Schwab U.S. Mid-Cap ETF (SCHM)

Overview

The Schwab U.S. Mid-Cap ETF (SCHM) seeks to track the total return of the Dow Jones U.S. Mid-Cap Total Stock Market Index. It offers broad exposure to mid-sized U.S. companies, providing diversification across sectors and industries. The ETF utilizes a passive investment strategy, aiming to replicate the index's performance before fees and expenses.

Reputation and Reliability

Schwab is a well-established and reputable financial institution with a long track record in the investment management industry.

Management Expertise

Schwab has a team of experienced investment professionals managing its ETF offerings, leveraging their expertise in index tracking and portfolio management.

Goal

To track the total return of the Dow Jones U.S. Mid-Cap Total Stock Market Index.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, attempting to replicate the performance of the Dow Jones U.S. Mid-Cap Total Stock Market Index.

Composition The ETF primarily holds stocks of mid-sized U.S. companies across various sectors.

Market Share: SCHM holds a significant market share within the mid-cap ETF segment.

Total Net Assets (AUM): 17800000000

Key Competitors

• IJH
• VO
• IWR

Competitive Landscape

The mid-cap ETF market is competitive, with SCHM vying for market share alongside major players like iShares and Vanguard. SCHM's low expense ratio provides a competitive advantage, while competitors may have greater AUM and liquidity.

Historical Performance: Past performance is not indicative of future results; however, SCHM has generally tracked its benchmark index closely.

Benchmark Comparison: SCHM's performance closely mirrors that of the Dow Jones U.S. Mid-Cap Total Stock Market Index.

Expense Ratio: 0.04

Average Trading Volume

SCHM exhibits good liquidity with a healthy average daily trading volume.

Bid-Ask Spread

The bid-ask spread for SCHM is generally tight, reflecting its liquidity and tradability.

Market Environment Factors

Economic growth, interest rate changes, and sector-specific trends influence SCHM's performance.

Growth Trajectory

SCHM's growth is tied to the performance of mid-cap U.S. equities, and its holdings are adjusted periodically to reflect index changes.

Competitive Edge

SCHM's primary competitive advantage lies in its exceptionally low expense ratio, making it an attractive option for cost-conscious investors. Its passive management style aims to replicate index performance effectively. While some competitors have larger AUM, SCHM's low cost is a strong selling point. This makes it a compelling choice for investors seeking broad mid-cap exposure at a minimal cost.

Volatility

SCHM's volatility is typical of mid-cap equity investments, which can be more volatile than large-cap stocks.

Market Risk

SCHM is subject to market risk, meaning its value can decline due to broader market downturns or economic factors.

Ideal Investor Profile

SCHM is suited for investors seeking broad exposure to the U.S. mid-cap equity market for diversification purposes.

Market Risk

SCHM is generally suitable for long-term investors seeking passive exposure to mid-cap stocks as part of a diversified portfolio.

Schwab U.S. Mid-Cap ETF (SCHM) is a low-cost, passively managed ETF tracking the Dow Jones U.S. Mid-Cap Total Stock Market Index. It offers broad exposure to mid-sized U.S. companies. Its low expense ratio and diversification make it an appealing option for investors seeking efficient access to the mid-cap market. However, SCHM is subject to market volatility and risks associated with mid-cap equities.

Data Sources:

• Schwab Asset Management
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Market data is subject to change.