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SCHB Schwab U.S. Broad Market ETF

Category: Large Cap Growth Equities

Inception: 2009-11-03 Issuer: The Charles Schwab Corp.
Net Assets
$30.7B
Expense Ratio
0.03 %
# of Holdings
2
Average Daily Volume
5.7M

Fund Overview

The Schwab U.S. Broad Market ETF (SCHB) is a low-cost, diversified ETF designed to track the performance of the Dow Jones U.S. Broad Stock Market Index. This index includes approximately 2,500 of the largest U.S. stocks, covering nearly 100% of the investable U.S. equity market. SCHB provides investors with broad exposure to large-cap, mid-cap, and small-cap stocks across various sectors, making it a core holding for long-term portfolios. The fund is known for its ultra-low expense ratio and tax efficiency, appealing to cost-conscious investors seeking comprehensive market exposure.
Asset Class
Equity
Industry
N/A
Annual Dividend Rate
Smart Beta
No
Leveraged / Inverse
N/A / No
Dividend Quality - Yield
 - 1.30 %
Currency Hedged
No
Portfolio Turnover
3 %
Dividend Date

Why Invest in the SCHB ETF?

Potential Benefits

  • Provides broad exposure to the entire U.S. stock market, including large-, mid-, and small-cap stocks.
  • Ultra-low expense ratio (0.03% as of 2025), making it one of the most cost-efficient broad-market ETFs available.
  • Highly liquid with tight bid-ask spreads, facilitating easy entry and exit for investors.
  • Tax-efficient structure, with minimal capital gains distributions compared to mutual funds.
  • Diversification across sectors reduces single-stock or sector-specific risks.

Potential Risks

  • Market risk: Performance is tied to the overall U.S. equity market, which can be volatile.
  • No exposure to international markets, limiting diversification benefits outside the U.S.
  • Smaller-cap stocks in the portfolio may be more volatile than large-cap stocks.
  • Passive management means the fund will not adjust holdings to avoid downturns or capitalize on opportunities.
  • Concentration in U.S. equities may underperform during periods when international markets outperform.

Performance

1 Week 1 Month 1 Year 3 Years 5 Years YTD 2025 2024 Since Inception
+1.97% +1.63% +16.88% +86.79% +83.05% +14.84% +17.15% +24.73% +875.42%

Performance


Monthly Returns (%)

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2026 +1.6% -0.6% -5.0% +10.5% +5.2% -0.5% -0.4% +2.6% -0.7% +2.3% - -
2025 +2.9% -1.9% -5.8% -0.8% +6.4% +5.2% +2.3% +2.3% +3.4% +2.2% +0.2% 0.0%
2024 +1.1% +5.4% +3.3% -4.3% +4.8% +3.1% +1.8% +2.1% +2.1% -0.7% +6.7% -3.0%
2023 +6.9% -2.3% +2.7% +1.1% +0.5% +6.7% +3.6% -1.9% -4.8% -2.7% +9.4% +5.3%
2022 -6.1% -2.4% +3.4% -9.2% -0.1% -8.4% +9.4% -3.8% -9.3% +8.1% +5.2% -5.8%
2021 -0.4% +3.2% +3.7% +5.1% +0.4% +2.5% +1.8% +2.8% -4.5% +6.8% -1.4% +3.8%
2020 -0.1% -8.1% -13.9% +13.3% +5.4% +2.2% +5.7% +7.2% -3.8% -2.0% +12.2% +4.3%
2019 +8.6% +3.5% +1.5% +3.9% -6.5% +7.1% +1.4% -2.1% +1.9% +2.1% +3.8% +2.8%
2018 +5.2% -3.7% -2.0% +0.4% +2.8% +0.7% +3.4% +3.4% +0.2% -7.4% +1.9% -9.2%
2017 +1.9% +3.7% +0.1% +1.0% +1.1% +0.8% +2.0% +0.1% +2.4% +2.2% +3.0% +1.1%
< -5% -5% to -2% -2% to 0% 0% 0% to +2% +2% to +5% > +5%

Top Holdings (by weight)

Symbol Company Name Weight
AAPL APPLE INC 5.7 %
MSFT MICROSOFT CORP 5.5 %
NVDA NVIDIA CORP 5.3 %
AMZN AMAZON.COM INC 3.4 %
META META PLATFORMS INC CLASS A 2.4 %
BRK-B BERKSHIRE HATHAWAY INC CLASS B 1.8 %
GOOGL ALPHABET INC CLASS A 1.8 %
AVGO BROADCOM INC 1.7 %
GOOG ALPHABET INC CLASS C 1.5 %
TSLA TESLA INC 1.5 %
Top 10 holdings shown, out of 2 total holdings.

Related ETFs: SCHB vs Peers

ETF Full Name Expense Ratio Net Assets Holdings Asset Class
ITOT iShares Core S&P Total U.S. Stock Market ETF 0.03 % $61.9B 2 Equity
IVV iShares Core S&P 500 ETF 0.03 % $579.9B 505 Equity
IWV iShares Russell 3000 ETF 0.20 % $14.4B 2 Equity
SCHA Schwab U.S. Small-Cap ETF 0.04 % $15.9B 1 Equity
SCHK Schwab 1000 Index ETF 0.05 % $3.8B 988 Equity
SCHX Schwab U.S. Large-Cap ETF 0.03 % $49.8B 750 Equity
SPTM SPDR Portfolio S&P 1500 Composite Stock Market ETF 0.03 % $9.4B 1 Equity
SPY SPDR S&P 500 ETF Trust 0.09 % $576B 504 Equity
VOO Vanguard S&P 500 ETF 0.03 % $1300B 506 Equity
VTI Vanguard Total Stock Market ETF 0.03 % $1700B 3 Equity
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.

Investment Strategy

SCHB tracks the Dow Jones U.S. Broad Stock Market Index, which includes approximately 2,500 U.S. stocks across all market capitalizations. The index is market-cap weighted, meaning larger companies have a greater influence on performance. The fund primarily holds common stocks and aims to replicate the index's performance through full replication or representative sampling. SCHB is passively managed, with rebalancing occurring as needed to align with index changes, typically due to corporate actions or periodic reconstitutions.

Frequently Asked Questions

What index does SCHB track?

SCHB tracks the Dow Jones U.S. Broad Stock Market Index, which includes approximately 2,500 U.S. stocks across large-, mid-, and small-cap segments.

How does SCHB differ from SCHX?

SCHB provides exposure to the entire U.S. stock market, including small- and mid-cap stocks, while SCHX focuses exclusively on large-cap stocks by tracking the Dow Jones U.S. Large-Cap Total Stock Market Index.

Is SCHB suitable for long-term investing?

Yes, SCHB's broad diversification, low costs, and tax efficiency make it an ideal core holding for long-term investors seeking steady growth through U.S. equities.

Does SCHB pay dividends?

Yes, SCHB distributes dividends quarterly, as it holds dividend-paying stocks within its broad market portfolio.

What is SCHB's expense ratio?

As of 2025, SCHB's expense ratio is 0.03%, making it one of the lowest-cost broad-market ETFs available.

Industry Overview

The Schwab U.S. Broad Market ETF (SCHB) is part of the broad U.S. equity ETF category, which provides investors with diversified exposure to the entire U.S. stock market. This category is popular among investors seeking a foundational holding for their portfolios, as it captures the performance of large-, mid-, and small-cap stocks. Broad-market ETFs like SCHB are often used as core holdings in passive investment strategies due to their low costs and comprehensive market coverage. The U.S. equity market has historically delivered strong long-term returns, though it is subject to economic cycles, interest rate changes, and geopolitical factors.

Alternative Comparison

Compared to its closest peers, SCHB stands out for its ultra-low expense ratio (0.03%), which is competitive even against similar broad-market ETFs like VTI (0.03%) and ITOT (0.03%). Unlike some competitors that may use sampling techniques, SCHB aims for full replication of its index, providing more precise tracking. While VTI and ITOT also offer broad U.S. market exposure, SCHB's affiliation with Schwab may appeal to investors who prefer the firm's ecosystem of low-cost products and brokerage services.

Issuer Overview

Charles Schwab Investment Management, the issuer of SCHB, is a leading provider of low-cost ETFs and mutual funds. Known for its investor-friendly approach, Schwab offers a range of index-based and actively managed funds. The firm emphasizes transparency, low fees, and accessibility, making its products popular among both retail and institutional investors.

Conclusion

SCHB is an excellent choice for investors seeking low-cost, diversified exposure to the entire U.S. stock market. Its broad coverage, ultra-low fees, and tax efficiency make it a strong core holding for long-term portfolios. While it carries typical market risks associated with equities, its diversification and cost advantages position it well for investors prioritizing simplicity and affordability in their investment strategy.

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