SCHA Profile
The Schwab U.S. Small-Cap ETF aims to provide investment results that closely correspond to the performance of the Dow Jones U.S. Small-Cap Total Stock Market Index. This index is a comprehensive benchmark that captures the performance of small-cap U.S. stocks, specifically those ranked 751 to 2500 by full market capitalization. As a float-adjusted market capitalization weighted index, it gives more weight to companies with larger market capitalizations within this small-cap segment, while still including a broad range of smaller companies.
The fund primarily invests in stocks that are part of this index, ensuring that at least 90% of its net assets are allocated to these small-cap equities. The small-cap segment of the market typically represents companies with market capitalizations ranging from approximately $300 million to $2 billion. These companies are often characterized by their potential for higher growth compared to larger, more established firms, though they may also exhibit greater volatility.
The Schwab U.S. Small-Cap ETF provides investors with exposure to a diverse array of small-cap U.S. stocks across various sectors, including technology, healthcare, consumer discretionary, and industrials. By tracking the Dow Jones U.S. Small-Cap Total Stock Market Index, the fund offers investors a way to participate in the growth potential of smaller companies that are not included in the large-cap indices, such as the S&P 500 or the Dow Jones Industrial Average.
This ETF is designed for investors seeking to diversify their portfolios with small-cap exposure, which can be an important component in achieving long-term growth. Its focus on small-cap stocks aligns with a strategy of capturing the performance of a segment of the market that has the potential for significant capital appreciation. The Schwab U.S. Small-Cap ETF is a non-diversified fund, concentrating its investments in a specific segment of the equity market, which can lead to higher risk and return potential.
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