Schwab U.S. Broad Market ETF (SCHB): Complete Beginner's Guide
Last updated: March 2026 • Schwab • U.S. Total Market
Expense Ratio
0.03%
AUM
$28.0B
Dividend Yield
1.30%
Inception
2009
Beginner Score
9.5/10
What is Schwab U.S. Broad Market ETF?
SCHB tracks the Dow Jones U.S. Broad Stock Market Index, providing exposure to roughly 2,500 U.S. stocks spanning large, mid, and small-cap companies. It is Schwab's answer to total market funds like VTI and ITOT, covering nearly the entire investable U.S. stock market. For beginners, SCHB offers a single-fund solution to own a slice of almost every publicly traded American company.
SCHB is managed by Schwab and has been available since 2009. With $28.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.03%, which means for every $10,000 you invest, you pay approximately $3 per year in management fees.
SCHB at a Glance — Key Metrics
| Expense Ratio | 0.03% |
| Total Holdings | 2,500 |
| P/E Ratio | 23.8 |
| Beta | 1.00 |
| Dividend Yield | 1.30% |
| AUM | $28.0B |
| Inception Year | 2009 |
| Issuer | Schwab |
Top 10 Holdings in SCHB
SCHB holds 2,500 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Apple Inc. | AAPL | 6.50% |
| 2 | Microsoft Corp. | MSFT | 5.80% |
| 3 | NVIDIA Corp. | NVDA | 5.50% |
| 4 | Amazon.com Inc. | AMZN | 3.50% |
| 5 | Meta Platforms Inc. | META | 2.40% |
| 6 | Alphabet Inc. Class A | GOOGL | 2.00% |
| 7 | Berkshire Hathaway Inc. | BRK.B | 1.80% |
| 8 | Alphabet Inc. Class C | GOOG | 1.70% |
| 9 | Broadcom Inc. | AVGO | 1.60% |
| 10 | Tesla Inc. | TSLA | 1.50% |
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SCHB Performance History
Here's how SCHB 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
3.00%
1 Year
25.50%
3 Year
10.50%
5 Year
15.00%
10 Year
12.80%
Beginner Suitability Score: 9.5/10
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.
SCHB scores 9.5/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 2,500 holdings, and has been available since 2009, giving it a proven track record.
How to Buy SCHB — 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 "SCHB" — Use the search bar in your brokerage platform to find Schwab U.S. Broad Market 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 SCHB
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 SCHB's expense ratio of 0.03%, a $10,000 investment would lose approximately $258 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 SCHB
Pros
- ✓Covers roughly 2,500 stocks across all market capitalizations for true total market exposure
- ✓Expense ratio of just 0.03% makes it one of the cheapest total market ETFs
- ✓Includes small and mid-cap stocks that pure large-cap funds miss
- ✓Single-fund diversification across virtually the entire U.S. equity market
Cons
- ✗Still heavily weighted toward mega-cap tech stocks despite broader coverage
- ✗Small-cap allocation is modest since the fund is market-cap weighted
- ✗Tracks a Dow Jones index rather than the more widely referenced CRSP index
Frequently Asked Questions
Is SCHB a good ETF for beginners?▾
SCHB has a Beginner Suitability Score of 9.5/10 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 SCHB?▾
SCHB has an expense ratio of 0.03%. This means for every $10,000 you invest, you pay approximately $3 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in SCHB?▾
You can invest in SCHB 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 SCHB pay dividends?▾
Yes, SCHB pays dividends with a current yield of approximately 1.30%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in SCHB?▾
The top holdings in SCHB include Apple Inc. (6.50%), Microsoft Corp. (5.80%), NVIDIA Corp. (5.50%), and more. The fund holds 2,500 total positions, providing broad diversification across many companies.