SCHX Profile
The Schwab U.S. Large-Cap ETF aims to track the performance of the Dow Jones U.S. Large-Cap Total Stock Market Index, focusing on large-cap equities within the broader U.S. stock market. This index represents the large-cap segment of the Dow Jones U.S. Total Stock Market Index, specifically capturing the top 750 companies based on full market capitalization. By tracking this index, the fund provides investors with exposure to a broad range of large, established companies in the U.S. equity market.
The Dow Jones U.S. Large-Cap Total Stock Market Index is a float-adjusted, market capitalization-weighted benchmark. This means that the index accounts for the market value of the available shares of each company, rather than the total shares outstanding. As a result, it accurately reflects the market value of the large-cap segment, giving investors a clear picture of the performance and relative weight of these major companies within the broader market.
To achieve its investment objective, the Schwab U.S. Large-Cap ETF generally invests in stocks that are constituents of the Dow Jones U.S. Large-Cap Total Stock Market Index. The fund maintains a strategy of holding at least 90% of its net assets, including any borrowings for investment purposes, in the index’s component stocks. This approach ensures that the ETF closely mirrors the performance of the index, providing a direct investment in the largest U.S. companies.
Investors benefit from the ETF’s broad exposure to large-cap stocks, which are typically characterized by their stability, liquidity, and strong market positions. The Schwab U.S. Large-Cap ETF offers a cost-effective way to invest in a diversified portfolio of leading U.S. companies, reflecting the performance of a critical segment of the U.S. equity market. This can be an essential component of a diversified investment strategy, aimed at capturing the growth potential of large-cap equities while managing risk through broad market exposure.
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