Introduction

The Schwab U.S. Small-Cap ETF is an investment option that keeps track of the Dow Jones U.S. Small-Cap Total Stock Market Index. This index includes stocks that are ranked between 751 to 2,500 based on their market cap in the Dow Jones U.S. Total Stock Market Index. The fund mainly focuses on stocks with a market value ranging from $19 million to $11 billion.

The index is adjusted every quarter, particularly in March, June, September, and December. It was first introduced in February 2005, while the fund SCHA was established in November 2009. Currently, there are approximately 1,750 stocks in the fund with an average weighted market cap of $3.8 billion and a price-to-cash flow ratio of 7.0.

The top three sectors in the fund are industrials (17.5%), financials (15.9%), and healthcare (13.6%). The fund's top 10 holdings represent only 3% of its total net assets, which are around $16 billion, and include companies like Nutanix and Affirm Holdings. The Schwab U.S. Small-Cap ETF has an annual turnover rate of 9%.

The fund's allocation by market cap shows that it also includes mid-cap stocks along with small-cap ones. About 56% of the ETF's assets are invested in companies with market caps of $3 billion or higher. Companies valued between $1 billion and $3 billion make up another 34% of the portfolio.

Over the last ten years, the Schwab U.S. Small-Cap ETF has provided an annual total return of 6.6%, surpassing other small-cap funds.