For all the talk about technology being richly valued, SCHV offers a surprise with a 16.1% allocation to that sector. The $3.7 billion ETF holds nearly 360 stocks. With its large weight to financial stocks, SCHV could benefit from rising interest rates.
“This appears to be materializing, at least in the short-term. While the outlook for 2018 is murky, investors seem pretty convinced that another rate hike from the Fed will be coming in December this year. According to CME Group, which tracks the futures market for investor sentiment on interest rate movements, the probability of a rate hike in December currently stands at 83%,” according to Seeking Alpha.
Consumer staples and healthcare stocks combine for almost 24% of SCHV’s roster. SCHV charges just 0.04% per year, or $4 on a $10,000 investment, making it one of the cheapest value ETFs on the market. Investors can realize additional cost savings with SCHV by trading the ETF on Schwab’s ETF OneSoure platform, one of the largest commission-free ETF menu in the brokerage industry.
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