Top Schwab ETFs for a Diversified Portfolio

Schwab offers a wide range of ETFs that can help you build a diversified portfolio. Their ETFs cover various asset classes, including domestic and international stocks, bonds, and commodities.

Investing in a mix of these ETFs can help reduce risk and increase potential returns. For example, Schwab's ETFs in the US stock market, such as the Schwab U.S. Broad Market ETF (SCHB), track the entire US stock market.

You can also consider Schwab's international stock ETFs, like the Schwab International Equity ETF (SCHF), which provides exposure to developed and emerging markets. These ETFs can help you tap into growth opportunities abroad.

The top Schwab ETFs are a diverse group, but some standout performers have caught our attention. The Schwab U.S. Large-Cap Growth ETF (SCHG) is one of them, up 14% year-to-date.

SCHG is built to mirror the Dow Jones U.S. Large-Cap Growth Total Stock Market Index, focusing on growth stocks and holding a significant portion of its assets in tech giants like Microsoft and Apple. Its total expense ratio is a tiny 0.04%.

The Schwab Fundamental U.S. Broad Market Index ETF (FNDB) is another top performer, with a market-beating performance of about 1.5% to 2% per year. This approach involves regularly increasing the weighting of underperforming holdings, effectively implementing an automated "buy low, sell high" strategy.

Here are some key statistics for the top Schwab ETFs:

These low-cost ETFs are accessible to investors, offering a range of benefits that can help investors achieve their long-term goals.

The Schwab U.S. Large-Cap Growth ETF (SCHG) is a top choice among Schwab ETFs, up 14% year-to-date.

Its largest holdings include Apple, Amazon, and Facebook, making up 13.6% of the fund's weight.

This ETF is typical of many growth ETFs, featuring large weights to the technology and consumer discretionary sectors, which combine to make up nearly half the fund's assets.

Fees make a difference, as SCHG is up 36.2% over the past three years, compared to 35.9% for the competing Vanguard ETF, which charges 0.06% per year.

As a Schwab client, you can trade this ETF commission-free.

Microsoft alone accounts for over 12% of the index's value in the Schwab U.S. Large-Cap Growth ETF, while Apple makes up nearly 10% of the index.

This fund is decidedly overweighted with the market's most proven growth names.

You can buy and hold this ETF for next to nothing, with a total expense ratio of 0.04%.

The top Schwab ETFs are an eclectic group with funds from different classifications and focuses.

Schwab's top ETFs by assets under management (AUM) are a great place to start.

The top 3 Schwab ETFs by AUM are an interesting mix of funds.

The Schwab U.S. Broad Market ETF (SCHB) is one of the top performers, with over $25 billion in AUM.

The Schwab U.S. TIPS ETF (SCHP) is another top fund, with over $10 billion in AUM.

The Schwab International Equity ETF (SCHF) rounds out the top 3, with over $5 billion in AUM.

The Schwab Fundamental U.S. Broad Market Index ETF is a great option for investors looking for a broad market exposure. It tracks the RAFI Fundamental High Liquidity U.S. All Index and has a management expense ratio of only 0.25%. This ETF uses an automated "buy low, sell high" strategy that has resulted in a market-beating performance of about 1.5% to 2% per year.

Another great option is the Schwab 1000 Index ETF, which tracks the Russell 1000 Index and has a low expense ratio of 0.05%. This ETF provides exposure to large-cap stocks, mid-caps, and a small amount of small-cap stocks. It's a good choice for investors who want to avoid small-cap stocks in a volatile environment.

The Schwab Broad Market ETF is also worth considering. It tracks the Dow Jones U.S. Broad Stock Market Index, which includes over 2,050 stocks. This ETF has a low expense ratio of 0.03% and allows investors to buy the total stock market inexpensively.

Here are some key statistics for these ETFs:

The Schwab U.S. Broad Market ETF is another option that tracks the Dow Jones U.S. Broad Stock Market Index and has a low expense ratio of 0.03%. This ETF allows investors to buy the total stock market inexpensively and has a balance of stocks from various sectors and cap groups.

The Schwab U.S. Large-Cap Growth ETF is a good choice for investors who want to focus on growth stocks. It tracks the Dow Jones U.S. Large-Cap Growth Total Stock Market Index and has a total expense ratio of 0.04%. This ETF is distinctly different from the Schwab Fundamental U.S. Broad Market Index ETF, as it only holds growth stocks and is overweighted with the market's most proven growth names.

The Schwab Emerging Markets Equity ETF is a good option for investors who want to diversify their portfolio with emerging markets stocks. It tracks the FTSE Emerging Index and has a low expense ratio of 0.11%. This ETF owns a wide basket of nearly 1,650 stocks from countries including China, Taiwan, and India.

Value is a style of investing that focuses on underappreciated shares. It's a good idea to stick with value in 2022, especially if you're looking to benefit from potentially above-trend economic growth.

Many strategists, including LPL Financial, recommend value over growth in 2022. They say rising interest rates and higher inflation are conditions that have historically been favorable to value-style stock performance.

The Schwab U.S. Large-Cap Value ETF (SCHV) is a great way to gain broad exposure to large domestic shares. It's one of the cheapest ways to do so, with an expense ratio of just 0.04%.

The SCHV tracks the Dow Jones U.S. Large-Cap Value Total Stock Market Index, resulting in a portfolio of roughly 540 holdings. These aren't small companies, with an average market value of $84 billion.

Financials are the top sector in the SCHV, making up 19% of the portfolio. Healthcare and industrials are close behind, at 14% and 13% respectively.

Here are some key stats about the SCHV:

The top holdings in the SCHV include Berkshire Hathaway and JPMorgan Chase, each making up just over 2% of assets.

The Schwab U.S. REIT ETF is a great way to invest in real estate without breaking the bank. It has $6.8 billion in assets under management and a low expense ratio of 0.07%.

Real estate investment trusts (REITs) can be a great investment during inflationary periods because they often maintain pricing power. This means they can charge higher rents and stay profitable even when other sectors struggle.

One of the benefits of REITs is that they are exempt from paying federal income taxes, but they must pay out 90% or more of their profits as dividends. This makes real estate one of the highest-yielding sectors, but it can also be sensitive to interest-rate hikes.

The Schwab U.S. REIT ETF tracks the Dow Jones Equity All REIT Capped Index and owns 140 REITs across various industries. Its top holdings include American Tower, Prologis, and Simon Property Group.

Here are some key facts about the Schwab U.S. REIT ETF:

The ETF is diversified, holding 111 different investments, and has a low expense ratio of 0.07% annually. This makes it a relatively inexpensive way to invest in real estate.

If you're looking to invest in Schwab ETFs, you have several options to consider. Schwab offers a range of ETFs that cover various asset classes, including stocks, bonds, and commodities.

Schwab ETFs are known for their low costs and high trading volumes, making them a popular choice among investors. The Schwab U.S. Broad Market ETF (SCHB) has over $20 billion in assets under management, while the Schwab International Equity ETF (SCHF) has over $10 billion.

Investing in Schwab ETFs can be a straightforward process, especially if you're already familiar with the platform.

The mid-cap space has been a sweet spot for investors, outperforming large-cap stocks in the long run while offering lower market risk compared to small-cap stocks. This is especially true for companies that have reached a certain level of maturity but still have room to grow.

The Schwab U.S. Mid-Cap ETF (SCHM) is a great way to tap into this market, with assets under management of $10.0 billion and a low expense ratio of 0.04%. It tracks the Dow Jones U.S. Mid-Cap Total Stock Market Index, which blends growth and value styles.

Investors can expect a dividend yield of 1.1% from SCHM, making it a relatively stable investment option. The ETF is also diversified, with no single holding making up more than 1% of assets.

The top holdings in SCHM include ON Semiconductor (ON) and Devon Energy (DVN), each weighted at 0.6% of assets. The ETF is heaviest in industrials (17%) and technology (15%), but light on utilities (3%) and energy (3%).

Here's a breakdown of the top sectors in SCHM:

Overall, the mid-cap space offers a compelling investment opportunity, and SCHM is a great way to gain exposure to this market.

Diversified emerging markets can work well as a diversification tool or as an aggressive satellite holding to juice returns in a portfolio.

The Schwab Emerging Markets Equity ETF (SCHE) is a low-cost option that tracks the FTSE Emerging Index, owning a wide basket of nearly 1,650 stocks from countries including China (37%), Taiwan (17%), and India (15%).

The ETF's market cap-weighted index means that mega-caps like Taiwan Semiconductor and Tencent have a significant impact on the fund's performance.

Emerging markets stocks currently look more attractive from a valuation perspective, with an average price-to-earnings (P/E) ratio of 11.7, compared to 13.7 for developed-market stocks and 21.3 for the S&P 500.

China's economic outlook is a wild card, with potential economic slowdowns and regulatory crackdowns that could dent the returns of China-heavy EM funds.

Here are some key facts about the Schwab Emerging Markets Equity ETF:

Note that the economic outlook for emerging markets in 2022 is expected to be "above trend" growth at 3.5% GDP, but this growth may be bumpy due to potential economic slowdowns in China.

Investing in ETFs offers flexibility to shift your money among different asset classes like stocks, commodities, and bonds.

The operating expense ratio (OER) for ETFs is a low 0.05%, which is generally lower than actively managed mutual funds.

You can get instant diversification with ETFs, without having to pick individual stocks.

Schwab ETFs offer commission-free ETF trades, making it even more affordable to invest in the market.

With ETFs, you can choose different asset classes, sectors, and international, regional or market niches to customize your portfolio.

International investing offers a way to diversify your portfolio and potentially increase returns.

Schwab offers a range of international ETFs that allow you to invest in foreign markets with lower fees.

The Schwab International Equity ETF (SCHF) tracks the FTSE Developed ex US Index, which includes developed markets outside the US.

The ETF has a low expense ratio of 0.07% and has been around since 2009.

The Schwab Emerging Markets ETF (SCHB) tracks the FTSE Emerging Index, which includes emerging markets such as China, India, and Brazil.

The ETF has a low expense ratio of 0.07% and has been around since 2009, similar to the Schwab International Equity ETF.

Schwab also offers an ETF that tracks the MSCI EAFE Index, which includes developed markets in Europe, Australia, and the Far East.

The ETF has a low expense ratio of 0.06% and has been around since 2007.

If you're looking for a low-risk investment option, consider Schwab's bond funds, which offer a range of fixed income investments.

Schwab's bond funds have a low minimum investment requirement of $100, making them accessible to investors with smaller portfolios.

These funds track major bond market indexes, such as the Bloomberg Barclays US Aggregate Float Adjusted Index, which provides broad diversification and helps manage risk.

By investing in bond funds, you can potentially earn regular income and diversify your portfolio, reducing your reliance on individual stocks.

The Schwab 1-5 Year Corporate Bond ETF is a great option for those looking for a short-term bond fund with a low interest-rate risk. It has $608.1 million in assets under management.

This ETF tracks the Bloomberg US 1-5 Year Corporate Bond Index and holds more than 2,060 debt issues with an average duration of just 2.8 years. This means a 1-percentage-point increase in interest rates should result in a mere 2.8% drop in the fund's price.

The portfolio is virtually all investment-grade bonds, with 90% split fairly evenly between BBB- and A-rated debt. This provides a relatively safe investment option.

The SEC yield on this ETF is 1.2%, and the expenses are a low 0.05%.

TIPS are a type of inflation-protected bond that automatically increase with inflation and decrease with deflation based on America's consumer price index.

The Schwab U.S. TIPS ETF (SCHP) is a good choice for investors who want to diversify a broader bond portfolio, complementing a core bond holding that might not perform as well in an inflationary environment.

The ETF tracks the Bloomberg US Treasury Inflation-Linked Bond Index and has a tight portfolio of less than 50 TIPS with an effective duration of 7.7 years.

Adding TIPS to a portfolio can help counteract some of the equity risk introduced by overweights to credit, thanks to their low credit risk, which is backed by the full faith and credit of the U.S. government.

Here are some key facts about the Schwab U.S. TIPS ETF:

While TIPS might perform better during inflationary periods, they still carry interest-rate risk, so if the Fed starts hiking rates, the market value of the underlying securities could decline.

The Schwab Tax-Free Bond Fund (SWNTX) is a great choice for investors seeking income that's exempt from federal income tax. It has $795.4 million in assets under management.

This fund invests in approximately 530 investment-grade municipal bonds, which can maintain their price better in a rising-rate environment compared to higher-quality corporate bonds and Treasuries.

The SEC yield of SWNTX is 0.7%, and the expenses are 0.40%. These costs are relatively low compared to other bond funds.

Investors can expect solid economic growth, rising tax revenues, low default rates, and strong technicals to continue supporting municipal bonds in 2022.

The fund's head of municipals, John Miller, predicts that federal stimulus and new infrastructure spending will provide multiyear benefits for state and local governments through increased municipal project funding.

If you're looking for protection from the Fed in 2022, SWNTX is among the best Schwab mutual funds you can buy, thanks to its focus on municipal bonds.

Here are the key facts about the Schwab Tax-Free Bond Fund:

The Schwab ETFs market is highly competitive, with over 400 options available to investors.

Schwab's own ETF offerings have grown significantly, with 70% of their funds being no-fee or low-cost.

Their largest ETF, the Schwab U.S. Broad Market ETF (SCHB), has over $20 billion in assets under management.

This ETF tracks the CRSP US Total Market Index, which covers about 99.5% of the U.S. equity market.

The Schwab U.S. TIPS ETF (SCHP) is another popular choice, offering a way to invest in Treasury Inflation-Protected Securities.

This ETF has a management fee of 0.03%, making it an attractive option for investors seeking low-cost exposure to TIPS.

The Schwab U.S. REIT ETF (SCHH) provides investors with a way to gain exposure to the real estate investment trust (REIT) market.

This ETF has a management fee of 0.07%, which is lower than many other REIT-focused ETFs.

Schwab's ETFs are listed on major exchanges, including the NYSE Arca and NASDAQ, making them easily accessible to investors.

Charles Schwab is an online broker that offers $0 ETF trades for 22 ETFs. You can trade Schwab ETFs with many other brokers.

Charles Schwab offers its own ETFs, but you can also trade them with other online brokers. This is a convenient option for investors who want to diversify their portfolios.

Charles Schwab's $0 ETF trades are available for 22 ETFs, including its own. This can help you save money on trading fees.

You can trade Schwab ETFs with many online brokers, including those that are considered the best for this purpose.