The Schwab U.S. Large-Cap ETF (NYSE ARCA:SCHX) aims to track the performance of the large-cap segment of the US stock market by investing in a diversified portfolio of stocks. To achieve this, the fund typically invests in companies that are part of the Dow Jones U.S. Large-Cap Total Stock Market Index.
This index is a subset of the Dow Jones U.S. Total Stock Market Index, which includes almost all publicly traded US companies. The large-cap portion of the index focuses on the top 750 companies by market capitalization, which are the largest and most established businesses in the US. This float-adjusted market capitalization weighted index ensures that the fund's holdings are aligned with the market's overall performance.
As a non-diversified fund, the Schwab U.S. Large-Cap ETF may have a higher concentration of assets in a particular sector or industry, which can result in higher returns but also increased risk. However, this approach allows the fund to take advantage of growth opportunities in specific areas of the market.
With its focus on large-cap US stocks, the fund provides investors with exposure to well-established companies with a strong market presence. By tracking a broad market index, the fund offers a cost-effective way to invest in the US stock market, making it an attractive option for investors seeking long-term growth.
For more information about the Schwab U.S. Large-Cap ETF, investors can visit the fund's website at http://www.schwabfunds.com. The fund is domiciled in the United States.