|Bid||57.28 x 1000|
|Ask||57.91 x 800|
|Day's Range||57.01 - 57.42|
|52 Week Range||46.25 - 57.75|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.96|
|Expense Ratio (net)||0.04%|
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.
There are now scores of cheap ETFs and by all accounts, investors love these products. Honing in on a specific fee range, even when excluding the two ETFs that do not have annual fees, there are 100 ETFs in the U.S. with expense ratios of 0.02%, or $2 on a $10,000 investment, to 0.08%. That's a lot of cheap ETFs.Seductive as cheap ETFs may be, investors owe it to themselves to approach these funds with discerning eyes. Remember, there is a difference between value and value traps. Said another way, not all cheap ETFs are good ETFs. Likewise, there are some expensive ETFs that merit their high fees.It is a slippery slope for investors. Scores of academic research and data points confirm that over the long term, saving on fees can have a meaningful impact on total returns. What investors need to weigh is saving with a cheap ETF really worth it if there is a better option with a higher fee out there.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn other words, if Fund A costs 0.05% per year and averages annual returns of 5%, but Fund B costs 0.30% a year and averages annual returns of 10%, simple math says Fund B is the better bet. * 7 Restaurant Stocks to Put on Your Plate With that in mind, here are some cheap ETFs that have better, but pricier rivals. Schwab U.S. Large-Cap Value ETF (SCHV)Source: GotCredit via Flickr (Modified)Expense ratio: 0.04% per year, or $4 on a $10,000 investment.The Schwab U.S. Large-Cap Value ETF (NYSEARCA:SCHV) is one of the cheapest ETFs in the value arena. Plus, Schwab clients can realize additional savings because the brokerage allows clients to trade its ETFs (and hundreds of others) commission-free.On a standalone basis, SCHV is not a bad cheap ETF. It is up 34.4% over the past three years, an admirable showing considering the struggles of value stocks over the course of this bull market. SCHV's strategy is easy to understand and the fund is appropriate for new and conservative investors alike. So there are plenty of benefits with this fund.However, it is hard to endorse this cheap ETF knowing that the iShares Edge MSCI USA Value Factor ETF (CBOE:VLUE) is out there. VLUE charges 0.15% per year, still decent among smart beta strategies, and the iShares fund has consistently outperformed SCHV by a wide enough margin that the cheaper ETF's fee is rendered moot. Vanguard FTSE Emerging Markets ETF (VWO)Source: Shutterstock Expense ratio: 0.12%Home to $61.3 billion in assets under management, the Vanguard FTSE Emerging Markets ETF (NYSEARCA:VWO) is the largest emerging markets fund in the world. It is also a cheap ETF. For emerging markets investors, there is a lot to like with VWO. It holds over 4,600 stocks and offers exposure to dozens of developing economies, through China is taking on increased prominence in this fund.As is the case with the aforementioned SCHV, VWO is not a bad cheap ETF per se. The rub with this fund is that there are more compelling options out there with higher price tags. Moreover, at least one of those funds is outperforming VWO by a wide enough margin that the higher fee is warranted.The JPMorgan Diversified Return Emerging Markets Equity ETF (NYSEARCA:JPEM) is a multi-factor fund that charges 0.45% per year. That fund's "index uses a multi-factor stock screening process that has historically driven strong performance," according to the issuer. * 7 Stocks on Sale the Insiders Are Buying Over the past three years, JPEM has outpaced VWO by 360 basis points with less volatility. iShares Core S&P Mid-Cap ETF (IJH)Source: Shutterstock Expense ratio: 0.07%The iShares Core S&P Mid-Cap ETF (NYSEARCA:IJH) is a cheap ETF avenue to mid-cap stocks. Its straight forward approach (it tracks the S&P MidCap 400 Index), coupled with its low fee, make it an appealing avenue to an often overlooked corner of the equity market.In fact, IJH is one of the cheapest ETFs in the mid-cap space and some competing funds that track the same index have significantly higher fees. The quibble with IJH is that there are better-performing options out there with higher fees, some of which also have significantly lower volatility than IJH.Sure, the Invesco S&P MidCap Low Volatility ETF (NYSEARCA:XMLV) charges 0.25% per year, but over the past three years, the fund has been almost 300 basis points less volatile than IJH while outperforming the cheap ETF by more than 800 basis points. iShares National Muni Bond ETF (MUB)Source: Shutterstock Expense ratio: 0.07%When shopping for a traditional municipal bond fund, investors should seek a broad, high-quality cheap ETF. The iShares National Muni Bond ETF (NYSEARCA:MUB). Thing is many cheap ETFs in the municipal bond space seem like they are intended for ultra-conservative investors that simply want a vehicle with steady income and slightly higher yields than cash instruments.Because the VanEck Vectors Municipal Allocation ETF (CBOE:MAAX) is a new fund (it debuted last month), weighing its past performance against MUB and other cheap ETFs in this space is currently impossible. The comparison here is more about potential. * 7 One-Stock Portfolios for Passive Investors MAAX charges 0.36% per year and because it holds other VanEck municipal bond ETFs, its roster is not only massive in terms of issues, the new ETF also spans durations and features a wide arrange of credit opportunities, both investment-grade and junk. Features like that are not found on many cheap muni ETFs. Schwab U.S. Dividend Equity ETF (SCHD)Source: Shutterstock Expense ratio: 0.06%There are plenty of cheap ETFs in the dividend realm and the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) is one of those funds. SCHD has attracted a following in part to its low fee and its emphasis on domestic stocks that have dividend increase streaks of at least 10 years. Overall, this a sound, cost-effective fund for dividend investors.Those willing to jump up in fees, however, could be rewarded by the WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW), which we highlighted here earlier this month. At that time, we noted DGRW's underlying index emphasizes "both ROE and return on assets (ROA) as part of the selection requirements. Using ROA as a screening criterion penalizes firms using leverage to drive ROE," said WisdomTree.Over the past three years, DGRW, which pays a monthly dividend, has topped the cheap ETF SCHD by almost 700 basis points.Todd Shriber owns shares of DGRW and VWO More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best Stocks to Buy and Hold Forever * 10 Small-Cap Stocks That Look Like Bargains * 10 Names That Are Screaming Stocks to Buy The post 5 Cheap ETFs That Aren't Actually a Good Value appeared first on InvestorPlace.
Value investing seek to capitalize on inefficiencies in the market and have the potential to deliver higher returns with lower volatility compared with growth and blend counterparts.
There is no doubt about it: when it comes to exchange-traded funds (ETFs), advisors and investors love the low-fee products. For several years, the top funds in terms of new assets added are low-fee ETFs. That trend is continuing in 2018.
Market-cap-weighting reflects all market participants' views, allowing passive investors to free-ride on the collective wisdom of all active investors. Fundamental index funds attempt to circumvent this potential problem by severing the link between a stock's portfolio weight and its price. This article explores the investment thesis of fundamental weighting and examines the investment merits of strategies that use this weighting approach.