SCHX Vs. VOO: What's Different And Should You Care?

Summary

  • The Schwab U.S. Large-Cap ETF tracks a market-cap-weighted index of the 750 largest US companies.
  • It offers an alternative for investors in addition to typical S&P 500 funds such as the Vanguard S&P 500 ETF.
  • This article will perform a detailed comparison of these funds in terms of their indexing methods, performances, risks, dividends, and potential returns.
  • You will see that in the end, our conclusion is that they are essentially exchangeable funds and both can serve as core funds for the large-cap space.
  • This idea was discussed in more depth with members of my private investing community, Envision Early Retirement. Learn More »
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Thesis

After a long bull run, recent market corrections have brought an attractive entry opportunity to the equity market. In particular, large caps had been trading at a lofty valuation with a Shiller CAPE around 38.5x during 2021 and early

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This article was written by

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Sensor Unlimited is an economist by training with a PhD, with a focus on financial economics. She is a quantitative modeler and for the past decade she has been covering the mortgage market, commercial market, and the banking industry. She writes about asset allocation and ETFs, particularly those related to the overall market, bonds, banking and financial sectors, and housing markets.

Sensor Unlimited contributes to the investing group Envision Early Retirement which is led by Sensor Unlimited. They offer proven solutions to generate both high income and high growth with isolated risks through dynamic asset allocation. Features include: two model portfolios - one for short-term survival/withdrawal and one for aggressive long-term growth, direct access via chat to discuss ideas, monthly updates on all holdings, tax discussions, and ticker critiques by request. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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SCHX
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