ETF Spotlight: Schwab U.S. Large Cap
June 19th, 2012 at 3:00pm by Tom Lydon
The exchange traded fund Schwab U.S. Large Cap (NYSEArca: SCHX) is presenting value and selling on the cheap. The weak economic data coming out of the U.S. and the ongoing Eurozone trouble is putting investors on defense. But some investors see this as a time for opportunity.
“All three of the elements utilized in the cost ranking category are related to the ETF security and not its holdings. SCHX has an Overweight ranking for Cost Factors, including a relatively favorable assessment of its gross expense ratio (0.08%), and Bid/Ask Spread, and a mid-range appraisal related to Price to NAV,” according to S&P Capital IQ. [ETF Chart of the Day: SCHX]
SCHX ETF is about 2.5 years old and has $827.4 million in assets under management. It tracks the Dow Jones U.S. Large-Cap Total Stock Market Index which represents 749 stocks. [Charles Schwab ETFs Hit $1 Billion in Assets]
The ETF allocates 19.3% of its weight to technology stocks and 14.9% to financials. Consumer discretionary and health care receive weights of about 12% each while consumer staples, industrials and energy each account for more than 10% of the ETF’s weight.
SCHX has a yield of about 1.8%, and costs about 31.98 per share. The ETF recently updated the dividend payoff to 0.16 cents, up from 0.15 cents, effective June 20, reports FYX News. [ETF Spotlight: Vanguard Mega-Cap]
“This fund lacks exposure to small-cap stocks but covers nearly all mega-caps and large caps in the U.S. market, along with a large number of mid-cap stocks. Schwab U.S. Large-Cap covers nearly 85% of the U.S. stock market and had more than a 99% correlation with the quite similar S&P 500 and Russell 1000 Indexes over the past 10 years,” Michael Rawson wrote in a Morningstar ETF analysis.
Schwab U.S. Large Cap ETF
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.