Best Schwab ETFs
Best Schwab ETFs
Exchange-traded funds, or ETFs, make it easier for investors to accumulate stocks and generate long-term returns. While many brokerage firms offer these funds, only a few of them can compete with Charles Schwab Corp. (ticker: SCHW). The broker has been around since 1971 and is known for its wide range of low-cost ETFs.
You can find ETFs that track benchmarks like the S&P 500 and the Nasdaq. Investors can also buy ETFs that focus on specific sectors or strategies.
These funds present several advantages over buying individual stocks and mutual funds. "Investing in ETFs can be an efficient way to diversify your portfolio and gain broad exposure to the assets within the ETF instead of purchasing each of the assets individually," says Keith Jones, a certified financial planner and senior financial professional at Empower. "You may prefer ETFs if you actively trade investments and want to be able to buy and sell ETFs throughout the market day. ETFs may also be right for you if it's a priority to reduce your tax burden."
You'll likely find a Schwab ETF that aligns with your portfolio goals and risk tolerance. Some Schwab ETFs focus on high yields and low volatility. Other Schwab ETFs aim to maximize returns but come with increased risk.
Investors who are looking for ETFs that can outperform the stock market during bullish cycles may like this list. However, there is also an ETF at the end that attracts investors due to its high yield and relative stability. With that in mind, these are some of the top Schwab ETFs consider:
Schwab ETF
Schwab U.S. Large-Cap Growth ETF (SCHG)
Schwab U.S. Large-Cap ETF (SCHX)
Schwab 1000 Index ETF (SCHK)
Schwab U.S. Broad Market ETF (SCHB)
Schwab U.S. REIT ETF (SCHH)
You can find ETFs that track benchmarks like the S&P 500 and the Nasdaq. Investors can also buy ETFs that focus on specific sectors or strategies.
These funds present several advantages over buying individual stocks and mutual funds. "Investing in ETFs can be an efficient way to diversify your portfolio and gain broad exposure to the assets within the ETF instead of purchasing each of the assets individually," says Keith Jones, a certified financial planner and senior financial professional at Empower. "You may prefer ETFs if you actively trade investments and want to be able to buy and sell ETFs throughout the market day. ETFs may also be right for you if it's a priority to reduce your tax burden."
You'll likely find a Schwab ETF that aligns with your portfolio goals and risk tolerance. Some Schwab ETFs focus on high yields and low volatility. Other Schwab ETFs aim to maximize returns but come with increased risk.
Investors who are looking for ETFs that can outperform the stock market during bullish cycles may like this list. However, there is also an ETF at the end that attracts investors due to its high yield and relative stability. With that in mind, these are some of the top Schwab ETFs consider:
Schwab ETF
Schwab U.S. Large-Cap Growth ETF (SCHG)
Schwab U.S. Large-Cap ETF (SCHX)
Schwab 1000 Index ETF (SCHK)
Schwab U.S. Broad Market ETF (SCHB)
Schwab U.S. REIT ETF (SCHH)
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Schwab U.S. Large-Cap Growth ETF (SCHG)
The Schwab U.S. Large-Cap Growth ETF prioritizes large-cap growth stocks. Apple Inc. (AAPL), Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA) are the top three holdings, and the fund's top 10 holdings make up 55% of its total assets. SCHG shares have more than doubled over the past five years, registering an annualized 20.2% return during that stretch.
Many of the ETFs that outperform the stock market in the long run are filled with tech stocks. SCHG is no exception to the rule, with its 49% exposure to the tech sector. Consumer discretionary (13.7%), communication services (13.5%) and health care (8.7%) are the next three top sectors. SCHG has $34.7 billion in total assets and has a 0.04% expense ratio, or $4 annually per $10,000 invested. The ETF also has a 0.4% 30-day SEC yield.
While the returns are good, you can find higher returns with the Vanguard Information Technology ETF (VGT) and the Fidelity MSCI Information Tech ETF (FTEC). Both of these funds give investors more exposure to the Magnificent Seven stocks. VGT has an annualized 21.5% return over the past five years, while FTEC has delivered an annualized 21.6% return over the past five years.
However, those Vanguard and Fidelity funds are more vulnerable to market downturns. They have higher year-to-date losses than SCHG amid tariff concerns and economic uncertainty.
The Schwab U.S. Large-Cap Growth ETF prioritizes large-cap growth stocks. Apple Inc. (AAPL), Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA) are the top three holdings, and the fund's top 10 holdings make up 55% of its total assets. SCHG shares have more than doubled over the past five years, registering an annualized 20.2% return during that stretch.
Many of the ETFs that outperform the stock market in the long run are filled with tech stocks. SCHG is no exception to the rule, with its 49% exposure to the tech sector. Consumer discretionary (13.7%), communication services (13.5%) and health care (8.7%) are the next three top sectors. SCHG has $34.7 billion in total assets and has a 0.04% expense ratio, or $4 annually per $10,000 invested. The ETF also has a 0.4% 30-day SEC yield.
While the returns are good, you can find higher returns with the Vanguard Information Technology ETF (VGT) and the Fidelity MSCI Information Tech ETF (FTEC). Both of these funds give investors more exposure to the Magnificent Seven stocks. VGT has an annualized 21.5% return over the past five years, while FTEC has delivered an annualized 21.6% return over the past five years.
However, those Vanguard and Fidelity funds are more vulnerable to market downturns. They have higher year-to-date losses than SCHG amid tariff concerns and economic uncertainty.
Re: Best Schwab ETFs
Schwab U.S. Large-Cap ETF (SCHX)
This fund follows a similar playbook as SCHG, but it offers more diversification. SCHX prioritizes large-cap stocks and allocates its capital across 754 holdings. Tech makes up about 32% of the fund's total assets, and its top 10 holdings only make up 33% of the portfolio.
The Magnificent Seven stocks dominate the top 10 spots, and this is a common trend with many top-performing ETFs. While these high-flying stocks have been off to a rough start in 2025, their long-term returns have helped SCHX deliver an annualized 16.5% return over the past five years. SCHX has a 0.03% expense ratio and a 1.2% 30-day SEC yield. The fund also has $49.7 billion in assets.
SCHX's five-year returns lag behind the Fidelity Enhanced Large Cap Growth ETF (FELG), which has a 20.1% annualized return over half a decade. Meanwhile, the Vanguard Growth ETF (VUG) has an annualized 18.9% return over the past five years. All three funds are down year to date, but SCHX has smaller losses.
This fund follows a similar playbook as SCHG, but it offers more diversification. SCHX prioritizes large-cap stocks and allocates its capital across 754 holdings. Tech makes up about 32% of the fund's total assets, and its top 10 holdings only make up 33% of the portfolio.
The Magnificent Seven stocks dominate the top 10 spots, and this is a common trend with many top-performing ETFs. While these high-flying stocks have been off to a rough start in 2025, their long-term returns have helped SCHX deliver an annualized 16.5% return over the past five years. SCHX has a 0.03% expense ratio and a 1.2% 30-day SEC yield. The fund also has $49.7 billion in assets.
SCHX's five-year returns lag behind the Fidelity Enhanced Large Cap Growth ETF (FELG), which has a 20.1% annualized return over half a decade. Meanwhile, the Vanguard Growth ETF (VUG) has an annualized 18.9% return over the past five years. All three funds are down year to date, but SCHX has smaller losses.
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Schwab 1000 Index ETF (SCHK)
The Schwab 1000 Index ETF gives investors exposure to the 1,000 largest U.S. stocks by market cap. The Magnificent Seven stocks are in the top 10 holdings, with Broadcom Inc. (AVGO) and Berkshire Hathaway Inc. (BRK.B) also making the list.
The top 10 get 31% of the ETF's total assets. Under the same management team as SCHX and SCHG, SCHK has a 0.05% expense ratio and a 30-day SEC yield of 1.2%. The fund has a five-year annualized return of 16.3%.
Most of its assets go into the tech sector, which makes up 31.3% of the fund. SCHK also emphasizes financials (13.9%), consumer discretionary (11.3%) and health care (10%).
SCHK's returns fall slightly below the comparable Vanguard Large-Cap ETF (VV). This fund has an annualized 16.7% return over the past five years. The Fidelity Enhanced Large Cap Core ETF (FELC) has outperformed them both, though, with a 17.5% annualized return over five years.
The Schwab 1000 Index ETF gives investors exposure to the 1,000 largest U.S. stocks by market cap. The Magnificent Seven stocks are in the top 10 holdings, with Broadcom Inc. (AVGO) and Berkshire Hathaway Inc. (BRK.B) also making the list.
The top 10 get 31% of the ETF's total assets. Under the same management team as SCHX and SCHG, SCHK has a 0.05% expense ratio and a 30-day SEC yield of 1.2%. The fund has a five-year annualized return of 16.3%.
Most of its assets go into the tech sector, which makes up 31.3% of the fund. SCHK also emphasizes financials (13.9%), consumer discretionary (11.3%) and health care (10%).
SCHK's returns fall slightly below the comparable Vanguard Large-Cap ETF (VV). This fund has an annualized 16.7% return over the past five years. The Fidelity Enhanced Large Cap Core ETF (FELC) has outperformed them both, though, with a 17.5% annualized return over five years.
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Schwab U.S. Broad Market ETF (SCHB)
The Schwab U.S. Broad Market ETF has produced an annualized 16.1% return over the past five years. It also has a 0.03% expense ratio and a 1.2% 30-day SEC yield.
SCHX has $30.9 billion in total assets that are spread across about 2,400 holdings. This diversification makes the fund less vulnerable to market downturns than high-growth ETFs. Despite having a large portfolio, the Magnificent Seven still make the fund's top 10 holdings, which represent 30% of total assets. Approximately 30.6% of all assets are in tech stocks, while financials (14.1%), consumer discretionary (11.3%) and health care (10.2%) are the next top sectors.
The Vanguard Total Stock Market ETF (VTI) has an identical 16.1% annualized return over the past five years. That ETF has about 3,600 stocks, but the Magnificent Seven stocks inevitably make up a large chunk of the fund's total assets as well.
The Schwab U.S. Broad Market ETF has produced an annualized 16.1% return over the past five years. It also has a 0.03% expense ratio and a 1.2% 30-day SEC yield.
SCHX has $30.9 billion in total assets that are spread across about 2,400 holdings. This diversification makes the fund less vulnerable to market downturns than high-growth ETFs. Despite having a large portfolio, the Magnificent Seven still make the fund's top 10 holdings, which represent 30% of total assets. Approximately 30.6% of all assets are in tech stocks, while financials (14.1%), consumer discretionary (11.3%) and health care (10.2%) are the next top sectors.
The Vanguard Total Stock Market ETF (VTI) has an identical 16.1% annualized return over the past five years. That ETF has about 3,600 stocks, but the Magnificent Seven stocks inevitably make up a large chunk of the fund's total assets as well.
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Schwab U.S. REIT ETF (SCHH)
Not every Schwab ETF is designed to outperform the stock market. Some funds are designed to generate cash flow and minimize potential downside. This fund has 123 holdings and allocates 47% of its capital into its top 10 holdings. All of its assets are in real estate, which offers a haven for people who don't want to over-rely on the tech sector.
SCHH has a 3.8% 30-day SEC yield and a 0.07% expense ratio. While the fund has only produced a 3.6% annualized return over the past five years, it is up by roughly 2% this year. This year-to-date gain runs in sharp contrast to many tech-focused ETFs that have endured difficult starts in 2025. Prologis Inc. (PLD), American Tower Corp. (AMT) and Equinix Inc. (EQIX) are the fund's top three holdings.
The Vanguard Real Estate ETF (VNQ) has outperformed SCHH in recent years. The fund has delivered an annualized 5.3% return over the past five years and has a 3.3% effective yield. The Fidelity MSCI Real Estate Index ETF (FREL) has also produced an annualized 5.3% return over the past five years and offers a 3.4% 30-day SEC yield.
Not every Schwab ETF is designed to outperform the stock market. Some funds are designed to generate cash flow and minimize potential downside. This fund has 123 holdings and allocates 47% of its capital into its top 10 holdings. All of its assets are in real estate, which offers a haven for people who don't want to over-rely on the tech sector.
SCHH has a 3.8% 30-day SEC yield and a 0.07% expense ratio. While the fund has only produced a 3.6% annualized return over the past five years, it is up by roughly 2% this year. This year-to-date gain runs in sharp contrast to many tech-focused ETFs that have endured difficult starts in 2025. Prologis Inc. (PLD), American Tower Corp. (AMT) and Equinix Inc. (EQIX) are the fund's top three holdings.
The Vanguard Real Estate ETF (VNQ) has outperformed SCHH in recent years. The fund has delivered an annualized 5.3% return over the past five years and has a 3.3% effective yield. The Fidelity MSCI Real Estate Index ETF (FREL) has also produced an annualized 5.3% return over the past five years and offers a 3.4% 30-day SEC yield.