Schwab U.S. Small-Cap ETF (SCHA): Complete Beginner's Guide
Last updated: March 2026 • Schwab • U.S. Small-Cap Blend
Expense Ratio
0.04%
AUM
$17.0B
Dividend Yield
1.20%
Inception
2009
Beginner Score
9/10
What is Schwab U.S. Small-Cap ETF?
SCHA provides exposure to roughly 1,750 small-cap U.S. companies that larger index funds typically miss. Small-cap stocks have historically delivered higher long-term returns than large-caps, though with more volatility along the way. Beginners who want to capture the growth potential of smaller American businesses can use SCHA to broaden their portfolio beyond the usual large-cap names.
SCHA is managed by Schwab and has been available since 2009. With $17.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.04%, which means for every $10,000 you invest, you pay approximately $4 per year in management fees.
SCHA at a Glance — Key Metrics
| Expense Ratio | 0.04% |
| Total Holdings | 1,750 |
| P/E Ratio | 18.2 |
| Beta | 1.18 |
| Dividend Yield | 1.20% |
| AUM | $17.0B |
| Inception Year | 2009 |
| Issuer | Schwab |
Top 10 Holdings in SCHA
SCHA holds 1,750 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | FTAI Aviation Ltd. | FTAI | 0.80% |
| 2 | Sprouts Farmers Market | SFM | 0.70% |
| 3 | Fabrinet | FN | 0.60% |
| 4 | Ensign Group Inc. | ENSG | 0.60% |
| 5 | Mueller Water Products | MWA | 0.50% |
| 6 | Comfort Systems USA | FIX | 0.50% |
| 7 | Kinsale Capital Group | KNSL | 0.50% |
| 8 | SPS Commerce Inc. | SPSC | 0.50% |
| 9 | UFP Industries Inc. | UFPI | 0.40% |
| 10 | Installed Building Products | IBP | 0.40% |
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SCHA Performance History
Here's how SCHA has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
1.80%
1 Year
19.50%
3 Year
6.50%
5 Year
10.50%
10 Year
9.50%
Beginner Suitability Score: 9/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
SCHA scores 9/10 because it has very low fees, can be more volatile than the broader market, offers broad diversification across 1,750 holdings, and has been available since 2009, giving it a proven track record.
How to Buy SCHA — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "SCHA" — Use the search bar in your brokerage platform to find Schwab U.S. Small-Cap ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into SCHA
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With SCHA's expense ratio of 0.04%, a $10,000 investment would lose approximately $344 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
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Pros and Cons of SCHA
Pros
- ✓Broad small-cap exposure with roughly 1,750 holdings for excellent diversification
- ✓Historically small-caps have outperformed large-caps over very long periods
- ✓Rock-bottom 0.04% expense ratio is extremely cheap for small-cap access
- ✓Less correlated with mega-cap tech stocks, adding true portfolio diversification
Cons
- ✗Higher volatility than large-cap ETFs with bigger price swings in both directions
- ✗Small-cap stocks are more vulnerable during economic downturns and recessions
- ✗Lower liquidity at the individual holding level compared to large-cap funds
SCHA vs Similar ETFs
See how SCHA stacks up against similar funds:
Frequently Asked Questions
Is SCHA a good ETF for beginners?▾
SCHA has a Beginner Suitability Score of 9/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of SCHA?▾
SCHA has an expense ratio of 0.04%. This means for every $10,000 you invest, you pay approximately $4 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in SCHA?▾
You can invest in SCHA with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does SCHA pay dividends?▾
Yes, SCHA pays dividends with a current yield of approximately 1.20%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in SCHA?▾
The top holdings in SCHA include FTAI Aviation Ltd. (0.80%), Sprouts Farmers Market (0.70%), Fabrinet (0.60%), and more. The fund holds 1,750 total positions, providing broad diversification across many companies.