SCHX Schwab US Large Cap ETF - A Low Cost Way for Large Cap Exposure
πππThe US markets closed higher on Friday with the S&P500 and the Dow Jones setting record highs. This is due to big boosts from financial stocks after banks reported strong quarterly results while the latest inflation data fueled expectations for a Feds rate cut in November.
$Schwab US Large-Cap ETF(SCHX)$ SCHX is a great low cost way to invest in 2500 of the largest publicly traded US companies. This is especially true since this ETF has just completed a 3 for 1 share split on October 11 2024. At the last closing price of just USD 22.88, this is as cheap as it gets to invest in US Big Caps!
This split does not change the overall value of SCHX but it does change the number of shares that are owned. After a 3 for 1 split, shareholders will now own 3 times as many shares. This means that if a shareholder owns 100 shares, after the split it would now be 300 shares.
As a small investor, this is a great opportunity for me to own the strongest and largest US companies for only USD 22.88 per share. In contrast competing ETFs like $SPDR S&P 500 ETF Trust(SPY)$
The Top 10 holdings include 6 of the Magnificent 7 stocks - Apple, Nvidia, Microsoft, Amazon, Meta Platforms, Alphabet Class A and C, Broadcom, Berkshire Hathaway and Eli Lilly.
Top 10 holdings weightage is 32%. Total number of holdings is 755. The expense ratio is a low 0.03% compared to 0.09% for SPY. Dividends are paid every 3 months. The current dividend yield 1.22%.
SCHX tracks the Dow Jones US Large Cap Total Stock Market Index. SCHX's sector allocation is heavily skewed towards Information Technology sector with Big Tech Giants Apple, Nvidia, Microsoft, Amazon and Alphabet accounting for 22% of SCHX's total portfolio.
Other significant sector exposures include Financial at 13%, Healthcare at 12%, Consumer Discretionary at 10%, Industrials at 9%. The rest of the sectors which are Communication Services, Consumer Staples, Energy, Real Estate, Materials and Utilities make up the rest of the portfolio. Over 70% of SCHX is in stocks with a market cap greater than USD 70 billion.
SCHX boasts a broader number of stocks with 755 holdings compared to SPY's 500, reducing the risk associated with investing in individual stocks.
I have just started to invest in SCHX on Friday after the share split as I believe that this widely diversified ETF has lots of exponential growth ahead.
Wall Street Analysts' consensus is a Buy, based on the ratings of 753 analysts surveyed by Tipranks.
I shall be dollar cost averaging into SCHX as it is certainly an excellent, low cost way to get exposure to Large Cap US stocks.
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- Kiwi_GΒ·10-13TOPNice article. Iβm in. Im also setting up another ETF for my sons to invest in.. they DCA into VOOG, would this Dow Jones SCHX be a second broader option or could some defensive value stock / etf / index be a more diversified appro6axh? Any suggestions? :)1Report
- Taurus PinkΒ·10-14TOP[ιΎη] [ιΎη] [ιΎη]2Report
- KSRΒ·10-14π2Report
- zumaΒ·10-14thx1Report