"The Schwab U.S. Small-Cap ETF (NYSEARCA:SCHA) has delivered a 5.5% return YTD, tracking the broader small-cap market's trajectory. The fund's defining advantage is cost efficiency, at a scant 0.04% annual expense ratio ranks among the lowest in the small-cap category, allowing investors to compound returns without significant fee drag eating into performance over time. Recent coverage has been mixed. MSN positioned SCHA as an "attractive option" given its low costs and past performance."
"Small-cap stocks live or die by borrowing costs. Unlike large companies with cash-rich balance sheets, smaller firms rely heavily on debt to fund growth. The 10-year Treasury yield currently sits at 4.24%, creating a challenging environment for debt-dependent small companies. When yields push toward 4.5% or higher, the increased cost of capital compresses small-cap valuations faster than large caps, making rate direction the single most important variable for SCHA's near-term performance."
"What's Inside the Portfolio SCHA spreads capital across over 500 positions with no single holding exceeding 0.50% of assets. This extreme diversification shifts performance drivers away from individual stock picks toward sector allocation decisions. The portfolio concentrates in three areas-Industrials, Financials, and Information Technology-which together represent roughly half of all assets and determine whether the fund outperforms or lags its benchmark."
The Schwab U.S. Small-Cap ETF (SCHA) has returned 5.5% year-to-date and charges a 0.04% annual expense ratio, among the lowest in the small-cap category. Coverage of the fund has been mixed, with some outlets calling it attractive for low costs while others favor large caps amid current conditions. Small-cap companies depend more on debt, making borrowing costs and the 10-year Treasury yield (currently 4.24%) a key determinant of valuations; yields near or above 4.5% compress small-cap valuations faster than large-cap peers. SCHA holds over 500 positions, limits single-stock risk, and performance is driven largely by sector weightings in Industrials, Financials and Information Technology.
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