5 Top Schwab ETFs to Watch in 2025: as we look ahead to 2025, exchange-traded funds (ETFs) continue to be a popular investment choice for both individual and institutional investors.
Investment Focus
Latest ETF analysis: the Schwab U.S. Large-Cap Growth ETF (SCHG) is designed to provide exposure to large-cap growth stocks in the U.S. market. This ETF primarily invests in companies that are expected to grow at an above-average rate compared to their peers. The fund focuses on sectors that typically exhibit high growth potential, particularly technology.
Key Holdings
SCHG's top three holdings are:
Apple Inc. (AAPL)
Microsoft Corp. (MSFT)
Nvidia Corp. (NVDA)
These companies are leaders in their respective industries and significantly impact the ETF's overall performance. The fund's top 10 holdings account for approximately 55% of its total assets.
Performance Metrics
Over the past five years, SCHG has more than doubled in value, registering an impressive annualized return of about 20.2%. This strong performance is largely attributed to the robust growth of its top holdings, especially in the technology sector, which comprises 49% of the ETF's assets.
Expense Ratio and Yield
SCHG has a low expense ratio of 0.04%, meaning investors pay only $4 annually for every $10,000 invested. Additionally, the ETF offers a 30-day SEC yield of 0.4%, providing a modest income stream in addition to capital appreciation.
Investment Focus
The Schwab U.S. Large-Cap ETF (SCHX) aims to provide broad exposure to large-cap U.S. stocks. This ETF tracks the performance of the Dow Jones U.S. Large-Cap Total Stock Market Index, which includes a diverse range of companies across various sectors.
Key Holdings
SCHX includes 754 holdings, with its top 10 stocks making up about 33% of the portfolio. This diversification helps mitigate risk while still capturing growth potential.
Performance Metrics
Over the past five years, SCHX has achieved an annualized return of approximately 16.5%. While this is slightly lower than SCHG, it still reflects solid performance in the large-cap space. The fund's focus on diversified holdings provides a more stable investment option.
Expense Ratio and Yield
SCHX has an even lower expense ratio of 0.03% and a 30-day SEC yield of 1.2%. This cost efficiency, combined with its diversified portfolio, makes SCHX an attractive option for long-term investors.
Investment Focus
The Schwab 1000 Index ETF (SCHK) is designed to track the performance of the 1,000 largest U.S. stocks by market capitalization. This ETF provides a balanced approach to investing in both growth and value stocks.
Key Holdings
SCHK’s top holdings include some of the most recognizable names in the U.S. market, including the "Magnificent Seven" stocks. The top 10 holdings represent about 31% of the fund’s total assets, providing significant exposure to leading companies.
Performance Metrics
The five-year annualized return for SCHK is approximately 16.3%. This performance reflects the ETF's balanced approach and its ability to capture growth across various sectors.
Expense Ratio and Yield
SCHK has a 0.05% expense ratio and a 30-day SEC yield of 1.2%. This combination of low costs and strong performance makes it an appealing option for investors seeking broad market exposure.
Investment Focus
The Schwab U.S. Broad Market ETF (SCHB) offers comprehensive exposure to the entire U.S. stock market, including small-, mid-, and large-cap stocks. This ETF aims to track the performance of the Dow Jones U.S. Broad Stock Market Index.
Key Holdings
SCHB includes approximately 2,400 stocks, providing extensive diversification. The top 10 holdings still include some of the "Magnificent Seven," but they represent only about 30% of total assets, making SCHB less concentrated than some of its counterparts.
Performance Metrics
Over the past five years, SCHB has produced an annualized return of about 16.1%. This performance is on par with its peers, reflecting its ability to capture growth across the entire U.S. stock market.
Expense Ratio and Yield
With a low expense ratio of 0.03% and a 30-day SEC yield of 1.2%, SCHB is a cost-effective option for investors looking for broad market exposure without excessive fees.
Investment Focus
The Schwab U.S. REIT ETF (SCHH) focuses on real estate investment trusts (REITs), which are companies that own, operate, or finance income-producing real estate. This ETF provides investors with exposure to the real estate sector, offering a different investment avenue compared to equity-focused ETFs.
Key Holdings
SCHH includes 123 holdings, with its top 10 holdings accounting for 47% of the fund's total assets. This concentration allows investors to benefit from the income-generating potential of leading REITs.
Performance Metrics
Over the past five years, SCHH has produced a modest annualized return of approximately 3.6%. While this is lower than the other Schwab ETFs discussed, it provides stability and income through dividends.
Expense Ratio and Yield
SCHH has a slightly higher expense ratio of 0.07% and a notable 30-day SEC yield of 3.8%. This yield can be particularly appealing for income-seeking investors looking for cash flow in addition to capital appreciation.
The Schwab ETFs—SCHG, SCHX, SCHK, SCHB, and SCHH—offer a variety of investment strategies that cater to different investor preferences.
SCHG focuses on large-cap growth stocks and has delivered impressive returns with a low expense ratio.
SCHX provides broad exposure to large-cap stocks with a slightly lower performance but greater diversification.
SCHK offers a balanced approach by tracking the largest U.S. stocks, allowing investors to capture both growth and value.
SCHB gives comprehensive market exposure, making it a solid choice for those wanting to invest across the entire U.S. stock market.
SCHH focuses on REITs, appealing to income-seeking investors looking for cash flow.
Each of these ETFs has its strengths, and the best choice will depend on individual investment goals and risk tolerance. As we move forward into 2025, Schwab’s diverse ETF offerings remain a compelling option for building a well-rounded investment portfolio.
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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.
