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If you're interested in broad exposure to the Mid Cap Blend segment of the US equity market, look no further than the Schwab U.S. Mid-Cap ETF (SCHM), a passively managed exchange traded fund launched on 01/13/2011.
The fund is sponsored by Charles Schwab. It has amassed assets over $10.21 billion, making it one of the larger ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Mid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. Thus, companies that fall under this category provide a stable and growth-heavy investment.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.58%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 19.70% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Eqt Corp (EQT) accounts for about 0.76% of total assets, followed by Robinhood Markets Inc Class A (HOOD) and International Paper (IP).
The top 10 holdings account for about 3.88% of total assets under management.
Performance and Risk
SCHM seeks to match the performance of the Dow Jones U.S. Mid-Cap Total Stock Market Index before fees and expenses. The Dow Jones U.S. Mid-Cap Total Stock Market Index is a float-adjusted market capitalization weighted index. The Index includes the mid-cap portion of the Dow Jones U.S. Total Stock Market Index actually available to investors in the marketplace and includes the components ranked 501-1000 by full market capitalization.
The ETF has lost about -11.30% so far this year and is down about -1.51% in the last one year (as of 04/18/2025). In the past 52-week period, it has traded between $22.92 and $30.08.
The ETF has a beta of 1.08 and standard deviation of 20.71% for the trailing three-year period, making it a medium risk choice in the space. With about 500 holdings, it effectively diversifies company-specific risk.