SCHB is the Schwab US Broad Market ETF. It tracks the Dow Jones US Broad Stock Market Index, holding approximately 2,500 US stocks across large, mid, small, and micro-cap companies. The expense ratio is 0.03% as of 2026.

Is SCHB the same as VTI?

SCHB and VTI are very similar — both track broad US stock market indexes at 0.03% expense ratios. VTI tracks the CRSP US Total Market Index and holds ~3,600+ stocks. SCHB tracks the Dow Jones US Broad Stock Market Index and holds ~2,500 stocks. In practice, their returns are nearly identical.

Does SCHB pay dividends?

Yes. SCHB pays quarterly dividends from the dividends of its underlying holdings. The trailing 12-month yield typically ranges from 1.2% to 1.7%, consistent with other broad US equity ETFs.

Is SCHB commission-free at Schwab?

Yes. All Schwab ETFs, including SCHB, are traded commission-free at Charles Schwab. SCHB is also commission-free at most major brokerages.

SCHB ETF 2026 Review — Schwab US Broad Market ETF

The Schwab US Broad Market ETF (ticker: SCHB) is Schwab’s answer to Vanguard’s VTI. It tracks the Dow Jones US Broad Stock Market Index, holds approximately 2,500 US stocks, and costs just 0.03% per year. For investors at Charles Schwab looking for one-fund US equity exposure, SCHB is one of the cleanest options available.

What Is SCHB?

SCHB was launched in November 2009. It is designed to provide broad exposure to the US equity market — large, mid, small, and micro-cap companies — in a single low-cost ETF.

Key SCHB facts (2026):

Metric	Detail
Ticker	SCHB
Expense ratio	0.03%
Index tracked	Dow Jones US Broad Stock Market Index
Number of holdings	~2,500
Dividend frequency	Quarterly
Minimum investment	1 share (or fractional at Schwab)
Exchange	NYSE Arca
Inception date	November 3, 2009

SCHB vs. VTI vs. ITOT

All three ETFs target the broad US stock market at 0.03%:

Feature	SCHB	VTI	ITOT
Issuer	Schwab	Vanguard	iShares (BlackRock)
Expense ratio	0.03%	0.03%	0.03%
Index tracked	Dow Jones US Broad	CRSP US Total Market	S&P Total Market
Holdings	~2,500	~3,600+	~2,500+
Best at	Schwab	Vanguard, anywhere	iShares accounts

Performance difference: Negligible. All three track broad US market indexes and have delivered near-identical returns over any meaningful time period.

How SCHB Is Built

SCHB uses full replication where practical, holding the actual stocks in the Dow Jones US Broad Stock Market Index. Like all broad market ETFs, it is heavily weighted toward large-caps:

Large-cap (top 500 companies): ~80–85% of fund weight
Mid-cap: ~10–12%
Small/micro-cap: ~5–8%

The top holdings mirror those of VOO and VTI — Apple, Microsoft, Nvidia, Amazon, Meta, Alphabet dominate the largest positions.

SCHB’s Historical Performance

SCHB closely tracks US market returns minus its 0.03% expense ratio:

Period	Approximate annualised return
5-year (2021–2025)	~14–16%
10-year (2016–2025)	~12–14%
Since inception (2009–2025)	~14–16%

The strong since-inception figure reflects the long bull market from 2009 onward.

Worked Example: SCHB Cost Savings vs. Higher-Fee Funds

Many actively managed US equity funds charge 0.50%–1.00%. On a $100,000 portfolio over 30 years at 7% growth:

Expense ratio	Annual fee	30-year portfolio value
0.03% (SCHB)	$30/year	~$749,000
0.50% (typical active)	$500/year	~$654,000
1.00% (high-fee active)	$1,000/year	~$574,000

The difference between SCHB and a 0.50% fund: approximately $95,000 over 30 years on a $100,000 starting investment, assuming equal gross returns before fees.

SCHB Dividends

SCHB distributes dividends quarterly. Key facts:

Trailing 12-month yield: typically 1.2%–1.7%
Dividends are qualified for most underlying shares
In a taxable account, dividends are taxed at capital gains rates (0%, 15%, or 20%)
In a Roth IRA or traditional IRA, dividends compound tax-free

Is SCHB Better Than SCHD?

SCHB and SCHD serve different purposes:

SCHB = broad US market (2,500 stocks, lower yield, higher growth potential)
SCHD = high-dividend US stocks (100 stocks, higher yield ~3–4%, value tilt)

Investors building for growth typically use SCHB as a core holding. Investors approaching or in retirement sometimes prefer SCHB + SCHD or SCHD alone for dividend income.

Who Should Buy SCHB?

Schwab account holders who want Schwab’s own ETF ecosystem (SCHB + SCHF for international + SCHZ for bonds)
Long-term investors who want total US equity exposure at the lowest possible cost
Investors comparing VTI and SCHB — both are fine choices; use whichever is most convenient at your broker
Anyone building a simple three-fund portfolio using Schwab’s ETF suite

How to Buy SCHB

Open a Schwab brokerage account (or any major broker)
Search for “SCHB”
Place a market or limit order
SCHB settles in T+1 (one business day)

At Schwab, SCHB is commission-free. At other brokers, ETF trades are typically $0 commission as well.

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Bottom Line

SCHB is one of the most efficient ways to own the US stock market. At 0.03%, it matches VTI and ITOT in cost while tracking a slightly different (but practically identical) broad market index. For Schwab investors who want to stay within the Schwab ETF ecosystem, SCHB is the natural total-market building block.

This article is for educational purposes only and does not constitute personalised investment advice. All investments carry risk, including the possible loss of principal.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy