Schwab U.S. Small-Cap ETF (SCHA): Complete Beginner's Guide
Schwab U.S. Small-Cap ETF (SCHA) is a u.s. small-cap blend ETF from Schwab with an expense ratio of 0.04% and $17.0B in assets under management. Our Beginner Suitability Score: 9/10 (Great for Beginners). 5-year annualized return: 10.50%.
Last updated: April 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% |
SCHA's top holding is FTAI Aviation Ltd. (FTAI) at 0.80%, followed by Sprouts Farmers Market (SFM) at 0.70% and Fabrinet (FN) at 0.60%. The top 10 holdings account for 5.50% of the fund's 1,750 total positions.
View data table
| Rank | 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%
SCHA has returned 10.50% annualized over 5 years and 9.50% over 10 years. YTD return is 1.80%.
View data table
| Period | Return |
|---|---|
| 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.
SCHA Sector Allocation
Here's how SCHA distributes its investments across different sectors of the economy:
SCHA's largest sector allocation is Industrials at 18.5%, followed by Financials at 16.5% and Health Care at 13.5%.
View data table
| Sector | Weight |
|---|---|
| Industrials | 18.5% |
| Financials | 16.5% |
| Health Care | 13.5% |
| Consumer Discretionary | 12.0% |
| Information Technology | 11.8% |
| Energy | 6.5% |
| Real Estate | 6.0% |
| Materials | 5.2% |
| Consumer Staples | 4.0% |
| Communication Services | 3.2% |
| Utilities | 2.8% |
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.
SCHA's expense ratio of 0.04% costs $344 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $46,266.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,666 | $27 |
| 10 | $21,589 | $21,509 | $80 |
| 15 | $31,722 | $31,546 | $176 |
| 20 | $46,610 | $46,266 | $344 |
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.
What sectors does SCHA invest in?▾
SCHA's largest sector allocations are Industrials (18.50%), Financials (16.50%), Health Care (13.50%). This sector distribution shows a focus on industrials stocks.
How much do SCHA's fees cost over time?▾
With an expense ratio of 0.04%, a $10,000 investment in SCHA would lose approximately $344 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.