How do the fees for SCHA and SCHB compare, and what does that mean for investors?

Both SCHA and SCHB have a 0.03% expense ratio, so their fees are identical. The expense ratio is the annual cost investors pay as a percentage of their investment. This low cost helps keep more of your money working for you over time. When comparing funds, a lower expense ratio is generally beneficial, as it can lead to higher net returns over the long term.

What is the difference between a small-cap focus and a broad market focus?

A small-cap focus means investing in companies with smaller market capitalisations. These companies often have higher growth potential but come with greater risk and volatility. A broad market focus aims to replicate the entire U.S. equity market, providing diversified exposure to large, medium, and small companies. It's a more diversified approach than focusing on one particular size of company.

How do the dividend yields for SCHA and SCHB compare?

As of the provided data, SCHA has a dividend yield of 1.06%, while SCHB has a dividend yield of 1.01%. These yields are quite similar and relatively low. Dividend yield indicates the annual income generated by the fund relative to its share price. It is a factor for income-oriented investors but is just one of several things to consider.

How do ETFs like SCHA and SCHB distribute dividends?

ETFs like SCHA and SCHB can distribute dividends to investors. These funds collect dividends from the underlying stocks they hold. Periodically, typically quarterly, the ETF passes these dividends along to its shareholders. Investors can choose to receive these distributions as cash or reinvest them to buy more shares of the ETF, depending on their preference and their brokerage account settings.

What is the overlap in top holdings between SCHA and SCHB?

There is no overlap in the top ten holdings of SCHA and SCHB. SCHA's top ten holdings are SNDK, LITE, RVMD, ATI, GH, CDE, MTSI, SMTC, MKSI, and STRL. In contrast, SCHB's top ten holdings include major large-cap tech companies such as NVDA, AAPL, MSFT, AMZN, GOOGL, AVGO, GOOG, META, MU, and TSLA. This reflects their different investment strategies.

What is the net asset size of SCHA and SCHB, and why does it matter?

SCHA has net assets of $25.5 billion, while SCHB has net assets of $44.4 billion. Both are substantial asset sizes, which typically indicates good liquidity. Liquidity refers to how easily investors can buy or sell shares without significantly affecting the price. Larger funds often have tighter bid-ask spreads, meaning you can trade them more easily. It's a factor for investors to consider.

When were SCHA and SCHB established, and how long have they been operating?

Both SCHA and SCHB were established on November 3, 2009. This means they have both been operating for approximately the same amount of time. A longer history allows investors to evaluate their performance over various market cycles. This track record provides more data points to assess how the funds have behaved historically, although past performance is not indicative of future results.

What kind of investing goals is SCHA typically associated with?

SCHA, a Schwab US Small-Cap ETF, is typically associated with investors seeking exposure to the small-cap segment of the U.S. equity market. Small-cap stocks may offer higher growth potential compared to large-cap stocks, but also come with increased volatility and risk. Investors might consider this fund for diversification within their equity portfolio, but should understand the inherent risks of small-cap investing.

What kind of investing goals is SCHB typically associated with?

SCHB, the U.S Broad Market Schwab ETF, is typically associated with investors seeking comprehensive exposure to the entire U.S. equity market. This broad market approach aims to replicate the performance of a large number of companies across various sectors and market capitalisations. It's designed to provide a core holding for a diversified portfolio, capturing the overall performance of the U.S. stock market.

Why might a beginner investor be confused by the term 'sector weights'?

Sector weights are not available for SCHA or SCHB. Sector weights show the percentage of a fund invested in different sectors of the economy (e.g., technology, healthcare). Beginners might be confused because these weights help understand a fund's exposure and risk. Knowing sector weights is crucial for assessing diversification and ensuring a fund's composition aligns with an investor's overall portfolio strategy and risk tolerance.

What does it mean when an ETF's index tracking is 'not available'?

For SCHA and SCHB, the index tracked is not available. Index tracking refers to replicating the performance of a specific stock market index (like the S&P 500). When it's not available, investors might not know exactly how the fund is managed to replicate a benchmark. This can make it harder to understand the fund's methodology and how closely it aligns with a particular index, potentially impacting transparency.

How might a beginner understand concentration risk in ETFs?

Concentration risk refers to the risk arising from a large portion of a fund's assets being invested in a small number of securities. If these securities perform poorly, it can significantly impact the fund's overall performance. While SCHA's top holding is SNDK at 5.18%, and SCHB's top holding is NVDA at 7.21%, both exhibit some concentration risk. Understanding this helps investors assess the potential impact of poor performance in their top holdings.

SCHA vs SCHB

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare Schwab US Small-Cap ETF (SCHA) and U.S Broad Market Schwab (SCHB). This page examines fees, holdings, dividends and how each fund tracks its market. Both are Schwab funds with a 0.03% expense ratio, yet they target distinct investment styles: SCHA focuses on small-cap equities, while SCHB aims for broad U.S. market exposure. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SCHA

Metric

SCHB

0.03%

Expense Ratio

0.03%

1.06%

Dividend Yield

1.01%

$25.48B

Net Assets

$44.42B

1,704

Holdings

2,380

Nov 3, 2009

Inception Date

Nov 3, 2009

–

Index Tracked

–

Small Blend

Fund Category

Large Blend

Both funds charge the same annual fee.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

SCHA

Pros

Very low expense ratio supports cost efficiency
Large assets provide liquidity benefits for trading
Long history offers a track record for evaluation

Considerations

Top holdings reveal significant concentration risk
Index tracking methodology details are currently unavailable
Specific sector weight information is not disclosed

SCHB

Pros

Ultra-low fee structure minimises ongoing investor costs
Substantial net assets indicate deep market liquidity
Over a decade of operation provides historical data

Considerations

Top holdings show heavy weighting towards large firms
Lack of transparency regarding the specific index tracked
Sector weight distribution details are not provided

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About SCHA and SCHB

SCHA (SCHA)

Schwab US Small‑Cap ETF (SCHA) offers broad exposure to US small-capitalisation companies through a low-cost, market‑weighted fund managed by Charles Schwab. It seeks to track a small‑cap index, providing diversified access to hundreds of smaller US-listed firms across sectors. Investors often use SCHA to complement large‑cap holdings, potentially enhancing long‑term growth and diversification, though small caps can be more volatile and sensitive to economic cycles. As an ETF, SCHA trades like a stock on exchanges, making it easy to buy or sell during market hours. It typically has a low expense ratio, but investors should also consider bid‑ask spreads, tracking error, and tax implications. This is general educational information and not personalised advice; returns are not guaranteed and the value of an investment can fall as well as rise. Suitability will depend on an individual’s goals, risk tolerance and investment horizon.

SCHB (SCHB)

SCHB (Schwab U.S. Broad Market ETF) offers investors broad exposure to the US equity market by tracking a wide-capitalisation index of US-listed companies. It is structured as an exchange-traded fund from Charles Schwab and aims to capture the performance of the overall US stock market rather than just large-cap names. Investors should know it provides diversified single-ticket access to many sectors, can be used as a core equity holding, and typically has the trading flexibility of an ETF. As with all equity investments, values can rise and fall and past performance is no guarantee of future returns. This information is educational and not personal investment advice; check the fund’s prospectus and current factsheets for up-to-date details on holdings, fees, distributions and risks before making decisions.

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SCHA vs SCHB

Fund Snapshot