The Schwab 1000 Index ETF (SCHK) seeks to track the Schwab 1000 Index, which measures the investment return of the 1,000 largest publicly traded U.S. companies by market capitalization. This large-cap equity ETF provides broad exposure to America's biggest corporations across all sectors.
How It Works
SCHK uses a passively managed, market-capitalization-weighted approach that mirrors its benchmark index composition. The fund holds approximately 1,000 stocks in proportion to their market value, with the largest companies receiving the highest allocations. Rebalancing occurs quarterly to maintain alignment with index changes and additions. The portfolio typically concentrates 60-70% of assets in the top 100 holdings while still providing meaningful exposure to mid-sized large-cap companies.
Key Features
- Zero expense ratio makes it one of the lowest-cost broad market ETFs available, saving investors significant fees over time
- Covers the 1,000 largest U.S. companies, providing broader exposure than S&P 500 ETFs while maintaining large-cap focus
- Launched by Schwab in 2017 as part of their ultra-low-cost ETF suite targeting cost-conscious passive investors
Risks
- This ETF can lose value during broad market downturns, potentially declining 30-50% in severe bear markets as large-cap stocks fall
- Large-cap bias means underperformance when small and mid-cap stocks outpace big companies during growth cycles or market recoveries
- Concentration in top holdings creates single-stock risk, as the largest 10 companies typically represent 25-30% of total assets
Who Should Own This
Best suited as a core holding (50-80% of equity allocation) for passive investors with 5+ year time horizons seeking broad U.S. large-cap exposure. Medium risk tolerance required due to equity volatility. Ideal for cost-conscious investors building diversified portfolios or those wanting S&P 500-plus exposure without mid/small-cap complexity.