Buy, Sell, or Hold Schwab's US Large-Cap ETF Now | SCHX

SCHX is a passively managed, low-cost ETF designed to broaden market exposure. It holds large-cap companies and additional under-the-radar businesses that are not included in the S&P 500 or the Nasdaq-100, adding diversification beyond widely held stocks. Many portfolios are concentrated in dividend-focused holdings, technology, or a barbell approach, leaving out parts of the economy represented by companies that are too small for the S&P 500 but too large for mid-cap ETFs. SCHX can cover this gap, though exposure remains limited because it weights holdings by market capitalization. SCHX has delivered gains comparable to the S&P 500 since inception, with slightly trimmed top weights and redistributed exposure to smaller holdings.

"The is a low-cost, passively-managed option if you want broader exposure to the market. Having this broader exposure has made the ETF perform quite interestingly over the past few years, and it's worth taking a serious look at. The ETF holds everything from your usual large caps to more under-the-radar businesses that are neither in the S&P 500 nor in the Nasdaq-100. Thus, you're giving your portfolio some much-needed diversification beyond the companies that everyone else holds."

"If you take a look at your current portfolio, you are either an income investor that is heavily into dividends, or you are a tech investor that is heavily into tech, or you just have a barbell strategy where you own balanced portions of both. Either way, your portfolio is missing out on a critical piece of the economy. There are companies that are small enough not to be included in the S&P 500, while being big enough that mid-cap ETFs miss them. SCHX can cover this gap somewhat."

"The most surprising aspect of SCHX is that it has been neck and neck with the S&P 500 for as far as you can go. Since its inception, SCHX has delivered 860% in gains, whereas the S&P 500 has delivered 867%. The top holdings are almost identical to those of the S&P 500, but the weighting at the top is slightly trimmed. The S&P 500 assigns an 8.09% weight to while SHCX assigns 7.75% and shifts the difference to those extra stocks at the bottom."

"When you have two ETFs that are identical in terms of performance and also in dividends, what you need to look at is liquidity and expense ratios. The size of the ETF should be enough of a barometer to judge liquidity. Here, the has $768.7 billi"

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