Schwab U.S. Large-Cap ETF (SCHX): Complete Beginner's Guide
Last updated: March 2026 • Schwab • U.S. Large-Cap Blend
Expense Ratio
0.03%
AUM
$40.0B
Dividend Yield
1.30%
Inception
2009
Beginner Score
9.5/10
What is Schwab U.S. Large-Cap ETF?
SCHX tracks the Dow Jones U.S. Large-Cap Total Stock Market Index, holding about 750 of America's biggest companies at a rock-bottom cost. It provides broad large-cap exposure similar to an S&P 500 fund but with a slightly wider net. Beginners who want simple, diversified ownership of America's largest corporations often start with SCHX.
SCHX is managed by Schwab and has been available since 2009. With $40.0B 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.
SCHX at a Glance — Key Metrics
| Expense Ratio | 0.03% |
| Total Holdings | 750 |
| P/E Ratio | 24.5 |
| Beta | 1.00 |
| Dividend Yield | 1.30% |
| AUM | $40.0B |
| Inception Year | 2009 |
| Issuer | Schwab |
Top 10 Holdings in SCHX
SCHX holds 750 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Apple Inc. | AAPL | 7.00% |
| 2 | Microsoft Corp. | MSFT | 6.30% |
| 3 | NVIDIA Corp. | NVDA | 6.00% |
| 4 | Amazon.com Inc. | AMZN | 3.70% |
| 5 | Meta Platforms Inc. | META | 2.60% |
| 6 | Alphabet Inc. Class A | GOOGL | 2.20% |
| 7 | Berkshire Hathaway Inc. | BRK.B | 1.90% |
| 8 | Alphabet Inc. Class C | GOOG | 1.90% |
| 9 | Broadcom Inc. | AVGO | 1.70% |
| 10 | Tesla Inc. | TSLA | 1.60% |
Recommended: This beginner-friendly ETF course on Udemy covers everything from ETF fundamentals to building a recession-proof portfolio in 7 days.
SCHX Performance History
Here's how SCHX 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
3.10%
1 Year
26.50%
3 Year
11.00%
5 Year
15.50%
10 Year
13.00%
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.
SCHX scores 9.5/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 750 holdings, and has been available since 2009, giving it a proven track record.
How to Buy SCHX — 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 "SCHX" — Use the search bar in your brokerage platform to find Schwab U.S. Large-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 SCHX
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 SCHX'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.
Get the Free ETF Portfolio Blueprint
3 model portfolios for beginners — Conservative, Balanced, and Growth. See exactly which ETFs to buy.
Pros and Cons of SCHX
Pros
- ✓Ultra-low expense ratio of just 0.03% matches the cheapest large-cap ETFs
- ✓Broader than S&P 500 funds with roughly 750 holdings for wider large-cap coverage
- ✓Commission-free on Schwab platforms with excellent trade execution
- ✓Tracks a well-established Dow Jones index with strong historical performance
Cons
- ✗Heavy concentration in mega-cap technology stocks dominates the portfolio
- ✗No small-cap or mid-cap exposure means missing parts of the market
- ✗Very similar to VOO and IVV, offering limited differentiation
SCHX vs Similar ETFs
See how SCHX stacks up against similar funds:
Frequently Asked Questions
Is SCHX a good ETF for beginners?▾
SCHX 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 SCHX?▾
SCHX 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 SCHX?▾
You can invest in SCHX 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 SCHX pay dividends?▾
Yes, SCHX 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 SCHX?▾
The top holdings in SCHX include Apple Inc. (7.00%), Microsoft Corp. (6.30%), NVIDIA Corp. (6.00%), and more. The fund holds 750 total positions, providing broad diversification across many companies.