A Smart Mid-Cap ETF Idea

“When you consider the fact that SCHM has the lowest costs in this category, as well as commission-free trading on the Schwab platform, this fund is the most appealing choice,” according to a Seeking Alpha analysis of mid-cap ETFs.

The $3.2 billion SCHM debuted in early 2011 and charges just 0.05% per, the equivalent of $5 on a $10,000 stake. SCHM holds 512 and has portfolio turnover of 21.6%, according to issuer data.

SCHM’s largest sector allocation is 16.4% to financial services while industrial and technology stocks combine for almost 30% of the ETF’s weight. Consumer discretionary and real estate stocks combine for a quarter of SCHM’s roster.

Mid-cap stocks and exchange traded funds are often glossed over relative to their large- and small-cap counterparts, but stocks the in the middle of the market capitalization spectrum have the potential to deliver handsome returns.

For more information on mid-caps, visit our mid-cap category.