You’ll often find Charles Schwab exchange-traded funds (ETFs) among the core building blocks of a diversified portfolio.
Schwab is among the largest sponsors of ETFs. The company currently provides 34 ETFs with more than $510 billion in assets under management. The largest is the Schwab U.S. Dividend Equity ETF (ticker: SCHD), with about $77 billion in AUM; the smallest is the Schwab Ariel Opportunities ETF (SAEF), which holds about $25 million.
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The company’s ETFs span a range of asset classes, including:
— U.S. stocks.
— International stocks.
— Bonds.
— Real estate and income.
Low expense ratios are part of the fund family’s appeal; according to Schwab, investors in its market-cap index ETFs pay less than 10 cents a year for every $100 invested.
“One of the biggest issues that I repeatedly run across when examining new client portfolios is that they’re paying unnecessary fees and taxes that are acting as a major drag on their long-term investment performance and preventing them from making better progress toward their long-term financial goals,” says Jim Koford, a certified financial planner (CFP) at Hammerhead Financial Strategies in Lutz, Florida. “That’s why Schwab’s lineup of ETFs can be a good fit for investors looking to build a tax-efficient, well-diversified portfolio.”
Here’s a look at five popular Schwab equity ETFs:
| ETF | Expense ratio | Five-year annualized return |
| Schwab U.S. Large-Cap ETF (SCHX) | 0.03% | 13.7% |
| Schwab U.S. Broad Market ETF (SCHB) | 0.03% | 13.1% |
| Schwab U.S. Dividend Equity ETF (SCHD) | 0.06% | 8.9% |
| Schwab 1000 ETF (SCHK) | 0.03% | 13.4% |
| Schwab International Equity ETF (SCHF) | 0.03% | 9.3% |
Schwab U.S. Large-Cap ETF (SCHX)
This ETF tracks the Dow Jones U.S. Large-Cap Total Stock Market Index, comprising 754 of the largest domestic companies. Directionally, it corresponds with the S&P 500, with returns tending to be pretty similar, as both indexes are market-capitalization weighted.
In fact, this ETF functions much like a core S&P 500-style holding, says Steven Crane, financial planner at Financial Legacy Builders in Fairborn, Ohio.
“The expense ratio is very low, liquidity is strong and it’s highly tax-efficient, which makes it a solid foundational ETF for long-term investors,” he says. “This is the type of fund that works well as a core equity position inside a diversified portfolio, especially for people who want broad exposure without complexity.”
Schwab U.S. Broad Market ETF (SCHB)
This ETF measures the performance of the 2,500 largest publicly traded U.S. companies. That means it gives investors exposure to equity asset classes beyond just the largest names.
For that reason, Crane says, it offers a more complete snapshot of the entire U.S. market.
“It’s still very low-cost and tax-efficient, but slightly more volatile due to the added exposure to smaller companies,” he says. “I often view this as a ‘one-and-done’ U.S. equity option for investors who don’t want to slice and dice their portfolio.”
This ETF is also correlated with S&P 500 performance, although the inclusion of smaller companies may mean performance can vary somewhat from that of a purely large-cap index.
Schwab U.S. Dividend Equity ETF (SCHD)
With a 30-day SEC yield of 3.7%, SCHD delivers more income per dollar invested than similar ETFs, such as the Vanguard High Dividend Yield ETF (VYM) or the Vanguard Dividend Appreciation ETF (VIG).
It follows the Dow Jones U.S. Dividend 100 Index and holds 102 stocks. Its expense ratio is 0.06%.
“People may overlook it, as its 2025 performance was dismal compared to the S&P 500,” says Chris Chen, a CFP and wealth strategist at Insight Financial Strategists in Newton, Massachusetts. “That was because SCHD has minimal exposure to the tech sector that drove much of the stock market performance in 2025.”
“However, the day will come when tech stocks won’t do as well, and investors may wish then that they had SCHD,” Chen adds.
[Read: 6 Best Monthly Dividend ETFs to Buy Today]
Schwab 1000 ETF (SCHK)
This ETF’s underlying index tracks the 1,000 largest U.S. companies, accounting for about 90% of total U.S. stock market capitalization. It boasts a low expense ratio of just 0.03%.
That fee comes in lower than similar ETFs, such as the Vanguard Russell 1000 ETF (VONE) and the iShares Russell 1000 ETF (IWB).
“But the real advantage isn’t just cost, it’s how the fund is constructed,” says Emilio Cabuto, a CFP and financial planner at Verus Capital Partners in San Diego.
While the Schwab 1000 Index and the Russell 1000 both target the largest 1,000 U.S. stocks, the Schwab 1000 applies stricter liquidity, float and size screens, Cabuto says. That filters out borderline companies that may enter the Russell 1000 due to temporary market-cap spikes.
Schwab International Equity ETF (SCHF)
After underperforming U.S. stocks between 2010 and 2014, international stocks are having a moment. In 2025, this fund returned 34.5%, versus the S&P 500’s return of 16.4%.
The Schwab International Equity ETF gives investors access to large- and mid-cap stocks from developed countries outside the U.S. The largest country allocations are Japan, the U.K., Canada, France and Switzerland.
As with other Schwab ETFs, SCHF has a low fee. In this case, it’s just 0.03%.
This ETF is a good way to spread out geographic risk, says Trent Von Ahsen, CFP and managing partner at Cedar Point Capital Partners in Cedar Rapids, Iowa.
“But remember that international stocks move differently through cycles and can lag U.S. stocks for long stretches,” he adds. “The real benefit isn’t short-term performance; it’s long-term diversification and reducing reliance on one market.”
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5 Best Schwab ETFs to Buy in 2026 originally appeared on usnews.com
Update 01/27/26: This story was published at an earlier date and has been updated with new information.
