Short- and Long-Term Consequences Unveiled by SCHB Decision
The Schwab U.S. Broad Market ETF (SCHB) made its debut on November 3, 2009, and since then, it has been a reliable choice for investors seeking broad U.S. equity market exposure. Over the past 15 years, SCHB has delivered an impressive performance.
Consistent and Strong Performance
Since its inception, the ETF has averaged an annual total return of approximately 13.89%. Over the past decade, this figure drops slightly to around 12.78%, demonstrating a strong historical performance. The ETF closely tracks the Dow Jones U.S. Broad Stock Market Index, its intended benchmark.
The ETF's recent 1-year total return, including dividends, stands at 15.65%. Its low expense ratio of 0.03% contributes to effective tracking of its benchmark and cost-efficient investing. The fund's 52-week price range shows a high of $24.99 and a low of $18.53, reflecting its broad market exposure.
Diversified Nature and Sector Allocations
SCHB offers broad exposure to the largest 2,500 U.S. stocks, with market caps spanning from giant to micro cap. This diversified nature helps reduce risk and provide a balanced portfolio.
The top sector allocations of the ETF are Technology (26%), Health Care (15%), and Financials (14%). These allocations reflect the current state of the U.S. economy and the sectors that are driving its growth.
Key Details
As of the latest data, the Schwab U.S. Broad Market ETF (NYSEARCA:SCHB) has over 2,500 holdings. The ETF is managed by Charles Schwab Investment Management, Inc. The Schwab U.S. Broad Market ETF's top holdings include Apple Inc. (AAPL), Microsoft Corporation (MSFT), and Amazon.com, Inc. (AMZN).
The ETF manages approximately $36 billion in assets and has a 12-month trailing dividend yield of approximately 1.6%. The total net assets of the ETF currently stand at approximately $38 billion.
Beta and Price-to-Earnings Ratio
The Schwab U.S. Broad Market ETF has a beta of approximately 1.0, indicating it moves with the overall market. The ETF's price-to-earnings ratio is approximately 20, which is in line with the average for similar funds.
In conclusion, the Schwab U.S. Broad Market ETF has maintained consistent and strong performance for over 15 years, making it a cost-effective vehicle for broad U.S. equity market exposure. Its diversified nature, low expense ratio, and broad market exposure make it an attractive choice for investors seeking a balanced and efficient portfolio.
Investors may find the Schwab U.S. Broad Market ETF's strong historical performance appealing for investing in the stock-market, as it has averaged an annual total return of approximately 13.89% since its inception and 12.78% over the past decade. The ETF's low expense ratio of 0.03% allows for cost-efficient investing in finance, while its diversified nature helps reduce risk and provide a balanced portfolio through exposure to various sectors such as Technology, Health Care, and Financials.
