Schwab US Broad Market ETF

SCHB

Market cap $43.2B

There is an ongoing study from Hendrik Bessembinder at the W. P. Carey School of Business at Arizona State University that I've followed closely.

Schwab U.S. Broad Market ETF (SCHB) remains a Hold, as stretched valuations, compressed equity risk premium, and higher risk-free rates limit forward return potential, making fresh allocations less compelling despite. The return profile is increasingly driven by a narrow set of mega-cap stocks richly valued on growth prospects rather than current earnings power, despite the index having broad breadth. Current valuation metrics—P/E ~27x, CAPE ~36, and the Buffett Indicator also are suggestive of the broader US market being expensive both absolute as well as relative to historical norms.

The Schwab U.S. Broad Market ETF has delivered average annual returns of 13.66% for the past 16 years. This stock ETF gives you exposure to nearly 2,400 of the largest publicly traded companies in the U.S. If you invest $10,000 in SCHB, your money could grow to $1 million in 36 years.

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Schwab U.S. Broad Market ETF offers low-cost, core exposure to the US equity market with a 0.03% expense ratio and broad diversification. Forward valuations, especially in tech, have normalized to historical averages, but rising CAPEX and uncertain EPS growth temper enthusiasm. Geopolitical risks and inflation-driven consumption contraction present material risks, making current valuation discounts potentially illusory.

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Both SPTM and SCHB charge a 0.03% expense ratio and delivered nearly identical 1-year total returns as of March 2026. SCHB holds nearly 900 more stocks than SPTM and manages three times the assets.

VTI and SCHB both deliver nearly identical broad U.S. stock market exposure at rock-bottom expense ratios SCHB holds fewer stocks but tracks closely, with similar sector weights and top holdings as VTI Both funds have matched risk and returns over one and five years, with negligible differences in drawdown and yield

SCHB delivers broader market exposure and a higher recent 1-year return, but with greater sector concentration in technology VTV offers a higher yield, which may appeal to risk-averse investors Both funds share an ultra-low 0.03% expense ratio, though VTV is significantly larger by assets under management

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