SCHO 📈 Schwab Short-Term U.S. - Overview

The Schwab Short-Term U.S. Treasury ETF, listed on NYSE ARCA under the ticker SCHO, is designed to track the performance of a specific index that focuses on short-term U.S. Treasury securities. This index comprises all publicly-issued U.S. Treasury securities with a remaining maturity of one to three years, which are investment-grade and have a minimum outstanding face value of $300 million. These securities must be denominated in U.S. dollars, be fixed-rate, and non-convertible, ensuring a specific level of liquidity and creditworthiness. The fund aims to invest at least 90% of its net assets in the securities included in this index, providing a targeted exposure to the short-term U.S. Treasury market.

By concentrating on U.S. Treasury securities with maturities between one and three years, the Schwab Short-Term U.S. Treasury ETF offers investors a way to manage interest rate risk while seeking returns that are generally more stable than those associated with longer-term bonds. The requirement for securities to be investment-grade and have a substantial outstanding face value helps to mitigate credit risk, making this ETF appealing to investors seeking low-risk, short-term income opportunities. Additionally, the fund's focus on U.S. Treasury securities provides a high level of liquidity, as these securities are widely traded and backed by the full faith and credit of the U.S. government.

The Schwab Short-Term U.S. Treasury ETF is part of the broader family of ETFs managed by Charles Schwab, a well-established financial services company with a significant presence in the U.S. financial markets. With its domicile in the United States and listed under the ISIN US8085248628, this ETF is categorized as a short government ETF, reflecting its investment strategy and focus on short-term government securities. Investors looking for a straightforward, low-cost way to gain exposure to the short-term U.S. Treasury market may find this ETF to be a suitable addition to their portfolios, offering a simple and efficient means of diversifying their investments and managing risk.