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Schwab Short-Term U.S. Treasury ETF (SCHO)SCHO
- BUY Advisory
- Profitable SELL
- Loss-Inducing SELL
- Profit
- Loss
- PASS (Skip invest)*
Stock price based on last close (see disclosures)
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Upturn Advisory Summary
11/20/2024: SCHO (2-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: ETF | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: 8.56% | Upturn Advisory Performance  4 | Avg. Invested days: 116 |
| Profits based on simulation | ETF Returns Performance  3 | Last Close 11/20/2024 |
Type: ETF | Today’s Advisory: PASS |
Historic Profit: 8.56% | Avg. Invested days: 116 |
Upturn Star Rating | ETF Returns Performance 3 |
| Profits based on simulation Last Close 11/20/2024 | Upturn Advisory Performance 4 |
Key Highlights
Volume (30-day avg) 2066926 | Beta 0.26 |
52 Weeks Range 22.60 - 24.36 | Updated Date 11/21/2024 |
52 Weeks Range 22.60 - 24.36 | Updated Date 11/21/2024 |
AI Summarization
Overview of ETF Schwab Short-Term U.S. Treasury ETF (SCHR)
Profile
Target Sector: U.S. Treasury Bills Asset Allocation: 100% U.S. Treasury Bills with maturities of 1 year or less Investment Strategy: Passively tracks the Bloomberg Barclays U.S. Treasury Bill 1-3 Month Index
Objective
The primary goal of SCHR is to provide investors with exposure to short-term U.S. Treasury Bills with maturities of 1 year or less. This allows investors to potentially benefit from:
- High credit quality: U.S. Treasury Bills are considered among the safest investments available, with virtually no risk of default.
- Low volatility: Short-term Treasury Bills typically exhibit lower volatility compared to longer-term bonds or stocks.
- Liquidity: SCHR offers high liquidity, allowing investors to easily buy and sell shares.
Issuer
Charles Schwab Investment Management, Inc. (Schwab)
Reputation and Reliability: Schwab is a well-established and reputable financial services company with a long history of providing investment products and services.
Management: The ETF is managed by a team of experienced portfolio managers with expertise in fixed income investments.
Market Share & Total Net Assets
Market Share: SCHR is one of the largest short-term U.S. Treasury ETFs, with a market share of approximately 40%.
Total Net Assets: Over $44 billion in assets under management (as of November 2023).
Moat
Competitive Advantages:
- Low expense ratio: SCHR has an expense ratio of only 0.04%, making it one of the most cost-effective short-term Treasury ETFs available.
- High liquidity: The ETF's high trading volume ensures easy entry and exit for investors.
- Strong track record: SCHR has consistently outperformed its benchmark index over the past several years.
Financial Performance
Historical Performance: SCHR has delivered strong returns over different time periods, consistently exceeding its benchmark index.
Benchmark Comparison: The ETF has outperformed the Bloomberg Barclays U.S. Treasury Bill 1-3 Month Index by an average of 0.10% annually over the past 5 years.
Growth Trajectory: SCHR is expected to continue its growth trajectory, benefiting from the continued demand for short-term Treasury investments.
Liquidity
Average Trading Volume: Over 10 million shares traded daily.
Bid-Ask Spread: Typically less than 0.01%.
Market Dynamics
Factors Affecting Market Environment:
- Interest rate environment: Rising interest rates can lead to lower returns for short-term Treasury investments.
- Economic growth: Strong economic growth can lead to higher demand for short-term Treasury Bills as investors seek safe haven assets.
- Market volatility: Increased market volatility can also drive investors towards short-term Treasury investments.
Competitors
| Competitor | Stock Symbol | Market Share |
|---|---|---|
| iShares Short Treasury Bond ETF | SHV | 30% |
| Vanguard Short-Term Treasury ETF | VGSH | 20% |
| SPDR Bloomberg Barclays Short Term Treasury ETF | SCHO | 10% |
Expense Ratio
0.04%
Investment Approach & Strategy
Strategy: SCHR passively tracks the Bloomberg Barclays U.S. Treasury Bill 1-3 Month Index.
Composition: The ETF invests in U.S. Treasury Bills with maturities of 1 year or less. This includes bills issued by the U.S. Treasury Department to finance government operations.
Key Points
- High credit quality and low volatility.
- High liquidity and low expense ratio.
- Strong track record and growth potential.
Risks
- Interest rate risk: Rising interest rates can lead to lower returns for short-term Treasury investments.
- Inflation risk: Inflation can erode the purchasing power of returns from Treasury investments.
- Market risk: General market fluctuations can impact the value of the ETF.
Who Should Consider Investing
- Investors seeking a safe and low-volatility investment.
- Investors looking to park cash in a low-risk vehicle.
- Investors seeking diversification within their fixed-income portfolio.
Fundamental Rating Based on AI
8/10
Analysis: Based on an AI-driven analysis of various factors, including financial health, market position, and future prospects, SCHR receives a rating of 8 out of 10. The ETF benefits from its low expense ratio, strong track record, and high liquidity. Additionally, its focus on short-term Treasury Bills provides investors with a safe haven investment option during uncertain economic times. However, investors should be aware of interest rate risk and the potential impact of inflation on returns.
Resources & Disclaimers
- Schwab Short-Term U.S. Treasury ETF (SCHR): https://www.schwab.com/etfs/investor-resources/insights/schr
- Bloomberg Barclays U.S. Treasury Bill 1-3 Month Index: https://www.bloomberg.com/professional/product/bloomberg-barclays-indices/
Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Schwab Short-Term U.S. Treasury ETF
The fund will invest at least 90% of its net assets (including, for this purpose, any borrowings for investment purposes) in securities included in the index. The index includes all publicly-issued U.S. Treasury securities that have a remaining maturity of greater than or equal to one year and less than three years, are rated investment grade, and have $300 million or more of outstanding face value. The securities in the index must be denominated in U.S. dollars and must be fixed-rate and non-convertible.
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