3 Money Making Schwab ETFs to Buy in June and Hold Forever
Investing
Charles Schwab is known for some of the best investment products in the market today. It offers a wide range of exchange-traded funds to choose from and each of those funds has a strong history of generating significant returns. Schwab offers more than 3,000 ETFs to choose from, each designed with the investor’s needs in mind. Each Schwab ETF is developed by an expert and carries minimal risk.
If you’re thinking of investing in ETFs, here are three Schwab ETFs to buy and hold forever.
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Charles Schwab is known for some of the best ETFs in the market.
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These three ETFs are low-risk, low cost and can generate steady returns.
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Schwab US Dividend Equity ETF
The Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) can be a game-changer for your portfolio. The fund tracks the total return of the Dow Jones U.S. Dividend 100 Index. This means it holds some of the best dividend-paying stocks and generates passive income for investors. It has an expense ratio of 0.06% and has a top-quality stock selection. The overall approach of the fund is to invest in high quality businesses with a strong dividend history.
SCHD has a dividend yield of 3.83% and its trailing dividend growth is 16.69%. The ETF has raised dividends for 13 consecutive years. It holds 103 stocks and its holdings include:
- Energy: 21.08%
- Consumer staples: 19.06%
- Healthcare: 15.68%
- Industrials: 12.45%
As compared to the other tech-heavy ETFs, only invests 7.87% of the fund in the technology sector. Its biggest holdings lie in strong dividend-paying companies including Coca-Cola, Cisco, Pfizer, and Amgen. None of the stocks have a weightage over 5% and its top 10 holdings aren’t loaded with tech companies.
SCHD has an NAV of $26.72 and it is up 3.25% in 12 months. Over the five years, the ETF has risen 51% and while you might not see explosive capital appreciation, SCHD will continue rewarding you with dividends.
Perfect for passive income investors, SCHD has a 3-year annualized return of 12.23% and a 5-year return of 10.58%. If you’d invested $10,000 in the funds in 2015, you’d have $28,263 today.
Schwab U.S. Large-Cap Growth ETF
As the name suggests, the Schwab U.S. Large-Cap Growth ETF (NYSE:SCHG) holds large-cap stocks set for growth. It tracks the Dow Jones U.S. Large-Cap Growth Total Stock Market Index. Several ETFs in the industry are heavily tech-focused and SCHG is no exception.
The ETF invests 44% of the funds into the tech sector and holds the Magnificent Seven. Its top holdings include Apple Inc., Microsoft Corporation, and Nvidia Corporation. The top ten stocks form 54% of the total assets in the fund. Its holdings include:
- Information technology: 44.97%
- Communication services: 12.93%
- Consumer discretionary: 12.55%
- Healthcare: 10.80%
With $40 billion in assets and a low expense ratio of 0.04%, SCHG is an ETF to buy and hold forever. It also has a 30-day SEC yield of 0.4%. SCHG is exchanging hands for $28 and has more than doubled in five years. It is up 10.32% in 12 months and has remained flat in 2025. If you’d invested $10,000 in SCHG in 2015, you’d have $44,299 today.
The fund’s largest holdings include Microsoft Corporation and Nvidia which constitute 21% of the portfolio. It has a 3-year annualized return of 21.09% and a 5-year annualized return of 18.24%.
It remains a stable investment in an uncertain market. If you believe in the future of tech, this is one of the best ETFs to buy.
Schwab U.S. Large-Cap ETF
Schwab U.S. Large-Cap ETF (SCHX) is similar to SCHG but is more diversified. It also invests in large-cap stocks and is tech-focused. The fund tracks the Dow Jones U.S. Large-Cap Total Stock Market Index. However, its allocation in the technology sector is lower than SCHG. The ETF holds 750 stocks with the Magnificent Seven dominating in the top 10. Its holdings include:
- Information Technology: 29.15%
- Financials: 14.85%
- Healthcare:11.07%
- Consumer discretionary: 10.27%
None of the stocks have a weightage over 6% and the top 10 holdings make up 34% of the fund portfolio. Its highest weightage lies in Nvidia and Microsoft Corporation. If you’d invested $10,000 in the fund in 2015, you’d have $33,626 today, that’s over three times the investment. Since the fund focuses on large-cap stocks, you’ll be able to own the biggest companies in the country at little risk.
It has an expense ratio of 0.03% and a 30-day SEC yield of 1.19%. SCHX is exchanging hands for $23 and is up 9.59% in 12 months and 90% in five years. The ETF is up 2.2% year-to-date. In the last five years, the fund has generated 15.68% annualized returns.
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