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Schwab U.S. Large-Cap ETF (SCHX): Complete Beginner's Guide

Schwab U.S. Large-Cap ETF (SCHX) is a u.s. large-cap blend ETF from Schwab with an expense ratio of 0.03% and $40.0B in assets under management. Our Beginner Suitability Score: 9.5/10 (Great for Beginners). 5-year annualized return: 15.50%.

Last updated: April 2026

SchwabU.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 Ratio0.03%
Total Holdings750
P/E Ratio24.5
Beta1.00
Dividend Yield1.30%
AUM$40.0B
Inception Year2009
IssuerSchwab

Top 10 Holdings in SCHX

SCHX holds 750 different securities. Here are the largest positions that make up the core of this fund:

#CompanyTickerWeight
1Apple Inc.AAPL7.00%
2Microsoft Corp.MSFT6.30%
3NVIDIA Corp.NVDA6.00%
4Amazon.com Inc.AMZN3.70%
5Meta Platforms Inc.META2.60%
6Alphabet Inc. Class AGOOGL2.20%
7Berkshire Hathaway Inc.BRK.B1.90%
8Alphabet Inc. Class CGOOG1.90%
9Broadcom Inc.AVGO1.70%
10Tesla Inc.TSLA1.60%

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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

Great for Beginners

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

  1. Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
  2. Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
  3. Search for "SCHX" — Use the search bar in your brokerage platform to find Schwab U.S. Large-Cap ETF.
  4. 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.
  5. 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.

SCHX Sector Allocation

Here's how SCHX distributes its investments across different sectors of the economy:

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):

Monthly10 Years20 Years30 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.

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.

What sectors does SCHX invest in?

SCHX's largest sector allocations are Information Technology (31.50%), Financials (13.00%), Health Care (11.80%). This sector distribution shows a focus on information technology stocks.

How much do SCHX's fees cost over time?

With an expense ratio of 0.03%, a $10,000 investment in SCHX would lose approximately $258 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.