SPTM - SCHB: Nothing Special As A Total Stock Market Proxy

2024-04-10 14:05:20 ET

Summary

• Schwab U.S. Broad Market ETF™ is a branded ETF created by Schwab to keep clients in their own funds.
• The SCHB ETF offers low-cost exposure to around 2,500 publicly traded U.S. companies, with a diversified portfolio spread across multiple sectors.
• While SCHB is a viable option for investors seeking exposure to the U.S. stock market, it lacks differentiation compared to other broad market ETFs.

Sometimes, large custodians/brokers like Schwab want to own the product. They hope to keep their clients in their own funds as opposed to in other issuers' products. So what do they do? They create their own branded exchange-traded funds, or ETFs, which don't really differentiate much except in the name of the fund. That's very much the story of the Schwab U.S. Broad Market ETF™ ( SCHB ),...

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