Schwab U.S. Mid-Cap ETF (SCHM)
Expense Ratio: 0.07%
Well, you have to give Schwab credit. It has some of the best ETFs, offering investors a wide range of passive investments that actually allow folks to build a diversified portfolio with a little overlap. That’s not to say Vanguard and iShares don’t have some good funds … but Schwab’s funds have ended up fitting like a glove for this particular exercise.
And that brings us to our final pick: The Schwab U.S. Mid-Cap ETF (SCHM). As the name suggests, SCHM invests in mid-cap stocks. It boasts $867 million in total net assets and charges just 0.07% annually.
The top three sectors represented are financials, industrials and consumer discretionary stocks; the three flavors have a combined weighting of 57% of the portfolio. Within the top 10 holdings are three companies I really like: Mohawk Industries (MHK), Polaris Industries (PII) and Tractor Supply (TSCO).
If you’re looking to round out your fund portfolio on the cheap, this is one of the best ETFs to consider.
As of this writing, Will Ashworth did not own a position in any of the aforementioned securities.