- My earlier article on the Schwab U.S. Large-Cap ETF (SCHX) focused on its exposure to the large-cap space under the context of a market dashboard.
- Since then, its price has further appreciated and the current market valuation is at a historical high and the fund has shown large volatility risks in the past.
- The combination of high volatility and high valuation calls for hedging ideas, and this article describes such an idea after analyzing the fund’s fundamentals based on risk parity and diversification.
For further details see:
SCHX: Valuation Risks, Volatility Risks, And Hedging