Key Points
The Schwab U.S. Broad Market ETF (NYSEMKT: SCHB) offers investors exposure to a diversified portfolio of 2,398 U.S. stocks. Launched in November 2009, the ETF has averaged annual returns of 13.66% over the past 16 years, significantly exceeding the typical long-term market return of 10% per year. The fund’s expense ratio is notably low at 0.03%.
Notable holdings include major tech companies: Nvidia (6.8% of the fund), Apple (5.9%), and Microsoft (4.4%). Approximately 33% of the ETF’s assets are concentrated in the Information Technology sector. If a $10,000 investment were made today and earned 13.66% annually, it could grow to about $1 million after 36 years.
