This Schwab ETF Charges $3 a Year Per $10,000 Invested and Holds Nearly Every Stock in America

There is an ongoing survey from Hendrik Bessembinder astatine the W. P. Carey School of Business astatine Arizona State University that I’ve followed closely. It’s titled 100 Years successful the U.S. Stock Market, and it looks astatine concern outcomes for much than 229,000 stocks from 1926 done 2025, analyzing some percent returns and full dollar wealthiness creation.

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The findings are not what astir investors expect. Out of astir $43 trillion successful nett wealthiness instauration from 1926 to 2016, conscionable 89 stocks were liable for each of it. Extend that dataset done 2025, and it becomes adjacent much concentrated. Roughly fractional of the $91 trillion successful full wealthiness instauration came from conscionable 46 companies.

That is the world of the banal market. A precise tiny fig of companies thrust the immense bulk of returns. There is simply a crushed wherefore John C. Bogle famously said, “Don’t look for the needle successful the haystack. Just bargain the haystack.” Yes, determination volition ever beryllium winners, but the likelihood of consistently picking the apical 40 oregon 50 companies retired of hundreds of thousands are highly low.

If you alternatively bargain a market-cap-weighted scale fund, you are astir guaranteed to ain those winners arsenic they turn and instrumentality up a larger stock of the market. You bash not request to foretell them up of time. And the champion portion is that this attack tin beryllium done astatine highly debased cost. A bully illustration is the Schwab U.S. Broad Market ETF (NYSEMKT: SCHB).

SCHB is simply a passive ETF that tracks the Dow Jones U.S. Broad Market Index. It is designed to correspond the bulk of the investable U.S. equity market, covering astir 2,500 publically traded companies crossed large, mid, and small-cap segments.

Large caps mostly see companies supra $10 cardinal successful marketplace value, mid-caps scope betwixt $2 cardinal and $10 billion, and tiny caps autumn beneath that threshold. The money brings each of them unneurotic into 1 portfolio.