SCHV Profile
The Schwab U.S. Large-Cap Value ETF seeks to provide investment returns that closely correspond to the performance of the Dow Jones U.S. Large-Cap Value Total Stock Market Index. The fund focuses on investing in large-cap stocks that are identified as value stocks within this index, which is a subset of the broader Dow Jones U.S. Total Stock Market Index. This index is designed to capture the performance of large-cap value stocks, which are typically characterized by lower price-to-earnings ratios and higher dividend yields relative to their peers.
The Dow Jones U.S. Large-Cap Value Total Stock Market Index comprises companies ranked from 1 to 750 by full market capitalization and are classified as value stocks. This classification is based on fundamental metrics such as earnings, book value, and dividends, aiming to identify stocks that are undervalued relative to their intrinsic worth. The fund's investment strategy involves allocating its assets predominantly to stocks within this index, reflecting its focus on large-cap companies with attractive valuation characteristics.
To achieve its investment objective, the Schwab U.S. Large-Cap Value ETF maintains a portfolio that mirrors the index's composition, ensuring that it reflects the index's overall performance. This approach involves a careful selection of securities that meet the index's criteria for value investing. The fund is designed to provide investors with exposure to a diversified set of large-cap value stocks, aiming to capitalize on potential opportunities in the value segment of the large-cap market.
By investing in this ETF, investors gain access to a broad array of large-cap value stocks with a focus on companies that are perceived as undervalued compared to their earnings potential and financial health. This strategy offers a way to potentially benefit from the market's recognition of these stocks' intrinsic value over time. The Schwab U.S. Large-Cap Value ETF is a viable option for investors seeking to diversify their portfolios with a value-oriented approach to large-cap equity investments.
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