SCHX: A Bellwether Portfolio With A Razor-Thin Expense Ratio

Summary

• SCHX is a $34.4 billion fund that is supposed to track the performance of 750 public U.S. bellwethers.
• The fund has a razor-thin expense ratio, relatively low risk, and robust asset flows.
• As a U.S. large-cap play, SCHX scores poorly against value indicators, with the growth metrics of its holdings being noticeably stronger. Quality is almost perfect.
• Investors might consider SCHX as a solid substitution to IVV, SPY, VOO, or even ITOT given large holdings overlap, similar factor exposure, nearly identical returns.

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Using the Seeking Alpha ETF screener, investors can find a plethora of funds that are supposed to provide exposure to the top companies in the United States, with risks and rewards inherent to that elite echelon.

Schwab U.S. Large-Cap ETF

Analyst’s Disclosure:I/we have a beneficial long position in the shares of XOM either through stock ownership, options, or other derivatives. 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.