The 3 Schwab ETFs Investors Should Be Buying Aggressively Before June

I find myself on a continuous search for the best exchange traded funds (ETFs), given just how broad and expansive this space has become. Indeed, the range of ETF options out there is truly incredible, with thousands of options for investors to choose from. 

From index-tracking ETFs to funds focused more solely on specific sectors or trends (and some that even track popular individual stocks), there’s really an ETF out there for everyone, and every investing style. As such, what I view as an ETF worth buying before June may not jive with what others think is an appropriate pick in this current climate.

That said, I’m of the view that more defensive, diversified investing strategies should likely outperform over the long-term. If that’s true, these three Schwab ETFs (among the top 10 by assets under management for this ETF provider) could be the best picks to consider right now. 

Schwab U.S. Large-Cap ETF (SCHX)

The Schwab U.S. Large-Cap ETF (SCHX) is a compelling option for long-term investors looking for exposure to the biggest and best companies the U.S. markets have to offer. Tracking the Dow Jones U.S. Large-Cap Total Stock Market Index, this ETF actually provides exposure to far more than the 30 Dow Jones companies out there. There are currently around 750 holdings spanning multiple sectors held within this ETF, with industry giants such as Apple, Microsoft, IBM and others weighted heavily within this ETF.

Thus, investors clearly gain exposure to top-tier blue-chip companies which have built large moats around their businesses and have the size and scale to continue to perform well in any market environment. For those who don’t know which stocks to pick in the large-cap world, simply owning the basket is the way I’d go right now. This is likely one of the safest places to hang out in the U.S. markets, and while there’s always a risk of market-related headwinds taking hold, this is the ETF I’d choose for my large cap exposure right now.

With an expense ratio of just 0.03% and strong performance over the past decade (returns of nearly 14%, which outperforms most major benchmarks), this is an ETF that has benefited long-term investors, and one I think will continue to do so moving forward. 

Schwab U.S. Broad Market ETF (SCHB)

Moving onto another broad-based ETF focused on providing maximum diversification at rock-bottom prices, we have the Schwab U.S. Broad Market ETF (SCHB). This fund invests in an even broader range of companies than the first option on our list, holding exposure to more than 2,400 of the best U.S. companies spanning the large-, mid- and small-cap categories.

Thus, like many other broader index ETFs available to investors, those looking for such exposure via Schwab may want to look to SCHB as a primary option. Covering virtually every investable sector and company size within the U.S. market, SCHB is about as diversified of an offering investors can ask for. And at the same expense ratio of just 0.03%, I think most long-term investors looking for steady and consistent performance can’t go wrong owning this particular ETF. 

The Schwab U.S. Broad Market ETF hasn’t performed as well as SCHX over the past decade, in part due to the incredible outperformance large-cap stocks have had as a whole over this time frame. But it’s still beaten most indices. And for investors who believe that some sort of convergence toward a longer-term mean is likely (with small-caps tending to outperform over long periods of time due to their higher risk profile), this is a premier option for those looking to build positions in the short-term.

Schwab Fundamental International Equity ETF (FNDF)

Finally, we round out this list with a fund that’s specifically designed to provide investors with international equity exposure. The Schwab Fundamental International Equity ETF (FNDF) tracks the RAFI Fundamental High Liquidity Developed (ex. U.S.) Large Index. That means that this ETF holds pretty much all fundamentally-sound companies out side the U.S., with nearly 1,000 of the best international stocks tracked by this fund.

In terms of high-quality international exposure, this ETF is probably top of my list right now. In fact, I’m considering adding some exposure personally, due to the investment style incorporated by this ETF (a blended approach tilting toward value).

Many investors are well aware that most global markets trade at valuation discounts to the U.S. Thus, for those betting on international equity outperformance in an era that could be tarnished by U.S.-led tariff uncertainty, this would be a top pick of mine worth considering immediately. 

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