Schwab U.S. Large-Cap ETF (SCHX)

ETF Schwab U.S. Large-Cap ETF (SCHX) Overview

Profile:

ETF Schwab U.S. Large-Cap ETF (SCHX) is a passively managed exchange-traded fund that tracks the performance of the Dow Jones U.S. Large-Cap Total Stock Market Index. This index includes approximately 750 of the largest U.S. companies, representing approximately 95% of the investable U.S. equity market. SCHX's investment strategy involves holding all the stocks in the index in the same proportion as their weighting in the index.

Objective:

The primary investment goal of SCHX is to provide investment results that, before expenses, generally correspond to the total return performance of the Dow Jones U.S. Large-Cap Total Stock Market Index.

Issuer:

Charles Schwab & Co., Inc.

Reputation and Reliability: Charles Schwab is a renowned financial services company with a strong reputation for reliability and customer service. Founded in 1971, Schwab has over $8 trillion in client assets and is consistently ranked among the top financial institutions in the United States.

Management: The ETF is managed by a team of experienced portfolio managers at Charles Schwab Investment Management, Inc. The team has a proven track record of managing large-cap index funds.

Market Share:

SCHX has a market share of approximately 0.5% within the U.S. large-cap ETF sector.

Total Net Assets:

As of November 7, 2023, SCHX has approximately $15.5 billion in total net assets.

Moat:

SCHX benefits from the following competitive advantages:

• Low expense ratio: With an expense ratio of 0.03%, SCHX is one of the most cost-effective large-cap ETFs available. This allows investors to keep more of their returns.
• Broad market exposure: The ETF provides investors with access to a diversified portfolio of large-cap U.S. stocks, offering exposure to a wide range of industries and sectors.
• Passive management: The passive management approach minimizes tracking error and ensures that the ETF closely tracks the performance of its benchmark index.

Financial Performance:

Over the past 5 years, SCHX has generated an average annual return of 12.4%. The ETF has outperformed the S&P 500 Index by approximately 1.5% during this period.

Benchmark Comparison:

Compared to its benchmark index, the Dow Jones U.S. Large-Cap Total Stock Market Index, SCHX has consistently tracked its performance closely. The ETF's tracking error is minimal, indicating that it effectively replicates the performance of its benchmark.

Growth Trajectory:

The U.S. large-cap market is expected to continue growing in the long term, driven by factors such as economic expansion, technological innovation, and corporate profitability. SCHX is well-positioned to benefit from this growth trajectory.

Liquidity:

SCHX has an average daily trading volume of over 5 million shares, making it a highly liquid ETF. This ensures that investors can easily buy and sell shares without impacting the ETF's price.

Bid-Ask Spread:

The bid-ask spread for SCHX is typically around 0.01%, making it a very cost-effective ETF to trade.

Market Dynamics:

The U.S. large-cap market is influenced by various factors, including:

• Economic indicators: Economic growth, interest rates, and inflation can impact the performance of large-cap stocks.
• Sector growth prospects: The performance of specific sectors within the market can also influence the ETF's returns.
• Current market conditions: Market sentiment and volatility can also affect the ETF's price.

Competitors:

Key competitors of SCHX in the U.S. large-cap ETF sector include:

• iShares CORE S&P 500 (IVV)
• Vanguard S&P 500 ETF (VOO)
• SPDR S&P 500 ETF Trust (SPY)

Expense Ratio:

The expense ratio for SCHX is 0.03%.

Investment Approach and Strategy:

SCHX employs a passive investment approach, aiming to track the performance of the Dow Jones U.S. Large-Cap Total Stock Market Index. The ETF's composition mirrors the index, holding all its constituents in proportion to their weighting.

Key Points:

• Low expense ratio
• Broad market exposure
• Passive management
• Strong historical performance
• High liquidity

Risks:

The main risks associated with SCHX include:

• Market risk: The ETF's value is subject to fluctuations in the