Schwabb Etf Investment: Best Options For Your Money

Charles Schwab is one of the world's leading financial services companies, offering a selection of around 30 proprietary exchange-traded funds (ETFs) that cover a range of asset classes and investment objectives. Buying ETFs offers several advantages over buying individual stocks and mutual funds, such as diversification, broad market exposure, and reduced tax burdens. Schwab's ETFs are known for their low operating expenses, with $0 online commission on over 3,000 U.S. exchange-listed ETFs. Here are some of the best Charles Schwab ETFs to consider for your investment portfolio:

- Schwab International Dividend Equity ETF (SCHY)

- Schwab Fundamental U.S. Broad Market Index ETF (FNDB)

- Schwab U.S. REIT ETF (SCHH)

- Schwab U.S. Mid-Cap ETF (SCHM)

- Schwab Short-Term U.S. Treasury ETF (SCHO)

- Schwab Crypto Thematic ETF (STCE)

- Schwab Fundamental U.S. Small Company Index ETF (FNDA)

- Schwab US Large-Cap Growth ETF (SCHG)

- Schwab US Broad Market ETF (SCHB)

- Schwab US REIT ETF (SCHH)

Schwab International Dividend Equity ETF (SCHY)

SCHY is a fund that focuses on investing in non-U.S. companies with a strong track record of paying dividends for at least 10 consecutive years. It screens these companies based on four dividend quality attributes, including financial strength and low volatility. This makes SCHY an attractive option for conservative investors who want to balance their portfolio with international stocks.

The fund was opened in April 2021, so it has a relatively brief track record. However, many of its holdings are well-known international companies, including BHP Group, Roche Holding, Unilever, Toronto-Dominion Bank, and Rio Tinto. These companies have a history of growing their dividend payments, making them attractive for income-seeking investors.

SCHY's expense ratio is 0.140%, making it a low-cost investment option. It can serve as a core holding or a complement to a diversified portfolio. The fund's performance data shows that investment returns may fluctuate, and an investor's shares may be worth more or less than their original cost when sold or redeemed.

Overall, Schwab International Dividend Equity ETF (SCHY) is a solid choice for investors looking for international exposure, a focus on dividend-paying stocks, and a low-cost investment option. It offers the potential for growth and income while providing a diversified approach to investing in non-U.S. companies.

Schwab Fundamental U.S. Broad Market Index ETF (FNDB)

The Schwab Fundamental U.S. Broad Market Index ETF (FNDB) is a fund that offers exposure to the largest U.S. companies by market cap. It holds stakes in approximately 1,700 stocks, including well-known names like Berkshire Hathaway Inc. Class B, Meta Platforms Inc. Class A, and Bank of America Corp. With a low expense ratio of 0.25%, this fund is designed to be tax-efficient and provide potential value and yield factor exposure.

FNDB's investment goal is to closely track the total return of an index that measures the performance of U.S.-based companies based on their fundamental size and weight. This fund can serve as a core holding or complement to market-cap indexing and active management in a diversified portfolio. It underwent a 3-for-1 share split in October 2024, increasing the number of shares outstanding and lowering the Net Asset Value (NAV) per share.

FNDB has delivered strong performance, outpacing the Morningstar large-cap value category average over the past one, two, three, five, and ten years. Its reasonable valuation, low fees, and steady yield position it well for continued strong performance. As of September 20, 2023, the fund's YTD Lipper Ranking is in the 13th percentile.

FNDB provides a straightforward, low-cost investment option for those seeking exposure to large U.S. companies. It offers potential tax efficiency and a systematic process for contrarian investing and disciplined rebalancing.

Schwab U.S. REIT ETF (SCHH)

The Schwab U.S. REIT ETF (SCHH) is a straightforward, low-cost fund that offers potential tax efficiency. The fund's goal is to track the total return of an index composed of U.S. real estate investment trusts (excluding mortgage and hybrid REITs) classified as equities.

SCHH has a competitive, market-cap-weighted offering with an annual fee that is a fraction of its Morningstar category's average. Its dividend yield is roughly on par with its peer group. SCHH's biggest sub-industry bet is on telecommunications tower REITs, with its next largest allocations being to industrial, retail, and multifamily residential REITs.

SCHH has over 100 holdings, with its top 10 stocks making up almost half of the total portfolio. As of November 2024, American Tower Corp. (AMT), Prologis Inc. (PLD), and Equinix Inc. (EQIX) were the fund's top three holdings, making up more than 21% of its total assets.

SCHH has $8.1 billion in total assets and a trailing 12-month yield of 2.9%. It has an annualized return of 6.1% over the past 10 years and a one-year return of 33.9%, edging out Vanguard's Real Estate ETF (VNQ).

Schwab Short-Term U.S. Treasury ETF (SCHO)

The Schwab Short-Term U.S. Treasury ETF (SCHO) is a low-cost fund that offers potential tax efficiency and can serve as part of a diversified portfolio. The fund's goal is to track the total return of an index that measures the performance of the short-term U.S. Treasury bond market. It provides investors with simple access to U.S. Treasury securities with maturities of one to three years, offering income from the short end of the Treasury bond yield curve.

SCHO underwent a 2-for-1 share split on October 10, 2024, increasing the number of shares outstanding and decreasing the Net Asset Value (NAV) per share. The fund has a total expense ratio of 0.030%, and its inception date was August 5, 2010.

As of October 21, 2024, SCHO had a YTD daily total return of 3.68%, a beta of 0.25, and an expense ratio (net) of 0.03%. The fund invests at least 90% of its net assets in securities included in the index, which consists of publicly-issued U.S. Treasury securities with maturities between one and three years, investment-grade ratings, and a minimum outstanding face value of $300 million.

The Schwab Short-Term U.S. Treasury ETF (SCHO) can be a good choice for investors seeking exposure to short-term U.S. Treasury securities and wanting to benefit from potential tax efficiency and a diversified portfolio.

Schwab Crypto Thematic ETF (STCE)

The Schwab Crypto Thematic ETF (STCE) is a passive fund that aims to replicate the performance of the Schwab Crypto Thematic Index. The fund's goal is to provide investors with global exposure to companies that are expected to benefit from the development and utilisation of cryptocurrencies and other digital assets, as well as blockchain and distributed ledger technology.

STCE does not directly invest in cryptocurrencies like Bitcoin or other digital assets. Instead, it focuses on the stocks of companies with global exposure to the crypto and blockchain space. This includes companies involved in mining, trading, banking, and implementing blockchain applications.

The fund offers a low-cost, tax-efficient way to gain exposure to the growing crypto ecosystem. It is suitable for investors who believe in the long-term potential of digital assets and blockchain technology but do not want to directly own cryptocurrencies.

STCE has a total expense ratio of 0.300%. Its top holdings include prominent players in the digital infrastructure space, such as MicroStrategy (MSTR), Coinbase Global (COIN), Riot Platforms (RIOT), and Robinhood Markets (HOOD).

STCE has positive average annual returns since its inception in August 2022.

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