Best Schwab ETFs Right Now

Even though Charles Schwab sponsors only 22 ETFs, this discount broker is the 5th largest ETF broker in the U.S. with $145 billion in assets under management (AUM). This is very impressive considering some of Schwab’s competitors offer hundreds of ETFs.  Charles Schwab has emerged in the ETF industry because of its has leadership and credibility that rivals Vanguard. This broker’s ETF offerings are definitely worth considering. We’ll examine the best Schwab ETFs right now. 

Quick Look at the Best Schwab ETFs:

• Schwab International Equity ETF
• Schwab U.S. Large-Cap ETF
• Schwab U.S. Broad Market ETF

Schwab ETFs Biggest Gainers and Losers

Biggest gaining and losers lists provide a good research reference for following the progress of your ETF. The financial media publish these lists daily. You can evaluate your fund’s performance against competing ETFs. 

Premarket Schwab ETFs

You can use premarket sessions as a way of getting a head start on your trading day. However, the wider bid vs. ask spread can cause you to pay more for your ETF shares. 

The bid price is the highest dollar amount a buyer is willing to pay — the ask price is the highest dollar amount a seller is willing to receive for the share. Premarket sessions’ low volume can widen the gap between the two. For short-term traders, these gaps can be similar to penny stocks spread costs.

Aftermarket Schwab ETFs 

The trade volume in the aftermarket session is even lower than the premarket. Also, this causes low liquidity and wider bid vs. ask spreads. Still, the aftermarkets sessions allow you to make late trades that could benefit you in the short or long run. 

Why Invest in Schwab ETFs?

Flexibility: ETFs give you the versatility to shift your money among different asset classes like stocks, commodities and bonds.

Cheap rates: The operating expense ratio (OER) for Schwab ETFs is a low 0.05%. Most online brokers offer commission-free ETF trades. Generally, the costs for an ETF is lower than actively managed mutual funds. 

Custom diversification: ETFs give you instant diversification. You never have to pick individual stocks. With Schwab ETFs, you can choose different asset classes, sectors, and international, regional or market niches. 

Top 3 Schwab ETF(s) by AUM

The top Schwab ETFs are an eclectic group with funds from different classifications and focuses. Here is the list of the top Schwab ETFs right now. 

1. Schwab International Equity ETF (NYSE: SCHF):

With around 1,000 individual holdings, SCHF can give your investment portfolio a heavy dose of diversification. It offers you exposure to about 20 foreign developed markets — including Canada. Adding this resource-rich country results in a more balanced exposure. Plus, SCHF has a dirt-cheap expense ratio of 0.06% and a high distribution yield of 3.97%.

This fund has $16.82 billion in AUM. Among its holdings are Toyota (NYSE: TM), Novartis (NYSE: NVS) and AstraZeneca (NYSE: AZN). This portfolio is well-weighted. Only 16.87% of its asset allocation goes to the top 10 companies. SCHF is a smart choice for a balanced, diversified and long-term investment. 

2. Schwab U.S. Large-Cap ETF (NYSE: SCHX): 

In keeping with its namesake, SCHX aims directly for the upper echelon of the U.S. market. It tracks the Dow Jones U.S. Large-Cap Total Stock Market Index. The fund’s famous holdings include Apple (NASDAQ: AAPL), IBM (NYSE: IBM) and Exxon Mobil (NYSE: XOM).

SCHX uses a good portion of its AUM of $15.4 billion to secure a huge chunk of stability and safety from mega- and large-cap stocks. However, it has a very balanced portfolio. Only $23.97% of its asset allocation goes to its top 10 stocks. You can find a lot to like about this Schwab ETF. Two of the reasons are an incredibly low 0.03% ER and a dividend distribution yield of 2.43%. 

The only problem with this type of ETF is the companies in its portfolio have ascended to the point where there’s not much sky left. This low growth potential makes this fund more of a core investment for buy-and-hold investors. 

3. Schwab U.S. Broad Market ETF (NYSE: SCHB):

SCHB uses its AUM of $13.3 billion to cast a wide net over 1,500 companies. It uses this ultra-diverse portfolio to offer investors broad exposure stocks from various sectors and cap groups. This fund’s balance and the 2.45% distribution yield are especially appealing to ETF investors with a long-term strategy.

The top 10 holdings in the SCHB portfolio individually average 2.4% of the fund’s assets. They represent every sector of the U.S. economy. Access to SCHB is easy because of the cheap 0.03% ER and high liquidity. If you are looking for a low-cost way to have diverse market exposure, this Schwab EFT is a good choice for you. 

Best Online Brokers for Schwab ETFs

Charles Schwab is an online broker. It offers $0 ETF trades for 22 ETFs — including its own. However, you can trade Schwab ETFs with many other brokers. Here is a list of 3 of the best online brokers.

Best For

• Chase Customers

get startedsecurely through Self Direct Investment by JP Morgan's website

1. You Invest by J.P. Morgan

If you’re already a customer with Chase Bank, Chase You Invest by J.P. Morgan is a no-brainer. You can easily research, trade and manage your investments from your mobile device. You Invest provides online tools to search for investments, track companies and roll over your assets.

Only U.S. clients are able to open a You Invest account but it takes, on average, just a day to open and you’re able to apply fully online. Equipped with portfolio reports and pie charts, the mobile app is simple and user-friendly. The app is available for both iOS and Android devices.

With Chase You Invest you’ll have access to roughly 5,000 stock exchanges. There are plenty of research and educational tools provided on the app. Overall, we recommend the Chase You Invest platform for stock trading because it’s easy to open and fund an account. It’s also reliable thanks to its strong parent company, J.P. Morgan. 

Best For

• Futures Trading

get startedsecurely through TradeStation's website

2. TradeStation

TradeStation can make a profound difference in your EFT trading experience. It offers $0 trades, innovative trading tools, research tools, algorithmic trading apps and vaults of historical data. This broker equips both its platforms with the functions necessary for you to make a perfect trading hub. Plus, you’ll have full access to the Schwab ETFs.

You can unlock the full capabilities of the TradeStation platform with Easy Language.  This proprietary computer programming language that almost any trader can use to create personalized trading indicators, and customize trading strategies and market analysis.  

Best For

• Mobile Investing

Open an account securely through Firstrade's website

3. Firstrade

Firstrade is a great online broker for novice ETF traders. Besides having $0 ETF trades, its platforms have a dashboard design that is fully equipped with powerful tools, charts, graphs and video panels. Firstrade provides drop-and-drag customization for its streaming market news, charts and tracking apps. 

The platforms offer advanced screeners to help you narrow your EFT choices. You can place your investment interests in categories like penny stocks, large-cap growth ETFs or Schwab ETFs. Also, you have access to free research from Benzinga, Zacks and Morningstar. The new Market Heat Map gives you a capsulized view of market events along with the biggest gainers and losers lists. 

Best For

• Forex and investing app

get startedsecurely through TD Ameritrade's website

4. TD Ameritrade

Recently, Charles Schwab announced its acquisition of TD Ameritrade. It’s very likely TD Ameritrade accounts will move to Charles Schwab’s site within the next 3 years. This means you will be able to integrate Schwab’s growing ETF offerings with the powerful functionality of TD Ameritrade’s trading platforms. 

TD Ameritrade tops the list of offering the best resources for traders at all levels. TD Ameritrade thinkorswim has everything advanced users need for planning investment strategies and conducting algorithmic trading. Beginners can take advantage of investment tools like the analyst tool — Market Edge. Plus, this broker offers a robo-advisor service and a fully automated portfolio rebalancing. All this comes with $0 trades and free use of all the trading tools. 

Considering Your Options with Schwab ETFs

Charles Schwab is undoubtedly an emerging force in the ETF market. Now, it has acquired the best online brokerage — TD Ameritrade — with the intent of dominating this space. Charles Schwab’s low-cost strategy and sound management decisions are evident in its ETFs offerings. Any of the top Schwab ETFs would be a nice addition to your portfolio. 

Frequently Asked Questions