Investors seeking to build out a core position for their portfolio may turn to a cheap, passive index-based ETF to gain diversified market exposure with a single investment vehicle.

For example, the the Schwab 1000 Index ETF (NYSEArca: SCHK), which has a dirt cheap 0.05% expense ratio, tries to reflect the performance of the Schwab 1000 Index, which was launched back in 1991. The Schwab 1000 Index provides exposure to America’s largest 1,000 stocks, a collection of large- and mid-cap companies representing 90% of the entire U.S. equity market. The index also acts as the underlying benchmark for the Schwab 1000 Index Fund (SNXFX). The index has outperformed the S&P 500 on an annualized basis since its inception.

“I launched the Schwab 1000 Index, and the mutual fund based on it, in 1991 to give investors a simple, low-cost way to track the growth of a broad group of America’s largest companies and participate in their growth potential. Now, the Schwab 1000 exchange-traded-fund (ETF) is available,” Charles R. Schwab, Founder and Chairman of Charles Schwab, said in a note.

Related: Themes ETF Financial Advisors Should Monitor

Schwab explained how he built the Schwab 1000 Index with a deep understanding of how our stock markets progress over time and ample confidence in the outcome, without relying upon back-testing or hypothetical data. The Index’s own performance over time would leave its own track record.

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