Explore the potential of the Schwab U.S. Large-Cap Value ETF for your investment strategy
City: New York. The Schwab U.S. Large-Cap Value ETF (SCHV) is designed to give you a broad look at the large-cap value segment of the U.S. stock market. Launched in December 2009, it’s managed by Charles Schwab and has over $11.54 billion in assets, making it a big player in the ETF world.
Large-cap companies, which usually have market caps over $10 billion, are generally more stable and less volatile than smaller firms. Value stocks, on the other hand, tend to have lower price-to-earnings ratios and slower growth rates. Historically, value stocks have outperformed growth stocks in most markets, although they might lag behind during strong bull runs.
When considering an ETF, keep an eye on the expense ratio. SCHV has a super low annual operating cost of just 0.04%, which is great for investors. Plus, it offers a 12-month trailing dividend yield of 2.28%.
Before diving in, it’s smart to check out what the ETF holds. SCHV has a significant chunk of its portfolio—about 22.80%—in the Financials sector, with Industrials and Healthcare also making the top three. Notably, Berkshire Hathaway, JPMorgan Chase, and Exxon Mobil are among its top holdings.
SCHV aims to track the performance of the Dow Jones U.S. Large-Cap Value Total Stock Market Index. So far this year, it’s down about 1.15%, but it’s up around 13.01% over the past year. It’s traded between $22.94 and $28.11 in the last 52 weeks, showing some decent movement.
With a beta of 0.94 and a standard deviation of 14.78% over the last three years, it’s considered a medium-risk option. With around 528 holdings, it helps spread out the risk of any single company tanking.
SCHV has a Zacks ETF Rank of 2, which means it’s a solid buy. If you’re looking for large-cap value exposure, it’s a great choice. There are other ETFs like the Schwab U.S. Dividend Equity ETF and the Vanguard Value ETF that you might want to check out too.
More and more investors are leaning towards passively managed ETFs because they’re cost-effective, transparent, and flexible. They’re perfect for long-term investing.
If you want to dive deeper into ETFs, check out Zacks ETF Center for more info and articles on the latest trends.
