“I was also confident in our new index because it was designed to track what was going on in a part of our economy where we find many of our most successful businesses: the 1000 largest publicly traded U.S. corporations. The Schwab 1000 Index cast a larger net than the smaller S&P 500® Index or Dow Jones Indexes and would capture a larger collection of dynamic, emerging, growing companies,” Schwab said.
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Due to its larger portfolio, SCHK includes a larger tilt toward mid-sized companies. Specifically, the ETF shows a 49.9% tilt toward mega-caps, 32.3% large-caps and 17.7% mid-caps, with a 0.1% position in small-caps. On the other hand, the S&P 500 has 56.3% mega-caps, 35.1% large-caps, 8.6% mid-caps and no small-cap exposure.
“The Schwab 1000 Index represents the 1000 largest companies in America each year. Every year we eliminate from the Index those companies whose value drops them below that threshold and replace them with companies whose value takes them over it,” Schwab said.
For more information on large-cap stock ETFs, visit our large-cap category.