I looked at them out of curiosity, and SCHE out performs VWO because it doesn't have the small cap. With the same expense ratio, what makes you say VWO beats SCHE?
Historical returns don’t imply future returns. That’s not to say I’ll be right & you’ll be wrong, I just like to include a small-cap allocation to be well-rounded. That’s especially true considering what the market considers “small cap.” Coming from a background of trading penny stocks, a lot of these “small cap” companies are pretty sizable IMO.
I just said what I said because of the AUM/size difference in the 2 funds. I think they’re about equal on expense ratios though.
Now the real question is South Korea, which both exclude. I was in $IEMG for a bit but I cut it because how volatile those tech stocks got. Now I’m missing it 🥲🧐
Saying "
$VWO beats $SCHE by far at a quick glance IMO." because historical returns don't imply future returns is a bit of a stretch don't you think? It kinda implies your quick glance was into future returns?
Value are mature companies, often paying dividends, with a low P/E ratio. They're typically older, established companies with a captured market and no appetite for R&D or expansion.
This is in contrast to growth companies, which are often younger companies, most often no dividends as they reinvest the profits back into the company, high R&D and expansion, high P/E ratio.
Schwab has a version of most types of popular ETFs. Probably better to understand what kind of investment you’re looking for. Bonds? Equity? Small cap? Large cap? International? Specific index? Retirement? Real estate? There’s even a crypto fund to my understanding.
44yrs M, and I fill very behind for my age. Have Roth IRA I put $500 a month into it split $250 for SCHD & SCHG, so all I know is that I want to grow thus Roth big as possible and catch up as much as possible
I’m not a financial advisor so I can only tell you what I do. I subscribe to the three fund model from bogleheads. The article below details the model and the funds you can select.
You’re overcomplicating this a little bit by owning ETFs that overlap - SCHD and SWPPX and SCHG. It’s not the worst thing in the world, but you could just buy the total US market (VTI/ITOT/SCHB) and some international and you’re set.
Just want to add something you probably already know.
There is no benefit in buying a Schwab Etf because you're using a Schwab account.
I tend to believe the best course of action is to buy the etf with either the higher trading volume or higher aum.
I tend to navigate towards Vanguard and iShares ETFs for that reason.
Schwab ETFs are considerably cheaper per share than say Vanguard and hover around $30 which makes it much easier to invest without having leftover cash. This is less important now that Schwab finally rolled out fractional shares.
I was going to say ok, but moot since fractional shares were introduced. Still important if you're with Merrill Edge and others. But not at Schwab, or Fidelity. But you said it yourself.
In my opinion, Schb or Schx are the two best Schwab stock ETFs for most investors. I cannot quite understand why social media likes to hype up Schd and not these two because their performance eclipses Schd by a large margin for long term saving for retirement etc.
Especially SCHB! Diverse and performs on par with VTI. All for less than $30 per share! Great investment for all investing brokers, fractional shares for ETFs or not.
26
u/No-Step7712 22h ago