Schwab U.S Small- Cap ETF

SCHA

Market cap $20.8B

The Schwab U.S. Small-Cap ETF (SCHA) was launched on November 3, 2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Blend segment of the US equity market.

Finding the right exchange-traded funds (ETFs) to invest in is easier said than done.

Schwab ETFs are known for their low costs, and they've turned into a mainstay of the market, especially for low-cost ETF investing.

Schwab U.S. Small-Cap ETF (SCHA) is downgraded to hold, reflecting shifting market conditions favoring large-cap stocks over small caps. SCHA offers strong diversification with low idiosyncratic risk and balanced sector exposure, but lacks the tech concentration currently driving market rallies. Recent performance shows SCHA underperforming large caps, with negative fund flows and heightened volatility amid macroeconomic uncertainty.

The Schwab U.S. Small-Cap ETF (SCHA) was launched on November 3, 2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Blend segment of the US equity market.

SCHA offers low costs and broad diversification, but nearly half its top holdings are unprofitable, and the rest trade at high valuations. Current small-cap valuations are historically high, with SCHA's profitable holdings averaging a P/E ratio above 35x and limited earnings growth. Despite underperformance versus the S&P 500 and peers, SCHA does not present an attractive margin of safety for value-focused investors like me.

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The Schwab U.S. Small-Cap ETF (SCHA) was launched on 11/03/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Blend segment of the US equity market.

The small-cap index records its biggest weekly gain since November. We highlight five top-ranked ETFs to tap the current momentum.

Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the Schwab U.S. Small-Cap ETF (SCHA) is a passively managed exchange traded fund launched on 11/03/2009.