Schwab U.S. Small-Cap ETF (SCHA)

SCHA: Factor Analysis Of Schwab's Popular Low-Cost Small-Cap ETF (Rating Upgrade)

SCHA is Schwab's well-diversified small-cap blend ETF, offering investors exposure to 1,750 companies for just 0.04% in annual fees. This expense ratio is second-lowest in the category. While limiting fees is important, the approach has not worked well recently for the small-cap ETF segment. One explanation is that the lowest-fee products own too many non-profitable stocks. SCHA's profit score ranks a disappointing #31/49. Passive alternatives like VB rank better, as does XSMO, the top-performing momentum-based fund in the category over the last three years.