Should Schwab U.S. Small-Cap ETF (SCHA) Be on Your Investing Radar?
The Schwab U.S. Small-Cap ETF (SCHA) was launched on 11/03/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Blend segment of the US equity market.
The fund is sponsored by Charles Schwab. It has amassed assets over $17.11 billion, making it one of the largest ETFs attempting to match the Small Cap Blend segment of the US equity market.
Sitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.58%.
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 18.90% of the portfolio. Industrials and Information Technology round out the top three.
Looking at individual holdings, Duolingo Inc Class A (DUOL) accounts for about 0.56% of total assets, followed by Affirm Holdings Inc Class A (AFRM) and Reddit Inc Class A (RDDT).
The top 10 holdings account for about 3.48% of total assets under management.
SCHA seeks to match the performance of the Dow Jones U.S. Small-Cap Total Stock Market Index before fees and expenses. The Dow Jones U.S. Small-Cap Total Stock Market Index includes the small-cap portion of the Dow Jones U.S. Total Stock Market Index actually available to investors in the marketplace.
The ETF has lost about -3.58% so far this year and is up roughly 6.07% in the last one year (as of 06/09/2025). In the past 52-week period, it has traded between $20.42 and $28.32.
The ETF has a beta of 1.11 and standard deviation of 22.31% for the trailing three-year period, making it a medium risk choice in the space. With about 1718 holdings, it effectively diversifies company-specific risk.
Schwab U.S. Small-Cap ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SCHA is an excellent option for investors seeking exposure to the Style Box - Small Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $62.92 billion in assets, iShares Core S&P Small-Cap ETF has $78.18 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Schwab U.S. Small-Cap ETF (SCHA): ETF Research Reports
iShares Russell 2000 ETF (IWM): ETF Research Reports
iShares Core S&P Small-Cap ETF (IJR): ETF Research Reports
Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report
Duolingo, Inc. (DUOL) : Free Stock Analysis Report
Reddit Inc. (RDDT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNN
7 hours ago
- CNN
Wall Street looks past US deficit concerns for now as investors snap up bonds
Wall Street breathed a sigh of relief Thursday after a key bond auction eased concerns that the US economy might be falling out of favor with investors. Bonds rallied after an auction for US government bonds saw relatively strong demand. The Treasury on Thursday sold $22 billion worth of 30-year bonds. The auction settled with a yield of about 4.84%, signaling solid buying. Standard, boring bond auctions have drawn the attention of investors around the globe. The auctions serve as a gauge of investors' appetite for holding US debt as lawmakers debate President Donald Trump's massive bill, which is set to add to the federal debt burden. All eyes have been on whether there is weak demand for long-term debt, particularly from foreign investors. 'The 30-year auction just went very well,' Chip Hughey, managing director for fixed income at Truist Advisory Services, told CNN. There was relatively strong demand from foreign investors, Hughey said, soothing nerves about whether they might be shunning US bonds. Foreign investors bought about 65.2% of the bonds sold at the auction, according to Treasury Department data, up from 58.9% at the auction in May. Demand from foreign investors was the strongest it has been since January and hovered around the one-year average. Collin Martin, a fixed income strategist at Charles Schwab, told CNN that the uptick suggests foreign demand for long-term US assets remains strong despite concerns about foreign investors potentially selling Treasuries and nerves about the rising deficit likely resulting from Trump's mega bill. 'This was a good confidence boost for those worried about declining demand for US Treasuries,' Martin said. Truist's Hughey said the solid auction results showed that at least for now, investors are not overly panicked about federal budget negotiations in Congress or the deficit. 'Over the long term, our deficits and reliance on debt are going to have to be addressed,' Hughey said. 'For the time being, it is encouraging to see investors still seeking out US Treasuries for their haven assets.' The auction followed a similarly strong auction for 10-year Treasuries on Wednesday. The Treasury auction also came after two inflation reports that showed the effect of tariffs has so far been muted. That increases the likelihood the Federal Reserve can consider cutting interest rates later in the year, which is a signal for investors to buy bonds now to lock in current rates, helping bring down yields. The 30-year yield settled on Thursday around 4.84% and the 10-year yield settled around 4.36%. Both fell across the day as investors snapped up bonds. The 30-year Treasury auction, which is a regularly scheduled event, has become a closely watched barometer for how Wall Street is feeling about the Trump administration's policy agenda. When there is strong demand for bonds, prices rise and yields fall. Vice versa, when there is weak demand for bonds, prices fall and yields rise. Higher yields would squeeze the government with higher borrowing costs. Treasury yields are also benchmark interest rates for the economy, and higher yields can mean higher borrowing costs for consumers on everyday items including auto loans and credit cards. Long-term US debt, which is usually considered the safe, risk-free corner of the market, has come under scrutiny as Trump's bill is set to add to increase federal deficits. 'The idea that the US fiscal position is unsustainable over the long run has been frequently noted for years, but it has taken the current set of circumstances to get market participants to begin pushing back,' John Canavan, lead US analyst at Oxford Economics, said in a Wednesday note. Yields on 30-year Treasury bonds have soared this year as investors have demanded more compensation for what is looking like a riskier long-term loan to the US government. These concerns were exacerbated in May after Moody's downgraded the US, stripping the nation of its last perfect credit rating. 'The Moody's downgrade occurred as the ability to easily finance growing deficits increasingly comes into question,' Canavan said. 'Trump's tariff decisions are likely to raise inflation over the near term, while lowering economic growth and leading foreign investors to question the safe-haven allure of Treasury debt.' In May, the 30-year yield spiked above 5% and hit its highest level since 2023 after a Treasury auction for 20-year bonds that saw weak demand. There is robust demand for shorter-term Treasuries like 10-year bonds, according to Hughey. An auction for 10-year Treasuries on Wednesday saw strong demand from both domestic and global investors. Yet investors in recent weeks had shown hesitancy about longer-duration bonds like the 30-year bond, Hughey said. Investors have been increasingly uncertain about the long-term outlook for the US debt burden, giving them pause about the risk associated with loaning money to the government over a longer period. 'The 30-year reflects the uncertainties around those more structural questions around budget deficits and the US debt load going forward,' Hughey said. Pacific Investment Management Company, a global fixed income firm, said in a Tuesday report that bonds still look relatively attractive and affordable compared to stocks. However, Pimco expects to focus and be 'overweight' to 5- and 10-year bonds, while being less focused and 'underweight' to longer-term bonds. Martin at Charles Schwab said that while concerns about the deficit linger, investors are also assessing factors like inflation and the path of potential Federal Reserve rate cuts. 'We still find yields pretty attractive, and our outlook on the safety of US Treasuries hasn't changed,' Martin said. Elsewhere in markets, US stocks gained on Thursday as investors tried to digest recent trade developments. The United States and China have de-escalated tensions, but Trump's tariffs still remain a headwind to economic growth. The Dow closed higher by 102 points, or 0.24%. The broader S&P 500 rose 0.38% and the tech-heavy Nasdaq Composite gained 0.24%. The S&P 500 is hovering near an all-time high, but had stalled in recent trading sessions and was coming off a day in the red. The benchmark index is about 1.6% away from a record high. The Dow was weighed down by Boeing (BA), which sank 4.79% after a Boeing 787-8 Dreamliner carrying 242 people crashed in India on Thursday. At least 290 people are dead, health officials said. The plane hit a hostel for doctors when it crashed. The US dollar broadly weakened on Thursday as investors wrestle with continued tariff uncertainty. The US dollar index, which measures the dollar's strength against six major foreign currencies, tumbled 0.72% and fell to its lowest level since 2022.
Yahoo
12 hours ago
- Yahoo
6 best investing and trading apps for beginners
It has never been easier to get started investing, thanks to an array of online brokers and robo-advisors that put financial markets in the palm of your hand. The best investing apps for beginners simplify the process of picking stocks and ETFs to help you build an investment portfolio. They provide a clean user experience of what can be a confusing landscape for beginner investors. These six investing apps stand out for providing easy trading, portfolio management services and helpful educational resources. Charles Schwab is one of the best online brokers, and its app has plenty to offer beginners. You'll get low-cost trading, access to fractional share investing (great for those with a limited budget to buy stocks), along with a deep well of research and educational resources that new investors will find useful. Plus, Schwab has some of the best customer support around. Key features Commission-free trades on stocks and ETFs Fractional shares Includes access to watch lists, news and charting functionality Top-notch customer service Robinhood's streamlined mobile app — and commission-free trades on stocks, ETFs, options and crypto — opened up the world of investing for the mobile-first crowd. The platform is easy to use and supports fractional share investing in stocks and ETFs, which makes it popular with beginners, who often start with smaller sums. Key features Commission-free trades on stocks, ETFs, options and crypto App's interface is easy to navigate Trade orders are simple to place Basic stock research pages provide key metrics Though often mentioned in the same breath as Robinhood, Webull offers a more fully-featured mobile app with a comprehensive lineup of features many investors will appreciate. Commission-free trading extends beyond stocks and ETFs to include options. And you can open an account with no minimum deposit. For investors who want to try their hand at trading more exotic fare, Webull also offers futures and crypto, though you'll need to use a separate app (Webull Pay) to trade your favorite coins. Key features Commission-free trades on stocks, ETFs and options 24/5 trading on more than 900 stocks and ETFs Competitive interest rates on cash account Advanced charting tools Fidelity Investments has one of the best financial platforms around and can handle just about anything a typical investor is looking to do. You'll get low-cost trading, access to various retirement accounts, thousands of no-transaction-fee mutual funds and access to its low-cost, highly-rated robo-advisor, Fidelity Go. Fidelity is a great choice for investors looking to keep most of their financial life with one firm. Key features No commissions on stock and ETF trades Many different types of accounts available Research and education on ETFs and mutual funds, along with various personal finance topics Customer support is among the industry's best Betterment is one of the best robo-advisors and is a good fit for investors who want an investment portfolio to be managed automatically. The app builds a portfolio based on your goals and risk tolerance using ETFs. There is a 0.25 percent annual management fee, but it's less than what you'd pay for a traditional financial advisor. And if you have less than $20,000 across all accounts, Betterment will waive the fee if you set up a recurring deposit. Key features Low-cost portfolio management Tax-loss harvesting High-yielding cash management account Access to human advisors at premium tier Wealthfront is another top choice for those looking for a robo-advisor to manage a portfolio, but also a place to serve as command central for your other investing and banking needs. Wealthfront portfolios are built using low-cost ETFs and include features such as tax-loss harvesting and automatic rebalancing for a 0.25 percent annual management fee. Beyond automated portfolio management, it also offers commission-free stock and ETF trading, and a feature-rich cash management account (with checking, bill-pay, fee-free ATM access and more) that earned the top spot in the 2025 Bankrate Awards. Key features Low-cost portfolio managment Tax-loss harvesting Robust cash management account Broad investment offering When choosing which investment app is best for you as someone just getting started, you'll want to think about your primary needs when it comes to investing. Are you looking to trade stocks and ETFs on your own or do you need help building a portfolio? Those looking to trade frequently should pay attention to costs and which securities are available in a given app. If you're looking for help building a portfolio, you'll want to find a robo-advisor to work with. Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation. — Bankrate's Dayana Yochim contributed to an update of this article. Sign in to access your portfolio
Yahoo
21 hours ago
- Yahoo
What the market may have to say about Trump's unilateral tariffs
President Trump stated that he plans to install unilateral tariff rates for trading partners in two weeks. This comes after the administration touted a trade deal with China on Wednesday, including a 55% tariff on Chinese imports, that the two nations' leaders still have to agree upon. Charles Schwab senior investment strategist Kevin Gordon sits down with Brad Smith about how markets (^DJI, ^IXIC, ^GSPC) have been reacting in this tariff saga and how these themes have fed into the economy and GDP figures. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
