ETF for investors seeking exposure to large-cap U.S. stocks, especially for long-term, passive investors. Here’s why SCHX is often viewed as a solid investment option:
Reasons Why SCHX is a Good ETF:
(1) Low Expense Ratio:
- SCHX has an expense ratio of just 0.03%, which is extremely low compared to most mutual funds and even other large-cap ETFs. This means that more of your money is invested rather than being eaten up by management fees. Over time, this low cost can lead to higher long-term returns.
(2) road Market Exposure:
- SCHX tracks the Dow Jones U.S. Large-Cap Total Stock Market Index, which includes the largest U.S. companies across various sectors. As a result, it offers diversified exposure to major industries such as technology, healthcare, financials, and consumer discretionary. This broad exposure helps mitigate risks that might arise from concentrating in one sector or a few stocks.
(3) Liquidity and Popularity:
- With over $20 billion in assets under management (AUM) and high daily trading volume, SCHX is highly liquid. This makes it easy to buy and sell shares with minimal price slippage and ensures that your trades will execute quickly and efficiently.
(4) Strong Performance History:
- While past performance is not indicative of future results, SCHX has historically delivered competitive returns that are in line with or slightly better than other similar large-cap ETFs. It reflects the performance of large U.S. companies, many of which are leaders in their industries.
Conclusion:
SCHX is a solid ETF for those looking to invest in the U.S. large-cap stock market at a very low cost. It’s ideal for long-term growth and diversification within the U.S. equity space. If your investment strategy aligns with these attributes, SCHX is a great choice. However, if you’re looking for exposure to smaller companies or international markets, you might consider complementing SCHX with other ETFs that focus on those areas.
Schwab U.S. Large-Cap ETF (SCHX) Returns
The Schwab U.S. Large-Cap ETF (SCHX) is designed to track the performance of the Dow Jones U.S. Large-Cap Total Stock Market Index, providing exposure to the largest U.S. companies. Here’s a summary of its recent performance:
Annualized Returns:
| Time Period | SCHX Return (%) | Dow Jones U.S. Large-Cap Total Stock Market Index Return (%) |
| 1 Year | 31.55 | 20.79 |
| 3 Years | 10.13 | 9.87 |
| 5 Years | 14.29 | 14.08 |
| 10 Years | 11.90 | 12.42 |
Cumulative Returns:
| Time Period | SCHX Return (%) | Dow Jones U.S. Large-Cap Total Stock Market Index Return (%) |
| 1 Month | 5.97 | 1.52 |
| 3 Months | 6.76 | 16.41 |
| Year-to-Date | 25.52 | 1.52 |
Historical Performance:
| Year | SCHX Return (%) | Dow Jones U.S. Large-Cap Total Stock Market Index Return (%) |
| 2024 | 24.89 | 20.79 |
| 2023 | 26.84 | 31.55 |
| 2022 | -19.41 | -19.41 |
| 2021 | 26.81 | 26.81 |
| 2020 | 20.79 | 20.79 |
Schwab U.S. Large-Cap ETF (SCHX) Growth
The Schwab U.S. Large-Cap ETF (SCHX) has delivered strong growth since its inception. Below is a table summarizing its historical growth based on different time periods.
SCHX Historical Growth (as of January 2025):
| Time Period | SCHX Growth (%) |
| 1-Year Return | 31.55% |
| 3-Years Return | 10.13% |
| 5-Years Return | 14.29% |
| 10-Years Return | 11.90% |
| Since Inception | 13.00% (annualized) (since Nov 2009) |
Cumulative Growth:
| Time Period | SCHX Growth (%) |
| 1 Month | 5.97% |
| 3 Months | 6.76% |
| Year-to-Date | 25.52% |
Yearly Growth (Calendar Year Returns):
| Year | SCHX Growth (%) |
| 2024 | 24.89% |
| 2023 | 26.84% |
| 2022 | -19.41% |
| 2021 | 26.81% |
| 2020 | 20.79% |
Key Takeaways:
- Strong long-term growth: Over the past decade, SCHX has provided annualized returns of around 11.90%, which is competitive compared to many other broad U.S. equity ETFs.
- Recent performance: In 2023 and 2024, SCHX posted solid returns of 26.84% and 24.89%, reflecting the performance of large-cap U.S. stocks.
- Short-term growth: Even in the shorter term (1 month and 3 months), SCHX has shown significant growth, highlighting its potential for quick recovery in strong market conditions.
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