77.20 +0.03 (0.04%)
After hours: 4:34PM EST
|Bid||77.17 x 1000|
|Ask||77.18 x 1400|
|Day's Range||76.84 - 77.89|
|52 Week Range||65.65 - 81.04|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||3.69%|
|Beta (5Y Monthly)||1.02|
|Expense Ratio (net)||0.03%|
As financial advisors revise their portfolios to match the market outlook ahead, money managers should keep in mind their clients' preferences, maintain a long-term outlook and keep the urge to respond to short-term swings at bay. "Every client has a different way to approach investments," Omar Aguilar, CIO of Equities, Charles Schwab Investment Management, said at the 2019 Schwab IMPACT conference. "The first thing we basically say is, 'Make sure that you understand you are investing for the long run," Aguilar added.
Charles Schwab continues to attract investors and financial advisors, offering access to cheap ETFs for many years and recently axing commission trading fees.
Charles Schwab continues to attract investors and financial advisors, offering access to cheap ETFs for many years and recently axing commission trading fees. Charles Schwab's ETF suite has accumulated $150 billion in assets under management, is the fifth-largest ETF provider in the U.S., and is the third-largest in flows for the past couple of years. "It's exceeded our expectations and we just couldn't be happier," Jonathan de St. Paer, President of Charles Schwab Investment Management, said at the 2019 Schwab IMPACT conference.
For decades, Charles Schwab (NYSE:SCHW) was known as one of the largest discount brokers and major sponsor of mutual funds and cheap, passive index funds. These days, Schwab is also a major play in the world of ETFs.As of July 3, Schwab is the fifth-largest U.S. ETF sponsor with $145 billion in assets under management, an absolutely staggering total when considering there are just 22 Schwab ETFs. Twenty-two is a paltry amount of ETFs relative to Schwab's larger rivals, some of which offer hundreds of ETFs. So being fifth-largest by assets definitely says something about the demand for Schwab's ETFs.While the number of Schwab ETFs is small, it is easy to understand why the company is one of the industry's more impressive growth stories: many Schwab ETFs are inexpensive. In fact, when it comes to inexpensive funds, Schwab ETFs are, in many cases, credible competitors to rival Vanguard offerings. Plus, Schwab offers one of the more expansive commission-free platforms in the ETF business, many advisors and investors can trade Schwab ETFs and a slew of other issuers' funds without paying commissions.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Retail Stocks to Buy for the Second Half of 2019 It remains to be seen whether the number of Schwab ETFs will grow, but here are some of the issuers best ETFs to consider. Schwab US Small Cap ETF (SCHA)Source: Shutterstock Expense ratio: 0.04% per year, or $4 on a $10,000 investment.For investors of any skill level seeking small-cap exposure the Schwab US Small-Cap ETF (NYSEARCA:SCHA) is one of the better Schwab ETFs to buy. SCHA checks a lot of boxes investors should look for with small-cap funds, including favorable fees and a broad roster.This Schwab ETF is one of the cheapest small-cap funds on the market and holds nearly 1,750 stocks. SCHA, which debuted nearly 10 years ago tracks the Dow Jones U.S. Small-Cap Total Stock Market Index and has $8.3 billion in assets under management. The black mark against this Schwab ETF is that over the past three years, it has lagged rival funds tracking the Rusell 2000 and S&P SmallCap 600 indexes.SCHA, which has a four-star Morningstar rating, allocates over 37% of its combined weight to the technology and financial services sectors. Industrial and healthcare stocks combine for 31% of its weight. Schwab Fundamental International Large Company Index ETF (FNDF)Source: Shutterstock Expense ratio: 0.25%Most Schawb ETFs are basic cap-weighted funds, but the firm features some smart beta offerings, including the Schwab Fundamental International Large Company Index ETF (NYSEARCA:FNDF). Broadly speaking, investors should expect higher fees on alternatively-weighted funds, but FNDF's annual fee of 0.25% is well below the category average of 0.42%.FNDF tracks the Russell RAFI Developed ex U.S. Large Company Index. Metrics used in constructing that benchmark include adjusted sales, operating cash flow, and dividends plus buybacks. All of the fund's holdings are large-, mega- and mid-cap stocks. * The S&P 500's 5 Best Highest-Yielding Dividend Stocks "When the fund rebalances, it increases its exposure to stocks that have become cheaper relative to these metrics and cuts back on its exposure to those that have become more expensive," said Morningstar. At the geographic level, this Schwab ETF allocates two-thirds of its weight to Eurozone stocks, Japan and the U.K., making for a credible alternative to cap-weighted EAFE funds. Schwab US Broad Market ETF (SCHB)Source: PixabayExpense ratio: 0.03%The Schwab US Broad Market ETF (NYSEARCA:SCHB) is a prime example of an easy-to-understand, cost-effective broad market domestic equity strategy. This Schwab ETF is also one of the cheapest ETFs of any stripe in the U.S.SCHB holds over 2,400 stocks, or more than quadruple the number of components in the S&P 500. However, over longer holdings periods, this Schwab ETF has performed mostly inline with the benchmark U.S. equity gauge as well as comparably priced total market index funds.SCHB also carries a four-star Morningstar rating. While this Schwab ETF is not the most exciting fund out there, it is appropriate for a wide range investors and is effective at delivering traditional, cap-weighted equity exposure. Schwab U.S. Dividend Equity ETF (SCHD)Source: Shutterstock Expense ratio: 0.06%Home to $9.5 billion in assets under management, the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) is one of the largest U.S. dividend ETFs and, more importantly, one of the least expensive. In addition to its low fee, SCHD has drawn a loyal following among advisors and investors due in part to its index methodology, which includes only featuring stocks with a minimum dividend increase streak of 10 years.This Schwab ETF is not the perfect dividend fund, but SCHD's focus on dividend growers indicates it is home to a group of quality stocks and at this stage of the bull market and business cycle, that is a valuable trait. Plus, SCHD has a weight of 19.5% to the technology sector, one of the largest weights to that sector among any domestic dividend ETF. * 6 Stocks to Buy Based on Insider Buying Consumer staples and industrial stocks combine for about 41% of the fund's weight. While SCHD requires components to have raised dividends for at least 10 straight years, many of the fund's holdings, including some top 10 components, have increase streaks that can be measured in decades not just one decade. Schwab U.S. Large-Cap Value ETF (SCHV)Source: Shutterstock Expense ratio: 0.04%The Schwab U.S. Large-Cap Value ETF (NYSEARCA:SCHV), as is the case with so many other value funds, has taken its lumps in recent years because growth has trounced value for the better part of a decade. However, there are some advantages with this Schwab ETF, including its status as one of the least expensive options in the value space.Home to 350 stocks, SCHV is a traditional play on value stocks leading to a large weight (22%) to financial services names, a sector that often dominates prosaic value funds. Healthcare and technology names combine for 28.2% of SCHV's weight.This $6 billion Schwab ETF has topped the S&P 500 Value Index over the past three years while being slightly less volatile. Eight of SCHV's top 10 holdings are members of the Dow Jones Industrial Average. For long-term investors looking to bet on a value resurgence, this Schwab ETF offers lots of potential. Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE)Source: Shutterstock Expense ratio: 0.39%As its name implies, the Schwab Fundamental Emerging Markets Large Company Index ETF (NYSEARCA:FNDE) is another one of the Schwab ETFs that uses an alternative index methodology. Basically, FNDE is the emerging markets equivalent of the aforementioned FNDF."FNDE tracks the Russell Fundamental Emerging Markets large Company Index, which selects, ranks and weights components based on fundamental factors like adjusted sales, retained operating cash flow and dividends plus buybacks," according to ETF Trends. * 3 Financial Stocks to Trade Into Earnings While emerging Asian economies account for nearly 39% of FNDE's weight, the Schwab ETF is significantly underweight China relative to the MSCI Emerging Markets Index, explaining why FNDE is beating that widely followed benchmark this year. Plus, over the past three years, the Schwab ETF is topping the MSCI index by over 1,300 basis points with comparable volatility. Schwab U.S. Large Cap Growth ETF (SCHG)Source: Shutterstock Expense ratio: 0.04%The Schwab U.S. Large Cap Growth ETF (NYSEARCA:SCHG) tracks the Dow Jones U.S. Large-Cap Growth Total Stock Market Index and makes for an ideal fund for investors that want to eschew the likes of SCHV and bet on growth continuing its dominance over value. Like its value counterpart, this Schwab ETF is one of the cheapest ETFs devoted to its underlying factor.Past performance is not a guarantee of future returns, but it is worth nothing this Schwab ETF has outpaced the comparable Vanguard growth fund by 530 basis points over the past three years while sporting slightly lower annualized volatility.Due to its approach to growth being traditional, this Schwab ETF makes some large sector bets, including a 31.6% weight to technology stocks. SCHG's combined 47% weight to the technology and consumer cyclical sectors is mostly inline with what investors will find on traditional growth strategies.As primarily a large- and mega-cap fund, SCHG would be vulnerable to significant retrenchment in the FAANG stocks, but that is true of other growth ETFs, too.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy on College Students' Radars * 7 Retail Stocks to Buy for the Second Half of 2019 * The S&P 500's 5 Best Highest-Yielding Dividend Stocks The post 7 of The Best Schwab ETFs for Low Fees appeared first on InvestorPlace.
Novice and young investors alike can reduce some of the daunting element of investing and the associated expenses by embracing exchange traded funds (ETFs). More to the point, investors can make their investing experience easier and more profitable by embracing cheap ETFs.Fortunately for frugal and new investors, the universe of cheap ETFs is expanding at a rapid rate. There are even two U.S.-listed ETFs with no annual expense ratios at all and another that even offers a rebate on its fees.In other words, investors who want to save money on fund fees -- and they should all want to do that because fees adversely impact long-term returns -- have plenty of cheap ETFs to consider, and it is reasonable to expect that list will continue growing as fund issuers continue tussling for investor assets.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks That Are Soaring This Earnings Season For rookie investors seeking the combination of easy-to-understand concepts and cheap ETFs, these are some of the best funds to consider. Cheap ETFs to Invest in: Schwab US Broad Market ETF (SCHB)Expense Ratio: 0.03% per year, or $3 on a $10,000 investment.Broad or total market funds such as the Schwab US Broad Market ETF (NYSEARCA:SCHB) are excellent starting points for new investors, and the good news is many of these are easy to understand. Plus, most of these funds are inexpensive. Just look at SCHB. With annual fee of just 0.03%, SCHB is one of the cheapest ETFs in the U.S."There are a few benefits of weighting by market cap. This approach incorporates the cumulative knowledge aggregated in stock prices to size its positions," said Morningstar in a recent note. "It keeps costs low because it doesn't require fundamental research analysts or skilled stock-pickers, who can be expensive to hire. While the market doesn't always get things right, it has done a good job valuing stocks over the long haul."While SCHB holds 2,443 stocks, a much deeper bench than the S&P 500's, investors should expect it to perform in line with broad market benchmarks over long holding periods. And this cheap ETF gets even cheaper for Schwab clients because they can buy and sell SCHB on a commission-free basis. Vanguard Mega-Cap ETF (MGC)Expense Ratio: 0.07%Many new investors are apt to skew toward large-cap fare. While those investors should be careful to not allocate too much of their portfolios to domestic large caps, there is something to be said for novice investors embracing the most familiar, domestic, big companies. The Vanguard Mega-Cap ETF (NYSEARCA:MGC) is a cheap ETF with umbrella exposure to the largest U.S. companies.This cheap ETF holds 264 stocks with a median market value of $137.4 billion. MGC's top 10 holdings, which include Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN), combine for just over 26% of the fund's weight. * 7 Stocks to Buy That Ought to Buy Back Shares Due to the emphasis on mega-cap stocks, MGC can sport different return profiles than traditional broad market funds. Over the past three years, MGC topped the S&P 500 by about 200 basis points, but the cheap ETF's annualized volatility was the same as the S&P 500's. iShares Core MSCI EAFE ETF (IEFA)Expense Ratio: 0.08%One of the most frequent mistakes made by novice investors is to be under-allocated to or outright ignore international assets. Some of that is derived from the home-country bias investors of all skill levels struggle to shake. Some of that is also attributable to the assumption that international funds are more expensive than their domestic counterparts.That is generally true, but there are still plenty of cheap ETFs in the international equity space. The iShares Core MSCI EAFE ETF (CBOE:IEFA) is a prime example of such a fund. IEFA was created as a cost-effective alternative to traditional MSCI EAFE tracking funds. Today, this cheap ETF has over $63 billion in assets under management, making it one of the largest international ETFs in the U.S.This cheap ETF focuses on developed markets, so its volatility should not scare off novice investors. IEFA's three-year standard deviation of 10.69% compares favorably with the category average. Japan and the U.K. combine for 41.48% of the fund's geographic exposure. SPDR S&P 500 Growth ETF (SPYG)Expense Ratio: 0.04%Factor-based strategies, such as growth or value, are not as daunting as they may appear to novice investors. In fact, cheap ETFs like the SPDR S&P 500 Growth ETF (NYSEARCA:SPYG) are actually very straightforward. SPYG tracks the S&P 500 Growth Index, meaning it is home to domestic large-cap stocks with the growth designation.As has been widely noted, growth has been the place to be over the course of this bull market. Nearly 60% of the S&P 500 resides in SPYG, but there are some important sector differences to consider. For example, this cheap ETF is overweight the technology and consumer discretionary sectors relative to the S&P 500, which is common among growth funds. * 7 A-Rated Stocks That Are Under $10 Microsoft and Amazon combine for 13.42% of this cheap ETF's weight. Over the past three years, SPYG beat the S&P 500 by more than 1,000 basis points while being only slightly more volatile than the benchmark equity gauge. SPDR Bloomberg Barclays Corporate Bond ETF (CBND)Expense Ratio: 0.06%Novice investors should remember the advantages of diversification, and even young investors should not have portfolios constructed entirely of equities. Fortunately, there are plenty of cheap ETFs in the fixed-income universe, and that includes corporate bond funds. Funds such as the SPDR Bloomberg Barclays Corporate Bond ETF (NYSEARCA:CBND) usually feature better income profiles than aggregate bond or Treasury funds.This cheap ETF tracks the Bloomberg Barclays U.S. Corporate Bond Index. That benchmark is "designed to measure the performance of the investment grade corporate bond market which includes publicly issued, investment grade, fixed-rate, taxable, U.S. dollar-denominated corporate bonds issued by U.S. and non-U.S. industrial, utility, and financial institutions," according to State Street.CBND holds nearly 5,900 bonds, giving it one of the deepest benches among cheap ETFs in the bond space and has a 30-day SEC yield of 3.63% with an option-adjusted duration of 7.36 years. Nearly 91% of CBND's holdings are rated A or Baa. WisdomTree U.S. LargeCap Fund (EPS)Expense Ratio: 0.08%Recently, and somewhat quietly, the WisdomTree U.S. LargeCap Fund (NYSEARCA:EPS) joined the ranks of cheap ETFs with a fee cut that took its expense ratio down to 0.08%. That is enough to make EPS one of the least-expensive smart-beta funds on the market. Due to its unique weighting methodology, EPS can be an alternative or complement to some of large-cap, cheap ETFs highlighted above.The $263 million EPS ETF follows the WisdomTree U.S. Large Cap Index. That index is fundamentally weighted and includes U.S. companies that "have generated positive cumulative earnings over their most recent four fiscal quarters prior to the index measurement date," according to the issuer. * 7 Cloud Stocks to Buy Now Historically, when EPS tops the S&P 500 on an annual basis, the WisdomTree does not do so by staggering margins. What is important is the frequency with which EPS does beat cap-weighted benchmarks. From 2013 through 2018, this cheap ETF beat the S&P 500 in four of those six years, mostly with comparable volatility. iShares Core Dividend Growth ETF (DGRO)Expense Ratio: 0.08%Dividend ETFs usually have higher fees than traditional equity funds, but there are plenty of dividend funds that are also cheap ETFs. The iShares Core Dividend Growth ETF (NYSEARCA:DGRO) is one example. DGRO, which soon turns five years old, tracks the Morningstar US Dividend Growth Index and holds 479 stocks.DGRO's underlying index requires member firms to have dividend increase streaks of at least five years, and those companies cannot have payout ratios exceeding 75%. The financial services and technology sectors combine for over 35% of DGRO's weight.One of the primary advantages of dividend growth ETFs for any investors, new or experienced, is not only the income stream offered by these funds, but the historical tendency of dividend growth strategies to be less volatile than standard equity funds.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 7 A-Rated Stocks That Are Under $10 * 7 Stocks That Are Soaring This Earnings Season * 5 Biotech Stocks for a Long-Lived Portfolio * 10 Times Apple's Hardware Failed Consumers -- And Hurt Its Business Compare Brokers The post 7 Cheap ETFs for Novice Investors appeared first on InvestorPlace.
Once you've made all of those 401(k) and IRA contributions, investing in a taxable account may be your only option. You'll also want to employ a taxable account if you expect to tap the account prior to retirement. Whereas tax-sheltered retirement-savings vehicles generally carry at least some strictures to pulling your money out early (save for withdrawals of Roth IRA contributions, which are always tax- and penalty-free), you can come and go as you please in a taxable account.
Some of the least expensive ETFs investors can find are broad market or total market funds focusing on domestic equities. The Schwab U.S. Broad Market ETF (SCHB) is one such option. Home to more than 2,400 stocks, the $14.4 billion Schwab U.S. Broad Market ETF is one of a handful of US-listed ETFs with an annual fee of just 0.03%, or $3 on a $10,000 investment.