SCHM Profile
The Schwab U.S. Mid-Cap ETF is designed to offer investors exposure to a diversified portfolio of mid-cap U.S. stocks, tracking the performance of the mid-cap segment of the Dow Jones U.S. Total Stock Market Index. This index includes companies ranked 501 to 1000 based on full market capitalization, capturing a broad spectrum of mid-sized firms across various sectors. The fund focuses on providing a representative cross-section of this market segment, reflecting the performance and characteristics of mid-cap equities in the U.S.
The Dow Jones U.S. Mid-Cap Total Stock Market Index, which the fund follows, employs a float-adjusted market capitalization weighting methodology. This approach ensures that the index and, consequently, the ETF are weighted according to the market value of the constituent stocks that are available for trading. By investing in this index, the fund gains exposure to companies that are typically in a growth phase, offering potential for capital appreciation and participation in the broader market's economic expansion.
In adherence to its investment strategy, the Schwab U.S. Mid-Cap ETF commits to investing at least 90% of its net assets in the securities that comprise the index. This investment policy ensures that the fund remains closely aligned with the index's performance, maintaining its focus on mid-cap stocks and achieving broad market representation within this segment. By mirroring the index's holdings, the fund aims to deliver performance that reflects the overall behavior of mid-cap equities.
The ETF's strategy provides investors with exposure to mid-cap companies, which are often characterized by their growth potential and relative stability compared to smaller, more volatile stocks. The fund’s diversified approach within the mid-cap space helps mitigate individual stock risk while capturing the benefits of the broader mid-cap market segment. The Schwab U.S. Mid-Cap ETF is suitable for investors seeking to diversify their portfolios with a focus on mid-sized U.S. companies and potential growth opportunities.
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