ETF Spotlight on Schwab U.S. Broad Market (NYSEARCA:SCHB), part of a weekly series.
Assets: $189 million
Objective: Tracks the Dow Jones U.S. Broad Stock Market Index
Holdings: SCHB includes the 2,500 largest companies in the United States and generally gives the same weight to a stock as the index it tracks does; top holdings include Exxon Mobil (NYSE:XOM), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL) and General Electric (NYSE:GE).
What You Should Know
- SCHB launched on Nov. 3; since then, it’s up 16.7%.
- Year-to-date, it’s up 7.9% and is outpacing the S&P 500, which is up 6.2%.
- SCHB is the most popular fund in Schwab’s lineup.
- It has an expense ratio 0f 0.08%, one of the lowest on any ETF, and can be traded free on Schwab’s platform [Schwab ETFs Hit $1 Billion in Assets.].
- The fund is 42.2% giant-cap companies, 30.3% large-cap, 19.9% mid-cap and 7.5% small-cap.
- The top-weighted sectors are information technology, 18.1%; financial, 17.8%; consumer discretionary, 12.4%; and industrials, 11.7%.
The Latest News
- This fund may be a good option for investors who want to play the U.S. recovery effort, since it has heavy exposure to some sectors that have been on the move in recent months.
- The financial sector may be the most troubled, thanks to the Goldman Sachs (NYSE:GS) charges and the threat of sweeping financial reform.
- Technology has been a post-recession leader; the NASDAQ is the top-performing index, up 16.8% year-to-date. [Tech ETFs Riding High.]
- Consumer discretionary has been getting some new life as consumers feel a little more free to spend; continuing jobs weakness, though, could derail this sector. [Retail ETFs Near Three-Year Highs.]
- The industrial sector has been heating up lately as more orders for aircraft come in, auto sales spike and infrastructure investment continues. [Top ETFs to Play Industrials.]