SCHA: An Attractive ETF For An Attractive Market Segment

Mar. 30, 2021 7:30 AM ETSchwab U.S. Small-Cap ETF™ (SCHA)SCHA

Summary

  • Small Cap stocks have been on a tear since March 2020, with the outperformance accelerating since the fall.
  • Despite that, many experts, valuation statistics, and economic data point to this trend continuing.
  • Based on research for a prior article and a deeper dive into SCHA, I am Bullish on Small-Cap stocks and this ETF.
Small Cap write on sticky notes isolated on Office Desk. Stock market concept
Photo by syahrir maulana/iStock via Getty Images

Introduction

Leading into the "Panic of 2020," investors focused on Large-Cap, especially Large-Cap Growth stocks, were leaving Small-Cap investors in the dust. Since history back to the early 70s shows a different picture, that of Small-Cap outperformance, the tide should reverse and indeed it has started from

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Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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