In the ever-evolving investment landscape, ETFs have become a go-to option for both seasoned investors and beginners. But with so many providers out there, it’s natural to wonder: are Schwab ETFs any good? As someone who’s been tracking the ETF market closely, I can tell you that Charles Schwab has certainly made a name for itself with some impressive offerings.
Why Consider Schwab ETFs in Your Portfolio?
Charles Schwab has been in the financial game since 1971, and they’ve built a reputation for offering low-cost investment options. When it comes to ETFs (Exchange-Traded Funds) Schwab provides some compelling choices that deserve your attention.
What makes Schwab ETFs stand out is their combination of:
- Ultra-low expense ratios (some as low as 0.03%)
- Broad market coverage
- Solid historical performance
- Diverse sector allocation
But don’t just take my word for it. Let’s dive into the data and see what makes certain Schwab ETFs worthy contenders for your investment dollars in 2025.
Top 5 Schwab ETFs Worth Considering in 2025
Based on recent analysis from U.S News & World Report, here are the five best Schwab ETFs to consider adding to your portfolio this year
| Schwab ETF | Expense Ratio | 5-Year Average Annual Return* |
|---|---|---|
| Schwab U.S. Large-Cap Growth ETF (SCHG) | 0.04% | 19.2% |
| Schwab U.S. Large-Cap ETF (SCHX) | 0.03% | 16.9% |
| Schwab 1000 ETF (SCHK) | 0.05% | 16.6% |
| Schwab U.S. Broad Market ETF (SCHB) | 0.03% | 16.5% |
| Schwab Fundamental International Equity ETF (FNDF) | 0.05% | 15.0% |
*Annualized and based on net asset value, as of May 12, 2025
Let’s break down each of these top performers to help you decide if they might fit your investment strategy.
1. Schwab U.S. Large-Cap Growth ETF (SCHG)
If you’re looking for exposure to growth-oriented companies with serious market power, SCHG delivers. This ETF has been a standout performer with an impressive 19.2% annualized return over the past five years.
Key Features:
- Focus on large-cap growth stocks
- Top holdings include tech giants Microsoft, Apple, and Nvidia
- Top 10 holdings make up 54% of total assets
- 48% exposure to the technology sector
- 0.04% expense ratio ($4 annually per $10,000 invested)
- 0.4% 30-day SEC yield
While SCHG has delivered excellent returns, it’s worth noting that some competitors like Vanguard’s Information Technology ETF (VGT) and Fidelity’s MSCI Information Tech ETF (FTEC) have slightly outperformed it with 20.2% and 20.4% annualized returns over the same period.
However, SCHG has shown more stability during recent market turbulence, with smaller year-to-date losses amid tariff concerns and economic uncertainty compared to these competitors.
2. Schwab U.S. Large-Cap ETF (SCHX)
For investors seeking a bit more diversification while still focusing on large-cap stocks, SCHX offers a compelling option.
Key Features:
- 748 equity holdings across various sectors
- Technology sector represents about 32% of total assets
- Top 10 holdings make up 32% of the portfolio
- Features most of the “Magnificent Seven” stocks
- 0.03% expense ratio
- 1.3% 30-day SEC yield
- $53.1 billion in total assets
SCHX’s five-year annualized return of 16.9% does fall slightly behind some competitors like Fidelity Enhanced Large Cap Growth ETF (FELG) at 18.5% and Vanguard Growth ETF (VUG) at 17.9%. But SCHX has shown greater resilience in 2025’s volatile market, with smaller year-to-date losses than both competitors.
3. Schwab 1000 ETF (SCHK)
If you want broader market exposure, SCHK gives you access to the 1,000 largest U.S. stocks by market cap.
Key Features:
- Exposure to 1,000 largest U.S. stocks
- Top 10 holdings (including Magnificent Seven plus Broadcom and Berkshire Hathaway) represent 32% of assets
- 0.05% expense ratio
- 1.3% 30-day SEC yield
- 16.6% five-year annualized return
- Sector allocation: tech (31.6%), financials (14.3%), consumer discretionary (10.6%), health care (10%)
SCHK’s performance is slightly behind Vanguard Large-Cap ETF (VV), which has returned 16.9% annually over five years, and Fidelity Enhanced Large Cap Core ETF (FELC), which has returned 17.3%.
4. Schwab U.S. Broad Market ETF (SCHB)
For maximum diversification within the U.S. market, SCHB is hard to beat.
Key Features:
- Approximately 2,400 holdings across the U.S. market
- 0.03% expense ratio
- 1.3% 30-day SEC yield
- $32.4 billion in total assets
- 16.5% annualized return over past five years
- Top 10 holdings (including Magnificent Seven) make up 30% of assets
- Sector focus: tech (31%), financials (14%), health care (10%), consumer discretionary (11%)
SCHB has matched the performance of Vanguard Total Stock Market ETF (VTI), which also has a 16.5% annualized return over the past five years, though VTI holds about 3,600 stocks.
5. Schwab Fundamental International Equity ETF (FNDF)
For investors looking to diversify beyond U.S. stocks, FNDF offers international exposure with a value orientation.
Key Features:
- Almost 98% of assets allocated to non-U.S. equities
- Focus on large value stocks
- 0.25% expense ratio
- Attractive 3.3% SEC yield
- $15.3 billion in assets
- 15% annualized return over past five years
- 924 equity holdings
- Top 10 holdings only make up 12% of total assets
- Up nearly 13% year-to-date (as of May 2025)
FNDF has outperformed the Vanguard Total International Stock ETF (VXUS), which has produced an 11.3% annualized return over the past five years. The Fidelity Fundamental Developed International ETF (FFDI) has shown strong year-to-date performance at 14.6%, but it’s a much newer and smaller fund ($14 million) with only about 93 holdings.
How Do Schwab ETFs Compare to Competitors?
While Schwab offers some excellent ETF options, it’s worth noting that Vanguard and Fidelity funds have been giving Schwab ETFs serious competition. In some cases, these competitors have delivered slightly better returns, but often with greater volatility.
The strength of Schwab ETFs seems to be in their balance of solid returns and stability, particularly during market turbulence. Their ultra-low expense ratios also make them particularly attractive for cost-conscious investors.
Why I Think Schwab ETFs Are Worth Considering
After diving into the data, I believe Schwab ETFs deserve a place in many investment portfolios. Here’s why:
- Cost efficiency – With expense ratios as low as 0.03%, Schwab ETFs are among the most affordable on the market
- Proven performance – Consistent returns in the 15-19% range over five years for their top funds
- Stability – Generally better performance during market downturns compared to some competitors
- Diversification options – From narrow tech-focused funds to broad market and international options
- Established provider – Backed by Charles Schwab’s 50+ years of financial experience
Are Schwab ETFs Right for Your Portfolio?
Whether Schwab ETFs are a good fit depends on your specific investment goals, risk tolerance, and existing portfolio. If you’re looking for low-cost, diversified exposure to various market segments with a track record of solid performance, then Schwab ETFs certainly deserve your consideration.
For growth-oriented investors, SCHG offers excellent exposure to tech giants and growth stocks. If you prefer broader market exposure with lower volatility, SCHB or SCHX might be more your speed. And for those wanting international diversification, FNDF provides a compelling option with its higher yield.
My Final Thoughts
So, are Schwab ETFs any good? Based on my analysis, the answer is a resounding yes for many investors. While they may not always deliver the absolute highest returns in every category, their combination of low costs, solid performance, and relative stability makes them worthy contenders for your investment dollars.
As with any investment decision, I recommend doing your own research and possibly consulting with a financial advisor to determine if these funds align with your specific situation and goals. But don’t be surprised if one or more of these Schwab ETFs ends up finding a home in your portfolio.
What’s your experience with Schwab ETFs? Have you found them to be good additions to your investment strategy? I’d love to hear your thoughts!
Schwab Core Bond ETF (SCCR)
The goal of the Schwab Core Bond ETF is to seek to provide total return while generating income through investing in U.S. dollar-denominated debt securities, such as corporate bonds, taxable municipal bonds, mortgage pass-through securities, commercial mortgage-backed securities, asset-backed securities, U.S. Treasuries, and other government-related bonds. The fund is actively managed and is backed by extensive credit research.
Schwab Ultra-Short Income ETF (SCUS)
The goal of the Schwab Ultra-Short Income ETF is to seek income consistent with capital preservation while maintaining daily liquidity. The fund invests in investment grade, short-term, U.S. dollar denominated debt securities issued by U.S. and foreign issuers. The fund is actively managed and benefits from extensive credit research and professional money management.
Life-Changing Wealth Made SIMPLE! 6 BEST Schwab ETFs
FAQ
What is the average return on the Schwab ETF?
| Description | Average Annual Returns (%) | |
|---|---|---|
| 1 Year | 10 Year | |
| SCHG NAV | +23.01 | +18.58 |
| Large Growth (Morningstar Category) | +21.73 | +15.90 |
| Dow Jones U.S. Large-Cap Growth Total Stock Market Index (Index) | +23.05 | +18.62 |
Which ETF does Warren Buffett recommend?
The Vanguard S&P 500 ETF is a favorite of Buffett’s.
What are Schwab’s most popular ETFs?
| Name | Ticker | Total Return YTD |
|---|---|---|
| Schwab Fundamental Emerging MarketsEqETF | FNDE | 27.91% |
| Schwab Fundamental U.S. Broad Market ETF | FNDB | 12.94% |
| Schwab Fundamental U.S. Large CompanyETF | FNDX | 13.72% |
| Schwab US Large-Cap Growth ETF™ | SCHG | 20.13% |
Are Schwab or Vanguard ETFs better?
Schwab and Vanguard have very similar investment offerings, with a number of low-cost mutual funds and ETFs. Vanguard edges out Schwab here thanks to its wider variety of mutual funds.