SCHB Profile
The Schwab U.S. Broad Market ETF is designed to provide investors with comprehensive exposure to the U.S. stock market by tracking the performance of a broad index. The fund primarily invests in a wide array of stocks included in the index, which comprises the largest 2,500 publicly traded companies in the United States. This extensive coverage aims to capture the broad spectrum of the U.S. equity market, including large, mid, and small-cap stocks, ensuring a diversified investment across various sectors and industries.
The index used by the fund represents a significant portion of the U.S. equity market, focusing on companies for which pricing information is readily accessible. This broad representation allows investors to gain exposure to a wide range of market capitalizations and industries, reflecting the overall performance of the U.S. stock market. The ETF typically invests at least 90% of its net assets in the stocks that make up the index, ensuring that its performance closely aligns with the index's returns.
While the fund’s core strategy revolves around investing in the index’s constituent stocks, it retains flexibility to enhance returns and manage risks. Up to 10% of the fund’s net assets may be allocated to securities not included in the index. This allows the fund to potentially capitalize on investment opportunities outside the index while maintaining its broad market exposure.
Through its broad market approach, the Schwab U.S. Broad Market ETF aims to offer investors a diversified and representative exposure to the U.S. equity market. By tracking a comprehensive index and allowing for some flexibility in its investment approach, the fund seeks to provide a cost-effective means of capturing the overall performance of a diverse set of U.S. companies, thereby offering potential growth opportunities across various market segments.
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