Exchange traded funds have made gaining core equity exposure more accessible and cost-efficient for scores of investors. Investors can choose from an array of low-fee, broad market ETFs tracking a variety of indexes in an effort to gain exposure to hundreds or even thousands of stocks under one umbrella.

Broad market exchange traded funds are designed to provide investors exposure to a broad swath of stocks. That exposure should also be delivered at a low cost and that is exactly what the Schwab U.S. Broad Market ETF (NYSEArca: SCHB) does.

Home to nearly 2,500 stocks, the $12.1 billion Schwab U.S. Broad Market ETF is one of a handful of US-listed ETFs with an annual fee of just 0.03%, or $3 on a $10,000 investment. Currently, that is the lowest fee charged among U.S. ETFs.

SCHB “can be a smart choice for investors who want to benefit from the long-term compounding power of stocks, or investors who want to form a “base” to their portfolio before branching out to individual stocks,” reports The Motley Fool.

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SCHB tracks an index similar to total-market benchmarks, like the Russell 3000, but the it includes less exposure to the smallest stocks.

“SCHB claims one of the lowest industry expense ratios at just 0.03% annually. This fee has been incrementally lowered multiple times over the years, which adds to its attractiveness for long-term investors. It’s even conceivable that one day this ETF will charge as low as one basis point per year for access to its diversified stock portfolio,” according to ETF Daily News.

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