SCHK - SCHK: Large-Cap And The Same As Everything Else
2024-06-24 18:02:53 ET
Summary
- Market-cap weighted passive vehicles are currently overvalued and overcrowded, but can still continue to perform well.
- Schwab 1000 ETF tracks the largest 1,000 US companies, with a heavy bias towards mega-cap tech stocks.
- The SCHK ETF's sector composition mirrors other market-cap weighted US funds, offering exposure to industry leaders with low volatility and downside risk.
I’ve been very loud (and, so far, wrong) about my distrust for market-cap weighted passive vehicles at this point in the cycle. Yes - they’ve done exceptionally well over the past year and a half, but now are at the point where they are not only massively overvalued, but massively overcrowded....
SCHK: Large-Cap And The Same As Everything Else